How to calculate tax for business households when lump-sum tax is abolished

Abolish lump-sum tax, business households and individual businesses calculate tax based on revenue and tax rate calculated on revenue. Photo: Hai Nguyen

According to Article 10 of Circular 40/2021/TT-BTC, even if lump-sum tax is abolished, the basis for calculating tax for business households and individual businesses is still based on taxable revenue and tax rate calculated on revenue. Accordingly:

- Taxable revenue

Revenue subject to value added tax (VAT) and revenue subject to personal income tax (PIT) for business households and business individuals is the revenue including tax (in case of taxable cases) of all sales, processing fees, commissions, and service provision fees arising during the tax period from production and business activities of goods and services.

Including bonuses, sales support, promotions, trade discounts, payment discounts, cash or non-cash support; subsidies, surcharges, extra fees, and additional charges received according to regulations; compensation for breach of contract, other compensation (only included in personal income tax revenue); other revenue that business households and business individuals are entitled to regardless of whether they have collected money or not.

- Tax rate calculated on revenue

+ Tax rates calculated on revenue include VAT rates and personal income tax rates applied in detail to each field and industry according to the instructions in Appendix I issued with Circular 40/2021/TT-BTC.

+ In case a business household or individual conducts business in many fields and professions, the business household or individual shall declare and calculate tax according to the tax rate calculated on revenue applicable to each field and profession.

In case business households and business individuals cannot determine the taxable revenue of each field and profession or determine it inconsistently with business reality, the tax authority shall determine the taxable revenue of each field and profession according to the provisions of the law on tax administration.

Source: https://baoquangninh.vn/cach-tinh-thue-doi-voi-ho-kinh-doanh-khi-bo-thue-khoan-3382053.html