VietnameseOfficial Dispatch No. 15908/BTC-TCT dated December 26, 2008 of the Ministry of Finance on the taxable income-turnover ratios applicable to business individuals
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Official Dispatch No. 15908/BTC-TCT dated December 26, 2008 of the Ministry of Finance on the taxable income-turnover ratios applicable to business individuals
| Issuing body: | Ministry of Finance | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 15908/BTC-TCT | Signer: | Dang Hanh Thu |
| Type: | Official Dispatch | Expiry date: | Updating |
| Issuing date: | 26/12/2008 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Tax - Fee - Charge |
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THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness --------- |
No. 15908/BTC-TCT Re: on the taxable income-turnover ratios applicable to business individuals | Hanoi, December 26, 2008 |
To: Provincial-level Tax Offices
Pursuant to Article 38 of the Law on Tax Administration and guiding documents; pursuant to Clause 6, Article 10, Chapter II of Law No. 04/2007/QH12 on Personal Income Tax; pursuant to Point 1, Section I, Part B of the Ministry of Finance’s Circular No. 84/2008/TT-BTC of September 30, 2008, guiding the implementation of a number of articles of the Law on Personal Income Tax and guiding the implementation of the Government’s Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax;
The Ministry of Finance issues together with this official letter the Table of fixed taxable income-turnover ratios applicable to business individuals who fail to comply with or fully comply with accounting regulations on the following principles:
1. The Table of fixed taxable income-turnover ratios applicable to business individuals (below referred to as the Table of taxable income ratios) has been formulated for six (6) economic sectors and five (05) geographical regions numbered from I to V.
2. Taxable income ratios prescribed for regions and sectors include floor (minimum) and ceiling (maximum) ratios.
3. Based on the Table of taxable income ratios promulgated by the Ministry of Finance, directors of provincial-level Tax Offices shall, on the basis of the local socio-economic situation, study and issue taxable income ratios applicable in their localities for the sectors specified in the Table, and may neither add sectors nor set ratios higher than ceiling ratios or lower than floor ratios guided by the Ministry of Finance. Particularly for the sector of commodity sale, it may, when necessary, be divided into two wholesale and retail, which must be also subject to ratios within the ratio band (ceiling and floor ratios) guided by the Ministry of Finance.
4. This Table is not applicable to incomes from brokerage commissions in the group of incomes from salary and remuneration specified at Point 2, Section II, Part A of the Ministry of Finance’s Circular No. 84/2008/TT-BTC.
5. For those who do multiple businesses, the ratio of the principal business will apply. If all businesses are principal and cannot be separated, the highest ratio will apply.
Any problems arising in the course of implementation should be reported to the Ministry of Finance (the General Department of Taxation) for study and amendment and supplementation.-
UNDER AUTHORIZATION OF THE MINISTER OF FINANCE GENERAL DIRECTOR OF TAXATION Dang Hanh Thu |
TABLE OF FIXED TAXABLE INCOME-TURNOVER RATIOS APPLICABLE TO BUSINESS INDIVIDUALS
(To the Ministry of Finance’s Official Letter No. 15908/BTC-TCT of December 26, 2008)
No. | Business line | Region I | Region II | Region III | Region IV | Region V |
1 | Agriculture, forestry and fishery; mining; processing and manufacturing industries; production and distribution of electricity, gas, hot water and steam, and air conditioning; water supply; management and treatment of rubbish and wastewater | 8-12 | 7-11 | 5-9 | 4-8 | 6-10 |
Particularly, - Processing, repair, maintenance and installation of machinery and equipment | 20-25 | 18-23 | 14-19 | 12-17 | 16-21 | |
2 | Construction | |||||
- Involving supply of materials | 7-12 | 6-11 | 4-9 | 3-8 | 5-10 | |
- Not involving supply of materials | 15-20 | 14-19 | 12-17 | 11-16 | 13-18 | |
3 | Wholesale and retail; repair of automobiles, mopeds, motorcycles and other motor vehicles | |||||
- Wholesale and retail of commodities | 3-7 | 2.5-5 | 1.5-3 | 1.5.-2 | 2-5 | |
- Sale of gold, silver, gems and motor two-wheelers | 0.5-4 | 0.5-3 | 0.5-2 | 0.5-1.5 | 0.5-2.5 | |
Agency on commission | 32-37 | 30-35 | 22-28 | 18-23 | 28-33 | |
Repair of automobiles, mopeds, motorcycles and other motor vehicles | 22-27 | 20-25 | 16-19 | 13-17 | 18-23 | |
4 | Transportation and warehousing | |||||
Passenger transportation | 12-14 | 11-13 | 9-11 | 9-11 | 10-12 | |
Cargo transportation | 9-14 | 8-13 | 6-11 | 5-10 | 7-12 | |
Lease of warehouses and cargo storage | 25-30 | 23-28 | 19-24 | 17-20 | 21-26 | |
Transportation support services | 30-35 | 28-33 | 22-27 | 18-23 | 26-30 | |
5 | Food services | 20-25 | 18-23 | 13-18 | 10-14 | 16-21 |
Particularly: - Restaurants, pubs and bars | 25-30 | 23-28 | 15-20 | 11-15 | 18-23 | |
6 | Accommodation and other services | |||||
- Lease of houses for use as offices or shops; and lease of houses to foreigners; hotel, rest house and inn business. | 32-37 | 30-35 | 23-28 | 18-23 | 28-32 | |
- Lease of houses to pupils, students and workers; lease of houses to other persons for accommodation | 28-33 | 25-30 | 18-23 | 12-17 | 22-27 | |
- Lease of machinery and equipment (without operators); lease of personal articles, household appliances and other assets | 32-37 | 30-35 | 23-28 | 18-23 | 28-32 | |
- Pawn broking service | 33-38 | 30-35 | 23-28 | 18-23 | 25-30 | |
- Other services | 25-30 | 23-28 | 20-25 | 18-23 | 22-27 |
Notes:
1. The sectors in this Table are determined based on Vietnam’s system of economic sectors promulgated together with the Prime Minister’s Decision No. 10/2007/QD-TTg of January 23, 2007.
2. Geographical regions in this Table are determined based on the Prime Minister’s Decision No. 151/2006/QD-TTg of June 29, 2006, promulgating the limit levels for allocating the 2007 regular state budget expenditure estimate. Specifically:
- Region I: special-grade urban areas, including wards of urban districts of Hanoi and Ho Chi Minh city.
- Region II: urban areas, including wards of urban districts of centrally run cities (excluding wards belonging to Region I) and wards of cities and towns of provinces and centrally run cities (excluding wards belonging to Regions III and IV).
- Region III: low mountainous and deep-lying areas, including:
+ Mountainous communes, wards and townships recognized as mountainous communes under the Ethnic Minorities Committee’s Decision No. 42/UB-QD of May 23, 1997; Decision No. 26/1998/QD-UB of March 18, 1998; Decision No. 21/1998/QD-UBDTMN of February 25, 1998; Decision No. 363/2005/QD-UBDT of August 15, 2005; and Decision No. 01/2007/QD-UBDT of May 31, 2007, and amending and supplementing decisions.
+ Deep-lying communes, wards and townships determined as remote and solitary delta communes facing geographical-location, weather or travel difficulties, far from cultural, political and social centers under Joint Circular No. 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT of January 5, 2005, of the Ministry of Home Affairs, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance and the Ethnic Minorities Committee, where cadres and civil servants are entitled to region-based allowances.
- Region IV: highland and island areas, including:
+ Communes, wards and townships belonging to Region III under the Ethnic Minorities Committee’s decisions, which are recognized as highland communes.
+ Island communes.
- Region V: remaining areas, including communes and townships not mentioned in Regions III and IV.-
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