OFFICIAL LETTER 80371/CT-TTHT DATED 14 DECEMBER 2017 OF HA NOI TAXATION DEPARTMENT GUIDING TAX POLICY FOR SELLING BROKERAGE COST
Official letter 80371/CT-TTHT dated 14/12/2017 of Ha Noi Taxation Department guiding tax policy for selling brokerage cost:
For CIT, from 01/01/2015, selling brokerage costs for third parties shall be limited when determining CIT taxable income. These costs are included in tax expenses if meeting conditions of article 4 Circular 96/2015/TT-BTC.
For PIT, in case, the company signed a contract with individuals for sale brokerage with Korean enterprises doing business in Viet Nam and they enjoy brokerage commission, their income is determined as salary, wage. The company bases the resident status of those regulated by Law on PIT in Viet Nam to withhold PIT of 10% of the income before paying to individuals if the payments from 2.000.000 VND/time (for resident individuals) or 20% of the income before paying (for nonresident individuals).
In case, the brokerage individuals are resident individuals and are employees of the company signs labour contract from 3 months, total brokerage commissions are included in the income of salary, wage of the individuals to conduct PIT obligations and the company withholds as instruction of b.1, point b, clause 1 article 25 Circular 111/2013/TT-BTC.
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