On September 24, 2019, Hanoi Tax Department issued Official Letter No. 73973/CT-TTHT. Whereby:
When the Company signs a service contract with experts:
– In case these individuals have an independent business registration or have a tax registration in the form of a business household doing the same business with the service contract, the Company shall not deduct PIT. Individuals must, by themselves, declare and pay PIT to the tax authorities and issue invoices to the Company (if the business individual has an income of more than VND 100 million/year) as prescribed in Circular No. 92/2015/TT-BTC, or the Company must make list of purchased goods and services without invoice according to form No. 01/TNDN (if the business individual has an income of VND 100 million/year or less) according to Article 4 of Circular No. 96/2015/TT-BTC.
– In case individuals do not have an independent business registration nor a tax registration in the form of a business household, the Company shall deduct PIT at the rate of 10% on income before paying the individuals with the total income payment from VND two millions (2,000,000) or more as prescribed in Article 25 of Circular No. 111/2013/TT-BTC.
