TO APPLY THE TAX RATE OF 7% TO KARAOKE, MASSAGE, BILLIARDS, SHAMPOO AND LAUNDRY SERVICES FROM AUGUST 01
The Ministry of Finance issues the Circular No. 40/2021/TT-BTC providing guidelines on value added tax, personal income tax and tax administration for business households and individuals on June 01, 2021.
Specifically, the value added tax (VAT) rate of 5% and personal income tax (PIT) rate of 2% shall be applied to services of sauna, massage, karaoke, discos, billiards, internet, games; tailoring and laundry services, services of hair cutting, styling and shampoo; other repair services such as repair of computers and household appliances; services of legal consulting, financial consulting, accounting, audit; services of implementation of administrative procedures related to tax and customs, etc.
Besides, leasing properties (including leasing houses, land, stores, factories, warehouses except for accommodation service; leasing means of transport, machines and equipment without drivers; leasing other properties without service) shall be applied the tax rate of 10% at most (including the VAT rate of 5% and PIT rate of 5%)
In addition, business households and individuals with revenues from production and business activities in a calendar year of VND 100 million or less shall be exempted from paying VAT and not be required to pay PIT as prescribed by law provisions on VAT and PIT. Business households and individuals shall make accurate, truthful, and complete tax declarations and submitting tax dossiers on time.
The Circular takes effect from August 01, 2021.
