Are individuals required to declare tax directly when directly signing contracts to work as insurance agents in Vietnam?

Are individuals required to declare tax directly when directly signing contracts to work as insurance agents in Vietnam?

Are individuals required to declare tax directly when directly signing contracts to work as insurance agents in Vietnam?

Based on point b and point d clause 2 Article 9 of Circular 40/2021/TT-BTC which stipulates the tax calculation in some special cases as follows:

Tax calculation in some special cases

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  1. Individuals directly signing contracts as lottery agents, insurance agents, multi-level sales agents

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b) Individuals directly signing contracts as lottery agents, insurance agents, and multi-level sales agents are not required to directly declare their taxes, except as instructed in point d of this clause. The lottery company, insurer, and multi-level sales enterprise are responsible for tax withholding, declaring, and paying personal income tax if the enterprise determines the commission paid to the individual exceeds 100 million VND within the calendar year. In cases where during the year an individual's revenue is 100 million VND or less at multiple locations, but the individual predicts or determines total revenue to exceed 100 million VND per year, they can authorize the income-paying organization to withhold tax on behalf of the commission collected at the unit during the tax year.

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d) In cases where, during the year, the income-paying organization has not withheld tax due to the threshold not being reached, and the individual has not authorized the organization to withhold tax, by the year's end the individual determines they are subject to tax under the regulations, they must self-declare and pay tax annually.

Thus, individuals will not need to declare tax directly when directly signing contracts to work as insurance agents if the insurer is responsible for withholding and declaring tax, paying personal income tax on behalf of the individual as follows:

+ If the company determines the commission paid to the individual at their unit exceeds 100 million VND within the calendar year.

+ In cases where during the year, an individual's revenue is 100 million VND or less at various places, but the individual projects or determines total revenue to exceed 100 million VND per year, they can authorize income-paying enterprises to withhold tax on the received commission at the unit within the tax year.

Note: If during the year the income-paying organization has not withheld tax due to not reaching the threshold and the individual has not authorized the organization to withhold tax, by the end of the year, if they are required to pay tax according to the regulation, the individual must self-declare and pay the tax annually.

Are individuals not required to self-declare personal income tax when directly signing contracts as insurance agents?

Are individuals required to declare tax directly when directly signing contracts to work as insurance agents in Vietnam? (Image from the Internet)

What does the tax declaration dossier include for enterprises declaring on behalf of individuals working to work as insurance agents in Vietnam?

Based on point a clause 1 Article 15 of Circular 40/2021/TT-BTC which regulates the personal income tax dossier for cases where enterprises declare on behalf of individuals working to work as insurance agents as stipulated in point 9.1 Appendix 1 List of tax declaration dossiers issued together with Decree 126/2020/ND-CP. Specifically:

- Personal income tax declaration form according to form number 01/XSBHĐC issued together with Circular 40/2021/TT-BTC;

- The appendix detailing individuals with revenue from insurance agency activities (declared in the tax declaration dossier of the last month/quarter of the tax year) according to form number 01-1/BK-XSBHĐC issued together with Circular 40/2021/TT-BTC (declaring all individuals with generated revenue in the tax year, regardless of the presence or absence of tax withholding).

What is the deadline for submitting tax declaration dossiers for enterprises declaring on behalf of individuals working to work as insurance agents in Vietnam?

Based on clause 3 Article 15 of Circular 40/2021/TT-BTC which regulates the deadline for submitting tax declaration dossiers as follows:

Tax administration for individuals directly signing contracts as lottery agents, insurance agents, multi-level sales agents, other business activities

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  1. Deadline for submitting tax declaration dossiers

a) The deadline for submitting tax declaration dossiers for lottery companies, insurers, and multi-level sales enterprises is stipulated in clause 1 Article 44 of the Tax Administration Law. Specifically:

a.1) The monthly tax declaration submission deadline for lottery companies, insurers, and multi-level sales enterprises is the 20th of the following month after tax obligations arise.

a.2) The quarterly tax declaration submission deadline for lottery companies, insurers, and multi-level sales enterprises is the last day of the first month of the subsequent quarter immediately following the quarter in which tax obligations arise.

b) The annual tax declaration submission deadline for individuals directly signing contracts as lottery agents, insurance agents, multi-level sales agents, other business activities as stipulated in point a clause 2 Article 44 of the Tax Administration Law is the last day of the first month of the subsequent calendar year.

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Thus, the deadline for submitting tax declaration dossiers for cases where enterprises declare on behalf of individuals working to work as insurance agents is determined as follows:

- The monthly tax declaration submission deadline for insurers is the 20th day of the following month after tax obligations arise.

- The quarterly tax declaration submission deadline for insurers is the last day of the first month of the subsequent quarter immediately following the quarter in which tax obligations arise.

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Are individuals required to declare tax directly when directly signing contracts to work as insurance agents in Vietnam?
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