What is the Form 01/XSBHDC on personal income tax declaration 2025 for multi-level marketing enterprises in Vietnam?

What is the Form 01/XSBHDC on personal income tax declaration 2025 for multi-level marketing enterprises in Vietnam?

The Personal Income Tax declaration form 01/XSBHDC stipulated in Appendix II issued with Circular 80/2021/TT-BTC will be applicable to multi-level marketing enterprises that pay commissions to individuals who directly sign contracts as agents selling at the correct price according to the guidelines of the Circular on value-added tax, personal income tax, and tax management concerning business households and individual businesses.

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What is the Form 01/XSBHDC on personal income tax declaration 2025 for multi-level marketing enterprises in Vietnam? (Image from the Internet)

What is the instruction for Form 01/XSBHDC on personal income tax declaration 2025 for multi-level marketing enterprises in Vietnam?

[1] Fill in the month, year of the tax period if the enterprise follows monthly personal income tax declarations.

[2] Fill in the quarter, year of the tax period if the enterprise follows quarterly personal income tax declarations.

[3] Check this box with an X if declaring personal income tax for the first time in the tax period (not for supplementary declaration).

[4] Fill in the name of the lottery/insurance/multi-level marketing enterprise making this tax declaration (hereinafter referred to as the taxpayer).

[5] Fill in the full tax code of the lottery/insurance/multi-level marketing enterprise issued by the tax authority.

[6] Fill in the name of the tax agency fully in case the taxpayer has signed a contract with a tax agent to perform tax procedures on behalf of the taxpayer.

[7] Fill in the full tax code of the tax agency (if any).

[8] In this column, the taxpayer fills in the amount arising in the period as instructed in the Indicator column.

[9] The total personal income tax deducted is the total personal income tax deducted from the revenue from lottery agency activities, insurance agency revenues, income from life insurance premium accumulation, other non-mandatory insurance, and revenue from multilevel marketing activities of the taxpayer.

[10] Fill in the place where the taxpayer makes this personal income tax declaration.

[11] Fill in the day, month, year the taxpayer makes this personal income tax declaration.

How do multi-level marketing enterprises declare personal income tax in Vietnam?

Based on Clause 2, Article 9 of Circular 40/2021/TT-BTC which regulates the method for calculating tax in certain specific cases

Tax calculation method for certain specific cases

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2. Individuals directly signing contracts as lottery, insurance, or multilevel marketing agents

a) Individuals directly signing contracts as lottery, insurance, or multilevel marketing agents are those directly signing contracts with lottery companies, insurers, or multilevel marketing companies in the form of selling agencies at the correct price.

b) Individuals directly signing contracts as lottery, insurance, or multilevel marketing agents are not required to directly declare taxes, except as guided in point d of this clause. Lottery companies, insurers, and multilevel marketing companies are responsible for deducting and declaring taxes and submitting personal income tax if the company determines the commission paid to an individual at the unit exceeds 100 million VND in the calendar year. In cases where an individual generates revenue of 100 million VND/year or less at multiple places, and the individual expects or determines the total revenue over 100 million VND/year, they may authorize the income-paying organizations to withhold tax on the commissions received at the unit during the tax year.

c) Lottery companies, insurers, and multilevel marketing companies must declare taxes monthly or quarterly following the legal regulations on tax management and are not required to declare tax finalizations concerning the withholding tax obligation of individuals acting as lottery agents, insurance agents, or multilevel marketing agents.

d) In cases where the income-paying organization has not deducted tax due to not reaching the withholding threshold, and the individual does not authorize the income-paying organization to withhold, by the end of the year, if the individual determines they fall under the category liable for tax payment according to the regulations, the individual must declare and pay taxes annually.

multi-level marketing enterprises are responsible for deducting and declaring taxes, and submitting personal income tax if the enterprise determines the commission paid to an individual at the unit in the calendar year exceeds 100 million VND.

In cases where an individual generates revenue of 100 million VND per year or less at multiple places, and the individual expects or determines total revenue over 100 million VND per year, they may authorize the income-paying organizations to withhold tax on the commissions received at the unit during the tax year.

multi-level marketing enterprises declare taxes monthly or quarterly following the legal regulations on tax management and are not required to declare tax finalizations concerning the personal income tax withholding obligation of individuals acting as multilevel marketing agents.