Assessment of incomes liable to personal income tax of automobile and motorbike traders using tax imposition method in Vietnam

13:05, 11/05/2010

Recently, the Ministry of Finance issued Circular 71/2010/TT-BTC guiding tax assessment for automobile and motorbike traders that write the prices of automobiles and motorbikes on invoices issued to consumers lower than normal market prices, which stipulates regulations on assessment of incomes liable to personal income tax of automobile and motorbike traders in Vietnam.

Assessment of incomes liable to personal income tax of automobile and motorbike traders using tax imposition method in Vietnam (Internet image)

Article 8 of Circular 71/2010/TT-BTC stipulates as follows:

- For automobile and motorbike traders that arc liable to pay personal income tax (PIT), the payable PIT amount shall be assessed based on the assessed selling price, the quantity of violating vehicles and the percentage of taxable income prescribed by the Ministry of Finance.

- The assessed selling price shall be determined according to the table of minimum prices of automobiles and motorbikes used for registration fee calculation (converted into VAT-exclusive price).

- The PIT-liable income amount shall be assessed as follows:

PIT liable income = Quantity of violating vehicles x Assessed selling price x Percentage of PIT-liable income prescribed by the Finance Ministry

- The payable PIT amount shall be determined under the Law on PIT and its guiding documents.

More details can be found in Circular 71/2010/TT-BTC, which comes into force from June 21, 2010.

Nguyen Phu

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