The Notice specifies that, if a person entering into transport business cooperation contracts with any service provider like Grab Co., Ltd.:
- receives revenue distributed under a cooperation contract plus other revenues generated from any other business activities, which amount to greater than 100 million dong/year (calendar year), he/she must pay taxes.
Example: In case of receiving 96 million dong in the revenue distributed under a contract with Grab plus 8 million dong offered as a bonus on top of such revenue each year, which totals 104 million dong per annum, he/she will have to pay taxes.
- The tax amount payable is composed of VAT and PIT calculated according to the following formulas:
+ VAT = Earned revenue X 3%
+ PIT = Earned revenue X 1.5%
Example: If the earned revenue is 120 million dong per annum, the tax amount payable will be defined as follows:
+ VAT = 120 million dong x 3% = 3.6 million dong.
+ VAT = 120 million dong x 1,5% = 1.8 million dong.
- Other bonuses on top of such revenue:
+ are not subject to VAT.
+ are subject to 1% PIT.
- Rewards for service quality based on star ratings:
+ are not subject to VAT;
+ are subject to 10% PIT if each reward is 2 million dong or more.
Notes:
- Individual taxpayers are not allowed to deduct petrol and vehicle servicing, etc. costs from taxable revenue.
- Individual taxpayers are not entitled to family tax relief credits as such revenue is not deemed as income gained from salaries or wages.
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