Official Letter No. 1806/DAN-QLDN2 dated October 10, 2025, issued by the Da Nang Tax Department regarding guidance on personal income tax (PIT) declaration for bonuses granted to employees of real estate brokerage floors

In cases where the recipient of the bonus is an individual conducting real estate brokerage business who has obtaineda real estate brokerage practice certificate in accordance with the Law on Real Estate Business, is not an employee of a real estate trading floor service enterprise or a real estate brokerage service enterprise, is not an employee of a real estate trading floor service enterprise or a real estate brokerage service enterprise, and is not an employee of the Company, such individual is required to register for tax and obtain a tax identification number (TIN) by the tax authority before commencing business activities or when obligations to the state budget arise in accordance with Article 30 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 of the National Assembly. Accordingly, when awarding the bonus, the Company is responsible for declaring and paying taxes on behalf of the individual in accordance with Point a, Clause 5, Article 7 of Decree No. 126/2020/NĐ-CP dated October 19, 2020, at the rates of 5% value-added tax (VAT) and 2% PIT based on taxable revenue as prescribed in Appendix I – List of business lines subject to VAT and PIT calculated as a percentage of revenue for business households and individual businesses, issued together with Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Minister of Finance.

In cases where the Company awards bonuses to individuals who are employees of a real estate brokerage floor but are not employees of the Company, and are not registered as business households or individual businesspersons, when making payments of bonuses in kind or in cash (according to the reward policy for agents or sales staff of the real estate brokerage floor) as prescribed at Points c and e, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, the Company is required to withhold PIT at the rate of 10% on income of two million (2,000,000) VND or more per payment, before paying the individual, in accordance with Point i, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

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