Official Letter No. 1105/CT-CS dated 09/05/2025 issued by the Department of Taxation on tax policies for brokerage commission expenses

- Regarding PIT policies:

   + In case an individual does not have a business registration and signs a contract with the Company as prescribed, and is not subject to the application of Article 2 of Circular No. 40/2021/TT-BTC, the individual's income is determined as income from wages and wages as prescribed at Point c, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated 15/08/2013 of the Ministry of Finance; The company is responsible for tax deduction and tax declaration according to the guidance at Point i, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

   + In case an individual who signs a contract with the Company is an individual who satisfies the conditions for traders: individuals conducting commercial activities independently and regularly and having business registration in the form of business households in the same business line with a service contract, the individual's income is determined as income from business as prescribed in Article 2 of Circular No. 40/2021/TT-BTC dated 01/06/2021 of the Ministry of Finance.

Therefore, based on the agreement between the Company and the individual, it is determined that the individual does not register for business or meets the conditions for traders; based on the nature of the signed contract to determine the type of taxable income from business or from salaries and wages as a basis for tax calculation, tax declaration and payment as prescribed.

- Regarding the CIT policy:

For foreign organizations and individuals providing brokerage services: selling goods or providing services to Vietnamese organizations and individuals and these services are performed abroad, they are not subject to contractor tax as prescribed in Clause 4, Article 2 of Circular No. 103/2014/TT-BTC.

In case the Company has brokerage commission expenses, which meet the conditions for inclusion in deductible expenses and are not included in the non-deductible expenses under the CIT law, the Company may include the above-mentioned brokerage expenses in deductible expenses when calculating CIT.

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