Official letter No. 07 4374/CT-TTHT May 16 2013 Ho Chi Minh City Taxation Department on PIT for presumptive contracts
According to official letter No. 4374/CT-TTHT:
An enterprise signs a presumptive economic contract with a representative individual of a team who supply services, if the services must present profession license, business registration license, the team must show allthese licenses to do registration procedures with tax authority so as to declare VAT, PIT and buy invoices from tax authority when the services are completed.
If the enterprise signs contracts with non-business individuals to conduct the works no-needed the licenses under regulations of Law, the enterprise will withhold PIT under regulations of article 1 of Circular No.113/2011/TT-BTC (10% deduction for income from 1,000,000 VND / time or more for individuals having tax code and 20% for individuals without tax code). The enterprise does not need invoices in this case
