Business Registration and Tax Declaration for Insurance Agency Commission Income
RegHub explainer by New MarketerLast updated:
Based on:Nghị định 68/2026/NĐ-CP - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Ho Chi Minh City Tax Department advised that an individual acting as an insurance sales agent receiving commission income does not need to register a household business, as this activity is treated as an individual in business under an agency contract. Under Decree 68/2026/ND-CP, if annual revenue (commissions) does not exceed VND 500 million, no VAT or personal income tax (PIT) is owed. If the threshold is exceeded, the individual must declare and pay tax starting from the quarter in which revenue exceeds VND 500 million. The VND 500 million threshold applies to total commission income received during the year. If the actual amount exceeds the threshold after initially being projected below it, tax filing starts from the quarter of exceedance only.
Tax Declaration for Insurance Agency Commission Income
Responding Authority: Ho Chi Minh City Tax Department
Issue
An individual acting as an insurance sales agent earning commission income alongside their regular salary asked: (1) whether to register a household business, (2) tax filing obligations, (3) how the VND 500 million threshold applies, and (4) what happens if revenue unexpectedly exceeds the threshold.
Legal Basis
- Decree 68/2026/ND-CP on tax policy and tax administration for household businesses and individual business operators
Guidance
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Business registration: No requirement to register a household business for insurance agency activity. This falls under the category of an individual operating under an agency contract.
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VND 500 million threshold: Calculated on total commission (revenue from insurance agency activity) received during the year.
- If ≤ VND 500 million/year: no VAT or PIT obligation
- If > VND 500 million/year: must declare and pay tax
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When revenue unexpectedly exceeds the threshold: Tax filing and payment begin from the quarter in which cumulative revenue exceeds VND 500 million. There is no retroactive obligation from the start of the year.
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Taxable revenue: For insurance agency activity, revenue is the commission income actually received under the agency contract.