PIT Declaration and Payment on Behalf of Individual/Household Businesses Receiving Trade Discounts from 2026
RegHub explainer by New MarketerLast updated:
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The Ho Chi Minh City Tax Department guides a livestock feed manufacturer on its obligations to declare and pay PIT on behalf of individual/household businesses receiving monthly trade discounts tied to sales volumes. The flat-rate household tax regime was abolished from 2026. From the January 2026 tax period, the company can no longer use form 01/CNKD under Circular 40/2021/TT-BTC. Instead, the company must declare and pay tax on behalf of the individual under the provisions of Article 4 of Circular 10/2024/TT-BTC dated 10 February 2024 (effective 1 July 2025).
Tax Authority Guidance
Based on Clause 4, Article 4 of Circular 10/2024/TT-BTC dated 10 February 2024 (effective 1 July 2025) on PIT declaration for individual businesses:
- For individual businesses taxed on a per-transaction basis, the paying organization must withhold, declare, and remit PIT on their behalf.
Based on Clause 1, Article 2 of Tax Administration Law No. 38/2019/QH14:
- Enterprises paying trade discounts to individual/household businesses must declare and pay PIT on their behalf.
Based on Clause 5, Article 8 of Decree 24/2024/ND-CP dated 27 August 2024:
- From the January 2026 tax period, companies must use the new declaration procedure under Circular 10/2024/TT-BTC, and the old Form 01/CNKD under Circular 40/2021/TT-BTC is no longer applicable.
Practical Note
The replacement declaration form applies from the January 2026 period. Companies should contact their managing tax authority for guidance on transitioning to the new declaration method.