HOW TO CALCULATE PIT OF A YOUTUBER 

OUTLINES

1. Learn about Youtuber

2. Youtuber's PIT obligation.

3.  How to handle with tax evasion of Youtuber .

  With the current development of information technology, it has brought many outstanding benefits to people, especially the social networks that can be exploited and developed, and earn income. Recently, making money from Youtube, Facebook, and Google platforms has been interested by many people. Thus, how about the case of making money from social networking platforms? The following article will help readers understand the necessary information about a profession that is attracting many people as a Youtuber on Youtube platform and whether the income from this platform is subject to personal income tax?

What to know about a Youtuber (Illustration)

1. What to know about a Youtuber

• Youtuber is understood as an individual or organization that creates and produces content in the form of videos shared on the Youtube application and ensures that the video is self-composed, not copied as well as not used images or sounds without permission from the author.
• The video content is very diverse, rich, unlimited, depending on the way of composition which can be about life, social views, etc. When posting these videos on Youtube has become the main source of income for YouTubers ( creators).
• Payment method of Youtube is: When the registered accounts are eligible to be partners of Youtube Partner, Youtubers have the right to make money by uploading videos, if a certain number of viewers is guaranteed, Youtube will pay Youtuber based on the number of views, when reaching the minimum payment limit of $ 100, Youtube will transfer money to you via Western Union and Youtuber can receive money at the Bank.
• The profession of Youtuber attracts a lot of participants, especially today's young people. With creativity, diversity, abundance, investment in image quality, it has attracted millions of viewers that helps the creators earn such a great amount of income.

Youtuber's PIT Obligation

2. Youtuber's PIT Obligation

1. Youtuber's tax declaration obligation

• For individuals with income from Youtube who are subject to personal income tax payment according to regulations, they are obliged to declare and pay personal income tax.
• According to Point c, Clause 5, Article 7 of Decree No. 126/2020/ND-CP guiding individuals to do business with organizations, individuals do not directly declare tax. Organizations are responsible for declaring value-added tax on the entire revenue of business cooperation activities in accordance with the law, regardless of the form of division of business cooperation results, and at the same time declare and pay on their behalf. Personal income tax for individuals doing business.
• Organizations and individuals shall make their own tax declarations corresponding to the actual results of business cooperation in case the organization cooperates with individuals who are business households or business individuals according to Clause 5, Article 51 of the Law on tax management that the organization has business cooperation lines with the current business lines of the individual.
• Thus, for Youtubers who sign contracts with Youtube's partner companies in Vietnam, they will not declare tax themselves as before, but the organization will declare and pay instead.
• For Vietnamese Youtubers who receive money directly from Youtube, they are obliged to declare tax themselves..
• For businesses having revenue from Youtube, they must declare tax according to the regulations on corporate income tax.

2. Tax calculation formula

• Tax payable = Taxable revenue x Tax rate

3. Income tax rate from Youtube

• The case of individuals who have income from Youtube
• According to Circular No. 92/2015/TT-BTC guiding the payment of personal income tax and value added tax for Youtubers as follows:
• Youtubers with income from Youtube under VND 100,000,000/year are not required to pay PIT and VAT.
• Youtubers with an income of over VND 100,000,000/year must pay tax at the rate of 5% Value Added Tax/Taxable Revenue and 2% Personal Income Tax/Taxable Revenue.
• In which, taxable revenue is the amount that the Youtuber receives directly from Youtube or from Youtube's partners in Vietnam.
• From the above regulations, Youtuber will have to pay 7% tax on total revenue, including 2% personal income tax and 5% value added tax.
• In case the business has income from Youtube
• When businesses have income from Youtube, they must declare and pay corporate income tax and value added tax. According to Clause 6, Article 1 of the 2013 Law on Corporate Income Tax, the corporate income tax rate is 20%; According to Article 8 of the Law on Value Added Tax in 2008, 10% value added tax.

3. How to handle in case of Youtuber tax evasion?

1. Administrative sanctions

• On October 15, 2020, the Government issued Decree No. 125/2020/ND-CP stipulating penalties for administrative violations on taxes and invoices. In which, for acts of non-payment of personal income tax, late payment of personal income tax shall be administratively sanctioned:

• In case a Youtuber commits violations of the time limit for submitting tax declaration dossiers beyond the time limit as prescribed by law, he/she will be sanctioned according to Article 13 of Decree No. 125/2020/ND-CP.
• In case a YouTuber commits tax evasion, the fine amount for tax evasion will be from 1 to 3 times the evaded tax amount as prescribed in Article 17 of Decree No. 125/2020/ND-CP. In addition, YouTuber tax evasion is forced to pay the full amount of tax as prescribed.
• In case a Youtuber intentionally declares false income, according to Clause 1, Article 16 of Decree No. 125/2020/ND-CP, a penalty of 20% of the under-declared tax amount or the higher exempted, reduced or refunded tax amount compared to regulations.
• In addition, youtuber must pay the insufficient amount, the tax amount exempted, reduced or refunded is higher than prescribed, and the late payment interest in tax payment to the state budget.

2. Criminal handling

• In case a YouTuber who evades tax is examined for penal liability under Article 200 of the Penal Code 2015, amended and supplemented in 2017 as follows:

• According to clause 1 of this Article:

• Youtubers who commit acts of tax evasion from VND 100,000,000 to under VND 300,000,000 shall be fined from VND 100,000,000 to VND 500,000,000 or be fined from 3 months to 1 year.
• Youtubers who commit acts of tax evasion from VND 100,000,000 or less and have been administratively sanctioned for this act or have been convicted of crimes under this Article but have not yet had their criminal records cleared, shall be subject to a fine of between VND 100,000,000 and VND 100,000,000. 500,000,000 VND or be sentenced to between 3 months and 1 year of imprisonment.

• According to Clause 2 of this Article, Youtuber shall be fined from VND 500,000,000 to VND 1,500,000,000 or imprisoned from 01 to 03 years.
• According to Clause 3 of this Article, Youtuber shall be fined from VND 1,500,000,000 to VND 4,500,000,000 or imprisoned from 02 to 07 years.

➤ More articles:

➤ Declaration and finalization of CIT according to the latest regulations
➤ Some notes for organizations and individuals subject to PIT finalization in 2022.
➤ Cases of issuing income tax documents.
➤ Role of personal income tax.

• Here is the content of some regulations on Instructions on how to calculate personal income tax of Youtuber of Thinh Tri Law Firm to send to readers. If you have any questions, please contact Hotline 1800 6365 for advice.