IMPACTS OF CIRCULAR 40/2021/TT-BTC ON TAX ACCOUNTING OF BUSINESSES OPERATING IN THE FIELD OF DISTRIBUTION OF GOODS

Abstract

On June 1^st, 2021, the Ministry of Finance issued Circular No. 40/2021/TT-BTC guiding value-added tax, personal income tax and tax management for business households and individuals. effective from August 1^st, 2021. This is a new circular with many important changes, affecting tax declaration and reporting activities for business households and individuals, especially in businesses that implement promotional programs - those operating in the field of distribution of goods and implementing promotional programs as authorized by suppliers. This article discusses new points of Circular 40/2021/TT-BTC (effective from August 1^st, 2021) compared with the provisions in Chapters I and II of Circular 92/2015/TT-BTC (expired from August 1^st, 2021) and the effects of this Circular on the organization of tax accounting when businesses conduct promotional activities for business households and individuals. On that basis, the article proposes a number of solutions to help remove difficulties in corporate tax accounting to implement accounting work effectively in accordance with state regulations.