NOTICE

Update on Tax Regulations Applicable to Household Businesses and Individual Business Owners

 

Dear Valued Customers,

Pymepharco Joint Stock Company ("the Company") would like to extend our sincere greetings and appreciation for your trust and partnership throughout the years. We highly value our cooperation and look forward to continuing to strengthen and develop our relationship in a sustainable manner.

To keep our valued customers informed of the latest tax regulations applicable to household businesses and individual business owners, and to clarify the corresponding tax obligations between our customers and the Company, we would like to notify you of important changes regarding tax declaration and payment requirements as follows:

Starting from 2026, tax administration for household businesses and individual business owners will be implemented under the self-declaration method, replacing the previous presumptive tax method. Detailed regulations are provided under Government Decree No. 68/2026/ND-CP and Circular No. 18/2026/TT-BTC issued by the Ministry of Finance (replacing Circular No. 40/2021/TT-BTC).

Under these regulations, organizations are required to withhold, declare, and pay taxes on behalf of household businesses and individual business owners only in specific circumstances, including:

  • Organizations entering into business cooperation agreements with household businesses or individuals (e.g., jointly operating business locations, service stations, parking facilities, etc.);
  • Organizations entering into real estate lease agreements with household businesses or individuals;
  • Lottery, insurance, and multi-level marketing companies paying commissions, insurance fees, accumulated bonuses, or similar payments to individuals acting as authorized agents under agency agreements;
  • Owners of e-commerce platforms or other digital platforms, whether domestic or foreign, that provide both online ordering and payment processing functions.

Based on the above regulations, payments made by the Company to our customers, including but not limited to sales incentives, promotional support, trade discounts, payment discounts, and other support programs provided in cash or non-cash forms, do not fall within the categories where the Company is required to withhold, declare, and pay taxes on behalf of household businesses or individual business owners.

Accordingly, effective from 2026, the Company will no longer withhold, declare, or pay taxes on behalf of customers for the aforementioned income. Under the current regulations, responsibility for tax declaration and payment related to such income rests with the household business or individual business owner and not with the Company.

To support customers in fulfilling their tax obligations accurately and on time, the Company will provide a monthly notification detailing all applicable incentives, trade discounts, payment discounts, and other support amounts (if any) under approved programs, regardless of whether payment has already been made.

Important Notes

  • For discounts and promotional benefits reflected on invoices (including free-of-charge promotional goods), customers are responsible for consolidating and determining the actual value received in accordance with applicable regulations.
  • For payable amounts with a value of less than VND 10,000, the Company will offset such amounts against existing outstanding balances or against the customer's next purchase order.
  • Customers who have not yet provided bank account information are kindly requested to contact the Company's sales representative in charge as soon as possible to update the required information, ensuring timely and accurate payment processing.

Please refer to the notice below for detailed information regarding the updated tax requirements.

We sincerely thank you for your continued trust and cooperation and look forward to maintaining our long-term partnership.

Yours faithfully,

For and on behalf of PYMEPHARCO Joint Stock Company

Dang Thi Thieu Hoa
Chief Financial Officer (CFO)