Circular No. 40/2021/TT-BTC guidelines on VAT, PIT and tax administration for business households

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Circular No. 40/2021/TT-BTC dated June 01, 2021 of the Ministry of Finance providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals
Issuing body: Ministry of FinanceEffective date:
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Official number:40/2021/TT-BTCSigner:Ho Duc Phoc
Type:CircularExpiry date:Updating
Issuing date:01/06/2021Effect status:
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Fields:Commerce - Advertising , Tax - Fee - Charge

SUMMARY

From August 01, 2021, apply tax rates of 7% to karaoke, massage, billiards, shampoo and laundry services

The Ministry of Finance issues the Circular No. 40/2021/TT-BTC providing guidelines on value added tax, personal income tax and tax administration for business households and individuals on June 01, 2021.

Specifically, value added tax (VAT) rate of 5% and personal income tax (PIT) rate of 2% shall be applied to: services of sauna, massage, karaoke, discos, billiards, internet, games; tailoring and laundry services, services of hair cutting, styling and shampoo; other repair services: repair of computers and household appliances; services of legal consulting, financial consulting, accounting, audit; services of implementation of administrative procedures related to tax and customs, etc.

Besides, leasing properties (including leasing houses, land, stores, factories, warehouses except for accommodation service; leasing means of transport, machines and equipment without drivers; leasing other properties without service) shall be applied tax rate of 10% at most (including VAT rate of 5% and PIT rate of 5%)

In addition, business households and individuals with revenues from production and business activities in a calendar year of VND 100 million or less shall be exempted from paying VAT and not be required to pay PIT as prescribed by law provisions on VAT and PIT. Business households and individuals shall make accurate, truthful, and complete tax declarations and submitting tax dossiers on time.

The Circular takes effect from August 01, 2021.

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TTXVN

THE MINISTRY OF FINANCE

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 40/2021/TT-BTC

 

Hanoi, June 1, 2021

 

CIRCULAR

Providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals[1]

 

Pursuant to the November 21, 2007 Law on Personal Income Tax, and the November 22, 2012 Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;

Pursuant to the June 3, 2008 Law on Value-Added Tax, and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Tax Laws;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax;

Pursuant to the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws, and amending and supplementing a number of articles of the Decrees on taxes;

Pursuant to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Taxation;

The Minister of Finance promulgates the Circular providing guidance on value-added tax, personal income tax, and tax administration for business households and business individuals as follows:

 

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides guidance on value-added tax (VAT), personal income tax (PIT), and tax administration for business households and business individuals.

Article 2. Subjects of application

1. Business households and business individuals who are individual residents engaged in production of goods or provision of services in all production and business fields and sectors specified by law, including also:

a/ Independent practitioners in fields and sectors for which they are granted licenses or practice certificates in accordance with law;

b/ Individual fixed-price lottery, insurance or multi-level marketing agents who directly enter into contracts with lottery, insurance or multi-level marketing businesses;

c/ Those who enter into business cooperation with organizations;

d/ Those who are engaged in agricultural production or business, forestry, salt making, aquaculture or fishing but fail to satisfy conditions for tax exemption specified by the laws on VAT and PIT;

dd/ Those engaged in e-commerce activities, including also those who earn income from digital information content products and services in accordance with the law on e-commerce.

2. Business households and business individuals engaged in production or business activities at border markets, border-gate markets or markets in border-gate economic zones in Vietnam’s territory;

3. Asset-leasing individuals;

4. Individuals transferring “.vn” national domain names;

5. Organizations entering into business operation with individuals;

6. Organizations/individuals that make tax declaration and payment on behalf of authorizing individuals;

7. Lottery, insurance or multi-level marketing businesses that pay income to individuals who directly enter into fixed-price lottery, insurance or multi-level marketing agency contracts;

8. Tax offices, state agencies, and other related organizations and individuals.

Article 3. Interpretation of terms

In addition to the terms interpreted in the Law on Tax Administration, Tax Laws and relevant Decrees, a number of other terms referred to in this Circular are construed as follows:

1. “Business household” means a production or business establishment which is registered by an individual or members of a household who take(s) responsibility for business operation of such business household with all of his/her/their assets under Article 79 of the Government’s Decree No. 01/2021/ND-CP of January 4, 2021, on enterprise registration, and guiding, revising or replacing documents (if any). In case members of a household register a business household, they may authorize one among them to act as the business household’s representative. Individuals registering business households and persons authorized by household members to act as business households’ representatives shall act as heads of business households. Households engaged in agricultural production, forestry, fishery or salt making, and low-income street vendors, snack sellers, round-trip traders, itinerary traders, seasonal traders and service providers are required to make business household registration, unless they are engaged in sectors or trades subject to conditional business investment. Provincial-level People’s Committees shall set out low income levels applicable in their localities.

2. “Large-scale business household or business individual” means a business household or business individual that has a turnover and labor scale at least satisfying the highest turnover and labor criteria applicable to micro-enterprises, specifically: business households or business individuals engaged in agriculture, forestry, fisheries, or industry-construction each having an annual average number of at least 10 employees participating in social insurance or a total turnover of at least VND 3 billion in the preceding year; or business households or business individuals engaged in commerce or service provision each having an annual average number of at least 10 employees participating in social insurance or a total turnover of at least VND 10 billion in the preceding year.

3. “Declaration method” means a method of tax declaration and calculation based on a percentage of actual turnover generated on a monthly or quarterly basis.

4. “Business households and business individuals paying taxes by the declaration method” means large-scale business households and business individuals and those not yet satisfying the criteria on large-scale business but choosing to pay taxes by the declaration method.

5. “Method of tax declaration upon turnover generation” means a method of tax declaration and calculation based on a percentage of actual turnover generated each time.

6. “Business individuals paying taxes upon turnover generation” means those engaged in irregular business activities and having no stable business locations.

7. “Presumption method” means a method of tax calculation based on a percentage of presumptive turnover assessed by tax offices in order to calculate presumptive tax amounts specified in Article 51 of the Law on Tax Administration.

8. “Business households and business individuals paying taxes by the presumption method” means those failing to implement or inadequately implementing accounting, invoice and document regimes, unless business households and business individuals pay taxes by the declaration method and business individuals pay taxes upon turnover generation.

9. “Presumptive tax amounts” means tax amounts and other amounts treated as state budget revenues payable by business households and business individuals paying taxes by the presumption method as assessed by tax offices under Article 51 of the Law on Tax Administration.

10. “Organizations in business cooperation with individuals” means organizations entering into agreements with individuals on contribution of assets and labor for performance of production or business activities, enjoyment of profits and sharing of liabilities under Article 504 of the November 24, 2015 Civil Code and relevant guiding, revising or replacing documents (if any).

11. “E-commerce activities” means performance of part or the whole of the process of commercial activities by electronic devices connected to the Internet, mobile telecommunications networks or other open networks under Clause 1, Article 3 of the Government’s Decree No. 52/2013/ND-CP of May 16, 2013, on e-commerce, and relevant guiding, revising or replacing documents (if any).

12. “Digital information content products” means information content products, including documents, data, images and sounds, which are digitally created, stored and transmitted in the cyber environment as specified in Clause 11, Article 3 of the Government’s Decree No. 71/2007/ND-CP of May 3, 2007, detailing and guiding the implementation of a number of articles of the Law on Information Technology regarding information technology industry, and relevant guiding, revising or replacing documents (if any).

13. “Digital information content services” means services provided in the cyber environment to directly support and serve the production, exploitation, distribution, upgrading, warranty and maintenance of digital information content products and other similar activities related to digital information contents as specified in Clause 12, Article 3 of the Government’s Decree No. 71/2007/ND-CP of May 3, 2007, and relevant guiding, revising or replacing documents (if any).

14. “Tax Branches” include Tax Branches and regional Tax Branches.

15. “Databases of tax offices” include centralized integrated information systems of the tax sector; results of verification and survey of production and business factors; results of tax examination and inspection; and exclusive databases. Production and business factors subject to verification and survey include: labor costs; electricity, water and telecommunications charges; warehouse, storing yard and business ground rentals; management expenses; and other expenses.

16. “Exclusive database” means a database developed, managed and exclusively used by a tax office for a locality.

 

Chapter II

TAX CALCULATION PRINCIPLES, METHODS AND BASES FOR BUSINESS HOUSEHOLDS AND BUSINESS INDIVIDUALS

Article 4. Tax calculation principles

1. Tax calculation principles applicable to business households and business individuals must comply with the current laws on VAT and PIT and relevant legal documents.

2. Business households and business individuals that generate a turnover of up to VND 100 million from production and business activities in a calendar year will be exempt from VAT and PIT in accordance with the laws on VAT and PIT. Business households and business individuals shall make accurate, truthful and adequate tax declarations and submit their tax dossiers within a law-specified time limit, and take responsibility before law for the accuracy, truthfulness and adequacy of their tax dossiers under regulations.

3. For business households and business individuals that carry out business activities in groups, the turnover level of up to VND 100 million per year for identifying an individual exempt from VAT and PIT shall be determined for the sole (1) representative of the group of individuals or households in the tax year.

Article 5. Tax calculation method for business households and business individuals paying taxes by the declaration method

1. The declaration method applicable to large-scale business households and business individuals and those not yet satisfying criteria on large-scale business but choosing to pay taxes by the declaration method.

2. Business households and business individuals paying taxes by the declaration method shall make monthly tax declarations, except those having just commenced their business operation and those satisfying criteria for quarterly tax declaration and choosing to make quarterly tax declarations under Article 9 of the Government’s Decree No. 126/2020/ND-CP of October 19, 2020.

3. If declared taxable turnover amounts of business households and business individuals paying taxes by the declaration method are different from their actually generated ones, tax offices shall assess taxable turnover amounts for such households and individuals under Article 50 of the Law on Tax Administration.

4. Business households and business individuals paying taxes by the declaration method shall implement accounting, invoice and document regimes. Business households and business individuals engaged in business sectors or trades, for which they have grounds for determining their turnover amounts as certified by competent agencies, are not required to implement the accounting regime.

5. Business households and business individuals paying taxes by the declaration method are not subject to tax finalization.

Article 6. Tax calculation method for business individuals paying taxes upon turnover generation

1. The method of tax declaration upon turnover generation is applicable to individuals carrying out irregular business activities and having no stable business locations. Irregular business is determined by business individuals depending on characteristics of their production or business activities in each field, sector or trade in order to choose a tax declaration method under the guidance provided in this Circular. Stable business locations are places where individuals carry out their production or business activities, such as transaction points, shops, stores, workshops, warehouses, landing stages, storing yards, or other similar locations.

2. Business individuals paying taxes upon turnover generation include:

a/ Individuals carrying out itinerary business activities;

b/ Individuals being private construction contractors;

c/ Individuals transferring “.vn” national domain names;

d/ Individuals earning income from digital information content products or services and not choosing to pay taxes by the declaration method.

3. Business individuals paying taxes upon turnover generation are not required to implement the accounting regime but shall archive invoices, documents, contracts and dossiers proving lawful goods and services and produce them together with tax declaration dossiers upon turnover generation.

4. Business individuals paying taxes upon turnover generation shall make tax declarations as soon as taxable turnover amounts are generated.

Article 7. Tax calculation method for business households and business individuals paying taxes by the presumption method

1. The presumption method is applicable to business households and business individuals other than those paying taxes by the declaration method or the method of tax payment upon turnover generation under the guidance provided in Articles 5 and 6 of this Circular.

2. Business households and business individuals paying taxes by the presumption method (presumptive tax-applying households) are not required to implement the accounting regime. Presumptive tax-applying households that use retailed invoices shall archive and produce to tax offices invoices, documents, contracts and dossiers proving lawful goods or services when requesting issuance or retail of invoices upon turnover generation. Particularly, presumptive tax-applying households that carry out business activities in border markets, border-gate markets or markets in border-gate economic zones in Vietnam’s territory shall archive invoices, documents, contracts and dossiers proving lawful goods or services and produce them upon request of competent state management agencies.

3. Presumptive tax-applying households having carried out business activities for less than a full year (less than full 12 months of a calendar year) include those having just commenced their business activities, those carrying out regular business activities on a seasonal basis, and those having terminated or suspended their business activities. For a presumptive tax-applying household that has carried out business activities for less than a full year, the turnover level of up to VND 100 million per year for determining that it is exempt from VAT and PIT is the PIT-liable turnover amount of one calendar year (12 months); and its actual taxable turnover amount for determination of its payable presumptive tax amount for the year is the turnover amount generated in the months of actual business activities.

Example 1: Mr. A commences his business activities in April 2022, and is expected to generate a presumptive turnover of VND 90 million for 9 months of actual business activities (an average of VND 10 million/month), then his turnover amount for one year (12 months) will be VND 120 million (> VND 100 million). So, he is obliged to pay VAT and PIT for his actual turnover amount of VND 90 million generated from April 2022.

4. Presumptive tax-applying households that make annual tax declarations under Point c, Clause 2, Article 44 of the Law on Tax Administration shall pay taxes within time limits stated in tax payment notices of tax offices under Clause 2, Article 55 of the Law on Tax Administration. In case presumptive tax-applying households use invoices issued or retailed by tax offices, they shall declare and pay taxes separately for generated turnover amounts stated in such invoices upon turnover generation.

Article 8. Tax calculation method for cases in which organizations/individuals declare and pay taxes on behalf of authorizing individuals

1. An organization/individual shall declare and pay taxes on behalf of an authorizing individual in the following cases:

a/ The organization rents assets of the individual and the asset rent contract has an agreement that the lessee is the taxpayer;

b/ The organization enters into business cooperation with the individual;

c/ The organization pays bonuses and support amounts for achievement of sales turnover targets, sales promotion, commercial discounts, payment discounts, provides supports in cash or in kind, and pays compensations for contract breaches or other compensations for the presumptive tax-applying household;

d/ The Vietnam-based organization being a partner of an overseas digital platform provider (without a resident establishment in Vietnam) pays income earned from digital information content products or services to the individual under an agreement with such provider;

dd/ The organization being the owner of an e-commerce trading floor declares and pays taxes on behalf of the authorizing individual according to a schedule set by a tax office. Pending the tax declaration and payment made on behalf of the authorizing individual, the organization being the owner of an e-commerce trading floor shall provide information related to business activities carried out by the individual on the floor upon request of the tax office in accordance with law, such as full name; personal identification number or serial number of the people’s identity card or citizen identity card or passport; tax identification number; address; email; contact telephone number; goods or services to be provided by; business turnover; and bank account of the seller; and other related information;

e/ The organization/individual declares and pays taxes on behalf of the authorizing individual in accordance with the civil law.

2. An organization/individual that declares and pays taxes on behalf of an authorizing individual under the guidance provided in Clause 1 of this Article shall do so as follows:

a/ In case of making tax declaration and payment on behalf of the authorizing individual under the guidance provided at Point a, Clause 1 of this Article, the organization shall make tax declaration and payment on a monthly or quarterly basis or upon turnover generation in a tax payment period or calendar year in accordance with the law on tax administration.

b/ In case of making tax declaration and payment on behalf of the authorizing individual under the guidance provided at Point b, c, d or dd, Clause 1 of this Article, the organization shall make tax declaration and payment on a monthly or quarterly basis in accordance with the law on tax administration.

c/ In case of making tax declaration and payment on behalf of the authorizing individual under the guidance provided at Point e, Clause 1 of this Article, the organization/individual shall make tax declaration and payment in accordance with the law on tax administration for the authorizing individual.

3. If in a year an individual generates a turnover amount of up to VND 100 million in many locations, and expects or can determine a total turnover amount of over VND 100 million per year, he/she may authorize the income-paying organization to declare and pay taxes on his/her behalf for turnover amounts generated at the authorized organization in the tax year. Particularly for presumptive tax-applying households that receive bonuses and support amounts for achievement of sales turnover targets, sales promotion, commercial discounts, payment discounts, supports provided in cash or in kind, compensations for contract breaches or other compensations in addition to their presumptive turnover amounts, income-paying organizations shall declare and pay taxes on their behalf based on the amounts actually paid in the tax year. In case an organization declares and pays taxes on behalf of an asset-leasing individual, the determination of the turnover level of up to VND 100 million per year to identify individuals exempt from taxes must comply with the guidance provided at Point c, Clause 1, Article 9 of this Circular.

Article 9. Tax calculation method applicable to a number of special cases

1. For asset-leasing individuals

a/ Asset-leasing individuals means individuals who generate turnover from lease of assets, including houses, grounds, shops, workshops, warehouses and storing yards without accommodation services; means of transport, machinery and equipment without operators; and other assets not accompanied with services. Accommodation services not included in asset lease activities under the guidance provided in this Clause include provision of short-term accommodations for tourists and other walk-in guests; provision of long-term accommodations other than apartments for students, workers and similar subjects; and provision of accommodations accompanied with catering services or means of entertainment.   

b/ Asset-leasing individuals shall make tax declaration upon turnover generation in a tax payment period (turnover generation in a tax payment period shall be determined depending on the time of commencement of lease term in such period) or on a calendar year basis. They shall make tax declaration for each contract or multiple contracts in the same declaration form if assets are leased in geographical areas managed by the same tax office.

c/ For asset-leasing individuals that generate turnover for less than full 12 months of a calendar year (even in case they have more than one lease contract), the turnover level of up to VND 100 million per year for identifying that they are exempt from VAT and PIT is the PIT-liable turnover amount of a calendar year (12 months). The actual taxable turnover amount for determination of a payable tax amount for the year is the turnover amount generated in months when assets are actually leased.

Example 2: Mr. B enters a house lease contract with an agreement on the payable rental of VND 10 million per month for the period from October 2022 through September 2023. So, his actual turnover amounts to be generated in 2022 and 2023 are VND 30 million and VND 90 million, respectively, but the total turnover amount calculated for 12 months of 2022 or 2023 is VND 120 million. Therefore, he is obliged to pay VAT and PIT for his actual turnover amounts generated in 2022 and 2023 under the above contract. 

d/ In case the asset lessee pays rentals in advance for many years, the asset-leasing individual shall declare and pay taxes in lump sum for the whole turnover amount paid in advance. The tax amount to be paid in lump sum is the total of payable tax amounts for calendar years of lease under regulations. In case of a change in contents of the asset rent contract leads to a change in taxable turnover, tax payment period or rent term, the asset-leasing individual shall declare the modification or supplementation in accordance with the Law on Tax Administration for the tax period when the change is made. 

2. For individuals directly entering into contracts to act as lottery, insurance or multi-level marketing agents

a/ Individuals directly entering into contracts to act as lottery, insurance or multi-level marketing agents are those who directly enter into contracts with lottery, insurance or multi-level marketing businesses to act as fixed-price sale agents.

b/ Individuals directly entering into contracts to act as lottery, insurance or multi-level marketing agents are not required to directly declare taxes, except the case specified at Point d of this Clause. Lottery, insurance or multi-level marketing businesses shall withhold, declare and pay PIT if they determine that the total commission amount they have paid to individuals in a calendar year exceeds VND 100 million. In case an individual generates a turnover amount of up to VND 100 million in a year in many locations, and expects or can determine a total turnover amount of over VND 100 million per year, he/she may authorize income-paying organizations to withhold tax on commission amounts he/she receives in the tax year. 

c/ Lottery, insurance or multi-level marketing businesses shall declare taxes on a monthly or quarterly basis in accordance with the law on tax administration and are not required to declare tax finalization for their obligation to withhold PIT of individuals acting as lottery, insurance or multi-level marketing agents.

d/ In case an income-paying organization makes no PIT withholding in the year for the fact that the payable income amount is not high enough for PIT withholding and the individual does not authorize the income-paying organization to withhold PIT, and, by the year end, the individual is identified to be obliged to pay PIT under regulations, he/she shall declare and pay PIT on an annual basis. 

Article 10. Tax bases

Tax bases for business households and business individuals are taxable turnover amounts and tax rates calculated on turnover amounts.

1. Taxable turnover amounts

Turnover amounts liable to VAT and those liable to PIT for business households and business individuals are tax-inclusive turnover amounts (in case such amounts are liable to taxes) generated in a tax period, including sales turnover, processing remuneration, commissions, and charges for service provision from goods production and service provision activities, including also bonuses and support amounts for achievement of sales turnover targets, sales promotion, commercial discounts, payment discounts, supports in cash or in kind; price subsidies, surcharges, extra charges and additional levies generated by such households and individuals under regulations; compensations for contract breaches and other compensations (only included in PIT-liable turnover amounts), and other turnover amounts generated by such business households and individuals, regardless of whether such amounts have been collected or not.

2. Tax rates calculated on turnover amounts

a/ Tax rates calculated on turnover amounts include VAT rates and PIT rates applicable to different fields, sectors and trades as specified in Appendix I to this Circular.

b/ In case a business household or business individual is engaged in different fields, sectors or trades, it/he/she shall declare and calculate taxes at rates calculated on turnover amounts applicable to such fields, sectors or trades. In case a business household or business individual cannot determine the taxable turnover amount in each field, sector or trade or has determined such amount not in conformity with the practical business activities, a tax office shall assess the taxable turnover amount of each field, sector or trade in accordance with the law on tax administration. 

3. Determination of payable tax amounts

Payable VAT amount = VAT-liable turnover amount x VAT rate

Payable PIT amount = PIT-liable turnover amount x PIT rate

In which:

- VAT-liable turnover amount and PIT-liable turnover amount shall be determined under the guidance provided in Clause 1 of this Article.

- VAT rate and PIT rate must comply with the guidance provided in Appendix I to this Circular.

Chapter III

TAX ADMINISTRATION FOR BUSINESS HOUSEHOLDS AND BUSINESS INDIVIDUALS

Article 11. Tax administration for business households and business individuals paying taxes by the declaration method

1. Tax declaration dossiers

A tax declaration dossier for a business household or business individual paying taxes by the declaration method specified at Point 8.2 of Appendix I - List of documents in a tax declaration dossier, to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

a/ A tax return applicable to business households and business individuals, made according to Form No. 01/CNKD provided together with this Circular;

b/ An annex on the list of business activities in the tax period of the business household or business individual (applicable to business households and business individuals paying taxes by the declaration method), made according to Form No. 01-2/BK-HDKD provided together with this Circular. Such annex is not required in case the business household or business individual paying taxes by the declaration method has grounds to determine its/his/her turnover amounts as certified by a competent agency.

2. Submission of tax declaration dossiers

Tax declaration dossiers of business households and business individuals paying taxes by the declaration method specified in Clause 1, Article 45 of the Law on Tax Administration shall be submitted at Tax Branches in the localities where such business households and business individuals carry out production and business activities.

3. Deadlines for submission of tax declaration dossiers

Deadlines for submission of tax declaration dossiers of business households and business individuals paying taxes by the declaration method are provided in Clause 1, Article 44 of the Law on Tax Administration, specifically as follows:

a/ The deadline for submission of tax declaration dossiers of business households and business individuals paying taxes by the monthly declaration method is the 20th of the month following the month when the tax liability arises.

b/ The deadline for submission of tax declaration dossiers of business households and business individuals paying taxes by the quarterly declaration method is the last day of the first month of the quarter following the quarter when the tax liability arises.

4. Deadlines for tax payment

Deadlines for tax payment by business households and business individuals paying taxes by the declaration method must comply with Clause 1, Article 55 of the Law on Tax Administration, specifically as follows: The deadline for tax payment is the deadline for submission of tax declaration dossiers. In case of supplementation of a tax declaration dossier, the deadline for tax payment is the deadline for submission of the tax declaration dossier containing errors or omissions of the tax period.

5. Tax declaration obligation in case of suspension of operation or business activities

In case a business household or business individual suspends its/his/her operation or business activities, it/he/she shall notify such suspension to a tax office under Article 91 of the Government’s Decree No. 01/2021/ND-CP of November 4, 2021; Article 4 of the Government’s Decree No. 126/2020/ND-CP of October 19, 2020; and Article 12 of the Ministry of Finance’s Circular No. 105/2020/TT-BTC of December 3, 2020, providing guidance on tax registration, and is not required to submit a tax declaration dossier, unless it/he/she has suspended its/his/her operation or business activities for less than a full month in case of monthly tax declaration or for less than a full quarter in case of quarterly tax declaration.

Article 12. Tax administration for business individuals paying taxes upon turnover generation

1. Tax declaration dossiers

A tax declaration dossier of a business individual paying taxes upon turnover generation specified at Point 8.3 of Appendix I - List of documents in a tax declaration dossier, to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

a/ A tax return applicable to business households and business individuals, made according to Form No. 01/CNKD provided together with this Circular;

b/ Documents accompanying the dossier for tax declaration upon turnover generation, including:

- A copy of the economic contract on goods or service provision;

- A copy of the minutes of pre-acceptance test and contract liquidation;

- A copy of the document proving origin of goods, such as a list of purchased domestic agricultural products; a list of imported goods purchased or exchanged by border residents; invoices issued by sellers for imported goods purchased from domestic traders; or a relevant document proving origin of goods produced by the business individual himself/herself;

The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

2. Places for submission of tax declaration dossiers

Places for submission of tax declaration dossiers of business individuals paying taxes upon turnover generation are provided in Clause 1, Article 45 of the Law on Tax Administration, specifically as follows:

a/ Business individuals engaged in itinerary business activities shall submit their tax declaration dossiers at their managing Tax Branches in the localities where they carry out business activities.

b/ Business individuals earning income from digital information content products or services shall submit their tax declaration dossiers at their managing Tax Branches in the localities where they (permanently or temporarily) reside.

c/ Business individuals earning income from transfer of “.vn” national domain names shall submit their tax declaration dossiers at Tax Branches in the localities where they reside. Transferors being non-resident individuals shall submit their tax declaration dossiers at the tax office directly managing the organization managing “.vn” national domain names. 

d/ Business individuals being private construction contractors shall submit their tax declaration dossiers at their managing Tax Branches in the localities where they carry out construction activities.

3. Deadline for submission of tax declaration dossiers

The deadline for submission of tax declaration dossiers of business individuals paying taxes upon turnover generation as specified in Clause 3, Article 44 of the Law on Tax Administration is the 10th after the tax liability arises.

4. Deadlines for tax payment

The deadline for tax payment by business individuals paying taxes upon turnover generation is provided in Clause 1, Article 55 of the Law on Tax Administration, specifically as follows: The deadline for tax payment is the deadline for submission of tax declaration dossiers. In case of supplementation of a tax declaration dossier, the deadline for tax payment is the deadline for submission of the tax declaration dossier containing errors or omissions of the tax period.

Article 13. Tax administration for presumptive tax-applying households

1. Bases for determination of presumptive tax amounts for presumptive tax-applying households

Bases for determination of the presumptive tax amount for a presumptive tax-applying household include:

a/ A tax declaration dossier made by the household itself based on its expected turnover amount and presumptive tax amount of the tax year;

b/ The tax office’s database;

c/ Advices of the commune, ward or township tax advisory council;

d/ Results of information disclosure and feedback received from the commune, ward or township tax advisory council, People’s Committee, People’s Council and Fatherland Front Committee, the household, and other related organizations and individuals.

Disclosure of information on a presumptive tax-applying household means publicization of, and receipt of feedback about, presumptive turnover and tax amounts of such household by a tax office under regulations. First-time information disclosure under Clause 5 of this Article is for reference and solicitation of opinions on projected presumptive turnover and tax amounts, while second-time information disclosure under Clause 9 of this Article is for reference and solicitation of opinions on official presumptive turnover and payable tax amounts of a tax year. Disclosure of information on a household payable covers public posting of information in paper documents in the locality; sending of information directly to the household; sending of information directly to the district and commune, ward or township People’s Councils, People’s Committees and Fatherland Front Committees; and posting of information on the website of the tax sector. 

2. Tax declaration dossiers

a/ From November 20 to December 5 every year, tax offices shall distribute tax return forms for the following year to all presumptive tax-applying households.

b/ Tax declaration dossiers for presumptive tax-applying households as specified at Point 8.1 of Appendix I - List of documents in a tax declaration dossier, to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, are tax returns applicable to business households and business individuals, made according to Form No. 01/CNKD provided together with this Circular.

c/ In case a presumptive tax-applying household uses invoices issued or retailed upon turnover generation by a tax office, when making tax declarations for turnover amounts stated in retailed invoices, it shall make tax declarations upon turnover generation and use tax returns applicable to business households and business individuals, made according to Form No. 01/CNKD provided together with this Circular, and concurrently produce and enclose its tax declaration dossier with the following documents:

- A copy of the economic contract on goods or service provision in the same sector or trade with its business activities;

- A copy of the minutes of pre-acceptance test and contract liquidation;

- A copy of the document proving origin of goods, such as a list of purchased domestic agricultural products; a list of imported goods purchased or exchanged by border residents; invoices issued by sellers for imported goods purchased from domestic traders; or a relevant document proving origin of goods produced by the business individual himself/herself;

The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

3. Deadline for submission of tax declaration dossiers

The deadline for submission of tax declaration dossiers of presumptive tax-applying households as specified at Point c, Clause 2, or Clause 3, Article 44 of the Law on Tax Administration is as follows:

a/ The deadline for submission of tax declaration dossiers of presumptive tax- applying households is December 15 of the year preceding the tax year.

b/ For presumptive tax-applying households that have just commenced their business activities (including also those shifting to pay taxes by the presumption method) or those shifting to pay t axes by the declaration method or those changing their sectors or trades or those changing scale of their business activities within the year, the deadline for submission of tax declaration dossiers is the 10th day after they commence their business activities, or change the tax calculation method, their sectors trades, or scale of their business activities.

c/ The deadline for submission of tax declaration dossiers of presumptive tax- applying households that use invoices issued or retailed upon turnover generation by tax offices is the 10th day after the households generate turnover amounts requiring invoices.

4. Determination of turnover and presumptive tax amounts

a/ Determination of turnover and presumptive tax amounts

a.1/ Turnover and presumptive tax amounts shall be calculated for every calendar year or month for those engaged in seasonal business activities which remain stable in a year.

a.2/ Presumptive tax-applying households shall calculate by themselves their turnover amounts for calculation of presumptive tax in a year in their tax returns made according to Form No. 01/CNKD provided together with this Circular. In case a presumptive tax-applying household is unable to determine its presumptive turnover and fails to submit a tax declaration dossier or its turnover amount for calculation of presumptive tax is determined not based on its practical business activities, the tax office shall assess its presumptive turnover and determine a presumptive tax amount under Article 51 of the Law on Tax Administration.

a.3/ Based on tax declaration dossiers of presumptive tax-applying households and databases of tax offices, public opinions and opinions of tax advisory councils shall be collected to serve as a basis for the provincial-level Tax Departments to direct and review the making of tax registers by Tax Branches.

b/ Adjustment of presumptive turnover and tax amounts

For a presumptive tax-applying household that requests adjustment of its presumptive turnover and tax amounts in a year for the reason that its business activities have been changed, the tax office shall adjust its presumptive tax amount under Clause 3, Article 51 of the Law on Tax Administration from the time of change occurrence, specifically as follows:

b.1/ If the household changes the scale of its business activities (area of the business location, number of employees, or turnover), it shall make modifications or additional declarations in its tax return according to Form No. 01/CNKD provided together with this Circular. In case the tax office, based on the tax declaration dossier of the household and its own database, sees that the actual presumptive turnover amount increases or decreases by 50% or more of the assigned presumptive turnover amount, it shall issue a notice (according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020) of adjustment of the presumptive tax amount from the time of occurrence of a change in the tax year. In case the tax office, based on its database and figures obtained through verification, examination and inspection, has grounds to determine that the household fails to satisfy conditions for adjustment of the presumptive tax amount under regulations, it shall issue a notice on refusal to adjust the presumptive tax amount according to Form No. 01/TBKDC-CNKD provided together with this Circular.

b.2/ If the household changes its business location, it shall change tax registration information under regulations and carry out procedures for tax declaration at the new location as for presumptive tax-applying households that have just commenced business activities. The tax office shall base itself on the dossier on change of tax registration information to handle the case under regulations. The household-managing tax office in the new business location of the household shall process the tax declaration dossier as for presumptive tax-applying households that have just commenced business activities. The household-managing tax office in the old business location of the household shall issue a notice (according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020) of reduction of the presumptive tax amount from the time of change occurrence in the tax year.

b.3/ If the household changes its sector, trade or field (even in case the tax rate is not changed), it shall carry out procedures for change of its tax declaration information under regulations (in case of change of business sector, trade or field as compared to the initial tax registration) and, at the same time, make modifications or additional declarations in its tax return according to Form No. 01/CNKD provided together with this Circular. The tax office shall base itself on results of processing of the dossier on change of tax registration information (if any), the tax declaration dossier, and its own database to issue a notice (according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020) of adjustment of the presumptive tax amount (if any) to suit the reality from the time of change occurrence in the tax year.

b.4/ If the household terminates or suspends its business activities, it shall notify such termination or suspension under Article 4 of the Government’s Decree No. 126/2020/ND-CP of October 19, 2020. The tax office shall base itself on the notice of the household or a competent state agency specified in Article 37 of the Law on Tax Administration to adjust the presumptive tax amount, specifically as follows:

b.4.1/ In case the household has received a notice of approval of business termination: If it terminates its business activities from the first day of a calendar month, its presumptive tax amount shall be zeroed out from the month of business termination; if it terminates its business activities at any time during the period from the 2nd to the 15th of a calendar month, its presumptive tax amount for the month of business termination shall be reduced by 50% and presumptive tax amounts for the subsequent months shall be zeroed out; if it terminates its business activities at any time from the 16th of a calendar month, its presumptive tax amount for the month of business termination shall not be reduced while presumptive tax amounts for the subsequent months shall be zeroed out.

b.4.2/ In case the household has received a notice of approval of business suspension: If it suspends its business activities for a whole month of a calendar year, its presumptive tax amount for such month shall be zeroed out; if it suspends its business activities for 15 consecutive days or more of a month of a calendar year, its payable presumptive tax amount for such month shall be reduced by 50%.

b.4.3/ The period of business termination or suspension shall be determined according to the taxpayer’s notice. In case the taxpayer terminates or suspends its business activities while not issuing a notice or being late in issuing a notice of business termination or suspension (even in case of a force majeure event as specified by law), the tax office shall base itself on results of actual verification to determine the period of business termination or suspension.

b.5/ In case the household terminates or suspends its business activities at the request of a competent state management agency, the tax office shall base itself on the written request for termination or suspension of such competent state management agency to adjust the presumptive tax amount to suit the reality for the period requested for business termination or suspension.

b.6/ In case the household shifts to pay taxes by the declaration method, it shall make modifications or additional declarations in its tax return according to Form No. 01/CNKD provided together with this Circular. The tax office shall base itself on the modified or supplemented tax return to reduce the presumptive tax amount for the period subject to the shifting.

5. First-time public posting of information

Tax offices shall carry out first-time public posting of information for solicitation of opinions on projected turnover and presumptive tax amounts. Documents put for first-time public posting include the list of presumptive tax-applying households exempt from VAT and PIT; and list of presumptive tax-applying households liable to pay taxes. First-time public posting of information shall be carried out as follows:

a/ Tax Branches shall carry out first-time public posting of information at single-window divisions of Tax Branches and district-level People’s Committees; at doors, gates or locations convenient for accessing information, appropriate locations of head offices of Peoples Committee of communes, wards or townships; head offices of Tax Teams, or market management boards for supervision by people and presumptive tax-applying households. First-time public posting of information lasts from December 20 to December 31 every year.

b/ Tax Branches shall send documents for first-time public posting of information to People’s Councils and Fatherland Front Committees of urban districts or rural districts and communes, wards or townships no later than December 20 every year, clearly stating addresses and time for Tax Branches to receive feedback (if any) from the latter. The deadline for Tax Branches to receive feedback (if any) is December 31.

c/ No later than December 20 every year, Tax Branches shall send to each presumptive tax-applying household a notice on projected turnover and presumptive tax amounts, made according to Form No. 01/TBTDK-CNKD, together with a table on disclosure of information on presumptive tax-applying households, made according Form No. 01/CKTT-CNKD (below referred to as table on information disclosure) provided together with this Circular, clearly stating addresses and deadline for Tax Branches to receive feedback (if any) from presumptive tax-applying households, which is December 31. The notice shall be hand-delivered to the concerned presumptive tax-applying household (signed by the taxpayer to certify his/her receipt of the notice) or sent by post in the form of registered mail. The table on information disclosure to be sent to presumptive tax-applying households shall be made according to operation areas of the households, including also individuals liable to pay taxes and those exempt from taxes. For markets, streets or residential groups with two hundred (200) presumptive tax-applying household or less, Tax Branches shall print out and distribute to each presumptive tax-applying household a table on information disclosure of presumptive tax-applying households in such areas. For markets, streets or residential groups with more than 200 presumptive tax-applying households, Tax Branches shall print out and distribute to each presumptive tax-applying household a table on information disclosure of no more than 200 presumptive tax-applying households in such areas. Particularly for markets with more than 200 presumptive tax-applying households, Tax Branches shall print out and distribute to each presumptive tax-applying household a table on information disclosure according to commodity lines. In case the tax office has posted the table on information disclosure on its portal, it is not required to send the table on information disclosure, made according to Form No. 01/CKTT-CNKD together with the notice of projected turnover and presumptive tax amounts, made according to Form No. 01/TBTDK-CNKD provided together with this Circular.

d/ Tax Branches shall publicly notify presumptive tax-applying households of locations for posting information and addresses for receiving feedback (telephone numbers, fax numbers, addresses at single-window divisions and emails) on contents put for public posting.

dd/ Tax Branches shall summarize feedback on contents put for first-time public posting from people, taxpayers, and People’s Councils and Fatherland Front Committees of urban districts or rural districts and communes, wards or townships for study and revision of subjects under their management, projected turnover and payable tax amounts before consulting tax advisory councils.

6. Consultation of tax advisory councils

Tax Branches shall hold consultation meetings with tax advisory councils from January 1 to January 10 every year. Dossiers of meetings of tax advisory councils must comply with the law on tax administration.

7. Making and approval of tax registers

a/ Tax Branches shall base on documents on determination of presumptive tax amounts as specified in Clause 1, Article 3 of this Circular and instructing documents of superior tax offices (if any) to make and approve tax registers before January 15 every year.

b/ Monthly, based on changes in business activities of presumptive tax-applying households (changes in business activities) or changes in tax policy affecting presumptive turnover and payable presumptive tax amounts, Tax Branches shall make and approve revised tax registers and issue a notice on adjustment of presumptive tax amounts under Point b, Clause 4 of this Article.

8. Sending of tax notices and deadlines for tax payment

a/ Sending of tax notices

a.1/ No later than January 20 every year, tax offices shall send to presumptive tax-applying households (including those liable to pay taxes and those exempt from taxes) a tax payment notice, made according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, together with a table of information disclosure, made according to Form No. 01/CKTT-CNKD provided together this Circular. The notice shall be hand-delivered to presumptive tax-applying households (signed by the taxpayer to certify his/her receipt of the notice) or sent by post in the form of registered mail.

a.2/ The official table on information disclosure to be sent to presumptive tax-applying households shall be made according to operation areas, including presumptive tax-applying households liable to pay taxes and those exempt from taxes. For markets, streets and residential groups with 200 presumptive tax-applying households or less, Tax Branches shall print out and distribute to each presumptive tax-applying household a table of information disclosure of presumptive tax-applying households in such areas. For markets, streets or residential groups with more than 200 presumptive tax-applying households, Tax Branches shall print out and distribute to each presumptive tax-applying household the table of information disclosure of no more than 200 presumptive tax-applying households in such areas. Particularly for markets with more than 200 presumptive tax-applying households, Tax Branches shall print out and distribute to each presumptive tax-applying household the table on information disclosure according to commodity lines. In case the tax office has posted the table on information disclosure on its portal, it is not required to send the table on information disclosure, made according to Form No. 01/CKTT-CNKD, together with the notice of tax payment, made according to Form No. 01/TB -CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020.

a.3/ In case the tax office issues a notice on adjustment of presumptive tax amounts as requested by a presumptive tax-applying household under Point b, Clause 4 of this Article, the deadline for issuing the notice is the 20th of the month following the month in which the tax amount is adjusted.

a.4/ For a presumptive tax-applying household that has just commenced its business activities, the tax office shall send a notice of tax payment, made according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, no later than the 20th of the month following the month in which the payable tax amount arises.

b/ Deadlines for tax payment

b.1/ Based on the notice of tax payment, made according to Form No. 01/TB-CNKD provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, the presumptive tax-applying households shall pay VAT and PIT according to the time limit stated in such notice.

b.2/ In case the presumptive tax-applying households uses invoices issued or retailed upon turnover generation by a tax office, the deadline for paying taxes on the turnover amounts stated in the invoice is the deadline for tax declaration for the turnover amounts stated in the invoice under Point c, Clause 3 of this Article.

9. Second-time public posting of information

Tax offices shall carry out second-time public posting of information on official turnover and payable tax amounts of a year for presumptive tax-applying households. Second-time public posting of information shall be carried out as follows:

a/ At Tax Departments

a.1/ Tax Departments shall publicly post information on presumptive tax-applying households before January 30 every year on the website of the tax sector, including the list of presumptive tax-applying households exempt from VAT and PIT and the list of presumptive tax-applying households liable to pay taxes.

a.2/ For presumptive tax-applying households that have just commenced their business activities or see changes in the payable tax amounts or business status, Tax Departments shall post information or adjust information on the website of the tax sector no later than the last day of the month following the month in which a household commences its business activities or sees a change.

b/ At Tax Branches

b.1/ Tax Branches shall carry out second-time public posting of information before January 30 every year at single-window divisions of Tax Branches and People’s Committee of urban districts or rural districts; at doors, gates or locations convenient for accessing information, appropriate locations of head offices of People’s Committees of communes, wards or townships; head offices of Tax Teams; or market management boards for supervision by people and presumptive tax-applying households.

b.2/ Tax Branches shall send documents for second-time public posting to People’s Councils and Fatherland Front Committees of urban districts or rural districts and communes, wards or townships no later than January 30, clearly stating addresses and time for Tax Branches to receive feedback (if any) from the latter.

b.3/ Tax Branches shall publicly notify presumptive tax-applying households of locations for posting information and addresses for receiving feedback (telephone numbers, fax numbers, addresses at single-window divisions, emails) on contents put for public posting.

b.4/ Documents put for posting at Tax Branches are the same as those for posting of information on the website of the tax sector at Tax Departments.

Article 14. Tax administration for asset-leasing individuals who directly declare tax with tax offices

1. Tax declaration dossiers

A tax declaration dossier for an asset-leasing individual who directly declares tax with a tax office as specified in Item a, Point 8.5, Appendix I - List of documents in a tax declaration dossier provided together with the Government’s Decree No. 126/2020/ND- CP of October 19, 2020, must comprise:

a/ A tax return applicable to asset leasing activities (applicable to asset-leasing individuals who directly declare tax with tax offices and organizations that declare tax on behalf of individuals), made according to Form No. 01/TTS provided together with this Circular;

b/ An annex on details of an asset lease contract (applicable to asset-leasing individuals who directly declare tax with tax offices, for the first tax declaration of the contract or contract annex), made according to Form No. 01-1/BK-TTS provided together with this Circular;

c/ A copy of the asset lease contract and annex (for the first tax declaration of the contract or contract annex);

d/ A copy of the power of attorney in accordance with law (in case the asset-leasing individual authorizes his/her lawful representative to carry out tax declaration and payment procedures).

The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

2. Places for submission of tax declaration dossiers

Places for submission of tax declaration dossiers for asset-leasing individuals who directly declare tax with tax offices must comply with Clause 1, Article 45 of the Law on Tax Administration, specifically as follows:

a/ Individuals earning income from lease of assets (except real estate in Vietnam) shall submit tax declaration dossiers to their managing Tax Branches of localities where they reside.

b/ Individuals earning income from lease of real estate in Vietnam shall submit tax declaration dossiers to their managing Tax Branches of localities where such real estate is located.

3. Deadlines for submission of tax declaration dossiers

Deadlines for submission of tax declaration dossiers for asset-leasing individuals who directly declare tax with tax offices must comply with Point a, Clause 2, and Clause 3, Article 44 of the Law on Tax Administration, specifically as follows:

a/ The deadline for submission of tax declaration dossiers for individuals who declare tax upon each time of arising of a tax liability is the 10th day counting from the first date of the asset lease term of the payment period.

b/ The deadline for submission of tax declaration dossiers for individuals who declare tax on an annual basis is the last day of the first month of the following calendar year.

4. Deadlines for tax payment

Deadlines for tax payment for asset-leasing individuals who directly declare tax with tax offices must comply with Clause 1, Article 55 of the Law on Tax Administration, specifically as follows: The deadline for tax payment is the deadline for submission of tax declaration dossiers. In case of supplementation of tax declaration dossiers, the deadline for tax payment is the deadline for submission of tax declaration dossiers for the tax period in which errors in the dossiers are made.

Article 15. Tax administration for individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents

1. Tax declaration dossiers

a/ Monthly or quarterly tax declaration dossiers of tax-withholding organizations

A monthly or quarterly tax declaration dossier of an organization withholding tax for individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents specified at Point 9.1, Appendix I - List of documents in a tax declaration dossier to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

- A personal income tax return (applicable to lottery, insurance or multi-level marketing businesses that pay commissions to individuals who directly enter into fixed-price agent contracts; insurance companies that pay accumulated premiums of life insurance and premiums of other forms of optional insurance), made according to Form No. 01/XSBHDC provided together with this Circular;

- An annex on the list of individuals who generate turnover from activities of lottery, insurance or multi-level marketing agents (included in the tax declaration dossier of the last month/quarter in the tax year), made according to Form No. 01-1/BK-XSBHDC provided together with this Circular (declaring information on all individuals who generate turnover in the tax year, regardless of whether or not tax withholding arises).

b/ Annual tax declaration dossiers for individuals who directly declare tax

An annual tax declaration dossier for individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents or do other business activities specified at Point 8.6, Appendix I - List of documents in a tax declaration dossier provided together with the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

- An annual tax return (applicable to individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents or do other business activities and have not yet withheld or paid tax in the year), made according to Form No. 01/TKN-CNKD provided together with this Circular;

- A copy of the economic contract (on provision of goods or services, business cooperation or acting as agents);

- A copy of the minutes of pre-acceptance test or liquidation of the contract (if any).

The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

2. Places for submission of tax declaration dossiers

Places for submission of tax declaration dossiers for organizations withholding tax for individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents and individuals who act as lottery, insurance or multi-level marketing agents or carry out other business activities that directly declare tax must comply with Clause 1, Article 45 of the Law on Tax Administration, specifically as follows:

a/ Organizations withholding tax for individuals who directly enter into contracts to act as lottery, insurance or multi-level marketing agents shall submit tax declaration dossiers at tax offices managing such organizations.

b/ Individuals acting as lottery, insurance or multi-level marketing agents or carrying out other business activities subject to annual tax declaration shall submit tax declaration dossiers at their managing Tax Branches in the localities where they reside (places of permanent residence or temporary residence).

3. Deadlines for submission of tax declaration dossiers

a/ The deadlines for submission of tax declaration dossiers for lottery, insurance or multi-level marketing enterprises must comply with Clause 1, Article 44 of the Law on Tax Administration, specifically as follows:

a.1/ The deadline for submission of monthly tax declaration dossiers for lottery, insurance or multi-level marketing enterprises is the 20th day of the month following the month in which the tax liability arises.

a.2/ The deadline for submission of quarterly tax declaration dossiers for lottery, insurance or multi-level marketing enterprises is the last day of the first month of the quarter following the quarter in which the tax liability arises.

b/ The deadline for submission of yearly tax declaration dossiers for individuals who directly enter into contracts to work as lottery, insurance or multi-level marketing agents or carry out other business activities as specified at Point a, Clause 2, Article 44 of the Law on Tax Administration is the last day of the first month of the following calendar year.

4. Deadlines for tax payment

The deadlines for tax payment for organizations and individuals specified in this Article must comply with Clause 1, Article 55 of the Law on Tax Administration, specifically as follows: The deadline for tax payment is the deadline for submission of tax declaration dossiers. In case of supplementation of tax declaration dossiers, the deadline for tax payment is the deadline for submission of tax declaration dossiers for the tax period in which errors in the dossiers are made.

Article 16. Tax administration for organizations/individuals that make tax declaration and payment on behalf of authorizing individuals

1. Tax declaration dossiers

a/ A monthly or quarterly tax declaration dossier for an organization that makes tax declaration and payment on behalf of an authorizing individual in case the individual enters into business cooperation with the organization; the organization makes payment to the individual who achieves sales targets; the organization is the owner of an e-commerce trading floor; or the Vietnam-based organization being a partner of an overseas digital platform provider (without a resident establishment in Vietnam) pays income to the individual as specified at Point 8.4, Appendix I - List of documents in a tax declaration dossier, to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

- A tax return applicable to business households and business individuals, made according to Form No. 01/CNKD provided together with this Circular;

- An annex on the detailed list of business households or business individuals (applicable to organizations/individuals that make tax declaration and payment on behalf of authorizing individuals; individuals who enter into business cooperation with organizations; organizations that make payment to individuals who achieve sales targets; organizations that are owners of e-commerce trading floors; and Vietnam-based organizations being partners of overseas digital platform providers), made according to Form No. 01-1/BK-CNKD provided together with this Circular;

- A copy of the business cooperation contract (in case of the first tax declaration for the contract). The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

b/ A tax declaration dossier for an organization that declares and pays taxes on behalf of an asset-leasing individual as specified at Item b, Point 8.5, Appendix I - List of documents in a tax declaration dossier, to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, must comprise:

- A tax return for asset-leasing activities (applicable to individuals engaged in asset-leasing activities who directly make tax declaration with tax offices and organizations that make tax declaration on behalf of authorizing individuals), made according to Form No. 01/TTS to this Circular;

- An annex on the detailed list of asset-leasing individuals (applicable to organizations making tax declaration on behalf of authorizing individuals), made according to Form No. 01-2/BK-TTS to this Circular;

- A copy of the asset lease contract and contract annex (in case of the first tax declaration for the contract or contract annex). The tax office may request production of originals of the above documents for collation and certify the truthfulness of copies to their originals.

c/ A tax declaration dossier for organizations/individuals that make tax declaration and payment on behalf of authorizing individuals in accordance with the civil law must comply with the regulations applicable to authorizing individuals in case of direct tax declaration.

d/ An enterprise or economic organization that makes tax declaration on behalf of an asset-leasing individual shall select the box “Enterprise/economic organization makes tax declaration and payment on behalf of the taxpayer in accordance with the tax laws” on the declaration, and, at the same time, sign and write full name, in case the tax declaration is made by an individual on behalf of the asset-leasing individual, or sign and affix seal or electronically sign as prescribed by law, in case the tax declaration is made by an organization on behalf of the asset-leasing individual. On the tax calculation dossier, the tax receipt must show that the taxpayer is the organization that makes tax declaration and payment on behalf of the asset-leasing individual.

2. Places for submission of tax declaration dossiers

a/ Tax declaration dossiers for organizations that make tax declaration and payment on behalf of authorizing individuals as specified in Clause 1, Article 45 of the Law on Tax Administration shall be submitted at tax offices that directly manage such organizations. Particularly, in case an organization/individual makes tax declaration and payment on behalf of an authorizing individual who earns income from leasing real estate in Vietnam, the tax declaration dossier shall be submitted at the latter’s managing tax office in the locality where the leased real estate is located.

b/ Places for submission of tax declaration dossiers for individuals who make tax declaration and payment on behalf of authorizing individuals in accordance with the civil law must comply with the regulations applicable to authorizing individuals in case of direct tax declaration.

3. Deadlines for submission of tax declaration dossiers

Deadlines for submission of tax declaration dossiers for organizations that make tax declaration and payment on behalf of authorizing individuals are provided in Clauses 1 and 3, Article 44 of the Law on Tax Administration, specifically as follows:

a/ The deadline for submission of tax declaration dossiers for organizations/individuals that make tax declaration and payment on behalf of authorizing individuals on a monthly or quarterly basis is as follows:

a.1/ The 20th of the month following the month in which the tax liability arises, in case of monthly tax declaration.

a.2/ The last day of the first month of the quarter following the quarter in which the tax liability arises, in case of quarterly tax declaration.

b/ The deadline for submission of tax declaration dossiers for organizations/individuals that make tax declaration and payment on behalf of asset-leasing individuals is as follows:

b.1/ Organizations that make tax declaration and payment on behalf of asset-leasing individuals shall make tax declaration on a monthly or quarterly basis in accordance with Point a of this Clause.

b.2/ Organizations/individuals that make tax declaration and payment on behalf of asset-leasing individuals shall submit tax declaration dossiers for each tax payment period no later than the 10th day after the first date of the lease term of such period.

b.3/ Organizations/individuals that make tax declaration and payment on behalf of asset-leasing individuals shall submit annual tax declaration dossiers no later than the last day of the first month from the end of a calendar year.

4. Deadlines for tax payment

Deadlines for tax payment for organizations and individuals under the guidance of this Article must comply with Clause 1, Article 55 of the Law on Tax Administration, specifically as follows: The deadline for tax payment is the deadline for submission of tax declaration dossiers. In case of supplementation of tax declaration dossiers, the deadline for tax payment is the deadline for submission of tax declaration dossiers for the tax period in which errors in the dossiers are made.

 

Chapter IV

RESPONSIBILITIES OF TAX OFFICES IN TAX ADMINISTRATION FOR BUSINESS HOUSEHOLDS AND BUSINESS INDIVIDUALS

Article 17. Responsibilities of the General Department of Taxation

1. To develop a set of risk indicators for business households and business individuals.

2. To guide in detail the process of updating databases on business households and business individuals at Tax Departments and Tax Branches.

3. To inspect and urge tax offices and taxpayers in the implementation of tax policies and tax administration for business households and business individuals.

4. To organize the application of e-invoices with tax offices’ identification numbers to business households and business individuals according to the law-specified roadmap. To coordinate with provincial-level People’s Committees in implementing the scheme on e-invoices created from cash registers with data connection and transmission devices to tax offices.  To build a database of invoices with tax offices’ identification numbers to ensure to serve risk-based tax administration for business households, business individuals and related organizations and individuals.

Article 18. Responsibilities of Tax Departments

1. To direct, guide and urge Tax Branches in performing tax administration for business households and business individuals.

2. To direct, guide and control the building of a separate database at each Tax Branch to serve as a basis for determining turnover and tax amounts of business households and business individuals paying tax according to the presumptive method in each locality.

3. To formulate a plan to inspect Tax Branches and taxpayers in the implementation of tax policies and tax administration for business households and business individuals.

4. To implement, and report to the General Department of Taxation the results of implementation of, the plan to inspect Tax Branches and taxpayers. The implementation of the inspection plan is specified as follows:

a/ Tax Departments shall carry out annual physical inspection for at least 10% of Tax Branches in accordance with the regulations on risk management for the determination of projected presumptive turnover and tax amounts. The inspection results of the Tax Departments shall serve as one of the bases for Tax Branches to make and approve the tax registers of presumptive tax-applying households.

b/ In the organization of tax collection task, Tax Departments shall periodically carry out physical inspection for at least 5% of Tax Branches in every first quarter, second quarter and third quarter. The inspection results shall serve as a basis for making projected presumptive turnover and tax amounts for the following year and adjusting the presumptive turnover and tax amounts for the remaining period of the tax year.

c/ Physical inspection by Tax Departments covers: inspection based on management databases; comparison of business registration and tax registration statistics; physical inspection for at least 2% of business households, business individuals and related organizations in an area, in which inspection will be carried out for 100% of business households and business individuals subject to high risk management as specified by law.

5. To approve and publicize information on presumptive tax-applying households on tax offices’ websites to ensure transparent publicization, enhance supervision capacity of the people, agencies and local departments.

Article 19. Responsibilities of Tax Branches

Tax Branches shall, apart from performing the regular tax collection tasks, take responsibility for the management of business households and business individuals as follows:

1. To carry out public communication for and assist business households and business individuals in making tax declarations, submitting tax declaration dossiers, paying taxes and searching information about business households and business individuals in accordance with regulations.

2. To carry out procedures for determining turnover and tax amounts of business households and business individuals paying taxes by the presumptive method according to Article 13 of this Circular, covering the following main tasks: determining presumptive turnover and tax amounts; publicly posting information about business households and business individuals paying taxes by the presumptive method; consulting tax advisory councils; making and approving tax registers; adjusting presumptive turnover and tax amounts in case there are changes in production and business activities of business households and business individuals; and organizing surveys of turnover of business households and business individuals paying taxes by the presumptive method.

3. To carry out periodical and planned inspection at head offices of tax offices on the basis of the database of business households, business individuals and related organizations. For high-risk taxpayers with signs of violations, to carry out inspection at the taxpayers’ offices to promptly detect and prevent violations of the tax and tax administration laws.

4. To build at each Tax Branch a separate database on tax administration for business households and business individuals, and by November 1 every year finalize the database for use as a basis for making presumptive tax registers of the following year. A separate database shall be built on the basis of information collected from: tax declarations dossiers of business households and business individuals; actual tax collection management statistics for business households and business individuals; results of annual business turnover surveys conducted by tax offices; results of annual actual inspection of estimation of presumptive turnover and tax amounts conducted by tax offices; information from related state management agencies; the actual situation in localities, the economic growth rate in the region, and the factors affecting the collection and remittance into the state budget in localities, etc.

5. To report to chairpersons of People’s Committees to direct local agencies and departments to coordinate with tax offices in performing tax administration for business households and business individuals in their localities.

6. To coordinate with tax offices in other localities in inspecting, controlling, comparing and providing information on business households and business individuals.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 20. Effect

1. This Circular takes effect on August 1, 2021.

2. In case an individual who enters into asset-leasing contracts for multiple years and has made tax declaration and payment according to the regulations promulgated before the effective date of this Circular, the tax amount already declared and paid according to such regulations shall not be adjusted.

3. The notification of deadlines for payment of presumptive tax amounts in 2021 must comply with the regulations promulgated before the effective date of this Circular until the end of the 2021 tax period.

4. For business households and business individuals that satisfy the conditions for paying taxes according to the declaration method, in case the tax offices have performed tax administration according to the presumptive method before the effective date of this Circular and such households and individuals do not request the change of the tax calculation method, they shall continue paying taxes according to the presumptive method until the end of the 2021 tax period.

5. Organizations making tax declaration and payment on behalf of presumptive tax-applying households in accordance with Point dd, Clause 5, Article 7 of the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, shall make tax declaration and payment on behalf of presumptive tax-applying households in accordance with the guidance of this Circular from its effective date.

6. To annul Chapters I and II of the Ministry of Finance’s Circular No. 92/2015/TT-BTC of June 15, 2015, guiding the implementation of value-added tax and personal income tax for individual residents who carry out business activities; guiding the implementation of a number of amendments and supplementations on personal income tax specified in Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Tax Laws and the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws, and amending and supplementing a number of articles of the Decrees on taxes. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance (the General Department of Taxation) for study and settlement.-

Minister of Finance
HO DUC PHOC

* The appendices to this Circular are not translated.


[1] Công Báo Nos 649-650 (27/6/2021)

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Decree No. 51/2022/ND-CP dated August 08, 2022 of the Government amending the preferential import duty rates applicable to petroleum products under heading 27.10 in the Preferential Import Tariff promulgated together with the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP

Decree No. 51/2022/ND-CP dated August 08, 2022 of the Government amending the preferential import duty rates applicable to petroleum products under heading 27.10 in the Preferential Import Tariff promulgated together with the Government's Decree No. 57/2020/ND-CP dated May 25, 2020, amending and supplementing a number of articles of the Government’s Decree No. 122/2016/ND-CP of September 1, 2016, on the Export Tariff, the Preferential Import Tariff and the list of commodity items and their specific duty rates, compound duty rates and out-of-quota import duty rates, and Decree No. 125/2017/ND-CP of November 16, 2017, amending and supplementing a number of articles of Decree No. 122/2016/ND-CP

Export - Import , Tax - Fee - Charge

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