Are individual businesses whose revenue from business operations is less than 100 million VND required to declare taxes in Vietnam?

Are individual businesses whose revenue from business operations is less than 100 million VND required to declare taxes in Vietnam?

Under Clause 2, Article 4 of Circular 40/2021/TT-BTC, the provisions are as follows:

Tax calculation rules

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2. A household business or individual business whose revenue from business operation in the calendar year is less than 100 million VND shall not be required to pay VAT and PIT as prescribed by VAT and PIT laws. Household businesses and individual businesses shall declare tax truthfully and accurately; submit tax documents punctually; take legal responsibility for the accuracy, truthfulness and adequacy of the tax documents submitted.

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Therefore, individual businesses whose revenue from business operations in the calendar year is less than 100 million VND are not subject to VAT and PIT according to the provisions of VAT and PIT laws.

Individual businesses shall declare tax truthfully and accurately; submit tax documents punctually; and take legal responsibility for the accuracy, truthfulness, and adequacy of the tax documents submitted..

What is the licensing fee paid by individual businesses whose revenue from business operations is less than 100 million VND in Vietnam?

According to the provisions at Point c, Clause 2, Article 4 of Decree 139/2016/ND-CP, supplemented by Point a, Clause 2, Article 1 of Decree 22/2020/ND-CP:

Rate of licensing fees

1. The rate of licensing fees for the organizations having the production and business of goods and services is as follows:

a) The organizations with charter capital and investment capital over 10 billion dong: 3,000,000 dong/year;

b) The organizations with charter capital and investment capital of less than 10 billion dong: 2,000,000 dong/year;

c) The branches, representative offices, business location, public service providers and other business organizations: 1,000,000 dong/year;

The rate of licensing fees for the organizations specified under Point a and b of this Paragraph is based on the charter capital written in the certificate of business registration or on the investment capital written in the certificate of investment registration in case of no charter capital.

2. The rate of licensing fees for the individuals and households having the production and business of goods and services is as follows:

a) The individuals, groups of individuals and households with revenues over 500 million dong/year: 1,000,000 dong/year;

b) The individuals, groups of individuals and households with revenues between 300 and 500 million dong/year: 500,000 dong/year;

c) The individuals, groups of individuals and households with revenues between 100 and 300 million dong/year: 300,000 dong/year;

d) Revenues used as the basis for determining the license fees payable by individuals, groups of individuals and household businesses shall be determined according to guidance given by the Ministry of Finance

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Thus, according to the above provisions, individual businesses whose revenue from business operations is less than 100 million VND in Vietnam are exempt from licensing fees.

* Note: From the time revenue of individual businesses exceeds VND 100 million to VND 300 million/year, the licensing fee will be VND 300,000/year.

Are individual businesses whose revenue from business operations is less than 100 million VND required to declare taxes in Vietnam? (Image from the Internet)

What is the deadline for declaring and paying licensing fees for individual businesses whose revenue from business operations is less than 100 million VND in Vietnam?

According to the provisions in Clause 1, Article 10 of Decree 126/2020/ND-CP regarding the deadlines for submission of declarations of land-related amounts, licensing fees, registration fees, fees for grant of rights and other amount payables prescribed by regulations of law on management and use of public property:

Deadlines for submission of declarations of land-related amounts, licensing fees, registration fees, fees for grant of rights and other amount payables prescribed by regulations of law on management and use of public property

Tax declaration dossiers shall be submitted by the deadlines specified in Article 44 of the Law on Tax administration. The deadlines for submitting declarations of land-related amounts, licensing fees, registration fees, licensing fees and other amount payables prescribed by regulations of law on management and use of public property prescribed in Clause 5 Article 44 of the Law on Tax administration are specified in below:

1. Licensing fees

a) New businesses (except household businesses and individual businesses), including medium and small enterprises converted from household businesses) and existing businesses that establish new dependent units or business location shall submit the licensing fee declaration by January 30 of the year preceding the establishment or inauguration year.

In case capital in changed during the year, the licensing fee payer shall submit the declaration by January 30 of the year succeeding the year in which the change occurs.

b) Household businesses and individual businesses are not required to submit licensing fee declarations. Tax authorities shall determine the licensing fees payable according to their tax declaration dossiers and tax administration database and inform them in accordance with Article 14 of this Decree.

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Thus, if individual businesses have revenue from business operations that is less than 100 million VND (meaning that they are not required to submit a licensing fee declaration dossier), in this case, tax authorities shall determine the licensing fees payable according to their tax declaration dossiers and tax administration database and inform them.