Are new household bussinesses paying fixed tax required to pay taxes in Vietnam?

Are new household bussinesses paying fixed tax required to pay taxes in Vietnam?

According to Clause 3, Article 7 of Circular 40/2021/TT-BTC, which is amended by Clause 1, Article 1 of Circular 100/2021/TT-BTC, regulations for new household bussinesses paying fixed tax are as follows:

Tax calculation method for household bussinesses, individual businesses submitting tax according to the fixed tax payment

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3. A household bussinesses paying fixed tax that has been notified by the tax authority of the taxable flat rate from the beginning of the year shall pay taxes as per the notification. In cases where the household bussinesses paying fixed tax has been notified of the tax amount from the beginning of the year but ceases or temporarily ceases business during the year, the tax authority shall adjust the payable tax amount according to the guidance in point b.4, point b.5, Clause 4, Article 13 of this Circular. For new household bussinesses paying fixed tax during the year (not operating a full 12 months within the calendar year), such households are subject to VAT and personal income tax if the business revenue exceeds 100 million VND in the year; or are not subject to VAT, personal income tax if the business revenue is 100 million VND or less in the year.

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Thus, new household bussinesses paying fixed tax during the year (not operating for a full 12 months within the calendar year) may be liable for tax if they meet the following 2 conditions:

- The household bussinesses paying fixed tax is subject to VAT and personal income tax.

- Business revenue exceeds 100 million VND in the year.

Are new household bussinesses paying fixed tax required to pay taxes in Vietnam? (Image from Internet)

When is the deadline for submitting tax declaration dossiers for household bussinesses paying fixed taxs in Vietnam?

According to Clause 3, Article 13 of Circular 40/2021/TT-BTC, the deadline for submitting tax declaration dossiers for household bussinesses paying fixed taxs is specified as follows:

- The deadline for submitting tax declaration dossiers for household bussinesses paying fixed taxs is no later than December 15 of the year preceding the tax year.

- For new household bussinesses paying fixed tax (including those declaring conversion to the fixed tax payment), or household bussinesses paying fixed taxs converting to the declaration method, or household bussinesses paying fixed taxs changing business sectors, or household bussinesses paying fixed taxs changing business scale during the year, the deadline for submitting tax declaration dossiers is no later than the 10th day from the start of business, or conversion of tax calculation method, or change of business sectors, or change of business scale.

- For household bussinesses paying fixed taxs using invoices provided by tax authorities, on a per occurrence basis, the deadline is no later than the 10th day from the date of revenue generation that requires invoice issuance.

What are regulations on the first disclosure of the list of household bussinesses paying fixed taxs liable for taxes in Vietnam?

According to Clause 5, Article 13 of Circular 40/2021/TT-BTC, the first disclosure of the list of household bussinesses paying fixed taxs liable for taxes is conducted as follows:

(1) The Tax Department publicly discloses the list of household bussinesses paying fixed taxs liable for taxes at the one-stop department of the Tax Department, the District People's Committee; at the entrance, gate, or places convenient for accessing information, suitable locations at the headquarters of the Commune People's Committee, commune-level towns; at Tax Teams' headquarters; Market Management Boards to enable public and household bussinesses paying fixed tax monitoring. The first disclosure period runs from December 20 to December 31 annually.

(2) The Tax Department sends public disclosure documents of the list of household bussinesses paying fixed taxs liable for taxes to the District People's Council and Fatherland Front of the district, ward, and commune-level town no later than December 20 annually, detailing the address and time the Tax Department receives feedback (if any) from the People's Council and Fatherland Front of the district, ward, and commune-level town. The deadline for receiving feedback from these bodies is no later than December 31.

(3) By December 20 annually, the Tax Department sends each household bussinesses paying fixed tax a Notification regarding projected revenue, flat rate tax according to form 01/TBTDK-CNKD accompanied by the Public Disclosure List of household bussinesses paying fixed tax information according to form 01/CKTT-CNKD issued with Circular 40/2021/TT-BTC, detailing the address and the deadline for the Tax Department to receive feedback (if any) from the household bussinesses paying fixed tax no later than December 31. The notification is delivered directly to the household bussinesses paying fixed tax (with acknowledgment from the taxpayer regarding receipt of notification) or is sent via postal service as registered mail.

The Public Disclosure List of projected information sent to household bussinesses paying fixed taxs is compiled based on locality. For markets, streets, neighborhood units with 200 or fewer household bussinesses paying fixed taxs, the Tax Department prints and distributes to each household bussinesses paying fixed tax the Public Disclosure List of households within the area. For areas with more than 200 household bussinesses paying fixed taxs, the Tax Department prints and distributes the Public Disclosure List for no more than 200 households within the locality. Specifically, for markets with more than 200 household bussinesses paying fixed taxs, the Tax Department prints and distributes the Public Disclosure List by goods category.

If the tax authority has managed to publicly disclose the Public Disclosure List on its electronic information portal, it is not mandatory to send the Public Disclosure List according to form 01/CKTT-CNKD along with the Notification of projected revenue and flat rate tax according to form 01/TBTDK-CNKD issued with Circular 40/2021/TT-BTC.

(4) The Tax Department is responsible for publicly announcing the disclosure locations, feedback receiving addresses (telephone number, fax number, address at the one-stop department, email address) regarding the public disclosure content for the awareness of the household bussinesses paying fixed tax.

(5) The Tax Department is tasked with compiling feedback on the public disclosure content of the first list of household bussinesses paying fixed taxs liable for taxes from the public, taxpayers, the People's Council, and the Fatherland Front of the district, ward, and commune-level town to consider adjustments and supplement the list of managed subjects, projected revenue, projected taxes before consulting the Tax Advisory Council.