How should a household business prepare a tax declaration under the declaration method in Vietnam?

How should a household business prepare a tax declaration under the declaration method in Vietnam?

Household businesses that pay taxes using the declaration method need to prepare a file according to Clause 1, Article 11 of Circular 40/2021/TT-BTC. Specifically:

- Tax declaration form for household businesses according to Form No. 01/CNKD issued together with Circular 40/2021/TT-BTC;

- Appendix of the business activity statement during the period for household businesses (applicable to household businesses paying taxes by declaration method) according to Form No. 01-2/BK-HDKD issued with Circular 40/2021/TT-BTC.

In cases where household businesses paying taxes by the declaration method have grounds to determine revenue based on confirmation from the authority, they are not required to submit the Appendix of the business activity statement Form No. 01-2/BK-HDKD issued with Circular 40/2021/TT-BTC.

How to prepare the tax declaration form for household businesses in Vietnam in 2025? (Image from the Internet)

How to prepare the tax declaration form for household businesses in Vietnam in 2025?

Currently, the tax declaration form for household businesses is used according to Form No. 01/CNKD issued with Circular 40/2021/TT-BTC.

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Accordingly, the method to prepare the tax declaration form for household businesses is as follows:

- Indicator [01] Tax period is applied as follows:

+ Indicator [01a] is only declared for household businesses paying taxes by presumptive method.

+ Indicator [01b] or [01c] is only declared for household businesses paying taxes by declaration method or organizations, individuals declaring and paying taxes on behalf of others on a monthly or quarterly basis.

+ Indicator [01d] is declared for household businesses paying taxes on each arising occasion.

- Indicator [08a] is only marked when the information in indicator [08] changes compared to the previous declaration.

- Indicator [12a] is only marked when information in indicators [12b], [12c], [12d], [12đ] changes compared to the previous declaration.

- For indicators on revenue, output: If the household business pays taxes by the declaration method or an organization declares and pays taxes on behalf of others, they declare revenue, output on a monthly or quarterly basis corresponding to the month or quarter period.

- Household businesses in business cooperation with an organization must have the organization declare on their behalf with the declaration form 01/CNKD, and a detailed list annex of household and personal businesses according to Form 01-1/BK-CNKD, and do not need to declare indicators from [04] to [18].

- Household businesses paying taxes by the declaration method must have individuals declare alongside the declaration form 01/CNKD, and the activity statement annex during the period for household and personal businesses according to Form 01-2/BK-HDKD, except in cases where household businesses in certain sectors have grounds to determine revenue based on confirmation from the authority.

- Section C is only applied to individuals authorized to extract mineral resources.

Where should household businesses paying taxes by the declaration method submit their tax declarations in Vietnam?

According to Clause 2, Article 11 of Circular 40/2021/TT-BTC, household businesses paying taxes by the declaration method should submit tax declarations to the Tax Department managing directly where the household business operates.

When is the deadline for submitting tax declarations for household businesses paying taxes by the declaration method in Vietnam?

Specifically, according to Clause 3, Article 11 of Circular 40/2021/TT-BTC, the deadline for submitting tax declarations for household businesses paying taxes by the declaration method is stipulated in Clause 1, Article 44 of the Tax Administration Law 2019. Specifically:

- The deadline for submitting tax declarations for monthly-declared household businesses is the 20th of the following month after the tax obligation arises.

- The deadline for submitting tax declarations for quarterly-declared household businesses is the last day of the first month of the next quarter following the quarter when the tax obligation arises.

Furthermore, according to Clause 4, Article 11 of Circular 40/2021/TT-BTC, household businesses paying taxes by the declaration method have the deadline for tax payment at the latest by the last day of the tax declaration submission deadline. In cases of amending the tax declaration, the tax payment deadline is the deadline for submitting the tax declaration of the tax period with errors or omissions.

Note: In cases where household businesses or individual businesses temporarily suspend operations, they must notify the tax authority as stipulated in Article 91 of Decree 01/2021/ND-CP dated November 4, 2021, by the Government of Vietnam, Article 4 of Decree 126/2020/ND-CP dated October 19, 2020, by the Government of Vietnam, Article 12 of Circular 105/2020/TT-BTC dated December 3, 2020, by the Ministry of Finance guiding taxpayer registration, and are not required to submit tax declarations, except in cases where household businesses or individual businesses temporarily suspend operations or business activities not covering the full month (for monthly filing) or not covering the full quarter (for quarterly filing).