Is a private construction contractor an individual business paying tax under separate declarations in Vietnam?

What is the tax payment method for individual business paying tax under separate declarations in Vietnam?

Based on the provisions of Clause 6, Article 3 of Circular 10/2021/TT-BTC, the following explanation is provided:

Explanation of terms

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4. "Household businesses, individual businesses paying tax by declaration method" are large-scale household, individual businesses; household businesses, individual businesses not yet meeting large-scale criteria but opting to pay tax by declaration method.

5. "Tax declaration method under separate declarations" is a method of declaring and calculating tax based on the actual revenue each time it arises.

6. "Individual business paying tax under separate declarations" is an individual business that is not regular and does not have a fixed business location.

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Thus, according to the above regulations, it can be understood that an individual business paying tax under separate declarations is one that opts for this method and must be an irregular business without a fixed business location.

Is a private construction contractor an individual business paying tax under separate declarations in Vietnam? (Image from the Internet)

Is a private construction contractor an individual business paying tax under separate declarations in Vietnam?

Based on the provisions of Article 6 of Circular 40/2021/TT-BTC, as follows:

Tax Calculation Method for Individual Businesses Paying Tax under separate declarations

1. The tax declaration method under separate declarations applies to individual businesses that are not regular and do not have a fixed business location. Non-regular business is determined based on the characteristics of production and business activities of each field, profession, and is self-determined by the individual to choose the tax declaration method according to the guidelines of this Circular. A fixed business location is a place where the individual conducts production, business activities such as: transaction locations, stores, workshops, warehouses, docks, or other similar locations.

2. Individuals paying tax under separate declarations include:

a) Mobile individual businesses;

b) Individuals as private construction contractors;

c) Individuals transferring the “.vn” national Internet domain name;

d) Individuals earning income from product and digital information content services if they do not choose to pay tax by the declaration method.

3. Individuals paying tax under separate declarations are not required to implement accounting policies but must store invoices, vouchers, contracts, and records proving legitimate goods, services, and present them with the tax return on each occurrence.

4. Individuals paying tax under separate declarations declare tax when revenue subject to tax arises.

According to the above regulations, subjects that are individual businesses paying tax under separate declarations include:

- Mobile individual businesses;

- Individuals as private construction contractors;

- Individuals transferring the “.vn” national Internet domain name;

- Individuals earning income from product and digital information content services if they do not choose to pay tax by the declaration method.

Thus, a private construction contractor is indeed an individual business paying tax under separate declarations.

*Note: Individuals paying tax under separate declarations declare tax when revenue subject to tax arises.

What are procedures for tax declarations for individual businesses paying tax under separate declarations in Vietnam?

According to Article 12 of Circular 40/2021/TT-BTC, the regulations are as follows:

The tax declaration dossier for individual businesses paying tax under separate declarations is stipulated in item 8.3 Appendix I - List of tax declaration dossiers issued with Decree 126/2020/ND-CP. Specifically:

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

Download the tax declaration form for individual businesses paying tax under separate declarations here: Download

- Documents accompanying the tax declaration dossier under separate declarations include:

+ Copy of the economic contract providing goods, services;

+ Copy of the acceptance, liquidation contract minutes;

+ Copy of documents proving the origin of goods such as: Purchase record of agricultural products if they are domestically produced agricultural goods; Purchase and exchange record of border residents if they are imported border resident goods; Invoice from the seller if they are imported goods purchased from domestic business organizations, individuals; Related documents to prove if they are goods self-produced by individuals; ...

The tax authority has the right to request to present the original to compare and verify the accuracy of the copy against the original.

*Note: The deadline for submitting the tax declaration dossier for individual businesses paying tax under separate declarations is regulated in Clause 3, Article 44 of the 2019 Law on Tax Administration no later than the 10th day from the date the tax obligation arises.