Is it required to submit a tax declaration during business suspension in Vietnam?

Is it required to submit a tax declaration during business suspension in Vietnam?

Based on Clause 2, Article 4 of Decree 126/2020/ND-CP which stipulates as follows:

Tax management for taxpayers during the period of business suspension

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2. During the period when the taxpayer temporarily suspends operation or business:

a) The taxpayer is not required to submit a tax declaration, except in cases where the taxpayer temporarily suspends operation or business not for a full month, quarter, calendar year or fiscal year; in such cases, monthly, quarterly tax declarations and annual tax finalization reports must still be submitted.

b) Household businesses, individual businesses paying taxes based on the lump sum method temporarily suspending operations, business activities are subject to re-determined tax obligations by the tax authority in accordance with the regulations of the Minister of Finance.

c) The taxpayer is not allowed to use invoices and is not required to submit reports on the usage of invoices. In case the taxpayer is approved by the tax authority to use invoices as per the regulations on invoices, the taxpayer must submit tax declarations and reports on the usage of invoices accordingly.

d) The taxpayer must comply with decisions and notifications from the tax authorities regarding debt collection enforcement, administrative enforcement of tax management decisions, tax law compliance inspections, and handling of administrative tax violations as per the Tax Administration Law.

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Thus, the taxpayer is not required to submit a tax declaration during the period of business suspension, except in cases where the taxpayer temporarily suspends operation or business not for a full month, quarter, calendar year or fiscal year; in such cases, monthly, quarterly tax declarations and annual tax finalization reports must still be submitted.

Is it required to submit a tax declaration during business suspension in Vietnam? (Image from the Internet)

What are the regulations on the deadline for submitting a tax declaration?

Based on Article 44 of the Tax Administration Law 2019 which stipulates the deadlines for submitting tax declarations as follows:

- The deadline for submitting tax declarations for types of taxes declared monthly or quarterly is:

+ No later than the 20th day of the following month for taxes declared and paid monthly;

+ No later than the last day of the first month of the following quarter for taxes declared and paid quarterly.

- The deadline for submitting tax declarations for types of taxes with annual tax assessment periods is:

+ No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax finalization reports; no later than the last day of the first month of the calendar year or fiscal year for annual tax declarations;

+ No later than the last day of the fourth month from the end of the calendar year for personal income tax finalization reports directly declared by individuals;

+ No later than December 15 of the preceding year for lump sum tax declarations of household businesses and individual businesses; for new household businesses and individual businesses, the deadline for submitting lump sum tax declarations is no later than 10 days from the start of business activities.

- The deadline for submitting tax declarations for taxes declared and paid per occurrence is no later than the 10th day from the day of the tax liability occurrence.

- The deadline for submitting tax declarations for cases of termination of operation, contract termination, or business reorganization is no later than the 45th day from the event.

- The Government of Vietnam stipulates the deadlines for submitting tax declarations for agricultural land use tax; non-agricultural land use tax; land levy; land rent, water surface rent; mineral resource exploitation rights fees; water resource exploitation rights fees; registration fees; business license fees; and other revenues into the state budget in accordance with laws on management and use of public assets; cross-border profit reports.

- The deadlines for submitting tax declarations for export and import goods are performed as per the regulations of the Customs Law 2014.

- In cases where taxpayers submit tax declarations electronically on the last day of the declared deadline and the tax authority's electronic portal encounters an error, taxpayers must submit tax declarations and electronic tax payment documents on the subsequent day when the tax authority's electronic portal resumes operations.

What are the regulations on the location for submitting tax declarations in Vietnam?

Based on Article 45 of the Tax Administration Law 2019 which stipulates the location for submitting tax declarations as follows:

- Taxpayers submit tax declarations at the directly managing tax authority.

- In cases where tax declarations are submitd under the one-stop-shop mechanism, the submitting location follows the regulations of that mechanism.

- The location for submitting tax declarations for export and import goods is performed as per the regulations of the Customs Law 2014.

- The Government of Vietnam stipulates the locations for submitting tax declarations in the following cases:

+ Taxpayers with multiple production and business activities;

+ Taxpayers carrying out production and business activities in multiple areas; taxpayers incurring tax obligations for taxes declared and paid on per occurrence basis;

+ Taxpayers incurring tax obligations for revenues from land; rights to exploit water resources, mineral resources;

+ Taxpayers incurring tax obligations for personal income tax finalization;

+ Taxpayers submit tax declarations electronically and in other necessary cases.