Shall the tax payment under separate declarations apply to individuals transferring Vietnam’s top-level domains “.vn”?

What documents do individual businesses need to prepare for paying tax under separate declarations?

Based on Article 12 of Circular 40/2021/TT-BTC it is stipulated as follows:

Tax management for individual businesses paying tax under separate declarations

1. Tax declaration dossier

Tax declaration dossier for individual businesses filing taxes on occurrence as stipulated in point 8.3 Appendix I - List of paying tax documents issued together with Decree No. 126/2020/ND-CP dated October 19, 2020, by the Government of Vietnam. Specifically:

a) Tax declaration form for business households, individual businesses according to form No. 01/CNKD issued with this Circular;

b) The accompanying documents to the paying tax under separate declarations include:

- A copy of the economic contract for the supply of goods and services;

- A copy of the minutes of acceptance and liquidation of contracts;

- A copy of documents proving the origin of the goods such as: Purchase list of agricultural products if they are domestic agricultural products; List of goods purchased, exchanged by border inhabitants if they are border inhabitants’ imported goods; Invoice from the seller if they are imported goods purchased from domestic businesses; relevant documents if they are self-produced goods by individuals;...

The tax authority has the right to request the presentation of the original documents to verify the accuracy of the copies.

Therefore, individual businesses paying tax under separate declarations need to prepare the following documents:

[1] In cases of mobile business, submit paying tax documents to the Tax Department directly managing the place where the business activity occurs.

[2] For individuals with income from digital content products and services, submit paying tax documents to the Tax Department directly managing the place of the individual's residence (permanent or temporary).

[3] For individuals with income from the transfer of Vietnam national domain names ".vn", submit paying tax documents to the Tax Department where the individual resides. For individuals transferring who are non-resident individuals, submit paying tax documents to the tax authority directly managing the organization overseeing Vietnam's national domain name ".vn".

[4] Individuals who are private construction contractors must submit paying tax documents to the Tax Department directly managing the site of construction activity.

Additionally, the deadline for submitting paying tax documents for individual businesses paying tax under separate declarations is stipulated in Clause 3 of Article 44 Tax Management Law 2019, no later than the 10th day from the date of the tax obligation's occurrence.

Shall the tax payment under separate declarations apply to individuals transferring Vietnam’s top-level domains “.vn”? (Image from the Internet)

When is the deadline for individual businesses to pay tax under separate declarations in Vietnam?

Based on Clause 4 of Article 12 of Circular 40/2021/TT-BTC it is stipulated as follows:

- The tax payment deadline for individual businesses paying tax under separate declarations is to be carried out according to Clause 1 of Article 55 Tax Management Law 2019, specifically: The tax payment deadline is the last day of the deadline for submitting the paying tax documents.

In cases of supplementary paying taxs, the tax payment deadline is the deadline for submitting the paying tax documents for the tax period with errors or omissions.

Shall the tax payment under separate declarations apply to individuals transferring Vietnam’s top-level domains “.vn”?

Based on Clause 2 of Article 6 of Circular 40/2021/TT-BTC it is stipulated as follows:

Tax calculation method for individual businesses paying tax under separate declarations

1. The method of tax declaration under separate declarations applies to individual businesses that are sporadic and do not have a fixed business location. Sporadic business is identified according to the characteristics of production and business activities in each field and industry and may be self-identified by the individual to choose the method of tax declaration as guided in this Circular. A fixed business location is the place where individuals conduct production and business activities like a transaction office, shop, showroom, warehouse, workshop, yard, or similar location.

2. Individual businesses paying tax under separate declarations include:

a) Individuals engaged in mobile business;

b) Individuals who are private construction contractors;

c) Individuals transferring Vietnam’s top-level domains “.vn” ".vn";

d) Individuals earning income from digital content products and services if not opting for taxation according to the declaration method.

3. Individual businesses paying tax under separate declarations are not required to implement accounting policies, but must retain invoices, documents, contracts, files proving the legality of goods and services and present them with the paying tax documents under separate declarations.

4. Individual businesses paying tax under separate declarations must declare taxes when there is taxable revenue.

Therefore, individuals transferring Vietnam’s top-level domains “.vn” are among the cases where individual businesses pay tax under separate declarations.