What are the conditions for changing the tax period from monthly to quarterly in Vietnam?

What are the conditions for changing the tax period from monthly to quarterly in Vietnam?

Pursuant to Article 9 of Decree 126/2020/ND-CP, taxpayers currently filing tax returns monthly that meet the following conditions may change to quarterly tax periods:

- The total revenue from the sale of goods and provision of services in the previous year was 50 billion VND or less, allowing for quarterly value-added tax declarations.

- New taxpayers who have just begun operations and business activities may choose to file value-added tax quarterly. After conducting business for a full 12 months, from the next consecutive calendar year, which completes 12 months, they will base their tax declarations for monthly or quarterly periods on the revenue level of the immediately preceding calendar year (full 12 months).

What are the conditions for changing the tax period from monthly to quarterly in Vietnam? (Image from the Internet)

What are the deadlines for submitting tax declaration dossiers of taxes calculated quarterly in Vietnam?

Pursuant to Article 44 of the Law on Tax Administration 2019, regulations are as follows:

Deadline for submitting tax declaration dossiers

1. The deadline for submitting tax declaration dossiers for taxes declared monthly or quarterly is as follows:

a) No later than the 20th of the month following the month the tax obligation arises for monthly declarations;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly declarations.

2. The deadline for submitting tax declaration dossiers for taxes calculated annually is as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax finalization dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossiers;

b) No later than the last day of the fourth month from the end of the calendar year for individual income tax finalization dossiers of individuals directly finalizing taxes;

c) No later than December 15 of the preceding year for fixed tax declaration dossiers of business households and individuals paying tax by the flat-rate method; for new business households or individuals, the deadline is no later than 10 days from starting business.

3. The deadline for submitting tax declaration dossiers for taxes declared and paid on each occurrence of a tax obligation is no later than the 10th day from the day the tax obligation arises.

4. The deadline for submitting tax declaration dossiers in cases of cessation of activity, termination of contracts, or reorganization of enterprises is no later than the 45th day from the day the event occurs.

5. the Government of Vietnam prescribes the deadlines for submitting tax declaration dossiers for agricultural land use tax; non-agricultural land use tax; land levy; land rent, water surface rent; mineral resource exploitation rights fee; water resource exploitation rights fee; registration fee; license fee; other collections to the state budget as prescribed by the law on management and use of public property; cross-border profit reporting.

6. The deadline for submitting tax declaration dossiers for export and import goods is in accordance with the Customs Law.

7. If taxpayers file taxes electronically on the last day of the deadline for submitting tax declaration dossiers and the tax authority's electronic portal malfunctions, taxpayers may submit electronic tax declaration dossiers and electronic payment documents the following day after the tax authority's electronic portal resumes service.

The deadline for submitting tax declaration dossiers of taxes calculated quarterly is no later than the last day of the first month of the next quarter following the quarter in which the tax obligation arises.

Which taxes are declared quarterly in Vietnam?

According to Clause 2, Article 8 of Decree 126/2020/ND-CP, taxes and other revenues belonging to the state budget that are declared quarterly include:

(1) Corporate income tax for foreign airlines, foreign reinsurance.

(2) Value-added tax, corporate income tax, personal income tax for credit institutions or third parties authorized by credit institutions to manage secured assets during pending settlement, declaring on behalf of taxpayers with secured assets.

(3) Personal income tax for organizations and individuals that pay income subject to withholding tax as per personal income tax law, whereby the organization or individual paying the income opts for quarterly value-added tax declaration and chooses to declare personal income tax quarterly; individuals with income from wages, salaries directly declare tax with the tax authority and choose to declare personal income tax quarterly.

(4) Other types of taxes and state budget revenues declared and paid by organizations and individuals on behalf of individuals whereby the organization or individual opts for quarterly value-added tax declaration and chooses to declare on behalf of individuals quarterly, except for cases specified at Point g, Clause 4, Article 8 of Decree 126/2020/ND-CP.

(5) Surcharge when crude oil prices fluctuate upwards (excluding oil and gas activities of the Vietsovpetro Joint Venture at Lot 09.1).