What are the conditions for quarterly declaration of VAT and PIT in Vietnam?

What are the conditions for quarterly declaration of VAT and PIT in Vietnam?

The criteria for quarterly tax declaration for value-added tax (VAT) and PIT (PIT) as stipulated in Clause 1, Article 9 of Decree 126/2020/ND-CP are as follows:

- The following taxpayers may declare VAT quarterly:

+ Any taxpayer that declares VAT monthly as prescribed in Point a Clause 1 Article 8 of Decree 126/2020/ND-CP and has a total revenue from sale of goods and services in the previous year of up to 50 billion VND. The total revenue shall be determined according to the VAT returns during the calendar year.

In case the taxpayer declares tax for all dependent units and business locations at the headquarters, the total revenue shall also include that of the dependent units and business locations.

+ The taxpayer’s business is recently inaugurated. From the calendar year succeeding the first 12 months, the revenue generated in the preceding calendar year (full 12 months) shall be the basis for deciding whether the taxpayer has to declare tax monthly or quarterly.

- Quarterly declaration of personal income tax:

+ A taxpayer who has to declare personal income tax monthly as prescribed in Point a Clause 1 Article 8 of Decree 126/2020/ND-CP may declare personal income tax quarterly if all requirements for quarterly declaration are fulfilled.

+ Quarterly declaration shall be applied from the first month in which tax is incurred and remain unchanged throughout the calendar year.

Note: Taxpayers shall determine their eligibility to declare tax quarterly themselves.

What are the conditions for quarterly declaration of VAT and PIT in Vietnam? (Image from the Internet)

What are the taxes declared monthly in Vietnam?

According to Clause 1, Article 8 of Decree 126/2020/ND-CP, the following taxes AND other amounts collected by tax authorities have to be declared monthly::

(1) Value-added tax (VAT), personal income tax. Taxpayers who satisfy the requirements specified in Article 9 of Decree 126/2020/ND-CP may declare these taxes quarterly.

(2) Excise duty.

(3) Environment protection tax.

(4) Resource royalty, except that specified in (6).

(5) Fees and charges payable to state budget (except those collected by diplomatic missions of Vietnam as prescribed in Article 12 of Decree 126/2020/ND-CP; customs fees, goods, luggage and vehicle transit charges).

(6) For extraction and sale of natural gas: resource royalty; corporate income tax; special tax of Vietsovpetro JV in block 09.1of Vietnam - Russia Agreement dated December 27, 2010 on cooperation in geological survey and petroleum extraction in the continental shelves of the Socialist Republic of Vietnam by Vietsovpetro JV; profit on natural gas received by the host country.

What are the taxes declared quarterly in Vietnam?

According to Clause 2, Article 8 of Decree 126/2020/ND-CP, the following taxes and other amounts shall be declared quarterly::

(1) Corporate income tax incurred by foreign airliners and foreign reinsurers.

(2) VAT, corporate income tax, personal income tax declared on behalf of pledgors by credit institutions and third parties authorized by credit institutions to manage the collateral pending settlement.

(3) Personal income tax deducted by income payers that are eligible to declare VAT quarterly and also decide to declare personal income tax quarterly; individuals earning salaries or remunerations (hereinafter referred to as “salary earners”) who decide to declare personal income tax quarterly with tax authorities.

(4) Taxes and other amounts payable to state budget declared and paid on behalf of individuals by other organizations or individuals that are eligible to declare VAT quarterly and decide to declare tax on behalf of these individuals quarterly, except for the case specified in Point g Clause 4 of this Article.

(5) Surcharges when crude oil price increases (except petroleum activities of Vietsovpetro JV in block 09.1).