What is the deadline for submitting proportional tax returns in Vietnam?

What is the deadline for submitting proportional tax returns in Vietnam?

According to Clause 3 Article 13 of Circular 40/2021/TT-BTC, which regulates tax management for proportional tax for households.

Regarding the deadline for filing tax returns for proportional tax for households, it is governed by point c Clause 2 and Clause 3 of Article 44 of the Law on Tax Administration 2019. Specifically:

- The deadline for filing tax returns for proportional tax for households is no later than December 15 of the preceding year of the tax year.

- For new proportional tax for households (including those switching to the proportional tax method), or those changing business lines, or those altering the scale of their business during the year, the deadline for filing tax returns is no later than the 10th day from the date of starting business, or changing the tax calculation method, or changing the business lines, or altering the scale of the business.

- For proportional tax for households using invoices issued by the tax authority for retail transactions, the deadline for filing tax returns is no later than the 10th day from the date the revenue arises requiring the use of the invoice.

What is the latest deadline for submitting proportional tax returns in Vietnam? (Image from the Internet)

When does the tax authority issue the annual proportional tax return in Vietnam?

According to Clause 2 Article 13 of Circular 40/2021/TT-BTC, which regulates tax management for proportional tax for households.

The annual proportional tax return will be handled as follows:

- From November 20 to December 5 each year, the tax authority issues the tax return form for the subsequent year to all proportional tax for households.

Accordingly, the tax return dossier for proportional tax for households according to point 8.1 Appendix 1 - List of tax return dossiers issued together with Decree 126/2020/ND-CP, is the Tax Return for Individual Business Households, Individual Business according to Form No. 01/CNKD (Download) issued together with this Circular.

- For proportional tax for households using invoices issued by the tax authority for each transaction, when declaring tax on revenue on single invoices, the proportional tax household will declare tax for each transaction using the Tax Return for Individual Business Households, Individual Business according to Form No. 01/CNKD (Download) issued along with this Circular, while submitting the tax return dossier accompanied by the following documents:

+ A copy of the economic contract providing goods and services within the same business sector of the proportional tax household;
+ A copy of the acceptance and liquidation minutes of the contract;
+ A copy of the document proving the origin of goods and services, such as: a purchase list of agricultural products if it is domestic agricultural products; a purchase list of goods bought and exchanged by border residents if they are imported by border residents; the seller's invoice if it is imported goods purchased from domestic organizations and individuals; related documents to prove if the goods are produced and provided by individuals themselves; etc.

The tax authority has the right to request the original documents for comparison to confirm the accuracy of the copies against the originals.

Therefore, according to the above regulations, the tax authority issues the annual proportional tax return from November 20 to December 5 each year.

What are 4 bases to determine proportional tax for households in Vietnam?

According to Clause 1 Article 13 of Circular 40/2021/TT-BTC, which regulates tax management for proportional tax for households.

It clearly states that the bases for determining proportional tax for proportional tax for households include:

[1] Tax returns of proportional tax for households self-declared according to estimated revenue and proportional tax rate of the tax year;

[2] The tax authority’s database;

[3] Consultation opinions from the commune-level tax advisory council;

[4] Results of public information and feedback from the tax advisory council, People's Committees, People's Councils, Fatherland Front at the commune level, proportional tax for households, and other organizations and individuals.

Public disclosure of information for proportional tax for households is when the tax authority organizes the public disclosure and accepts feedback on revenue and proportional tax rates for proportional tax for households.

The first public disclosure According to Clause 5 Article 13 of Circular 40/2021/TT-BTC aims to consult and collect opinions on the estimated revenue and proportional tax rates, and the second public disclosure According to Clause 9 Article 13 of Circular 40/2021/TT-BTC aims to consult and collect opinions on the official revenue and proportional tax rates payable for the tax year.

The public disclosure of information includes: posting information on paper at the locality; direct delivery to the proportional tax household; direct delivery to the People's Council, People's Committee, Fatherland Front at the district, commune levels; public disclosure on the Tax Authority's website.

Therefore, the tax authority will rely on the 4 bases above to determine the proportional tax rate for proportional tax for households.