What is the List of entities required to submit presumptive tax declarations in Vietnam before December 15, 2024?

What is the List of entities required to submit presumptive tax declarations in Vietnam before December 15, 2024?

Based on Clause 2, Article 44 of the 2019 Law on Tax Administration which stipulates the deadline for submitting tax declaration dossiers as follows:

Deadline for submitting tax declaration dossiers

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

a) No later than the last day of the 3rd month from the end of the calendar year or fiscal year for annual tax settlement dossiers; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration dossier filings;

b) No later than the last day of the 4th month from the end of the calendar year for personal income tax settlement returns of individuals directly settling taxes;

c) No later than December 15 of the immediately preceding year for households and individuals conducting business paying taxes by estimated method; in case of new household businesses or individuals, the deadline for filing presumptive tax declarations is no later than 10 days from the commencement of business.

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According to Clause 8, Article 3 of Circular 40/2021/TT-BTC, specific regulations on paying presumptive tax are as follows:

Terminology Explanation

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8. “household businesses and individual businesses paying presumptive tax” are those who do not perform or do not fully perform accounting, invoice, and document policies, except for those who pay tax by the declaration method and individuals paying tax per occurrence.

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Thus, according to the above regulations, the list of subjects required to submit presumptive tax declarations before December 15, 2024 includes:

- household businesses

- Individual businesses

Note:

In the case of new household businesses or individuals, the deadline for filing presumptive tax declarations is no later than 10 days from the start of business.

What is the List of entities required to submit presumptive tax declarations in Vietnam before December 15, 2024? (image from the Internet)

Vietnam: What does the presumptive tax declaration include?

Based on Clause 2, Article 13 of Circular 40/2021/TT-BTC, the specific regulations on tax declaration dossiers are as follows:

tax declaration dossier Dossier

[1] From November 20 to December 5 each year, the tax authority distributes the next year's Tax Declaration Form to all estimated households.

[2] According to the regulations at point 8.1 Appendix I - List of tax declaration dossier dossiers issued together with Decree No. 126/2020/ND-CP, the tax declaration dossier dossier for household businesses and individual businesses is the Tax Declaration Form for businesses according to form No. 01/CNKD issued with this Circular.

[3] In case the household businesses use invoices issued by the tax authority for retail per occurrence, when reporting tax on revenue from such invoices, the household declares tax per occurrence and uses the Tax Declaration Form for household businesses, individuals according to form No. 01/CNKD issued with this Circular while presenting, attaching to the tax declaration dossier dossier the following documents:

- Copy of the economic contract for the supply of goods and services in the same industry as the household's business activity;

- Copy of the acceptance report, contract liquidation;

- Copy of documents proving the origin of goods and services such as: List of purchasing agricultural products if they are domestic agricultural goods; List of purchased, exchanged goods of border residents if they are imported by border residents; Seller's invoice for imported goods purchased from domestic business entities; relevant documents to substantiate if it is goods produced and provided by individuals themselves;...

Note:

The tax authority has the right to request the presentation of the original for comparison, verification of the accuracy of the copy against the original.

- Form No. 01/CNKD... download

What is the tax calculation method for household businesses and individual businesses paying presumptive tax in Vietnam?

Based on Article 7 of Circular 40/2021/TT-BTC, amended by Clause 1, Article 1 of Circular 100/2021/TT-BTC, specific regulations on tax calculation methods for household businesses and individual businesses paying presumptive tax are as follows:

[1] The estimated method is applied to household businesses and individual businesses not belonging to cases paying tax by the declaration method and not belonging to cases paying tax per occurrence as guided in Article 5 Circular 40/2021/TT-BTC, Article 6 Circular 40/2021/TT-BTC.

[2] household businesses and individual businesses paying presumptive tax (Estimated Households) are not required to perform accounting policies. Estimated Households using single invoices must store and present to the tax authority invoices, documents, contracts, dossiers proving legitimate goods and services when requesting issuance of retail invoices per occurrence. Particularly for Estimated Households doing business at border markets, border-gate markets, and markets in border economic zones in Vietnam, they must keep invoices, documents, contracts, dossiers proving legitimate goods and present them when requested by competent state management agencies.

[3] Estimated Households notified by the tax authority about the annual fixed tax amount must pay tax according to the notification. In case the Estimated Households notified of the tax amount from the beginning of the year stop or temporarily cease business within the year, the tax authority will adjust the payable tax amount according to the guidance at points b.4, b.5, Clause 4, Article 13 Circular 40/2021/TT-BTC. In case new Estimated Households start business during the year (less than 12 months of business in the calendar year), if they have a business revenue over 100 million VND, they are required to pay VAT and PIT; or they do not need to pay VAT or PIT if the annual revenue is 100 million VND or less.

[4] Estimated Households declare annual taxes as stipulated in point c, Clause 2, Article 44 of the 2019 Law on Tax Administration, and pay taxes according to the deadlines stated in the tax authority's payment notification according to Clause 2, Article 55 of the 2019 Law on Tax Administration. If the Estimated Households use invoices issued by the tax authority on a per number basis, they must declare and pay taxes separately for the revenue generated from those invoices per occurrence.