When does the tax authority disclose information about households subject to fixed tax payment in Vietnam ?

What is the deadline for fixed tax payment in Vietnam?

Pursuant to Point b Clause 8 Article 13 of Circular 40/2021/TT-BTC, the deadline for paying fixed tax is regulated as follows:

- Based on the Payment Notification, households subject to fixed tax payment shall pay Value Added Tax (VAT) and Personal Income Tax (PIT) according to the deadline specified in the Payment Notification form No. 01/TB-CNKD issued together with Decree 126/2020/ND-CP.

- In case households subject to fixed tax payment use invoices provided for retail transactions issued by the tax authority, the deadline for tax payment for revenue shown on the invoices corresponds to the tax declaration deadline for revenue on the invoices as guided at Point c Clause 3 Article 13 of Circular 40/2021/TT-BTC.

When does the tax authority disclose information about households subject to fixed tax payment? (Image from the Internet)

When does the tax authority disclose information about households subject to fixed tax payment in Vietnam ?

Pursuant to Article 13 of Circular 40/2021/TT-BTC and specific guidance from the Hanoi Tax Department as follows:

- The tax authority shall disclose information about households subject to fixed tax payment as follows:

+ The first time from December 20, 2023, to December 31, 2023;

+ The second time no later than January 30, 2024, until the end of the year.

The disclosed information includes: List of households exempt from tax; List of households subject to tax.

- Venue and method of information disclosure:

+ Publicly posted documents at the one-stop shops of CCT/CCTKV; People's Committees of districts, townships; at the door, gate, or a suitable venue for accessing information, an appropriate location of the People's Committee headquarters of commune, ward, commune-level town; tax team offices; market management boards.

+ Sending publicly posted documents to the People's Councils and the Vietnam Fatherland Front Committees of districts, townships, commune, ward, commune-level town.

+ Publicly posting information about households subject to fixed tax payment by area on the tax authority's Electronic Information Portal.

+ Publicly posting information about households subject to fixed tax payment by area on the digital business map function of the eTax Mobile application.

+ Business households, residents, businesses, state management agencies, and other organizations can look up public information about business households paying fixed tax on the eTax Mobile application or by visiting: http://gdt.gov.vn for public information lookup.

How to calculate fixed tax in Vietnam?

Pursuant to Article 51 of the Tax Administration Law 2019 as follows:

Determining the tax amount for business households and individuals paying taxes by the lump-sum method

1. The tax authority determines the amount of tax payable by the lump-sum method (hereinafter referred to as the fixed tax) for business households, business individuals that do not comply with or adequately implement accounting policies, invoices, documents, except as provided in Clause 5 of this Article.

2. The tax authority bases the fixed tax on the declarations of business households, business individuals, the tax authority's database, opinions of the tax advisory council at the commune, ward, and commune-level town to determine the fixed tax.

3. The fixed tax is calculated according to the calendar year or by month for seasonal businesses. The fixed tax must be publicly disclosed in the commune, ward, and commune-level town. In case of a change in industry, business size, suspension, temporary cessation of business, the taxpayer must declare to the tax authority to adjust the fixed tax.

4. The Minister of Finance stipulates in detail the basis, procedure to determine the fixed tax for business households, business individuals.

5. Business households, business individuals whose revenue, labor scale meet the highest criteria of micro-enterprises according to the law on small and medium enterprise support must implement accounting policies and pay taxes by the declaration method.

Thus, the fixed tax is calculated according to the calendar year or by month for seasonal businesses.

What documents are required for tax declaration for households subject to fixed tax payment in Vietnam?

According to Clause 2 Article 13 of Circular 40/2021/TT-BTC regarding document requirements for tax declaration for households subject to fixed tax payment:

- From November 20 to December 5 annually, the tax authority distributes tax declaration forms for the next year to all households subject to fixed tax payment.

- The tax declaration documents for these households, according to Point 8.1 Appendix I - List of tax declaration documents issued together with Decree 126/2020/ND-CP include the tax declaration form for business households, individuals in form No. 01/CNKD issued together with Circular 40/2021/TT-BTC.

- In case households use invoices issued by the tax authority for retail transactions, when declaring tax for revenue on retail invoices, these households shall declare tax for each transaction using the tax declaration form for business households, individuals in form No. 01/CNKD issued together with Circular 40/2021/TT-BTC, and simultaneously present and submit the following documents with the tax declaration:

+ Copy of economic contract for goods and services in the same business line as the household's business activities;

+ Copy of acceptance and liquidation of the contract;

+ Copy of documents proving the origin of the goods and services such as:

 ++ List of agricultural products purchased if the goods are domestic agricultural products; 
++ List of goods purchased, exchanged by border residents if the goods are imported by border residents; 
++ Invoices from the selling party for imported goods purchased from domestic business organizations, individuals; 
++ Relevant documents to prove if the goods are self-produced, provided...

The tax authority has the right to request the presentation of the original documents to compare and confirm the accuracy of the copies with the originals.