When is the deadline for fixed tax payment for the household businesses paying fixed tax in Vietnam in 2025?

When is the deadline for fixed tax payment for the household businesses paying fixed tax in Vietnam in 2025?

Based on Clause 8, Article 13 of Circular 40/2021/TT-BTC, the deadline for fixed tax payment for household businesses paying fixed tax is regulated as follows:

Tax administration for household businesses paying fixed tax

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8. Sending Tax Notifications and Tax Payment Deadlines

a) Sending Tax Notifications

a.1) The tax authority sends Payment Notifications according to form No. 01/TB-CNKD issued with Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam, along with the Public Notice according to form No. 01/CKTT-CNKD issued with this Circular to household businesses paying fixed tax (including both those required to pay taxes and those not required) no later than January 20 annually. The notification is sent directly to the household business paying fixed tax (signed acknowledgment by the taxpayer of receipt of the notice) or via postal service using a registered mail form.

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b) Tax Payment Deadlines

b.1) Based on the Payment Notice, the household business paying fixed tax shall pay VAT and PIT according to the deadlines specified in the Payment Notice form No. 01/TB-CNKD issued with Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam.

b.2) In cases where the household business paying fixed tax uses retail invoices from the tax authority for sales made on a per-transaction basis, the tax payment deadline for the revenue on the invoice is the same as the tax declaration deadline for such revenue as guided in point c, clause 3 of this Article.

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Therefore, the deadline for fixed tax payment for household businesses paying fixed tax in 2025 is determined as follows:

- According to the deadline specified in the Payment Notice form 01/TB-CNKD sent by the tax authority to each household business paying fixed tax (The Payment Notice will be sent no later than January 20, 2025).

- In cases where the household business paying fixed tax uses retail invoices issued per sales transaction by the tax authority, the tax payment deadline for the revenue on the invoice is no later than the 10th day from the date the revenue arises requiring the use of the invoice.

When is the deadline for fixed tax payment for household businesses paying fixed tax in Vietnam in 2025? (Image from the Internet)

How to determine the tax rate for household businesses paying fixed tax in Vietnam?

Based on Article 51 of the Law on Tax Administration 2019, the determination of the tax rate for business households and individuals paying tax according to the fixed method is stipulated as follows:

Determination of the Tax Rate for Business Households and Individuals Paying Tax by fixed Method

1. The tax authority determines the tax payable by the fixed method (hereinafter referred to as the fixed tax rate) for business households and individuals who do not or inadequately implement accounting, invoice, and document policies, except in cases stipulated in clause 5 of this Article.

2. The tax authority bases the determination of the fixed tax rate on the declarations by business households and individuals, the data from the tax authority, and the opinions of the commune-level tax advisory council.

3. The fixed tax rate is calculated annually or monthly for seasonal businesses. The fixed tax rate must be publicly disclosed within the jurisdiction of the commune, ward, or commune-level town. In the case of changes in industry, business size, or suspension, the taxpayer must notify the tax authority to adjust the fixed tax rate.

4. The Minister of Finance provides details on the grounds, procedures for determining the fixed tax rate for business households and individuals.

5. Business households and individuals with revenue and labor scale conforming to the highest criteria for micro-enterprises under the law on supporting small and medium enterprises must implement accounting policies and pay tax by the declaration method.

Thus, the fixed tax rate for household businesses paying fixed tax will be determined by the tax authority based on the declarations of business households and individuals, data from the tax authority, and opinions of the commune-level tax advisory council. The fixed tax rate is calculated on a calendar year basis or monthly for seasonal businesses.

Additionally, in the event of changes in industry, business size, suspension, or temporary suspension of business, the taxpayer must declare to the tax authority to adjust the fixed tax rate.

What are procedures for disclosing the list of household businesses paying fixed tax required to pay tax for the second time by the tax authorities in Vietnam?

Based on Clause 9, Article 13 of Circular 40/2021/TT-BTC, the tax authority publicly discloses the list of household businesses paying fixed tax required to pay taxes for the second time as follows:

(1) At the Tax Department Level

- The Tax Department publicly discloses the list of household businesses paying fixed tax required to pay taxes for the second time before January 30 annually on the tax sector's electronic information portal.

- In cases of new business start-up by household businesses paying fixed tax or changes in the tax liability, change in business status, the Tax Department publicly discloses or adjusts the information on the tax sector's electronic information portal no later than the last day of the month following the month the household business paying fixed tax starts business or experiences changes.

(2) At the Tax Branch Level

- The Tax Branch publicly discloses the list of household businesses paying fixed tax required to pay taxes for the second time before January 30 annually at the one-stop section of the Tax Branch, the district People's Committee; at the door, gate, or convenient locations for accessing information, suitable places of the commune, ward, commune-level town People's Committee headquarters; Tax Team headquarters; Market administration Board for public supervision.

- The Tax Branch sends materials disclosing the list of household businesses paying fixed tax required to pay taxes for the second time to the People's Council and the Fatherland Front of district, ward, commune-level town no later than January 30, stating the address, and the time period the Tax Branch receives feedback (if any) from the People's Council and the Fatherland Front of the district, ward, commune-level town.

- The Tax Branch is responsible for publicly notifying the location of the public disclosure of the list of household businesses paying fixed tax required to pay taxes for the second time, receiving address for feedback (telephone number, fax number, address at the one-stop section, electronic mailbox address) concerning the publicly disclosed content so that household businesses paying fixed tax are informed.

- The publicly disclosed materials at the Tax Branch level are implemented similarly to the public disclosure on the tax sector's electronic information portal at the Tax Department level.