Which taxes must be submitted in the third quarter of 2024 in Vietnam?

Which taxes must be submitted in the third quarter of 2024 in Vietnam?

Based on Clause 2, Article 8 of Decree 126/2020/ND-CP concerning the guidance on the Law on Tax Administration, the following taxes must be declared in the third quarter:

- Corporate income tax for foreign airlines and foreign reinsurers.

- Value-added tax, corporate income tax, personal income tax for credit institutions or third parties authorized by credit institutions to exploit secured assets while waiting for processing on behalf of taxpayers with secured assets.

- Personal income tax for organizations and individuals paying incomes subject to tax withholding under the regulations of personal income tax law, wherein the paying organizations and individuals are subject to quarterly value-added tax declaration and opt for quarterly personal income tax declaration; individuals with income from salaries or wages directly declaring tax with the tax authority and opting for quarterly personal income tax declaration.

- Other taxes and fees belonging to the state budget declared and paid by organizations and individuals on behalf of individuals, wherein the organizations and individuals are subject to quarterly value-added tax declaration and opt to declare taxes on behalf of individuals quarterly, excluding the case prescribed at point g, clause 4 of this Article.

- Surcharge when crude oil prices increase (excluding petroleum activities of Vietsovpetro Joint Venture at Lot 09.1).

When is the deadline for submitting tax returns for the third quarter of 2024 in Vietnam?

According to Clause 1, Article 44 of the Law on Tax Administration 2019 regarding the deadline for quarterly tax return submission, the third quarter has the following deadline:

Deadline for submitting tax returns

...

1. The deadline for submitting tax returns for taxes declared monthly and quarterly is prescribed as follows:

a) No later than the 20th day of the subsequent month following the month in which the tax obligation arises for monthly declaration and payment;

b) No later than the last day of the first month of the subsequent quarter following the quarter in which the tax obligation arises for quarterly declaration and payment.

...

Thus, according to the above regulation, the last day of the first month of the third quarter of 2024 is October 31, 2024.

Tax declaration deadline in Vietnam (Image from the Internet)

What are the criteria for quarterly tax declaration for value-added tax and personal income tax in Vietnam?

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

- Quarterly value-added tax declaration applies to taxpayers who are subject to monthly value-added tax declaration if their total revenue from the sale of goods and provision of services in the previous year is 50 billion VND or less, allowing them to declare value-added tax quarterly. Revenue from sales and services is determined as the total revenue on the value-added tax return for all tax periods in a calendar year.

+ For taxpayers declaring tax centrally at the head office for dependent units or business locations, sales and service revenue includes revenue from dependent units and business locations.

+ New taxpayers beginning operations can choose to declare value-added tax quarterly. After operating for 12 months, from the subsequent calendar year following the fully operational year, they will base the declaration on the revenue of the preceding calendar year (12 full months) to determine whether to declare value-added tax monthly or quarterly.

- Quarterly personal income tax declaration is as follows:

+ Taxpayers subject to monthly personal income tax declaration who meet the conditions for quarterly value-added tax declaration can choose quarterly personal income tax declaration.

+ Quarterly tax declaration is determined once from the first quarter with a tax declaration obligation and applies consistently throughout the calendar year.

Vietnam: How to convert the tax declaration period from monthly to quarterly?

According to Subitem 2, Section 1 of Procedures issued with Decision 1462/QD-BTC, the process to change the tax calculation period for value-added tax, personal income tax from monthly to quarterly is as follows:

Note: For reference only

Step 1: Prepare a written request to change the tax period from monthly to quarterly according to form 01/DK-TDKTT Circular 80/2021/TT-BTC.

Step 2: Submit the dossier directly/via mail/online to the tax authority directly managing before January 31 of the year commencing quarterly tax declaration.

If by January 31 of the year eligible for quarterly tax declaration the dossier to change the tax period from monthly to quarterly is not submitted, monthly declaration must continue.

To switch the tax declaration period from monthly to quarterly online, proceed as follows:

Access thuedientu.gdt.gov.vn and log in with the enterprise account (MST-QL) -> Tax declaration -> Register declaration form -> Click Search -> Select VAT declaration form (quarterly) -> Choose to unregister the declaration form -> Then register the declaration form and declare monthly.

Step 3: The tax authority receives and processes the dossier according to regulations

The tax authority will notify acceptance/rejection of the dossier no later than one working day from the date recorded on the receipt of the dossier.