Which types of taxes are paid quarterly in Vietnam?

Which types of taxes are declared quarterly in Vietnam?

Based on Clause 2, Article 8 of Decree 126/2020/ND-CP providing guidance on the Law on Tax Administration, the types of taxes required to be declared quarterly include:

- 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 manage secured assets while awaiting disposal on behalf of taxpayers with secured assets.

- Personal income tax for organizations and individuals disbursing income subject to tax withholding as per the personal income tax law, where such organizations or individuals are subject to quarterly value-added tax declaration and opt for quarterly personal income tax declaration; individuals with income from salaries or wages who directly declare tax with the tax authority and choose quarterly personal income tax declaration.

- Other taxes and budgetary revenues declared and paid by organizations or individuals on behalf of individuals, where such organizations or individuals are subject to quarterly value-added tax declaration and opt for quarterly declaration on behalf of individuals, excluding cases stipulated at Point g, Clause 4 of this Article.

- Additional fees when crude oil prices increase (excluding the petroleum operations of the Vietsovpetro joint venture at Lot 09.1).

What is the deadline for submitting tax declarations quarterly in Vietnam?

According to Clause 1, Article 44 of the Law on Tax Administration 2019, the deadline for submitting quarterly tax declarations is as follows:

Deadline for tax declaration submission

...

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

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

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

...

Thus, based on the above regulation, the deadline for submitting quarterly tax declarations is no later than the last day of the first month of the quarter following the quarter in which the tax obligation arises, in cases where declaration and payment are quarterly.

Which types of taxes are paid quarterly in Vietnam? (Image from 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 goods sales and service provision in the preceding year did not exceed 50 billion VND, allowing them to opt for quarterly value-added tax declaration. Revenue from goods sales and service provision is determined as the total revenue on value-added tax declarations for the tax periods within the calendar year.

+Where taxpayers conduct centralized tax declaration at the main office for dependent units or business locations, the revenue from sales and service provision includes revenue from dependent units and business locations.

+If taxpayers are newly starting operations or business, they may choose quarterly value-added tax declaration. After conducting business for 12 full months, from the subsequent calendar year onward, they must base on the revenue of the preceding calendar year (full 12 months) to decide on monthly or quarterly tax declarations.

- Quarterly personal income tax declaration is as follows:

+ Taxpayers subject to monthly personal income tax declaration may opt for quarterly declaration if they meet the conditions for quarterly value-added tax declaration.

+ Quarterly declaration is determined once from the first quarter in which the tax declaration obligation arises and is applied consistently throughout the calendar year.

What are procedures for changing tax declaration period from monthly to quarterly in Vietnam?

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

*Note: for reference purposes only

Step 1: Prepare the Application for changing the tax period from monthly to quarterly according to Form 01/DK-TDKTT Circular 80/2021/TT-BTC.

Step 2: Submit the application directly/by post/online to the directly managing tax authority before January 31 of the year when quarterly tax declaration begins.

If after January 31 of the year when eligible for quarterly tax declaration and no application to change the tax period from monthly to quarterly is submitted, then continue with monthly declarations.

If switching 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 declarations -> Click Lookup -> Choose VAT Declaration (quarterly) -> Choose Stop declaration registration -> Then register declarations and declare monthly.

Step 3: The tax authority receives the application and resolves it according to regulations

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