When do business households have to pay presumptive tax in Vietnam? What is the method of calculating presumptive tax for business households and individuals in Vietnam?
- What is the presumptive method? When do business households have to pay presumptive tax in Vietnam?
- When do business households have to pay presumptive tax in Vietnam?
- What is the tax calculation method for business households and individuals paying tax according to the presumptive method in Vietnam?
What is the presumptive method? When do business households have to pay presumptive tax in Vietnam?
Pursuant to Clause 7, Article 3 of Circular 40/2021/TT-BTC stipulating that the “presumptive tax” means a fixed amount of proportional tax on a fixed amount of revenue determined by the tax authority as prescribed by Article 51 of the Law on Tax Administration.
Pursuant to Clause 8 Article 3 of Circular 40/2021/TT-BTC stipulating that “household businesses and individual businesses paying presumptive tax” are household businesses and individual businesses that fail to comply with or fully comply with regulations on accounting, invoices and documents, except household businesses and individual businesses paying tax under periodic or separate declarations.
When do business households have to pay presumptive tax in Vietnam? What is the method of calculating presumptive tax for business households and individuals in Vietnam? (Image from the internet)
When do business households have to pay presumptive tax in Vietnam?
Pursuant to Clause 1, Article 7 of Circular 40/2021/TT-BTC stipulating that presumptive tax shall be paid by household businesses and individual businesses other than those paying tax under periodic declarations and separate declarations prescribed in Article 5 and Article 6 of this Circular.
Accordingly, the guidance in Articles 5 and 6 of this Circular is as follows:
Clause 1, Article 5 of Circular 40/2021/TT-BTC stipulates the periodic declarations shall be prepared by large-scale household businesses and individual businesses or other household businesses and individual businesses that choose to pay tax under periodic declarations.
Business household, large-scale business individual means a business household or business individual whose scale of turnover and labor meets the highest level of criteria of micro-enterprises or higher.
Specifically as follows: business households and individuals doing business in the fields of agriculture, forestry, fishery and industry and construction with an average number of employees participating in social insurance per year of 10 or more. or the total revenue of the preceding year is 3 billion VND or more; business households and individuals doing business in the field of commerce and services with an average annual number of employees participating in social insurance of 10 or more or the total turnover of the preceding year from 10 billion VND or more. (Clause 2, Article 3 of Circular 40/2021/TT-BTC)
Clause 1, Article 6 of Circular 40/2021/TT-BTC stipulating the method of tax declaration according to each time it is incurred, applicable to individuals who do business infrequently and do not have a fixed business location.
Irregular business is determined depending on the characteristics of production and business activities of each field and industry and is determined by individuals to choose a tax declaration method according to the guidance in this Circular.
A fixed business location is a place where an individual conducts production and business activities, such as a transaction location, store, shop, factory, warehouse, wharf, yard or other similar location.
- Business individuals pay tax on each occasion, including:
+ Individuals doing mobile business;
+ Individuals who are private construction contractors;
+ Individuals transfer Vietnamese national internet domain name “.vn”;
+ Individuals earning income from digital information content products and services if they do not choose to pay tax according to the declaration method.
What is the tax calculation method for business households and individuals paying tax according to the presumptive method in Vietnam?
Pursuant to Article 7 of Circular 40/2021/TT-BTC, as amended by Clause 1, Article 1 of Circular 100/2021/TT-BTC, stipulating the tax calculation method applicable to business households and individuals paying tax according to The stock method is as follows:
- The presumptive method is applied to business households and individuals that are not subject to tax payment according to the declaration method and are not subject to tax payment according to the instructions in Articles 5 and 6 of this Circular. this fourth.
- Business households and individuals that pay tax by the presumptive method (Household contracts) are not required to comply with the accounting regime. Households using single invoices must store and present to the tax authorities invoices, vouchers, contracts and documents proving lawful goods and services when applying for the issuance and retail of invoices each time. incurred.
Particularly in the case of contracted households doing business at border markets, border-gate markets, and markets in border-gate economic zones in the Vietnamese territory, they must archive invoices, vouchers, contracts and documents proving the conformity of goods. law and present it at the request of a competent state management agency.
- Households that have been notified by the tax authority of the amount of presumptive tax payable from the beginning of the year, shall pay tax according to the notice. In case the contracted household has been notified of the tax amount from the beginning of the year, but in the year it stops or suspends its business, the tax authority shall adjust the payable tax amount according to the guidance at Point b.4, Point b.5 Clause 4 of this Article. 13 This Circular.
In case the contracted household has just started business in the year (the business is not enough 12 month in the calendar year), the contracted household is liable to pay VAT and must pay PIT if the business turnover in the year is over 100 million VND; or are not subject to VAT or PIT if they have a business turnover of 100 million VND or less in the year.
- Households that declare tax on a yearly basis as prescribed at Point c, Clause 2, Article 44 of the Law on Tax Administration, and pay tax according to the time limit specified in the tax agency's notice of payment according to the provisions of Clause 2, Article 55 of the Law on Tax Administration. In case the presumptive household uses invoices issued by the tax authority and retails them by number, the presumptive household shall declare and pay tax separately for the revenue generated on that invoice each time it is incurred.
Thus, the cases in which business households must pay presumptive tax are business households and individuals that fail to implement or fail to fully implement the accounting, invoice and voucher regime and do not fall into the exclusions mentioned above. The above will be the case of presumptive tax payment.
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