Is it permissible to declare tax on behalf of other individuals in Vietnam?

Is it permissible to declare tax on behalf of other individuals in Vietnam?

Pursuant to Clause 1 Article 8 of the Circular 40/2021/TT-BTC (amended by Clause 2 Article 1 of the Circular 100/2021/TT-BTC), an organization or individual shall declare and pay tax on behalf of another individual in the following cases:

1. The organization leases property from the individual under a lease contract which prescribes that the lessee is the taxpayer;

2. The organization has business cooperation with the individual;

3. The organization pays bonuses, sales compensation, promotions, commercial discounts, payment discounts, assistance in cash or not in cash, compensations for breach of contract, other compensations for fixed tax payers;

4. The organization in Vietnam is a partner of an overseas digital platform provider (without permanent establishment in Vietnam) and pays the individual for digital information products and/or services under agreement with the overseas digital platform provider;

5. Organizations including owners of e-commerce platforms declare and pay tax on behalf of individuals under authorization according to the regulations of civil laws;

6. Individuals declare and pay tax on behalf of others who are taxpayers under authorization according to regulations of civil laws.

Shall business organizations cooperating with individuals in Vietnam make declare tax on behalf of other individuals monthly or quarterly?

Pursuant to Clause 2 Article 8 of the Circular 40/2021/TT-BTC stipulating tax calculation in case organizations and individuals declaring and paying tax on behalf of other individuals as follows:

Tax calculation in case organizations and individuals declaring and paying tax on behalf of other individuals

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2. The organization or individual declares and pays tax on behalf of another individual as instructed in Clause 1 of this Article shall declare and pay tax as follows:

a) In the cases specified in Point a Clause 1 of this Article, the organization shall declare and pay tax monthly, quarterly, separately or annually as prescribed by tax administration laws.

b) In the cases specified in Points b, c, d, dd Clause 1 of this Article, the organization shall declare and pay tax monthly or quarterly as prescribed by tax administration laws.

c) In the cases specified in Point e Clause 1 of this Article, the organization or individual shall declare and pay tax as authorized by the individual in accordance with tax administration laws.

Pursuant to Clause 1.c Article 9 of the Circular 40/2021/TT-BTC (amended by Clause 3 Article 1 of the Circular 100/2021/TT-BTC) stipulating tax calculation in some special cases as follows:

Tax calculation in case organizations and individuals declaring and paying tax on behalf of other individuals

1. An organization or individual shall declare and pay tax on behalf of another individual in the following cases:

a) The organization leases property from the individual under a lease contract which prescribes that the lessee is the taxpayer;

b) The organization has business cooperation with the individual;

c) The organization pays bonuses, sales compensation, promotions, commercial discounts, payment discounts, assistance in cash or not in cash, compensations for breach of contract, other compensations for fixed tax payers;

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As regulations above, business organizations cooperating with individuals in Vietnam shall make declare tax on behalf of other individuals monthly or quarterly.

What are regulations on tax declaration in case a household business or individual business that does business in multiple business lines in Vietnam?

Pursuant to Clause 2 Article 10 of the Circular 40/2021/TT-BTC stipulating basis for tax calculation as follows:

Basis for tax calculation

The basis for calculation of tax payable by household businesses and individual businesses shall be taxable revenue and tax rates.

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2. Tax rates

a) Tax rates include VAT rates and PIT rates which vary according to business lines as specified in Appendix I hereof.

b) A household business or individual business that does business in multiple business lines shall declare and calculate tax at the tax rates that apply to each business line. In case a household business or individual business that fails to determine or correctly determine the taxable revenue earned from each business line, the tax authority shall impose the taxable revenue earned from each business lines in accordance with tax administration laws.

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As regulations above, a household business or individual business that does business in multiple business lines shall declare and calculate tax at the tax rates that apply to each business line.

In case a household business or individual business that fails to determine or correctly determine the taxable revenue earned from each business line, the tax authority shall impose the taxable revenue earned from each business lines in accordance with tax administration laws.

Best regards!