Vietnam: Taxpayers shall determine their eligibility to declare tax quarterly themselves

According to the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, taxpayers shall determine their eligibility to declare tax quarterly themselves. To be specific:

- Taxpayers that fulfill all requirements for quarterly declaration may choose between monthly or quarterly declaration throughout the calendar year.

- In case a taxpayer who is declaring tax monthly fulfills the requirements for quarterly declaration and wishes to declare tax quarterly, the taxpayer shall submit a written request (Appendix I hereof) to the supervisory tax authority by January 31 of the year in which quarterly declaration is applied. If such a written request is not submitted by this deadline, the taxpayer shall keep declaring tax monthly throughout the calendar year.

- In case a taxpayer finds that the requirements for quarterly declaration are not fulfilled, the taxpayer shall declare tax monthly from the first month of the next quarter. In this case, the taxpayer is not required to submit tax declaration dossiers of the previous quarters. However, the taxpayer shall submit a document specifying the difference between monthly declared tax and quarterly declared tax (Appendix I hereof) and pay the late payment interest as per regulations.

- In case the tax authority finds that a taxpayer is not eligible to declare tax quarterly, the tax authority shall determine the difference between monthly declared tax and quarterly declared tax and charge late payment interest (if any) as per regulations and the taxpayer shall declare tax monthly from the receipt of the tax authority’s notice.

View more details at the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE