Method calculating tax payable by household businesses under periodic declarations in Vietnam

The Circular prescribes the method and basis for calculating tax payable by household businesses and individual businesses under periodic declarations in Vietnam as follows:

• “Periodic declaration” means a method of declaring, calculating proportional tax on actual revenue earned per month or quarter.
• 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.
•  Household businesses and individual businesses paying tax under periodic declarations shall declare tax monthly, except new businesses and businesses that satisfy the criteria for declaring tax quarterly prescribed in Article 9 of Vietnam's Decree 126/2020/ND-CP.
•  If the revenue of a household business or individual business that is paying tax under periodic declarations is found to be false, the tax authority shall impose the taxable revenue as prescribed in Article 50 of Vietnam's Law on Tax Administration.
• Household businesses and individual businesses paying tax under periodic declarations shall comply with on accounting, invoices and documents. 
• A household business or individual business is not required to do accounting if their a business line has the basis for determination of revenue which is confirmed by a competent authority in Vietnam.

Vietnam's Circular 40/2021/TT-BTC takes effect from August 1, 2021.

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