TAX DECLARATION

HOW TO DETERMINATE TAX DECLARATION MONTHLY, QUARTERLY, ANNUALLY OR UPON EACH TIME OF ARISING

Taxpayers who meet the criteria for monthly or quarterly declaration of VAT are stable throughout the calendar year. Every year, taxpayers are responsible for self-determination of tax returns on a monthly or quarterly basis.

Taxpayers who meet the criteria for quarterly declaration of VAT can choose to declare quarterly or monthly declaration of VAT. Conversely, taxpayers who meet the criteria for monthly declaration of VAT are required to declare monthly declaration of VAT.

Monthly or quarterly tax declaration is determined once from the first month or quarter of the year or the first tax declaration period for taxpayers who have just started a business.

Pursuant to Articles 8 and 9 of Decree 126/2020/ND-CP stipulates as follows:

I. Taxes declared quarterly

1. Quarterly declaration of value added tax

Taxpayers shall declare VAT quarterly if they meet one of the following criteria:

- Taxpayers whose turnover from selling goods and providing services on VAT declarations for tax periods in the preceding year is VND 50 billion or less.

- Taxpayers who have just started operating and doing business can choose quarterly declaration of VAT. After 12 months of production and business in the calendar year, the taxpayers shall base themselves on the turnover of the previous year (full 12 months) to declare VAT monthly or quarterly.

- Taxpayers who are declaring VAT monthly and meet the criteria for quarterly declaration of VAT and choosing to switch to declaring tax quarterly should send a written request according to Appendix I issued with Decree 126/2020/ ND-CP to the tax authority directly managing no later than January 31 of the year to start quarterly tax declaration. If after this deadline, the taxpayer does not send a document to the tax authority, the taxpayer will continue to declare tax on a stable monthly basis for the entire calendar year.

 Revenue of 50 billion VND or less => VAT can be declared quarterly

2. Quarterly personal income tax declaration

- Taxpayers declare VAT quarterly and choose to declare personal income tax quarterly.

- Individuals with income from salaries or wages directly declare tax to the tax authority and choose to declare personal income tax quarterly.

II. Taxes declared monthly

1. Declare value added tax by month

- Taxpayers do not meet the criteria for quarterly VAT declaration.

- Taxpayers meet the criteria for declaring VAT quarterly, but choose to declare VAT monthly.

2. Declare personal income tax monthly

- Taxpayers declare personal income tax monthly, if they are in the case of monthly VAT declaration.

- Individuals earning incomes from salaries and wages directly declare tax with tax authorities and choose to declare personal income tax on a monthly basis.

III. Taxes declared annually, annual settlement declaration

1. License fee

- Annual tax declaration for newly established enterprises or additional dependent units and business locations.

- Taxpayers have changes in capital during the year.

2. Finalization of corporate income tax

3. Personal income tax finalization

- Organizations and individuals that pay incomes from salaries and wages are responsible for making tax declarations and finalizations on behalf of authorized individuals, regardless of whether or not tax withholding is incurred. .

- Individuals with income from salaries or wages directly settle with the tax authority.

4. Other taxes

- Non-agricultural land use tax

- Tax on agricultural land use

- Land rent and water surface rent are paid annually

IV. Taxes are declared each time they arise

- Contractor tax in case of applying the direct method. In case it occurs multiple times a month, it is declared monthly instead of declaring each occurrence.

- Personal income tax from capital transfer income, capital investment, copyright, franchise, inheritance - gift, prize winning...

- CIT from capital transfer.