Where issued: | General Department of Taxation | Effective date: | 19/07/2021 |
Date issued: | 19/07/2021 | Status: | Still validated |
THE FINANCIAL GENERAL TAXES | SOCIAL REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
Number: 2626/TCT-DNNCN Regarding introducing some new points and implementing Circular No. 40/2021/TT-BTC | Hanoi, date 19 month 7 year 2021 |
Dear: Tax Departments of provinces and centrally run cities.
On June 01, 6, the Ministry of Finance issued Circular No. 2021/40/TT-BTC guiding value added tax, personal income tax and tax management for business households and individuals. Effective from August 2021, 01. In this regard, the General Department of Taxation has the following comments:
1. The General Department of Taxation introduces a number of new points on tax administration for business households and individuals and implements the Minister's Circular No. 40/2021/TT-BTC dated June 01, 6 Finance (details are given in the attached Appendix).
2. Assign the Information Technology Department to assume the prime responsibility for, and coordinate with the Department of Tax administration of small and medium-sized enterprises, business households and individuals in upgrading the application, meeting the requirements, and implementing the above provisions. .
3. Requesting the Director of Tax Departments of provinces and centrally run cities to propagate and disseminate regulations on guiding value-added tax, personal income tax and tax management for business households businesses and individuals doing business in Circular No. 40/2021/TT-BTC to tax officials and taxpayers and prepare conditions for enforcement.
The General Department of Taxation shall notify the Tax Departments to proactively deploy and implement./.
Recipients: | KT. GENERAL DIRECTORY Dang Ngoc Minh |
APPENDIX
INTRODUCTION TO SOME NEW CONTENT ON VALUE-ADDED TAX GUIDELINES, PERSONAL INCOME TAX AND TAX MANAGEMENT FOR BUSINESS HOUSEHOLDS, BUSINESS INDIVIDUAL IN CURRENCY No. 40/2021/TT-BTC FINANCE
(Attached to Official Dispatch No. 2626/TCT-DNNCN dated July 19, 07 of the General Department of Taxation)
1. Regarding the scope of regulation: (Article 1)
This Circular provides guidance on value-added tax (VAT), personal income tax (PIT) and tax management applicable to business households and individuals, replacing the guidance on business households and individuals. business people in Chapter I and Chapter II of Circular No. 92/2015/TT-BTC dated June 15, 6 of the Ministry of Finance.
2. About the subject of application
New point 1: about the subject of application (Clause 4, Article 2)
Amending and supplementing regulations on individuals transferring Vietnamese national internet domain names “.vn” as guided in this Circular apply to both resident and non-resident individuals.
Before: There are no guidelines for non-resident individuals yet.
New point 2: about the subjects of application (Point dd Clause 1, Clause 6 Article 2)
Additional guidance compared to the past in a number of cases: organizations are responsible for tax declaration, tax instead; provide specific instructions for business households and individuals doing business in e-commerce activities, including cases where individuals earn incomes from digital information content products and services in accordance with the law on commerce. e-commerce.
Before: There have been specific instructions on tax declaration on behalf of individuals who lease properties and cases of authorization according to civil law, individuals doing business with organizations; There are no specific instructions for organizations and individuals that declare tax on their behalf or pay taxes on their behalf. For business households and individuals conducting e-commerce activities, including cases where individuals earn incomes from digital information content products and services in accordance with the law on e-commerce before This is already available in Circular No. 92/2015/TT-BTC, but there are no specific instructions.
3. About word interpretation
New point 3: on the interpretation of words (Article 3)
Systematize terms already explained in legal documents in relevant fields and at the same time supplement and explain some terms in this Circular.
Before: There are no guidelines for this content.
4. Business households and individuals pay tax according to the declaration method
New point 4: on tax calculation methods for business households and individuals paying tax according to the declaration method (Article 5)
Supplementing new guidance on tax calculation methods for business households and individuals paying tax according to the declaration method: business households and individuals doing large-scale business or not yet meeting the requirements of large-scale but self-selecting tax will be paid according to the declaration method; business households and individuals paying tax according to the declaration method shall declare tax on a monthly or quarterly basis, must comply with the prescribed accounting regime, invoices and documents but are not required to finalize tax; If the taxable revenue is determined to be unsuitable to reality, the tax authority shall make the determination according to the provisions of Article 50 of the Law on Tax Administration.
Before: There are no instructions for this.
New point 5: on tax declaration dossiers for business households and individuals paying tax according to the declaration method (Article 11; Clause 4, Article 5)
Supplementing new guidance on tax declaration dossiers for business households and individuals paying tax according to the declaration method. Accordingly, business households and individuals paying tax according to the declaration method submit tax declaration dossiers according to the declaration form No. 01/CNKD issued together with the Circular and submitted together with the Appendix to the list of business activities in the Circular No. period No. 01-2/BK-HDKD, in which it is required to report on import - export - inventory of materials, tools, products, goods/groups of goods in the period; expenses incurred related to business revenue in the period as a basis for tax authorities to manage business revenue in the period according to risk.
Particularly, in case business households and individuals doing business in the fields and lines of business have grounds to determine revenue according to certifications of competent authorities, they are not required to comply with the accounting regime and are not required to attach the Appendix to the table. List of business activities in the period, form No. 01-2/BK-HDKD. Fields and trades that have grounds for determining revenue according to the certification of competent authorities according to actual arising in the past time such as: solar power production; cruise ship services with price management and departure activities, ship coordination of local authorities; and other similar activities. Tax authorities shall coordinate with functional agencies to identify the fields and trades in the locality that satisfy the conditions for determining revenue, on that basis, specifically identify paying organizations and business households. , business individuals operating in such fields and lines of business are subject to tax payment according to the declaration method but are not required to comply with the accounting regime and are not required to submit the Appendix to the list of business activities in the period according to form 01- 2/BK-HDKD. Business households and individuals doing business in these fields and industries only have to declare tax monthly/quarterly according to the declaration form No. 01/CNKD and enclosed with documents (invoices, vouchers, other documents) for certification. about the amount of money received from production and business activities in the tax period, which is paid by the organization or issued by the competent authority in the locality.
Before: There are no instructions for this.
New point 6: on the place of submission, the deadline for submitting the tax return, the tax payment deadline (Article 11).
Supplementing new guidance on the place of submission, deadline for submitting tax declaration dossiers, and tax payment deadlines for business households and individuals paying tax according to the declaration method, specifically as follows:
– Households shall submit tax declaration dossiers at the Sub-department of Taxation directly managing the place of production and business activities.
– The deadline for submitting tax declaration dossiers is according to the general regulations on the time limit for monthly or quarterly declaration specified in Article 44 of the Law on Tax Administration.
- The deadline for tax payment is the last day of the tax return filing deadline. In case of additional declaration of tax declaration dossiers, the time limit for tax payment is the time limit for submitting tax declaration dossiers of the tax period with errors or omissions.
Before: There are no instructions for this.
New point 7: on tax declaration obligations in case business households and individuals pay tax according to the declaration method of temporarily suspending operation and business (Clause 5, Article 11).
Supplementing new guidance on tax declaration obligations in case the household declares to temporarily stop operating or doing business: in case the business household or business individual suspends its operation or business, it shall notify the tax authority according to regulations. Decree No. 91/01/ND-CP dated November 2021, 04 of the Government, Article 11 of Decree No. 2021/4/ND-CP dated October 126, 2020 of the Government, Article 19 Circular No. 10/2020/TT-BTC dated December 12, 105 of the Ministry of Finance guiding on tax registration and not having to submit tax declaration dossiers, except for business households and individuals that temporarily suspend operations. business for less than a full month if declaring tax by month or suspending operations, doing business for less than a quarter if declaring tax on a quarterly basis.
Before: There are no instructions for this.
5. For business individuals who pay tax according to each time it is incurred
New point 8: on the subject of tax declaration according to each time of arising (Clause 2, Article 6).
Adding a number of tax declaration objects according to each time they arise such as:
– 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.
Before: There are no specific guidelines for the above cases.
New point 9: About the place to submit tax declaration dossiers for business individuals who pay tax each time it is incurred (Clause 2, Article 12).
Amending and supplementing regulations on place of filing tax returns: place of filing tax returns for business individuals who pay tax each time it is incurred, specifically for each case as follows:
- In case of mobile business, the tax declaration dossier shall be submitted at the Sub-department of Taxation directly managing the place where the individual conducts business activities.
– In case an individual earns income from digital information content products and services, he/she shall submit a tax declaration dossier at the Sub-department of Taxation directly managing the place where the individual resides (permanently or temporarily residing).
– In case an individual earns income from transferring the Vietnamese national internet domain name “.vn”, he/she shall submit a tax declaration dossier at the Tax Department where the individual resides. In case the transferor is a non-resident individual, he/she shall submit a tax return at the tax authority directly managing the Vietnamese national internet domain name management organization ".vn".
– In case the individual is a private construction contractor, the tax declaration dossier shall be submitted at the Sub-department of Taxation directly managing the place where the individual conducts construction activities.
Before: According to the guidance in Clause 3, Article 7 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the place to submit tax declaration dossiers for individuals doing mobile business (transportation) is the Sub-Department of Finance. Taxes where individuals register their businesses; For other cases of tax declaration each time, it shall be declared at the Tax Department where the individual resides (permanently or temporarily residing).
6. Business households and individuals pay tax according to the presumptive method
New point 10: on responsibility to keep records to prove that goods and services are lawful in case the contracted household requests for retail sale or sale of invoices each time they arise (Article 7)
Supplementing regulations on the responsibility of contracted households, if they use individual invoices, must store and present to the tax authorities invoices, vouchers, contracts and documents proving lawful goods and services when proposing to tax authorities. Offer to issue and sell individual invoices each time they arise.
Before: There are no instructions for this.
New point 11: on the use of invoices of contracted households (Clause 2, Clause 4, Article 7)
Amendment of regulations on the use of individual invoices issued by the tax authority, retail by number, not using invoice books. In case the contracted household chooses to stabilize the tax calculation method until the end of the tax period of 2021 according to the guidance in Clause 4, Article 20 of this Circular, it will continue to stabilize the use of invoices until the end of the tax period of 2021.
Before: According to the guidance at Point a, Clause 2, Article 2, Clause 3, Article 6 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, contracted households are allowed to use both individual invoices and bulk invoices.
New point 12: about tax declaration dossiers in case the flat household uses invoices issued by the tax authority and retails it for each time it is incurred (point c, clause 2, Article 13).
Amending and supplementing new instructions for contracted households using invoices issued by tax authorities or retailing according to each time they arise, tax declaration dossiers include:
- Tax return for business households and individuals, made according to form No. 01/CNKD attached to this Circular;
- A copy of the economic contract for the provision of goods and services in the same industry as the business of the contracted household;
- A copy of the minutes of acceptance and liquidation of the contract;
- A copy of the document proving the origin of the goods or service, such as: A list of agricultural products purchased, if they are domestic agricultural products; A list of goods purchased, sold and exchanged by border residents, if they are imported by border residents; Invoices delivered by the seller if they are imported goods purchased from a domestic business organization or individual; relevant documents to prove if the goods are self-manufactured or supplied by individuals;…
The tax authority has the right to request the presentation of the original for comparison and confirmation of the accuracy of the copy against the original.
Before: Previously, this tax declaration file was applicable to business individuals who pay tax on each occasion as prescribed in Clause 2, Article 7 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance. .
New point 13: about the deadline for submitting tax declaration dossiers (point b, clause 3, Article 13)
Supplementing guidance for business households and individuals paying tax according to the declaration method and converting to the presumptive method; If business households and individuals pay tax by the flat method and convert to the declaration method, the time limit for submitting tax declaration dossiers (flat tax return) is the 10th day from the date of conversion of the tax calculation method. .
Before: There are no instructions for this.
New point 14: on revenue adjustment and flat tax rate (point b, clause 4, Article 13)
Amending and supplementing regulations on adjusting revenue and flat tax rate, accordingly, if a flat household in the year requests to adjust revenue or flat tax rate due to a change in business activities, the tax authority shall adjust the flat tax rate. flat tax as prescribed in Clause 3, Article 51 of the Law on Tax Administration from the time of change. As follows:
- Contracting households that change their business scale (business area, employed employees, turnover) must make an adjustment and supplement to the tax return, made according to form No. 01/CNKD attached to this Circular. If the tax authority determines that the flat revenue changes by 50% or more compared to the contracted revenue, the tax authority shall issue a Notice (form No. 01/). TB-CNKD promulgated together with Decree No. 126/2020/ND-CP dated October 19, 10 of the Government) on adjusting the flat tax rate from the time of change in the tax year. If, through the database of the tax authority, verification, examination and inspection data, the tax authority has grounds to determine that the presumptive household does not meet the conditions for adjustment of the flat tax rate as prescribed. The tax authority shall issue a Notice of non-adjustment of the flat tax rate using form No. 2020/TBKĐC-CNKD attached to this Circular.
- Contracting households that change their business locations must change their tax registration information according to regulations and carry out tax declaration procedures at the new location as if they had just started doing business. Tax authorities shall base on dossiers of change of tax registration information to handle according to regulations. The tax authority managing the place where the contracted household moves to shall process the tax return of the contracted household as if it had just started business. The tax authority managing the place where the contracted household moves to issue a Notice (form No. 01/TB-CNKD issued together with Decree No. 126/2020/ND-CP dated October 19, 10 of the Government) on the adjustment reduce the flat tax rate from the time of change in the tax year.
- If the contract household changes its business line or field (even if there is no change in the applicable tax rate or rate), the contracted household must carry out the procedures for changing tax registration information as prescribed (if any). change of business lines or fields compared to tax registration), and at the same time make an adjustment and supplement to the tax declaration according to form No. 01/CNKD attached to this Circular. The tax authority shall base on the results of processing dossiers of change of tax registration information (if any) and the tax declaration dossiers of the presumptive households and the tax authority's database to issue a Notice (form No. /TB-CNKD promulgated together with Decree No. 01/126/ND-CP dated October 2020, 19 of the Government) on adjusting the flat tax rate (if any) according to reality from the time of change in the year tax.
- Contracting households that stop or suspend their business shall notify when they stop or suspend their business according to the provisions of Article 4 of Decree No. 126/2020/ND-CP dated October 19, 10 of the Government. The tax authority shall base itself on the notice of the flat household or a competent state agency as prescribed in Article 2020 of the Law on Tax Administration to adjust the flat tax rate as follows:
+ For contract households that have been notified of approval to stop doing business: if the contract households stop doing business from the first day of the calendar month, the entire flat tax amount will be reduced from the month of business cessation; If the contracted household stops doing business at any time between the 02nd and the 15th of the calendar month, the flat tax amount of the month when the business ceases to operate will be adjusted down by 50% and the entire amount of the flat tax shall be reduced. flat tax of the months after the month of business cessation; if the flat household stops doing business at any time during the period from the 16th day onwards of the calendar month, the flat tax amount of the month when the business ceases to do business is not adjusted down, only the whole tax amount is reduced. securities of the months following the month of cessation of business.
+ For contract households that have been notified of their approval to suspend their business: if the contracted household suspends business for the whole month of the calendar year, the flat tax amount of that month will be reduced in its entirety; if the contracted household suspends business for 15 consecutive days or more in a calendar year, the payable flat tax amount of that month shall be adjusted down by 50%.
+ Time to stop or suspend business is determined according to the notice of the taxpayer, in case the taxpayer stops or suspends the business without notice or late notice (including the case due to force majeure reasons). According to regulations), the tax authority will base on the actual verification results to determine the time to stop or suspend business.
- Contractual households stop or suspend their business at the request of a competent state management agency, the tax authority shall base on the written request for cessation or suspension of the competent state management agency to adjust the tax rate. the actual flat tax for the requested period of stopping or suspending business.
- If the presumptive tax returns are converted to the declaration method, the flat tax return shall be adjusted and supplemented according to form No. 01/CNKD attached to this Circular. Tax authorities shall base themselves on the amended and supplemented declarations to reduce the presumptive tax rates for the conversion period.
Before: According to the guidance at point c, clause 4 and point a, clause 11, Article 6 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, it only guides the adjustment of revenue and flat tax rate for some of the following cases: the contracted household in the year has a change in business activities but the contracted revenue changes by 2015% or more; If contract households change their business lines, they will adjust according to reality; contracted households if they stop/take a continuous break for the whole calendar month. There are no instructions for other cases.
New point 15: on the publicity of the Board of information disclosure of contracted households, made according to form No. 01/CKTT-CNKD (point c, clause 5, Article 13 and point a.2 clause 8 Article 13)
Supplementing the provisions that in case the tax authority has made the publicity sheet public on the tax authority's portal, it is not required to print or broadcast directly to each contracted household the public sheet according to form No. 01. /CKTT-CNKD.
Before: According to the guidance at point c, clause 5 and point a.1 clause 9, Article 6 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the information disclosure sheet sent to individuals is made according to The geographical area includes both taxable individuals and non-taxable individuals. For markets, streets, streets and residential groups with two hundred (2015) business individuals or less, the Tax Department shall print and distribute to each business individual a public table of individuals doing business in the area. In case a market, street, street or residential group has more than 200 business individuals, the Sub-department of Taxation shall print and distribute to each business individual a public sheet of no more than 200 individuals doing business in the area. Particularly for markets with more than 200 business individuals, the Tax Department prints and distributes public notices to each business individual.
7. For individuals who lease property
New point 16: on a turnover of 100 million dong/year or less to determine that individuals who lease property do not have to pay tax in the year (point c, clause 1, Article 9)
Amendments to regulations on revenue of 100 million VND/year or less to determine that individuals who lease property do not have to pay tax in the year, accordingly, in case the individual leasing the property does not generate a full 12 month in the calendar year and the average monthly turnover is 8,34 million VND or less, no tax is required. In case the revenue is not generated for full 12 months in the calendar year and the average monthly revenue is over 8,34 million VND, the individual must declare and pay tax in the year, including the case where the individual chooses to declare tax by year and pay tax on an annual basis. tax declaration dossiers before December 31 of the tax year; In case an individual chooses to declare tax annually and submits a tax return after December 12 of the tax year, he/she is not required to pay tax if the actual total turnover from business activities is VND 31 million or less. In cases where tax has been paid in the year, by the end of the year, individuals who determine their annual revenue from 12 million VND or less are responsible for proving and requesting refund or clearing against the payable amount arising from the tax payment. next period in accordance with the law on tax administration.
Before: According to the guidance at Point b, Clause 1, Article 4 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the revenue level of 2015 million VND/year or less is used to determine who is not required to pay tax. in the year in the event that 100 months are not incurred in the calendar year is based on the actual rental income of the property arising in the calendar year.
New point 17: on the deadline for filing tax returns for individuals leasing properties (point a, clause 3, Article 14)
Amending regulations on individuals who lease property and declare tax according to each payment period, the deadline for submitting tax declaration dossiers is the 10th day from the beginning of the lease term of the payment period; If an individual leases a property and declares tax on an annual basis, the deadline for submitting a tax return is the last day of the first month of the next calendar year.
Before: According to the guidance at Point d, Clause 1, Article 8 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the deadline for submitting tax declaration dossiers for individuals declaring tax is according to the late payment term. no later than the 2015th day of the quarter following the quarter starting the lease term; the deadline for filing tax returns for individuals filing annual tax returns is the 30th day from the end of the calendar year.
New point 18: about the place to submit tax declaration dossiers for resident individuals whose rental properties are real estate in foreign countries; and individuals leasing properties, excluding real estate in Vietnam (point a, clause 2, Article 14)
Amendment of regulations on place of filing tax returns, whereby the place of filing tax returns for individuals with rental properties (except real estate in Vietnam) is the Sub-department of Taxation where the individual resides. In that case, if an individual residing in Vietnam has a rental property that is real estate in a foreign country, he/she shall submit a tax return at the Sub-department of Taxation where the individual resides; and individuals who lease property, excluding real estate in Vietnam, submit tax declaration dossiers at the Tax Department where the individual resides.
Before: According to the guidance at Point c, Clause 1, Article 8 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the place to submit tax declaration dossiers is the Sub-department of Taxation where the rental property is located.
8. For individuals who directly sign contracts to act as lottery agents, insurance agents, multi-level marketing agents, and other business activities
New point 19: about tax declaration dossiers (point b, clause 1, Article 15)
Amending and supplementing annual tax declaration dossiers of individuals acting as lottery agents, insurance agents, multi-level marketing, and other business activities subject to annual tax declarations that directly declare tax include:
- Annual tax return (applicable to individuals who directly sign contracts to act as agents of lottery, insurance, multi-level sales, and other business activities that have not yet been deducted or paid tax in the year) made according to form No. 01/ TKN-CNKD promulgated together with this Circular;
- Copy of economic contract (supply of goods, services, business cooperation, agency);
- A copy of the minutes of acceptance and liquidation of the contract (if any).
The tax authority has the right to request the presentation of the original for comparison and confirmation of the accuracy of the copy against the original.
Before: According to the guidance at Point b, Clause 3, Article 9 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the annual tax declaration dossiers of individuals working as lottery agents, insurance agents, Multi-level sale of goods subject to annual tax declaration only includes Declaration Form No. 2015/TKN-XSBHĐC.
9. For organizations and individuals that declare tax on their behalf, pay taxes on their behalf
New point 20: about the organization that is responsible for declaring tax on behalf of an individual (points b, c, d, dd, clause 1, article 8)
Additional cases where organizations are responsible for declaring tax on behalf of individuals or paying taxes on behalf of individuals are as follows:
– Organization of business cooperation with individuals;
- Organizing the payment of bonuses, sales support, promotion, trade discount, payment discount, cash or non-cash support, compensation for breach of contract, other compensation for contract households. Business households and individuals are responsible when providing information on tax calculation methods of business households to organizations so that they can make tax declarations or pay taxes on their behalf if the business households or individuals are contract household. The tax authority shall base itself on the database of taxpayers' tax declarations, invoices and documents to manage risks in this case.
– An organization in Vietnam that is a partner of an overseas digital platform provider (without a permanent establishment in Vietnam) pays income from digital information content products and services to individuals. under an agreement with an overseas digital platform provider;
– The organization that is the owner of the e-commerce trading floor shall declare and pay tax on behalf of the individual according to the schedule of the tax authority. In the immediate future, the E-commerce trading floor will provide information about individuals selling goods through the Floor according to the guidance of the General Department of Taxation, on that basis, the General Department of Taxation will build a centralized database for tax authorities. directly manage business households and individuals doing business in the tax administration and handling of violations (if any).
Before:
- For organizations paying bonuses, sales support, sales promotion, payment discount, cash or non-cash support, compensation for breach of contract, other compensation before the date of payment. effect of this Circular The General Department of Taxation has temporarily issued a number of official replies in the direction of organizations having to declare tax on behalf of individuals, regardless of whether they are contracted households or declared households (because there was no prior tax declaration). regulations on business households and individuals paying tax according to the declaration method).
– According to the guidance in Circular No. 219/2013/TT-BTC dated December 31, 12 and Circular No. 2013/92/TT-BTC dated June 2015, 15, the General Department of Taxation issued a number of temporary official documents. guide organizations not to deduct tax, not to declare or pay tax on behalf of individuals in case of commercial discount.
New point 21: on the turnover of 100 million VND/year or less to determine who is not required to pay tax in case the organization declares tax on behalf of an individual (Clause 3, Article 8)
Additional regulations: in the year that an individual generates a revenue of 100 million VND/year or less in many places, an individual who expects or determines a total revenue of more than 100 million VND/year can authorize the paying organizations declare tax on behalf of, pay tax on behalf of the revenue generated at the authorized unit in the tax year. Particularly for contracted households, in addition to the contracted revenue, the contracted households also receive bonuses, sales support, sales promotions, trade discounts, payment discounts, cash or non-cash support payments. compensation for breach of contract, other compensation if subject to tax, must declare tax, calculate VAT according to the provisions of VAT law, the paying organization shall declare tax on behalf of, pay tax instead according to reality in the tax law. tax year. In case the organization declares tax on behalf of an individual who leases the property, the determination of a turnover of 100 million VND/year or less shall be applied to determine the taxpayers not required to pay tax under the guidance at Point c. Clause 1, Article 9 of this Circular.
Before: There are no instructions for this.
New point 22: on the tax declaration period for organizations that declare tax on behalf of individuals, pay taxes on behalf of the lessor (point a, clause 2, Article 8)
Amending and supplementing regulations on tax declaration period for organizations that declare and pay tax on behalf of the lessor, accordingly, in case the organization declares tax on behalf of the lessor property, then organize tax declaration and payment on a monthly or quarterly basis or each time the payment period or calendar year arises.
Before: According to the guidance at point d, clause 2, Article 8 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the organization of tax declaration and payment on behalf of the lessor is done as follows: : for individuals who directly declare tax. Accordingly, it only includes tax returns by payment period or tax returns once a year.
New point 23: on tax declaration dossiers for organizations that declare and pay taxes on behalf of (point a, clause 1, Article 16)
Supplementing new regulations on tax declaration dossiers for organizations that declare tax on behalf of, or pay tax on behalf of, in case; individuals doing business with the organization; organizing the payment of bonuses, sales support, sales promotion, trade discount, payment discount, cash or non-cash support, compensation for breach of contract, other compensation; the organization is the owner of the e-commerce trading floor; Organizations in Vietnam that are partners of overseas digital platform providers (without a permanent establishment in Vietnam) include:
- Tax return for business households and individuals, made according to form No. 01/CNKD issued together with this Circular;
- Appendix A detailed list of business households and individuals (applicable to organizations and individuals that declare tax on behalf of individuals, pay taxes on behalf of individuals; individuals that cooperate in business with organizations; organizations that pay taxes). for individuals who achieve sales; organizations that are owners of e-commerce trading floors; organizations in Vietnam that are partners of overseas digital platform providers) using form No. 01-1/BK-CNKD promulgated together with this Circular;
– Copy of business cooperation contract (if it is the first tax declaration of the contract). The tax authority has the right to request the presentation of the original for comparison and confirmation of the accuracy of the copy against the original.
Before: There are no instructions for this.
10. Responsibilities of tax authorities in tax administration for business households and individuals
New point 24: on the responsibilities of the General Department of Taxation (Article 17)
Supplementing regulations on the responsibilities of the General Department of Taxation in tax administration for business households and individuals, including:
1. Develop a set of risk indicators for business households and individuals.
2. Detailed instructions on the process of updating the database on business households and individuals at the Department of Taxation and the Sub-Department of Taxation.
3. Directing the inspection and urging tax authorities and taxpayers in the implementation of tax policies and tax administration for business households and individuals.
4. Organize the implementation of e-invoices with the tax authority's code for business households and individuals according to the prescribed schedule. Coordinate with People's Committees of provinces and cities to implement the project of e-invoices generated from cash registers connected to transfer data to tax authorities. Building a database of invoices with tax authorities' codes to ensure risk-based tax management for business households, business individuals and related organizations and individuals.
Before: There are no specific instructions.
New point 25: on the responsibilities of the Tax Department (Article 18)
Amending regulations on responsibilities of the Tax Department, whereby the Department of Taxation is responsible for implementing and reporting to the General Department of Taxation the results of the implementation of the plan to inspect the Sub-department of Taxation and taxpayers. The implementation of the specific test plan is as follows:
– The Tax Department is responsible for carrying out the annual actual inspection of at least 10% of the Tax Departments in accordance with the regulations on risk management for determining the expected flat revenue and the expected flat tax rate. The inspection results of the Department of Taxation are one of the bases for the Sub-department of Taxation to make and approve the presumptive tax book.
- In the organization performing the collection task, the Tax Department is responsible for periodically inspecting at least 5% of the Tax Sub-Departments each quarter I, second and third quarters. The inspection results are the basis for building the expected flat revenue, the expected flat tax rate for the following year, and adjusting the flat revenue and flat tax rate for the remaining period of the tax year.
- Contents of the actual inspection of the Tax Department include: checking on the management database; compare business registration data, tax registration; physical inspection of at least 2% of business households, business individuals and related organizations in the area, in which focus on inspecting 100% of business households and business individuals subject to risk management prescribed high risk.
Before: According to the guidance in Clause 8, Article 6 of Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, the Tax Department is responsible for directing and controlling the preparation of tax books at the Sub-department of Taxation with the rate of the inspection rate is as follows: at least 2015% of Tax Departments according to regulations on risk management for the determination of expected flat revenue and expected tax rate; carry out a physical inspection of at least 20% of the Tax Sub-Departments each quarter I, quarter II and quarter III; fact check for at least 10% of business individuals in the area.
11. Tariffs
New point 26: on VAT calculation percentage and PIT rate applicable to contracted households that receive the following amounts: bonus, sales support, sales promotion, trade discount, payment discount, cash support or not in cash (in Section 1 of the Tariff Schedule attached to Appendix I)
Additional regulations: bonuses, sales support, sales promotion, trade discount, payment discount, cash or non-cash support payments for contracted households, the VAT calculation percentage is 1. % and the PIT rate is 0,5%. In case the above-mentioned items satisfy the conditions that are not subject to tax, are not required to declare and pay tax according to the VAT law, the PIT rate of 0,5% shall be applied only.
Before:
– Previously, according to the instructions in Section 4 of the Tax Schedule issued together with the Circular No. 92/2015/TT-BTC dated June 15, 06 of the Ministry of Finance, these items shall be subject to different PIT rates for business activities. first%.
– According to the guidance in Clause 22, Article 7 of Circular No. 219/2013/TT-BTC dated December 31, 12 of the Ministry of Finance, in case business establishments apply the form of commercial discount to customers, the price calculated VAT is the discounted sales price for customers. Based on the adjusted invoice, the seller and the buyer shall declare and adjust the purchase and sale turnover, output and input taxes to re-determine the seller's VAT liability and the buyer's taxable income. However, in case a flat-rate household enjoys a trade discount but cannot adjust the input to re-determine taxable income due to the application of a stable flat tax rate, this is an income that must be paid by a flat tax rate. tax declaration and payment compared to the fixed tax rate. This content has not been guided in the past, so organizations that offer commercial discounts to contracted households have not yet declared and paid PIT on behalf of contracted households. Now, according to the provisions of Decree No. 2013/126/ND-CP dated October 2020, 19 of the Government and instructions in this circular, organizations are responsible for declaring and paying 10% PIT on behalf of the contracted household. .
New point 27: on the addition to the tax table of groups of industries and sectors that are not subject to VAT, are not required to declare VAT, are subject to 0% VAT according to the law on VAT (items 1, 2, 3 of the Tariff issued together with according to Appendix I)
Adding to the tax table of activities that are not subject to VAT, do not have to declare VAT, and are subject to 0% VAT according to the law on VAT, only the corresponding personal income tax rates in Sections 1,2,3 of the table will be applied. tax is 0,5%; 2%; 1,5%.
Before: Because there are no specific instructions, it should be applied according to other business lines in Section 4 of the Tariff Schedule issued together with Circular No. 92/2015/TT-BTC with the PIT rate of 1% for all cases.
New point 28: Regarding the addition of the service and construction industry group, excluding the bidding of raw materials (Section 2 of the Tariff Schedule attached to Appendix I)
Additional regulations: advertising activities on digital information content products and services belong to the group of service industries subject to 5% VAT, 2% PIT; Other service industries subject to VAT calculation by the credit method with the VAT rate of 10% are subject to 5% VAT and 2% PIT.
Before: There are no guidelines for this content.
New point 29: on the addition to the tax schedule of business cooperation activities with organizations whose organizations are responsible for declaring VAT on the entire revenue of business cooperation activities as prescribed (items 1, 2, 3 of the tax schedule). promulgated together with Appendix I)
To add to the tax schedule of business cooperation activities with affiliated organizations that are responsible for declaring VAT on the entire turnover of business cooperation activities for each specific business line.
Before: There are no guidelines for this content.
New point 30: Regarding the addition to the tax schedule for compensation for breach of contract and other compensation (items 1 and 2 of the tax schedule attached to Appendix I)
Additional regulations: the compensation for breach of contract, other compensation in the line of distribution and supply of goods are only subject to PIT 0,5%; compensation for breach of contract and other compensations in the service and construction industry, excluding raw materials, are only subject to 2% PIT.
Before: Because there are no specific instructions, it should be applied according to other business lines in Section 4 of the Tariff Schedule issued together with Circular No. 92/2015/TT-BTC with the PIT rate of 1% for all cases.
12. Forms
a) For taxpayers' dossiers sent to tax authorities
– Supplement the list of business activities in the period of business households and individuals, form No. 01-2/BK-HDKD to submit together with the Declaration Form No. 01/CNKD applicable to business households and individuals. business paying tax according to the declaration method.
– Supplementing a detailed list of individuals leasing properties, form No. 01-2/BK-TTS to submit to the Declaration Form No. 01/TTS, applicable to organizations and individuals who declare tax on behalf of or pay taxes on their behalf. personal property rental.
b) For documents, notices of tax authorities
– Supplement the Notice of Non-adjustment of the flat tax rate, form No. 01/TBKĐC-CNKD to apply to flat-out households that do not meet the conditions to be adjusted to the flat tax rate as prescribed.
Before: There are no guidelines for this content.