Updated at 24/08/2023 - 02:20 pm
Tax declaration is an obligation of businesses, organizations and individuals to the state. Depending on the revenue situation of each business, the organization will have different tax declaration methods and tax return periods. Enterprises need to determine the correct time to declare their declarations to make the correct implementation, helping them avoid being penalized by the tax authorities.
The following article will provide sufficient information to help your business determine the correct tax return period.
How to determine VAT declaration period? #
Taxpayers are responsible for determining whether their organizations or businesses are subject to monthly or quarterly tax declaration. Therefore, Circular 151/2014/TT-BTC dated October 10, 10 stipulates how to determine tax declaration period, helping businesses determine the correct declaration period and comply with the implementation.
Determining the quarterly VAT declaration period #
Quarterly VAT declaration shall be applied to cases eligible for quarterly tax declaration specified at Point b, Article 15 of Circular 151/2014/TT-BTC as follows:
- Enterprises whose total revenue from selling goods and providing services in the preceding year is VND 50 billion or less.
- New company. After the enterprise has operated for 12 months, from the following year, it will be based on the revenue from selling goods and providing services of the preceding year (12 months of operation) to make VAT declaration.
Determining the monthly VAT declaration period #
According to regulations, cases of monthly VAT declaration do not include the following subjects:
- Taxpayers, organizations and enterprises subject to quarterly VAT declaration;
- Cases of construction business, real estate transfer outside the province, installation and current sales must declare VAT temporarily calculated for each time it is incurred.
- In case of VAT declaration according to each time it is incurred, for VAT according to the method of direct deduction on the turnover of non-regular business people.
In short, if a taxpayer's total revenue in the preceding year is more than VND 50 billion, the VAT payer shall declare tax on a monthly basis.
How to determine the period of PIT declaration #
Determining the quarterly PIT declaration period #
For businesses that are eligible to declare VAT quarterly, the PIT declaration also applies quarterly. From the first quarter of the tax filing obligation, businesses will need to determine which tax declaration they fall under. And the quarterly tax return once determined will apply consistently throughout that calendar year.
Determining the monthly PIT declaration period #
If the business declares VAT on a monthly basis, the taxpayer will also declare PIT on a monthly basis. In addition, if organizations and individuals are not subject to VAT declaration, they will conduct monthly PIT declaration.
In summary, it can be understood:
- Taxpayers shall declare their personal income quarterly if the enterprise declares VAT quarterly
- Taxpayers shall declare their personal income on a monthly basis if the enterprise declares VAT on a monthly basis
How to determine the CIT declaration period? #
For corporate income without a monthly settlement period, only annual tax settlement and provisional quarterly calculation. From the fourth quarter of 2014, businesses only need to calculate the amount of tax payable to pay and do not need to make a quarterly provisional CIT declaration. There are 2 cases of CIT declaration:
- Enterprises subject to quarterly financial statements: The temporarily paid quarterly CIT amount will be determined in the quarterly financial statements and tax laws.
- Enterprises that are not required to prepare quarterly financial statements will determine the temporarily paid CIT amount based on quarterly production and business results and tax regulations.
In order to accurately determine the tax declaration period, enterprises need to determine the revenue from selling goods and providing services of the preceding year, specifically as follows:
1. The calculated turnover is the total turnover on the VAT declarations of the tax periods in the calendar year (including the turnover subject to VAT and the turnover not subject to VAT).
2. From December 05, 12, if taxpayers make a collective tax declaration at the head office for affiliated units (business locations, branches), the calculated revenue includes the revenue of head office and affiliated units.
Instructions for converting tax returns #
The implementation of quarterly or monthly tax declaration, VAT and PIT declaration period is stable in the whole calendar year and in a 3-year cycle. In a stable tax return cycle quarterly or monthly, if the taxpayer finds out by himself or through an inspection or examination from the tax office that the taxpayer concludes that the taxpayer needs to change the monthly tax declaration or is eligible for tax declaration. Quarterly tax declaration shall be converted to the appropriate tax declaration period.
Convert tax return period from month to quarter #
Taxpayers eligible for quarterly tax declaration of that stable cycle, taxpayers may choose to declare tax on a monthly or quarterly basis from the year immediately following the year of discovery until the end of the stable cycle.
When there is a need to switch to quarterly tax declaration, the taxpayer shall make a dossier and send a written request (according to Appendix I issued together with Decree 126/2020/ND-CP) to request a change in the calculation period. tax from month to quarter to the tax authority directly managing, the deadline for payment is January 31 of the year in which the quarterly tax declaration is started. If after this time limit the taxpayer does not send a written request to the tax authority, the taxpayer shall continue to declare VAT and PIT on a monthly basis to the end of the calendar year.
Convert tax return from quarter to month #
Taxpayers are not eligible to declare VAT and PIT on a quarterly basis of that stable cycle, from the year immediately following the year of discovery until the end of the stable cycle, the taxpayer must carry out the following procedures: Currently declaring VAT and PIT on a monthly basis.
In addition, taxpayers eligible for quarterly VAT and PIT declaration but still want to change to monthly tax declaration, shall send a notice to the tax authority directly managing (according to Appendix I issued together with this Circular). Decree 126/2020/ND-CP), the deadline for submission is the same as the deadline for submitting the VAT and PIT declaration of the first month of the year in which the monthly tax declaration begins. If after this time limit the taxpayer does not send a notice to the tax authority, the taxpayer shall continue to make quarterly tax declaration until the end of the calendar year.
Refer: Tax filing schedule 2022
Legal grounds:
- Article 15 of Circular 151/2014/TT-BTC dated 10/10/2014;
- Article 9 of Decree 126/2020/ND-CP dated October 19, 10;
- Point b, Clause 2, Article 11 of Circular 156/2013/TT-BTC dated November 06, 11.
