Consolidated Document number 24/VBHN-BTC guiding value-added tax, personal income tax, and tax management for individual businesses and individual traders.

 

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 24/CONSOLIDATED DOCUMENT - MINISTRY OF FINANCE	Hanoi, on 24 the 10 Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;22

 

CIRCULAR[1]

GUIDELINES ON VALUE ADDED TAX, INCOME TAX FOR INDIVIDUALS AND TAX MANAGEMENT FOR HOUSEHOLDS AND INDIVIDUAL BUSINESS OPERATIONS

Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance guiding value added tax, income tax for individuals and tax management for households and individual business operations, effective from August 1, 2021, amended and supplemented by:

Circular No. 100/2021/TT-BTC dated November 15, 2021 of the Ministry of Finance amending and supplementing certain provisions of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Minister of Finance guiding value added tax, income tax for individuals and tax management for households and individual business operations, effective from January 1, 2022.

Pursuant to the Law on Personal Income Tax dated November 21, 2007; and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax dated November 22, 2012;

Pursuant to the Law on Value Added Tax dated June 3, 2008; and the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax dated June 19, 2013;

Pursuant to the Law amending and supplementing certain Articles of Laws on Taxation dated November 26, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax;

Pursuant to Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of Laws on Taxation and Amending and Supplementing Certain Provisions of Decrees on Taxation;

amending and supplementing certain forms of

Decree No. Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance; Functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the State Revenue总局局长的提议；

The Minister of Finance issues this Circular guiding value added tax, personal income tax, and tax management for households and individual business operations as follows:[2]

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides value added tax (VAT), personal income tax (PIT), and tax management for households and individual business operations.

Article 2. Applicability

1. Households and individual business operators are resident individuals engaged in production and business activities of goods and services in all sectors and industries as prescribed by law, including the following cases:

a) Independent practice in fields and professions licensed or certified according to the law;

b) Engaging in agency sales at correct prices for lottery agents, insurance agents, multi-level marketing agents of individuals directly signing contracts with lottery enterprises, insurance enterprises, and multi-level marketing enterprises;

c) Cooperating in business with organizations;

d) Producing and trading agricultural, forestry, salt-making, aquaculture, and fishing products not meeting the conditions for exemption from VAT and PIT according to the law;;

e) Engaging in e-commerce, including cases where individuals earn income from digital content products and services according to the law on e-commerce;

2. Households and individual business operators conducting production and business activities at border markets, customs clearance markets, and markets within economic zones at border gates on Vietnamese territory;

3. Individuals leasing assets;

4. Individuals transferring national Vietnam Internet domain names “.vn”;

5. Organizations cooperating in business with individuals;

6. Organizations and individuals declaring and paying taxes on behalf of individuals;

7. Lottery enterprises, insurance enterprises, and multi-level marketing enterprises paying income to individuals directly signing agency sales contracts at correct prices for lottery, insurance, and multi-level marketing;

8. Tax authorities, state agencies, organizations, and other related individuals.

Article 3. Explanation of Terms

In addition to terms defined in the Law on Tax Administration, Tax Laws, and relevant Decrees, some other terms in this Circular are understood as follows:

1. "Household business" is a production and business establishment registered by an individual or members of a household and responsible for the business activities of the household with their entire assets according to Article 79 of Decree No. 01/2021/NĐ-CP dated January 4, 2021 of the Government on enterprise registration and related guiding documents or amendments or replacements (if any). In case members of a household register a household business, they authorize one member to represent the household business. The individual registering a household business or the person authorized by household members to represent the household business is the head of the household business. Households producing agriculture, forestry, aquaculture, salt-making, and street vendors, snack sellers, itinerant traders, seasonal traders, and low-income service providers do not need to register a household business except for those engaging in conditional business sectors, with the provincial People's Committee specifying the low-income threshold applicable in the locality.

local scope.

2. "Large-scale household and individual business operators" are household and individual business operators with scale in revenue and labor meeting or exceeding the highest criteria for micro-enterprises, specifically as follows: household and individual business operators in agriculture, forestry, fisheries, and industry and construction sectors have an average number of employees participating in social insurance of ten or more people or total revenue of the previous year of three billion dong or more; household and individual business operators in trade and service sectors have an average number of employees participating in social insurance of ten or more people or total revenue of the previous year of ten billion dong or more. the highest criteria for micro-enterprises and above, specifically as follows: individual businesses in agriculture, forestry, fisheries, and industry, construction with an average number of employees participating in social insurance from 10 people or more per year, or total revenue of the preceding year from 3 billion VND or more; individual businesses in trade and services with an average number of employees participating in social insurance from 10 people or more per year, or total revenue of the preceding year from 10 billion VND or more.

3. "Tax declaration method" is the method of tax declaration and calculation based on the actual revenue generated monthly or quarterly.

4. "Household and individual business operators declaring taxes under the tax declaration method" are large-scale household and individual business operators; household and individual business operators not meeting the large-scale criteria but choosing to declare taxes under the tax declaration method.

5. "Tax declaration method per occurrence" is the method of tax declaration and calculation based on the actual revenue per occurrence.

6. "Individual business operators declaring taxes per occurrence" are occasional individual business operators without a fixed place of business.

7. "Tax quota method" is the method of calculating tax based on the revenue quota determined by the tax authority to calculate the tax quota according to Article 51 of the Law on Tax Administration.

8. "Household business, individual business subject to turnover tax" refers to household businesses and individual businesses that do not implement or do not fully implement accounting systems, invoices, and documents, except for cases where household businesses and individual businesses are subject to declaration-based taxation methods and individual businesses are subject to taxation on each occurrence.

9. "Turnover tax rate" refers to the amount of tax and other revenues belonging to the state budget that must be paid by household businesses and individual businesses subject to turnover tax, as determined by the tax authority according to Article 51 of the Law on Tax Administration.

10. "Organization cooperating with individuals in business" refers to an organization that agrees with an individual about jointly contributing assets and labor to carry out production and business activities, sharing benefits, and bearing responsibilities as stipulated in Article 504 of the Civil Code dated November 24, 2015 and guiding documents or amendments or supplements or replacements (if any).

11. "E-commerce activities" refer to conducting part or all of the process of commercial activities using electronic means connected to the Internet, mobile telecommunications networks, or other open networks as provided for in Clause 1, Article 3 of Decree No. 52/2013/ND-CP dated May 16, 2013 of the Government on e-commerce and guiding documents or amendments or supplements or replacements (if any).

12. "Digital information content products" refer to content and information products including text, data, images, and sound presented in digital form, stored, and transmitted over network environments as provided for in Clause 11, Article 3 of Decree No. 71/2007/ND-CP dated May 3, 2007 of the Government detailing and guiding the implementation of certain provisions of the Law on Information Technology regarding the information technology industry and guiding documents or amendments or supplements or replacements (if any).

13. "Digital information content services" refer to services provided over a network environment directly supporting and serving the production, exploitation, issuance, upgrading, warranty, maintenance of digital information content products and similar activities related to digital information content according to Clause 12, Article 3 of Decree No. 71/2007/ND-CP dated May 3, 2007 of the Government and guiding documents or amendments or supplements or replacements (if any).as stipulated in Clause 12, Article 3 of Decree No. 71/2007/NĐ-CP dated May 3, 2007 of the Government and guiding documents or amendments, supplements, or replacements thereof (if any)..

14. "Tax Office" includes District Tax Office and Regional Tax Office.

15. "Tax authority's database" includes the integrated centralized information system of the tax sector; results of verification and surveys of production and business factors; results of tax inspection and audit; separate databases. Production and business factors to be verified and surveyed include: labor costs; electricity costs; water costs; telecommunications costs; warehouse and business premises rental costs; management costs; other costs.

16. "Separate database" refers to a database built and managed by the tax authority for exclusive use by each locality.

Chapter II

PRINCIPLES, METHODS, AND BASIS FOR CALCULATING TAXES FOR HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESSES

Article 4. Principles for Calculating Taxes

1. The principles for calculating taxes for household businesses and individual businesses shall be implemented in accordance with current laws and regulations on VAT, personal income tax, and related legal normative documents.

2. Household businesses and individual businesses with annual revenue from production and business activities not exceeding 100 million Vietnamese dong are exempt from paying VAT and personal income tax as prescribed by the laws on VAT and personal income tax. Household businesses and individual businesses have the responsibility to accurately, truthfully, and fully declare taxes and submit tax files on time; they bear legal responsibility for the accuracy, truthfulness, and completeness of their tax files as prescribed.

3. Individual businessesand household businesses operating under a group of individuals or family households, with annual revenue not exceeding 100 million Vietnamese dong to determine whether an individual does not need to pay VAT and does not need to pay personal income tax is determined for a single (01) representative of the group of individuals or family households for the tax year.

Article 5. Tax calculation method for households and individuals engaged in business activities subject to tax declaration

1. The tax declaration method shall be applied to large-scale businesses and individuals engaged in business activities; and households and individuals engaged in business activities that have not reached the scale of large-scale but choose to pay taxes through the tax declaration method. ward 2. Households and individuals engaged in business activities subject to tax declaration must declare taxes monthly except for new businesses and those meeting the criteria for quarterly tax declaration and choosing to declare taxes quarterly as stipulated in Article 9 of Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government.

3. In cases where the taxable revenue determined by households and individuals engaged in business activities subject to tax declaration does not match reality, the tax authority shall determine the taxable revenue according to the provisions of Article 50 of the Law on Tax Administration.

4. Households and individuals engaged in business activities subject to tax declaration must maintain accounting records, invoices, and supporting documents. In cases where households and individuals engaged in business activities in certain fields or industries can confirm their revenue based on the certification of competent authorities, they are exempt from maintaining accounting records.

5. Households and individuals engaged in business activities subject to tax declaration are not required to settle accounts for taxes. Article 6. Tax calculation method for individuals engaged in business activities subject to tax declaration on a per-occurrence basis

1. The tax declaration method on a per-occurrence basis shall apply to individuals engaged in infrequent business activities without a fixed place of business.

Infrequent business activities are defined based on the characteristics of production and business operations in each field or industry and are self-determined by individuals to choose the tax declaration method according to the guidelines set out in this Circular. A fixed place of business refers to the location where individuals conduct production and business activities such as transaction sites, shops, stores, factories, warehouses, docks, yards, or similar locations.

2. Individuals engaged in business activities subject to tax declaration on a per-occurrence basis include: a) Mobile traders; b) Individuals who are private construction contractors;

Individuals transferring national Vietnamese Internet domain names ".vn";

d) Individuals earning income from digital content products or services if they do not choose to pay taxes through the tax declaration method.

3. Individuals engaged in business activities subject to tax declaration on a per-occurrence basis are not required to maintain accounting records, but must retain invoices, supporting documents, contracts, and proof of legitimate goods and services and submit them together with tax declarations on a per-occurrence basis.

c) 4. Individuals engaged in business activities subject to tax declaration on a per-occurrence basis must declare taxes when there is taxable revenue generated.

Article 7. Tax calculation method for households and individuals engaged in business activities subject to tax allocation

1. The tax allocation method shall be applied to households and individuals engaged in business activities that do not fall under the tax declaration method or the tax declaration on a per-occurrence basis as specified in Articles 5 and 6 of this Circular.

2. Households and individuals engaged in business activities subject to tax allocation (Tax Allocated Households) are not required to maintain accounting records. Tax Allocated Households using individual invoices must retain and present invoices, supporting documents, contracts, and proof of legitimate goods and services to the tax authority when requesting issuance or retail of invoices on a per-occurrence basis. Specifically, Tax Allocated Households conducting business at border markets, customs clearance markets, or markets within economic zones at border areas in Vietnam must retain invoices, supporting documents, contracts, and proof of legitimate goods and present them when requested by the competent state management agency.

Tax Allocated Households notified by the tax authority of the amount of allocated tax payable from the beginning of the year must pay taxes according to the notification. If a Tax Allocated Household has been notified of the tax amount from the beginning of the year but stops or temporarily suspends business during the year, the tax authority will adjust the amount of tax payable according to the guidelines set out in point b.4 and point b.5, Clause 4, Article 13 of this Circular. For newly established Tax Allocated Households

in the year (less than 12 months

in the calendar year

3.[3] if the Tax Allocated Household has business revenue exceeding 100 million VND in the year, it is subject to VAT payment and personal income tax payment; or is not subject to VAT payment and personal income tax payment business Industry and if the business revenue is 100 million VND or less in the year.business 4. Tax Allocated Households declare taxes annually as stipulated in point c, Clause 2, Article 44 of the Law on Tax Administration, and pay taxes within the deadline stated on the Tax Authority's Payment Notification according to Clause 2, Article 55 of the Law on Tax Administration. In cases where Tax Allocated Households use invoices issued and sold individually by the tax authority,) they declare and pay taxes separately for the revenue generated on those invoices on a per-occurrence basis. or falls within the category not required to pay VAT, not required to pay personal income tax if annual business revenue is up to 100 million VND.

4. Individual taxpayers file tax returns annually as provided for in Point c, Clause 2, Article 44 of the Law on Tax Administration, pay taxes by the deadline stated on the Notice of Payment issued by the tax authority as provided for in Clause 2, Article 55 of the Law on Tax Administration. In cases where individual taxpayers use invoices issued by the tax authority, retail by each number then individual taxpayers declare and pay taxes separately for the revenue generated on those invoices according to each occurrence.

Article 8. Method of calculating tax for cases where organizations or individuals declare and pay tax on behalf of individuals

1. Organizations or individuals shall declare and pay tax on behalf of individuals in the following cases:

a) An organization leases assets from an individual where the lease agreement stipulates that the lessee is the taxpayer;

b) An organization cooperates with an individual in business activities;

c) An organization pays bonuses, support for sales achievement, promotional incentives, trade discounts, payment discounts, monetary or non-monetary support, breach of contract compensation, and other compensations to contracted households;

d) An organization in Vietnam is a partner of a foreign digital platform provider (without a permanent establishment in Vietnam) that pays income from digital information content products and services to individuals based on agreements with the foreign digital platform provider;

đ)[4] Organization including the owner Provincial People's Committees set specific pricesof electronic commerce transactions who declares and pays tax on behalf of individuals based on authorization under civil law regulations;

e)[5] Can individual declares and pays tax on behalf of another individual is the taxpayer based on authorization in accordance with regulations under civil law.

2. Organizations or individuals declaring and paying tax on behalf of individuals engaged in business activities according to the guidance in Clause 1 of this Article shall declare and pay tax as follows:

a) In the case of declaring and paying tax on behalf of the subject guided at point a of Clause 1 of this Article, the organization shall declare and pay tax monthly, quarterly, or each time a payment period arises, or annually according to the provisions of the Law on Tax Administration.

b) In the case of declaring and paying tax on behalf of the subjects guided at points b, c, d, đ of Clause 1 of this Article, the organization shall declare and pay tax monthly or quarterly according to the provisions of the Law on Tax Administration..

c) In the case of declaring and paying tax on behalf of the subject guided at point e of Clause 1 of this Article, the organization or individual shall declare and pay tax according to the provisions of the Law on Tax Administration for authorized individuals.

3. In the case where an individual generates revenue of up to 100 million VND/year from multiple sources within a year, if the individual anticipates or determines their total revenue to be over 100 million VND/year, they may authorize organizations making payments to declare and pay tax on their behalf for revenue generated at the authorized entity during the tax year. For contracted households that, in addition to contracted revenue, also receive bonuses, support for sales achievement, promotional incentives, trade discounts, payment discounts, monetary or non-monetary support, breach of contract compensation, and other compensations, the payment-making organization shall declare and pay tax on their behalf based on actual payments made during the tax year. If an organization declares and pays tax on behalf of an individual leasing assets, the determination of revenue of up to 100 million VND/year will be used to determine the non-taxpayer status according to the guidance at point c of Clause 1 of Article 9 of this Circular.

Article 9. Method of calculating tax for certain special cases

1. Individuals leasing assets

a) An individual leasing assets refers to an individual generating revenue from leasing assets, including: leasing houses, premises, shops, factories, warehouses without accommodation services; leasing transportation means, machinery, and equipment without drivers; leasing other assets without accompanying services. Accommodation services are not included in asset leasing activities according to this clause, including: providing short-term accommodation facilities for tourists and other visitors; providing long-term accommodation facilities that are not apartments for students, workers, and similar groups; providing accommodation facilities together with dining services send a text message entertainment facilities.

b) Individuals leasing assets shall declare tax each time a payment period arises (each payment period is determined based on the start date of each lease term) or declare tax annually. Individuals may declare tax per contract or declare tax for multiple contracts on one declaration form if the leased assets are located within the jurisdiction of the same tax authority.

c)[6] Individuals who only engage in asset leasing activities and whose lease periods do not span a full year, if they generate revenue from leasing of up to 100 million VND/year, are exempt from VAT and personal income tax. In the case where the lessee pays rent in advance for multiple years, the revenue for determining whether the individual must pay tax or not is the lump sum payment allocated annually.

d) In the case where the lessee pays rent in advance for multiple years, the individual leasing assets shall declare and pay tax once for the entire prepaid revenue. The amount of tax payable once is the total tax payable annually according to the regulations. In the event of changes to the content of the asset lease contract leading to changes in taxable revenue, payment periods, or lease terms, the individual shall adjust and supplement declarations according to the Tax Management Law for the tax period with changes.

2. Individuals directly signing contracts as lottery agents, insurance agents, multi-level marketing sales agents

a) Individuals directly signing contracts as lottery agents, insurance agents, multi-level marketing sales agents refer to individuals directly signing contracts with lottery enterprises, insurance enterprises, and multi-level marketing sales enterprises in the form of agency sales at fixed prices.

b) Individuals directly signing contracts as lottery agents, insurance agents, multi-level marketing sales agents do not directly declare tax, except as provided for in point d of this clause. Lottery enterprises, insurance enterprises, and multi-level marketing sales enterprises have the responsibility to withhold and declare tax, and pay personal income tax if the enterprise determines that the commission paid to the individual at the unit exceeds 100 million VND in a calendar year. In the case where an individual generates revenue of up to 100 million VND/year from multiple sources within a year, if the individual anticipates or determines their total revenue to be over 100 million VND/year, they may authorize organizations making payments to withhold tax on the commission received at the unit during the tax year.

c) Lottery enterprises, insurance enterprises, multi-level marketing enterprises shall declare taxes monthly or quarterly in accordance with the laws on tax administration and are not required to declare final settlement taxes for the withholding obligations of individual agents for lottery, insurance, and multi-level marketing activities.

d) In cases where income-paying organizations have not withheld taxes during the year due to not reaching the withholding threshold and individuals have not authorized the income-paying organizations to withhold taxes, if at the end of the year individuals determine that they fall under the obligation to pay taxes according to regulations, then individuals shall declare and pay taxes annually.

Article 10. Basis for Tax Calculation

The basis for tax calculation for households engaged in business and individuals engaged in business is taxable revenue and the tax rate applied to such revenue.

1. Taxable Revenue

 Taxable revenue for VAT and personal income tax for households engaged in business and individuals engaged in business includes all revenue from sales proceeds, processing fees, commissions, service provision fees, promotional activities, trade discounts, payment discounts, monetary or non-monetary support payments, rewards, bonuses, incentives, subsidies, surcharges, premiums, additional fees collected according to regulations, breach of contract compensation, other compensations (only included in the calculation of personal income tax taxable revenue), and other revenues obtained by households engaged in business and individuals engaged in business regardless of whether the money has been received or not. including relevant rewards, subsidies, surcharges, premiums, additional fees collected according to regulations; additional fees collected in accordance with regulations; compensation for breach of contract, other compensation (only included in taxable revenue for personal income tax); other revenues that individual businesses, individuals engage in business activities benefit from, regardless of whether they have received payment or not.

2. Tax Rate Applied to Revenue

a) The tax rate applied to revenue includes the VAT rate and the personal income tax rate detailed for each field and industry according to the guidance provided in Appendix I attached to this Circular.

b) In cases where households engaged in business and individuals engaged in business operate in multiple fields and industries, they shall declare and calculate taxes based on the tax rates applied to revenue for each field and industry. If households engaged in business and individuals engaged in business cannot determine the taxable revenue for each field and industry or determine it inaccurately compared to actual business operations, the tax authority will set the taxable revenue for each field and industry according to the laws on tax administration. if the taxable revenue of each field or profession does not match the actual business operations, the tax authority area shall determine the taxable revenue of each field or profession according to the provisions of the law on tax administration.

3. Determining the amount of tax payable

Where:

- Taxable revenue for VAT and personal income tax as specified in Clause 1 of this Article.

- VAT rate and personal income tax rate as specified in Appendix I attached to this Circular.

Chapter III

TAX MANAGEMENT FOR HOUSEHOLDS AND INDIVIDUALS ENGAGED IN BUSINESS

Article 11. Tax Management for Households and Individuals Engaged in Business Paying Taxes Through Declaration

1. Tax Return Dossier

The declaration documents for households and individuals engaged in business paying taxes through declaration are stipulated in Point 8.2 of Appendix I - List of Declaration Documents issued together with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, specifically as follows:

a) Declaration form for households and individuals engaged in business according to Form No. 01/CNKD issued together with this Circular; b) Annex Detailed Business Activities Report of Households and Individuals Engaged in Business (applicable to households and individuals engaged in business paying taxes through declaration) according to Form No. 01-2/BK-HĐKD

issued together with this Circular. In cases where households and individuals engaged in business paying taxes through declaration can confirm their revenue with the competent authorities, they are not required to submit Annex Detailed Business Activities Report Form No. 01-2/BK-HĐKD issued together with this Circular.. In cases where individual businesses, individual taxpayers file tax returns under the declaration method if there is evidence confirmed by competent authorities to determine the revenue, they are not required to submit Appendix Form 01-2/BK-HĐKD issued together with this Circular.

2. Place to Submit Declaration Documents

The place to submit declaration documents for households and individuals engaged in business paying taxes through declaration is stipulated in Clause 1 of Article 45 of the Law on Tax Administration, which is the Directly Managing Tax Office where the household or individual engaged in business operates production and business activities.

3. Deadline for Submitting Declaration Documents

The deadline for submitting declaration documents for households and individuals engaged in business paying taxes through declaration is stipulated in Clause 1 of Article 44 of the Law on Tax Administration, specifically as follows:

a) The deadline for submitting declaration documents for households and individuals engaged in business paying taxes through declaration monthly is the twentieth day of the month following the month in which the tax liability arises.

b) The deadline for submitting declaration documents for households and individuals engaged in business paying taxes through declaration quarterly is the last day of the first month of the quarter following the quarter in which the tax liability arises.

4. Deadline for Payment of Tax

The deadline for payment of tax for households and individuals engaged in business paying taxes through declaration is implemented according to Clause 1 of Article 55 of the Law on Tax Administration, specifically: The latest date for tax payment is the last day of the deadline for submitting declaration documents. In cases of supplementary submission of declaration documents, the tax payment deadline is the deadline for submitting declaration documents of the tax period with errors or omissions.

5. Obligation to Declare Taxes in Cases of Temporary Suspension of Operations or Business

In cases where households and individuals engaged in business temporarily suspend operations or business, they must notify the tax authority according to Article 91 of Decree No. 01/2021/ND-CP dated November 4, 2021 of the Government, Article 4 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, and Article 12 of Circular No. 105/2020/TT-BTC dated December 3, 2020 of the Ministry of Finance regarding tax registration and are not required to submit declaration documents, except in cases where households and individuals engaged in business temporarily suspend operations or business for less than a full month if declaring taxes monthly or for less than a full quarter if declaring taxes quarterly.

Article 12. Tax administration for individuals engaged in business and paying taxes on a transaction-by-transaction basis

1. Tax Return Dossier

The tax declaration dossier for individuals engaged in business and paying taxes on a transaction-by-transaction basis, as specified in Point 8.3 of Appendix I - List of Tax Declaration Dossiers issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government, is specifically as follows:

a) Declaration form for households and individuals engaged in business according to Form No. 01/CNKD issued together with this Circular; b) Annex Detailed Business Activities Report of Households and Individuals Engaged in Business (applicable to households and individuals engaged in business paying taxes through declaration) according to Form No. 01-2/BK-HĐKD

b) Documents accompanying the tax declaration dossier on a transaction-by-transaction basis include:

- Report sao economic contracts provision of goods and services;

- Report copies of acceptance and settlement records of contracts;

- Report copies of documents proving the origin of goods such as: Purchase lists of agricultural products if they are domestic agricultural products; Lists of goods traded by border residents if they are imported goods from border residents; Invoices provided by sellers if they are imported goods purchased from domestic organizations and individuals; Relevant documents to prove if they are goods produced by individuals; ...

The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

2. Place to Submit Declaration Documents

The place for submitting tax declaration dossiers for individuals engaged in business and paying taxes on a transaction-by-transaction basis, as stipulated in Clause 1 of Article 45 of the Law on Tax Administration, is specifically as follows:

a) In cases of mobile business operations, submit the tax declaration dossier at the Directly Managing Tax Office where the individual carries out business activities.

b) In cases where individuals have income from digital information products or services, submit the tax declaration dossier at the Directly Managing Tax Office where the individual resides (permanent or temporary residence).

c) In cases where individuals have income from the transfer of national Vietnam Internet domain names ".vn", submit the tax declaration dossier at the Tax Office where the individual resides. In cases where the transferring individual is a non-resident, submit the tax declaration dossier at the tax office directly managing the organization managing the national Vietnam Internet domain name ".vn".

d) In cases where individuals are private construction contractors, submit the tax declaration dossier at the Directly Managing Tax Office where the individual carries out construction activities.

3. Deadline for Submitting Declaration Documents

The deadline for submitting tax declaration dossiers for individuals engaged in business and paying taxes on a transaction-by-transaction basis, as stipulated in Clause 3 of Article 44 of the Law on Tax Administration, is no later than the tenth day following the date when the tax obligation arises.

4. Deadline for Payment of Tax

The tax payment deadline for individuals engaged in business and paying taxes on a transaction-by-transaction basis shall be implemented according to the provisions of Clause 1 of Article 55 of the Law on Tax Administration, specifically: The latest tax payment deadline is the last day of the deadline for submitting the tax declaration dossier. In cases of supplementary tax declaration dossiers, the tax payment deadline is the deadline for submitting the tax declaration dossier of the tax period with errors or omissions.

Article 13. Tax administration for households operating under the quota system

1. Basis for determining the quota tax for households operating under the quota system

The basis for determining the quota tax includes:

a) The tax declaration dossier of households operating under the quota system, which is self-declared by the household based on projected revenue and the quota tax rate for the tax year;

b) The database of the tax authority;

c) Advisory opinions of the Village, Ward, Town Tax Advisory Councils;

d) Results of publicizing information and receiving feedback from the Tax Advisory Councils, People's Committees, People's Assemblies, United Front Organizations at the village, ward, town level, households operating under the quota system, and other organizations and individuals.

Publicizing information about households operating under the quota system refers to the tax authority organizing the public disclosure and receipt of feedback on the revenue and quota tax rates for households operating under the quota system as prescribed. The first public disclosure pursuant to Clause 5 of this Article is for reference and soliciting opinions on projected revenue and quota tax rates; and the second public disclosure pursuant to Clause 9 of this Article is for reference and soliciting opinions on the actual revenue and quota tax rates that must be paid for the tax year. Publicizing information includes: posting information on bulletin boards in the area; sending directly to households operating under the quota system; sending directly to People's Assemblies, People's Committees, United Front Organizations at the district, county, village, ward, town level; publicizing information on the Department of Taxation's electronic information website. review and seek opinions on revenue, the officially required tax quota for the tax year. The information disclosure includes: posting information on paper at the locality; sending directly to individual taxpayers; sending directly to People's Councils, People's Committees, Vietnam Fatherland Front at district, town, commune, ward, township levels; disclosing information on the Tax Department's website.

2. Tax declaration dossier

a) From November 20 to December 5 each year, the tax authority issues the next year's tax declaration form for all households operating under the quota system.

b) The tax declaration dossier for households operating under the quota system as specified in Point 8.1 of Appendix I - List of Tax Declaration Dossiers issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government are Name of payer dated November 29, 2006 and the Law amending and supplementing several articles of the Law on Tax Administration according to Form No. 01/CNKD issued together with this Circular; in accordance with Form No. 01/CNKD issued together with this Circular.

c) In cases wherehouseholds operating under the quota system use invoices issued by the tax authority, sold individually on a transaction-by-transaction basis, when declaring taxes on revenue from individual invoices, households operating under the quota system declare taxes on a transaction-by-transaction basis and use the Tax Declaration Form for Households and Individuals Engaged in Business in accordance with Form No. 01/CNKD issued together with this Circular while presenting and attaching the following documents to the tax declaration dossier:

- Report sao economic contracts provision of goods and services in the same industry as the household's business activities;

- Report sao acceptance and settlement records of contracts;

- Report copies of documents proving the origin of goods and services such as: Purchase lists of agricultural products if they are domestic agricultural products; Lists of goods traded by border residents if they are imported goods from border residents; Invoices provided by sellers if they are imported goods purchased from domestic organizations and individuals; Relevant documents to prove if they are goods and services produced by individuals; ...

The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

3. Deadline for submitting tax declaration dossiers

The deadline for submitting tax declaration dossiers for households operating under the quota system, as stipulated in Point c Clause 2, Clause 3 of Article 44 of the Law on Tax Administration, is specifically as follows:

a) Deadline for submitting tax declaration dossiers for households operating under the quota system no later than December 15 of the year preceding the tax year.

b) In case ward new households operating under the quota system (including households declaring conversion to the quota method), or households converting from the quota method to the declaration method, or households changing industries, or households to be approved changing scale of business 每年 then the deadline for submitting the tax declaration dossier of households operating under the quota system no later than the tenth day from the date of starting business, or converting the tax calculation method, or changing industries, or changing the scale of business.

c) The deadline for submitting tax declaration dossiers for households operating under the quota system using invoices issued by the tax authority, sold individually on a transaction-by-transaction basis is no later than the tenth day from the date of generating revenue requiring the use of invoices.

4. Determining revenue and tax rate Clause

a) Determining revenue and quota tax rate

a.1) Revenue and the fixed tax rate shall be calculated on a calendar year basis or monthly for seasonal and stable businesses within a year.

a.2) The taxpayer determines their revenue subject to the fixed tax for the year based on Name of payer dated November 29, 2006 and the Law amending and supplementing several articles of the Law on Tax Administration according to Form No. 01/CNKD issued together with this Circular. In cases where the taxpayer cannot determine their revenue subject to the fixed tax, does not submit a tax declaration form, or the declared revenue does not match the actual business operations, the tax authority shall set the revenue and determine the fixed tax rate according to Article 51 of the Law on Tax Administration.

a.3) Based on the tax declaration forms of the taxpayer, and the database, of the tax authority FOR public comments, consulting opinions from the Tax Advisory Council, and serving as the basis for the Tax Department's directives and reviews of the establishment of the Tax Ledger at each Tax Branch.

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.) Adjustment of Revenue and Fixed Tax Rate

If taxpayers request adjustments to their revenue or fixed tax rate due to changes in business activities during the year, the tax authority shall adjust the fixed tax rate according to Clause 3 of Article 51 of the Law on Tax Administration from the date of change. Specifically, as follows:

b.1) If taxpayers change the scale of their business operations (business area, number of employees, revenue), they must declare and supplement the Tax Declaration Form according to Form No. 01/CNKD issued together with this Circular. The tax authority will base its decision on the taxpayer's tax declaration forms and the tax authority's database. If the fixed revenue changes by 50% or more compared to the previously declared revenue, the tax authority will issue a Notice (Form No. 01/TB-CNKD issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government) regarding the adjustment of the fixed tax rate from the date of change during the tax year. In cases through the tax authority's database, verification, inspection, audit data, if the tax authority has grounds to determine that the taxpayer does not meet the conditions to adjust the fixed tax rate according to regulations, the tax authority will issue a Notice regarding the non-adjustment of the fixed tax rate according to Form No. 01/TBKĐC-CNKD issued together with this Circular..

b.2) If taxpayers change their place of business, they must follow the procedures to change their tax registration information according to regulations and complete tax declaration procedures at the new location as if they were new taxpayers. The tax authority will process the changed tax registration information according to regulations. The tax authority managing the new location will handle the tax declaration forms of the taxpayer as if they were new taxpayers. The tax authority managing the original location will issue a Notice (Form No. 01/TB-CNKD issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government) regarding the reduction of the fixed tax rate from the date of change during the tax year.

b.3) If taxpayers change their business sector or field (including cases without changes in the ratio or tax rate applied), the taxpayer must follow the procedures to change their tax registration information according to regulations (if there is a change in the business sector or field registered), while declaring and supplementing the Tax Declaration Form according to Form No. 01/CNKD issued together with this Circular. The tax authority will base its decision on the results of processing the changed tax registration information (if applicable) and the taxpayer's tax declaration forms and the tax authority's database to issue a Notice (Form No. 01/TB-CNKD issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government) regarding the adjustment of the fixed tax rate (if applicable) according to the actual situation from the date of change during the tax year..

b.4) If taxpayers cease or temporarily cease business operations, the taxpayer must notify the cessation or temporary cessation of business operations according to Article 4 of Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government. The tax authority will adjust the fixed tax rate based on the notification of the taxpayer or the competent state agency according to Article 37 of the Law on Tax Administration as follows:

b.4.1) For taxpayers who have been notified and approved to cease business operations: if the taxpayer ceases operations from the first day of the calendar month, the entire fixed tax for the month of cessation will be reduced; if the taxpayer ceases operations at any time between the 2nd and the 15th of the calendar month, the fixed tax for the month of cessation will be reduced by 50%, and the entire fixed tax for subsequent months will be reduced; if the taxpayer ceases operations at any time from the 16th onwards of the calendar month, the fixed tax for the month of cessation will not be reduced, only the entire fixed tax for subsequent months will be reduced.

b.4.2) For taxpayers who have been notified and approved to temporarily cease business operations: if the taxpayer temporarily ceases operations for an entire month of the calendar year, the fixed tax for that month will be fully reduced; if the taxpayer temporarily ceases operations for 15 consecutive days or more in a month of the calendar year, the fixed tax payable for that month will be reduced by 50%.

b.4.3) The period of cessation or temporary cessation of business operations is determined based on the taxpayer's notification. In cases where the taxpayer ceases or temporarily ceases business operations without notification or late notification (including cases due to force majeure as prescribed), the tax authority will base its determination on the results of actual verification.

b.5) If taxpayers cease or temporarily cease business operations at the request of a competent state management agency, the tax authority will adjust the fixed tax rate based on the request document from the competent state management agency for the requested period of cessation or temporary cessation of business operations.

b.6) If taxpayers switch to the declaration method, they must declare and supplement the Tax Declaration Form according to Form No. 01/CNKD issued together with this Circular. The tax authority will base its decision on the adjusted and supplemented declaration form to reduce the fixed tax rate for the transition period.

5. First Public Announcement

The tax authority will conduct the first public announcementdevelopment for reference, to solicit opinions on expected revenue and proposed tax Clause rates. The materials for the first public announcement include: List of taxpayers exempted from filing.For taxpayers subject to Value Added Tax (VAT), no Personal Income Tax (PIT) is payable; List of households subject to tax. The first public posting shall be carried out as follows:

a) The Tax Office shall post the first public notice at the one-stop service center of the Tax Office, People's Committee of the district, town; at the entrance, gate or location convenient for accessing information, suitable location of the People's Committee office of the commune, ward, town; the Tax Team office; Market Management Board so that citizens and households can supervise. The first posting period runs from December 20 to December 31 each year.

b) The Tax Office shall send the first public posting materials to the People's Council and the Vietnam Fatherland Front Committee of the district, town, commune, ward, town no later than December 20 each year, clearly stating the address and time when the Tax Office will accept feedback (if any) from the People's Council and the Vietnam Fatherland Front Committee of the district, town, commune, ward, town. The latest time for the Tax Office to accept feedback (if any) is December 31.

c) No later than December 20 each year, the Tax Office shall send each household a Notice regarding the projected revenue and tax quota according to Form No. 01/TBTDK-CNKD attached hereto, along with the Public Disclosure Table of Household Information according to Form No. 01/CKTT-CNKD (hereinafter referred to as the Public Disclosure Table) issued together with this Circular, clearly stating the address and time when the Tax Office will accept feedback (if any) from the household no later than December 31. The Notice shall be sent directly to the household (with the taxpayer's signature acknowledging receipt of the Notice) or sent via registered mail. The Public Disclosure Table of projected information sent to the household shall include both individuals subject to tax and those not subject to tax. In cases where the market, street, town, neighborhood has up to two hundred (200) households, the Tax Office shall print and distribute the Public Disclosure Table of each household in the area to each household. If the market, street, town, neighborhood has more than 200 households, the Tax Office shall print and distribute the Public Disclosure Table of no more than 200 households in the area to each household. Specifically, for markets with over 200 households, the Tax Office shall print and distribute the Public Disclosure Table by trade category to each household. If the tax authority has already implemented public disclosure on its official website, it is not mandatory to send the Public Disclosure Table according to Form No. 01/CKTT-CNKD accompanying the Notice regarding the projected revenue and tax quota according to Form No. 01/TBTDK-CNKD issued together with this Circular.

d) The Tax Office is responsible for publicly announcing the posting location, feedback address (phone number, fax number, address at the one-stop service center, email address) regarding the content of the public posting so that households are aware.

e) The Tax Office is responsible for compiling feedback opinions on the first public posting content from citizens, taxpayers, the People's Council, and the Vietnam Fatherland Front Committee of the district, town, commune, ward, town to study and adjust the management objects, projected revenue, and projected tax rate before consulting the Tax Advisory Council.

6. Consulting the Tax Advisory Council

The Tax Office shall organize meetings to consult the Tax Advisory Council within the period from January 1 to January 10 each year. The meeting files of the Tax Advisory Council shall comply with the laws on tax administration.

7. Establishing and Approving the Tax Register

a) Based on the materials guiding the determination of the tax quota level under Clause 1, Article 3 of this Circular and the directive documents of the higher-level tax authority (if any), the Tax Office shall establish and approve the Tax Register before January 15 each year.

b) Monthly, based on changes in the business activities of the households (changes in business operations) or due to changes in tax policies affecting the projected revenue and tax quota payable, the Tax Office shall establish and approve the adjusted and supplementary Tax Register and issue a Notice adjusting the tax quota according to the guidance provided in Point b, Clause 4 of this Article.

8. Sending tax notification and payment deadline

a) Sending tax notification

a.1) The tax authority shall send the Payment Notification according to Form No. 01/TB-CNKD issued pursuant to Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government, along with the Public Disclosure Table according to Form No. 01/CKTT-CNKD issued together with this Circular, to the households (including both households subject to tax and those not subject to tax) no later than January 20 each year. The Notice shall be sent directly to the household (with the taxpayer's signature acknowledging receipt of the Notice) or sent via registered mail.

a.2) The official Public Disclosure Table sent to the household shall include both households subject to tax and those not subject to tax. In cases where the market, street, town, neighborhood has up to 200 households, the Tax Office shall print and distribute the Public Disclosure Table of each household in the area to each household. If the market, street, town, neighborhood has more than 200 households, the Tax Office shall print and distribute the Public Disclosure Table of no more than 200 households in the area to each household. Specifically, for markets with over 200 households, the Tax Office shall print and distribute the Public Disclosure Table by trade category to each household. If the tax authority has already implemented public disclosure on its official website, it is not mandatory to send the Public Disclosure Table according to Form No. 01/CKTT-CNKD accompanying the Payment Notification according to Form No. 01/TB-CNKD issued pursuant to Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government.

a.3) In cases where the tax authority issues a Notice adjusting the tax quota according to the household's Notice according to the guidance provided in Point b, Clause 4 of this Article, the latest issuance date of the Notice shall be no later than the 20th day of the following month after the change in tax amount.

a.4) In cases where new households start operating, the tax authority shall send the Payment Notification Form No. 01/TB-CNKD Circular No. 04/2017/TT-BGDĐT dated January 25, 2017 Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government to the household no later than the 20th day of the following month after the occurrence of tax payable.

b) Payment Deadline

b.1) Based on the Payment Notification, households shall pay VAT and PIT according to the deadline stated in the Payment Notification Form No. 01/TB-CNKD Circular No. 04/2017/TT-BGDĐT dated January 25, 2017 Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government.

b.2) In the case where the household contract uses invoices issued and sold individually for each occurrence by the tax authority, the deadline for paying taxes on revenue from invoices is the declaration deadline for revenue on invoices according to the guidance provided in point c, Clause 3 of this Article.

9. Public posting for the second time

The tax authority shall publicly post for the second time the revenue and the officially required tax amount for the year for the household contracts. The second public posting shall be carried out as follows:

a) At the Provincial Tax Department level

a.1) The Provincial Tax Department shall publicly post information about household contracts before January 30th of each year on the electronic information website of the tax sector, including the following information: List of household contracts that are exempt from VAT and personal income tax; List of household contracts that are subject to taxation.

a.2) In cases where new household contracts start operating or there are changes in the amount of tax payable or in the business status, the Provincial Tax Department shall publicly post or adjust the information on the electronic information website of the tax sector no later than the last day of the month following the month in which the household contract starts operating or experiences changes.

b) At the District Tax Office level

b.1) The District Tax Office shall publicly post for the second time before January 30th of each year at the one-stop service window of the District Tax Office, People's Committee of the district, town, or ward; at the entrance, gate, or convenient location for accessing information at the appropriate location of the People's Committee office of the commune, ward, or town; at the Tax Team office; and at the Market Management Board so that citizens and household contracts can monitor.

b.2) The District Tax Office shall send the public posting materials for the second time to the People's Council and the Vietnam Fatherland Front Committee of the district, town, commune, ward, or town no later than January 30th, clearly stating the address and the date when the District Tax Office will accept feedback (if any) from the People's Council and the Vietnam Fatherland Front Committee of the district, town, commune, ward, or town.

b.3) The District Tax Office shall have the responsibility to publicly announce the location of the public posting, the address for receiving feedback (phone number, fax number, address at the one-stop service window, email address) regarding the content of the public posting so that household contracts are aware.

b.4) The materials made public at the District Tax Office level shall be implemented similarly to the public disclosure of information on the electronic information website of the tax sector at the Provincial Tax Department level.

Article 14. Tax management for individuals leasing assets who directly declare taxes to the tax authority

1. Tax Return Dossier

Declaration documents for individuals leasing assets who directly declare taxes to the tax authority as specified in item a, point 8.5 of Appendix I - List of Declaration Documents issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government, specifically as follows:

a) Declaration form for leasing asset activities (applicable to individuals engaging in direct leasing activities and organizations declaring on behalf of individuals) according to Form No. 01/TTS issued together with this Circular;

b) Detailed schedule of lease asset contracts (applicable to individuals engaging in direct leasing activities if it is the first declaration of the Contract or Schedule of the Contract) according to Form No. 01-1/BK-TTS issued together with this Circular;

c) Copy of the asset lease contract, contract schedule (if it is the first declaration of the Contract or Schedule of the Contract);

d) Copy of the Power of Attorney in accordance with the law (in cases where individuals leasing assets authorize a legal representative to handle the declaration and payment of taxes).

The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

2. Place to Submit Declaration Documents

Place of submission of declaration documents for individuals leasing assets who directly declare taxes to the tax authority as stipulated in Clause 1 of Article 45 of the Law on Tax Administration, specifically as follows:

a) Individuals with income from leasing assets (excluding real estate in Vietnam) shall submit declaration documents to the District Tax Office managing their place of residence directly.

b) Individuals with income from leasing real estate in Vietnam shall submit declaration documents to the District Tax Office managing the location of the leased real estate directly.

3. Deadline for Submitting Declaration Documents

Deadline for submitting declaration documents for individuals leasing assets who directly declare taxes to the tax authority as stipulated in point a, Clause 2 and Clause 3 of Article 44 of the Law on Tax Administration, specifically as follows:

a) The deadline for submitting declaration documents for individuals declaring taxes on a per-occurrence basis during the payment period is no later than the tenth day from the start of the lease period for the payment period.

b) The deadline for submitting declaration documents for individuals declaring taxes once annually is no later than the last day of the first month of the next calendar year. for individuals leasing assets who directly declare taxes to the tax authority

4. Deadline for Payment of Tax

Deadline for tax payment shall be implemented in accordance with Clause 1 of Article 55 of the Law on Tax Administration, specifically: The latest deadline for tax payment is the last day of the deadline for submitting declaration documents. In cases of supplementary declaration documents, the tax payment deadline is the deadline for submitting declaration documents for the tax period with errors or omissions. carried out in accordance with Clause 1, Article 55 of the Law on Tax Administration, specifically: The latest date for tax payment is the last day of the deadline for submitting tax declaration forms. In cases of supplementary tax declaration forms, the tax payment deadline is the submission deadline for the tax declaration form of the tax period with errors or omissions..

Article 15. Tax administration for individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents, and other business activities.

1. Tax Return Dossier

a) Monthly and quarterly tax declaration forms month, quarter of withholding organizations

Monthly and quarterly tax declaration forms of organizations withholding taxes for individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents as specified in Point 9.1 of Appendix I - List of Tax Declaration Forms issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government, specifically as follows:

- Individual income tax declaration form (applicable to lottery enterprises, insurance enterprises, multi-level marketing enterprises paying commissions to individuals directly signing contracts to act as agents selling at the correct price; insurance enterprises paying accumulated insurance premiums for life insurance and non-mandatory insurance) according to Form No. 01/XSBHĐC issued together with this Circular;

- Detailed supplementary schedule of individuals generating revenue from acting as lottery agents, insurance agents, multi-level marketing agents (to be declared in the monthly/quarterly tax declaration form of the last month/quarter of the tax year) according to Form No. 01-1/BK-XSBHĐC issued together with this Circular (declare all individuals generating revenue during the tax year, regardless of whether there has been tax withholding or not).

b) Annual tax declaration forms for individuals directly declaring taxes

Annual tax declaration forms for individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents, and other business activities as specified in Point 8.6 of Appendix I - List of Tax Declaration Forms issued together with Decree No. 126/2020/NĐ-CP dated October 19, 2020 of the Government, specifically as follows:

- Annual tax declaration form (applicable to individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents, and other business activities that have not had tax withheld and paid during the year) according to Form No. 01/TKN-CNKD issued together with this Circular;

- Copy of economic contract (supplying goods/services, joint ventures, agency agreements);

- Copy of acceptance and settlement certificate of contract (if any).

The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

2Place of submission of tax declaration forms

Place of submission of tax declaration forms for organizations withholding taxes for individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents andIndividual acting as lottery agents, insurance agents, multi-level marketing agents, and other business activities directly declaring taxes as stipulated in Clause 1, Article 45 of the Law on Tax Administration, specifically as follows:

a) Organizations withholding taxes for individuals directly signing contracts to act as lottery agents, insurance agents, multi-level marketing agents submit tax declaration forms to the tax authority managing them direct organization.

c) CIndividual acting as lottery agents, insurance agents, multi- reason level marketing agents, other business activities subject to annual tax declaration submit tax declaration forms to District Tax Office THE HEAD OF THE MINISTRY’S OFFICE, THE HEAD OF THE MINISTRY’S INSPECTION DEPARTMENT, THE HEADS OF THE DEPARTMENTS, THE DIRECTOR OF THE VIETNAM CIVIL AVIATION ADMINISTRATION, THE CHIEF EXECUTIVE OFFICER OF THE VIETNAM AIRPORTS CORPORATION - CPTP, AND THE HEADS OF THE AUTHORITIES, ORGANIZATIONS, AND INDIVIDUALS CONCERNED ARE RESPONSIBLE FOR IMPLEMENTING THIS CIRCULAR./. direct where the individual resides (permanent residence or temporary residence).

3. Deadline for Submitting Declaration Documents

a) Deadline for submitting tax declaration forms for enterprises lottery, insurance enterprises, multi-level marketing enterprisesas stipulated in Clause 1, Article 44 of the Law on Tax Administration, specifically as follows:

a.1) Deadline for submitting monthly tax declaration forms of foreign-invested enterprises that have invested in constructing power facilities outside the fence. lottery, insurance enterprises, multi-level marketing enterprisesp no later than the twentieth day of the following month after the month in which the tax liability arises.

a.2) Deadline for submitting quarterly tax declaration forms of foreign-invested enterprises that have invested in constructing power facilities outside the fence. lottery, insurance enterprises, multi-level marketing enterprisesp no later than the last day of the first month of the next quarter immediately following the quarter in which the tax liability arises.

b) Deadline for submitting annual tax declaration forms for individuals directly signing contracts to act as agents lottery, insurance agents, multi- reason level marketing agents,as stipulated in point a, Clause 2, Article 44 of the Law on Tax Administration no later than the last day of the first month of the following calendar year. The deadlines for payment of taxes by organizations and individuals stipulated herein shall be implemented in accordance with Clause 1, Article 55 of the Law on Tax Administration, specifically: The deadline for tax payment is no later than the deadline for submitting tax declaration forms. In case of supplementary tax declaration forms, the deadline for tax payment is the deadline for submitting tax declaration forms of the tax period with errors or omissions.

4. Deadline for Payment of Tax

The tax payment deadlines for organizations and individuals specified in this provision are implemented in accordance with Clause 1, Article 55 of the Law on Tax Administration, specifically: The latest date for tax payment is the last day of the deadline for submitting tax declaration forms. In cases of supplementary tax declaration forms, the tax payment deadline is the submission deadline for the tax declaration form of the tax period with errors or omissions.

Article 16. Tax Management for Organizations and Individuals Filing and Paying Taxes on Behalf of Individuals

1. Tax Return Dossier

a) Monthly and quarterly tax declaration documents for organizations filing and paying taxes on behalf of individuals in cases where individuals cooperate with organizations in business activities; organizations making payments to individuals based on sales volume; organizations owning e-commerce trading platforms; organizations in Vietnam being partners of foreign digital platform providers (without a permanent establishment in Vietnam) making income payments to individuals as specified in Point 8.4 of Appendix I - List of Tax Declaration Documents issued together with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, specifically as follows:

- Tax declaration form according to Form No. 01/CNKD issued together with this Circular; b) Annex Detailed Business Activities Report of Households and Individuals Engaged in Business (applicable to households and individuals engaged in business paying taxes through declaration) according to Form No. 01-2/BK-HĐKD

- Detailed schedule of individual businesses and individuals engaged in business activities (applicable to organizations and individuals filing and paying taxes on behalf of individuals; individuals cooperating with organizations in business activities; organizations making payments to individuals based on sales volume; organizations owning e-commerce trading platforms; organizations in Vietnam being partners of foreign digital platform providers) according to Model No. 01-1/BK-CNKD In cases where households and individuals engaged in business paying taxes through declaration can confirm their revenue with the competent authorities, they are not required to submit Annex Detailed Business Activities Report Form No. 01-2/BK-HĐKD issued together with this Circular.;

- Copy of the business cooperation contract (if it is the first tax declaration of the contract). The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

b) Tax declaration documents for organizations filing and paying taxes on behalf of individuals leasing assets as specified in Subpoint b of Point 8.5 of Appendix I - List of Tax Declaration Documents issued together with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, specifically as follows:

- Tax declaration form for asset leasing activities (applicable to individuals directly declaring taxes to the tax authority and organizations filing on behalf of individuals) according to Model No. 01/TTS issued together with this Circular;

- Detailed schedule of individuals leasing assets (applicable to organizations filing on behalf of individuals leasing assets) according to Model No. 01-2/BK-TTS issued together with this Circular;

- Copy of the asset lease contract, contract appendices (if it is the first tax declaration of the Contract or Contract Appendices). The tax authority has the right to request the presentation of original documents for comparison and confirmation of the accuracy of copies compared to originals.

c) Tax declaration documents for organizations and individuals filing and paying taxes on behalf of individuals authorized under civil law shall be implemented according to the regulations applicable to the authorized individuals if they declare taxes directly.

d) Enterprises, economic organizations and dated November 29, 2006 and the Law amending and supplementing several articles of the Law on Tax Administration on behalf of individuals leasing assets must select "Enterprise, economic organization filing and paying taxes on behalf of individuals according to tax laws" on the tax declaration form. At the same time, the declarant must sign and clearly write their name; if it is an organization filing on behalf of another, after signing, the organization's seal or electronic signature must be affixed according to regulations . On the tax calculation documents and tax collection receipts, the taxpayer should be listed as the organization filing and paying taxes on behalf of others. Place of submission of tax declaration documentsa) The place of submission of tax declaration documents for organizations

2. filing and paying taxes on behalf of individuals

as stipulated in Clause 1 of Article 45 is the direct managing tax authority of the organization filing and paying taxes on behalf of individuals. In the case of organizations and individuals filing and paying taxes on behalf of individuals having rental income from immovable property in Vietnam, the tax declaration documents shall be submitted to the direct managing tax authority at the location of the rented immovable property. Law on Personal Income Tax The place of submission of tax declaration documents for individuals filing and paying taxes on behalf of individuals authorized under civil law shall be implemented according to the regulations applicable to the authorized individuals if they declare taxes directly. Deadline for submitting tax declaration documents for organizations

b) as stipulated in Clause 1 and Clause 3 of Article 44

3. Deadline for Submitting Declaration Documents

a) Deadline for submitting tax declaration documents for organizations and individuals is the direct managing tax authority of the organization filing and paying taxes on behalf of individuals. In the case of organizations and individuals filing and paying taxes on behalf of individuals filing and paying taxes on behalf of individuals in cases of monthly or quarterly declarations of the Law on Tax Administration, specifically as follows:

a.1) Organizations and individuals filing and paying taxes on behalf of individuals in cases of monthly tax declaration submissions must submit the tax declaration documents no later than the twentieth day of the month following the month in which the obligation to file and pay taxes arises. a.2) Organizations and individuals as follows:

filing and paying taxes on behalf of individuals in cases of quarterly tax declaration submissions must submit the tax declaration documents no later than the last day of the first month of the quarter following the quarter in which the obligation to file and pay taxes arises.

b) Deadline for submitting tax declaration documents for organizations and individuals leasing assets b.1)

Organizations filing and paying taxes on behalf of others must follow the monthly or quarterly declaration guidelines set out in Subpoint a of this clause. is the direct managing tax authority of the organization filing and paying taxes on behalf of individuals. In the case of organizations and individuals filing and paying taxes on behalf of individuals b.2) Organizations and individuals filing and paying taxes on behalf of others must submit tax declaration documents

each time a payment obligation arises during the payment period no later than the tenth day from the start date of the payment period.

b.3) Organizations and individuals filing and paying taxes on behalf of others must submit tax declaration documents annually no later than the last day of the first month following the end of the calendar year..

The deadline for tax payment by organizations and individuals as guided in this provision shall be carried out according to Clause 1 of Article 55 of the Law on Tax Administration, specifically: The latest deadline for tax payment is the last day of the deadline for submitting tax declaration documents. In cases of supplementary tax declaration documents, the tax payment deadline is the deadline for submitting tax declaration documents of the tax period with errors or omissions. RESPONSIBILITIES OF THE TAX AUTHORITY IN MANAGING TAXES FOR INDIVIDUAL BUSINESSES AND INDIVIDUALS ENGAGED IN BUSINESS ACTIVITIES year is the last day of the first month following the end of the calendar year.

4. Deadline for tax payment

The tax payment deadlines for organizations and individuals as guided in this provision are implemented in accordance with Clause 1, Article 55 of the Law on Tax Administration, specifically: The latest date for tax payment is the last day of the deadline for submitting tax declaration forms. In cases of supplementary tax declaration forms, the tax payment deadline is the submission deadline for the tax declaration form of the tax period with errors or omissions..

Chapter IV

RESPONSIBILITIES OF THE TAX AUTHORITY IN MANAGING TAXES FOR INDIVIDUAL BUSINESSES AND INDIVIDUALS ENGAGED IN BUSINESS ACTIVITIES

Article 17. Responsibilities of the General Department of Taxation

1. Develop a set of risk criteria indicators for households engaged in business operations and individual business operators.

2. Provide detailed guidance on the process of updating databases on households engaged in business operations and individual business operators at the Tax Departments and Tax Branches.

3. Direct the implementation of inspections and督促税务机关和纳税人执行对个体工商户和个人工商户的税收政策和税收管理。

4. Organize the implementation of electronic invoices with tax authority codes for individual business operators and households engaged in business operations according to the prescribed timeline. Coordinate with provincial and municipal people's committees to implement projects for electronic invoices generated from cash registers connected to transmit data to tax authorities. Establish a database of invoices with tax authority codes to ensure service for risk-based tax management of individual business operators and households engaged in business operations and related organizations and individuals.

5.[7] Develop solutions and timelines for providing information electronically from e-commerce platforms to tax authorities to build a risk-based tax management database, ensuring information security requirements, and facilitating e-commerce platform activities. The General Department of Taxation shall provide guidance on information sharing and provision between tax authorities and e-commerce platforms.

Article 18. Responsibilities of the Tax Department

1. Direct, guide, and urge Tax Branches to manage taxes for individual business operators and households engaged in business operations.

2. Direct, guide, and supervise the construction of separate databases at each Tax Branch as a basis for determining revenue and tax rates for individual business operators and households engaged in business operations paying taxes under the quota method in their respective areas.

3. Develop plans to inspect Tax Branches and taxpayers in implementing tax policies and managing taxes for individual business operators and households engaged in business operations.

4. Implement and report to the General Department of Taxation the results of the inspectionplan Tax Branches and taxpayers. The implementation of the inspection plan is as follows:

a) The Tax Department is responsible for conducting annual on-site inspections of at least 10% of Tax Branches according to risk management regulations regarding the determination of expected revenue quotas and expected tax quotas. The inspection results of the Tax Department serve as one of the bases for Tax Branches to establish and approve the Household Quota Tax Register.

b) In organizing tax collection tasks, the Tax Department is responsible for periodically conducting on-site inspections of at least 5% of Tax Branches every quarter I, II, and III. The inspection results serve as the basis for establishing expected revenue quotas and expected tax quotas for the following year and adjusting revenue quotas and tax rates for the remaining time of the tax year.

The content of the Tax Department's on-site inspections includes: reviewing management databases; comparing registration and tax registration data; on-site inspections of at least 2% of households engaged in business operations, individual business operators, and related organizations within the jurisdiction, focusing on inspecting 100% of households engaged in business operations and individual business operators classified as high-risk management objects according to regulations.

5. Approve and publicly disclose household quota information on the tax authority's website to ensure transparency in public disclosure, enhancing the supervisory capacity of citizens and local government agencies.

6.[8] In In cases where an organization is the owner of an e-commerce platform does not file and pay taxes on behalf of individuals engaged in business operations through the platform based on civil law authorization then the Tax Department shall cooperate with the e-commerce platform in sharing and providing information about individuals business through Provincial People's Committees set specific pricesthe plan according to the guidance of the General Department of Taxation to manage taxes in accordance stipulating with the law.

Article 19. Responsibilities of the Tax Office

In addition to organizing the implementation of regular tax collection tasks, the Tax Office also has responsibilities in managing individual businesses and business individuals as follows:

1. Promoting and supporting individual businesses and business individuals to fulfill tax declarations, submit tax declaration forms, pay taxes, and access public information on individual businesses and business individuals in accordance with regulations.

2. Implementing the procedures for determining revenue and tax rates for individual businesses and business individuals paying taxes under the fixed-rate method as guided in Article 13 of this Circular, including the following main tasks: determining revenue and fixed-rate tax; publicly posting information about individual businesses and business individuals paying taxes under the fixed-rate method; consulting opinions from the Tax Advisory Council; establishing and approving the Fixed-Rate Tax Register; adjusting revenue and fixed-rate tax in cases where individual businesses and business individuals have changes in their production and business activities; organizing surveys of revenue from individual businesses and business individuals paying taxes under the fixed-rate method.

3. Conducting periodic inspections according to plans at the tax office premises based on data for individual businesses and business individuals and related organizations. For high-risk cases showing signs of violations, inspections will be conducted at the taxpayer's premises to promptly detect and prevent violations of tax laws and tax management.

4. Establishing separate databases at each Tax Office for managing taxes for individual businesses and business individuals, and by November 1st annually, must finalize the database as a basis for preparing the Fixed-Rate Tax Register for the following year. The separate database is established based on information from: tax declaration forms of individual businesses and business individuals; actual tax collection management data for individual businesses and business individuals; annual business revenue survey results conducted by the tax authority; annual inspection results on building revenue and fixed-rate tax conducted by the tax authority; information from relevant state management agencies; actual conditions in the locality, economic growth rate in the region, factors affecting budget revenue at the locality,...

5. Reporting to the Chairman of the People's Committee to direct local agencies to cooperate with the tax authority in managing taxes for individual businesses and business individuals in the locality.

6. Cooperating with tax authorities in other areas in inspection, control, verification, and provision of information on individual businesses and business individuals.

Chapter V

IMPLEMENTATION

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Article 20. Effective Date

1. This Circular takes effect from August 1, 2021.

2. In cases where individuals have generated lease contracts over multiple years and have declared and paid taxes according to previous regulations, the previously declared and paid taxes shall not be adjusted according to the provisions before the effective date of this Circular.

3. Announcements regarding the deadline for submitting fixed-rate taxes for the year 2021 shall be implemented according to the provisions prior to the effective date of this Circular until the end of the 2021 tax period.

4. Individual businesses and business individuals who meet the conditions for declaring and paying taxes under the self-reporting method, if the tax authority has managed taxes under the fixed-rate method before the effective date of this Circular and there is no request to change the tax calculation method, shall continue to pay taxes under the fixed-rate method until the end of the 2021 tax period.

5. Organizations that declare and pay taxes on behalf of individual businesses according to point d, Clause 5, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government shall declare and pay taxes on behalf of individual businesses according to the guidance in this Circular from the effective date of this Circular.

6. Repealing Chapter I and Chapter II of Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance guiding the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; guiding the implementation of certain amended and supplemented contents of personal income tax as stipulated in Law No. 71/2014/QH13 amending and supplementing some articles of the Tax Laws and Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing some articles of the Tax Laws and amending and supplementing some articles of the Tax Decrees.

During implementation, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance (General Department of Taxation) for study and resolution./.

 

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Vo Thanh Hung

 

 

 

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