Circular No. 42/1998/TT-BTC guides the implementation of Article 4, Section I of Decision No. 1179/1997/QĐ-TTg dated December 30, 1997 of the Government on certain policies and measures for managing the plan for economic and social development and the state budget estimate for 1998.

CIRCULAR

DIRECTIVE NO. 42/1998/TT-BTC OF THE MINISTRY OF FINANCE ON APRIL 2, 1998 GUIDING THE IMPLEMENTATION OF POINT 2, ARTICLE 4, PART I OF DECISION NO. 1179/1997/QD-TTg OF THE PRIME MINISTER DATED DECEMBER 30, 1997 ON CERTAIN POLICIES AND MEASURES FOR MANAGING THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN AND THE STATE BUDGET FOR 1998
POLICIES AND MEASURES FOR MANAGING THE ECONOMIC AND SOCIAL DEVELOPMENT PLAN AND THE STATE BUDGET FOR 1998
ECONOMY AND SOCIETY AND THE STATE BUDGET ESTIMATE FOR THE YEAR 1998

Pursuant to point 2, Article 4, Part I of Decision No. 1179/1997/QD-TTg dated December 30, 1997 of the Prime Minister on certain policies and measures for managing the economic and social development plan and the state budget for 1998, which assigns the Ministry of Finance to stipulate the stabilization and publicization of tax rates for small production and business households for six months or one year, the Ministry of Finance guides the implementation as follows:

I. SUBJECTS APPLYING FOR STABILIZATION AND PUBLICIZATION OF TAX RATES

1. Small production and business households in commerce and services outside state-owned enterprises with average monthly revenue as specified for each industry as follows:

- Production, construction, trade: under 8 million VND.

- Transportation, catering: under 6 million VND.

- Services: under 4 million VND currently applying and paying taxes according to the fixed-rate method.

Households with average monthly revenue as prescribed above that voluntarily comply with accounting records, invoices, and receipts and pay taxes according to the declaration method based on accounting books, invoices, and receipts are not subject to the stabilization of tax rates.

2. Small production and business households in commerce and services outside state-owned enterprises with average monthly revenue higher than the prescribed levels in point 1 above, as stipulated by the Tax Law, must comply with accounting records, invoices, and receipts and pay taxes according to the declaration method. If these subjects fail to fully comply with accounting records, invoices, and receipts, the tax authority will determine their tax payment according to the fixed-rate method.

II. METHODS AND TIME PERIOD FOR STABILIZING TAX RATES:

1. Methods: The stabilization of tax rates for households paying taxes according to the fixed-rate method shall be implemented based on the following grounds:

- Based on the economic growth situation and level of the non-state-owned commerce and service sector, the annual revenue forecast assigned to each locality (district, county, town, commune, ward, township) to guide the establishment of stable fixed-rate tax levels for each household.

- Specific fixed-rate levels for each household must be based on the declarations made by the household (if available) and survey data. The tax authority closely cooperates with relevant departments and the Ward Advisory Council on Tax to organize guidance for households to declare their revenue and conduct typical surveys to have a basis for forecasting stable fixed-rate tax levels for households.

- Publicize the number of households paying taxes and the proposed stable fixed-rate tax levels for each household to solicit opinions from the People's Committee of the commune, members of the Advisory Council, business households, and the general public, or present it at the business association meeting for them to discuss.

For households with concerns, the tax authority will cooperate with the Advisory Council on Tax to review and explain to the business households or adjust if the feedback is correct.

- The fixed-rate tax stabilization method only applies to fixed business households; seasonal and traveling traders should apply the method of determining revenue by season or trip.

2. Duration of Stabilizing Tax Rates:

The duration of stabilizing tax rates ranges from six to twelve months, decided by the Director of the District Tax Office based on the actual production and business conditions of the non-state-owned commerce and service sector, characteristics, and scale of business of the households subject to fixed-rate taxation in the locality.

For small production and business households in commerce and services outside state-owned enterprises as specified in point 2, Part I of this Circular who do not implement accounting records, invoices, and receipts, the fixed-rate tax payment method is applied, with the duration of the fixed-rate tax level depending on the actual production and business situation and survey data from the directly responsible tax authority, decided by the Director of the Tax Office. These subjects, although applying the fixed-rate tax, if found to have dishonest declarations or survey revenue higher than taxed revenue, the tax authority has the right to recalculate the tax based on actual revenue.

III. IMPLEMENTATION:

Stabilizing and publicizing taxes for individual production and business households is a complex task. To ensure the correct implementation of tax policy, fairness, equality among business subjects, and prevent corruption and abuse, the Ministry of Finance requests the People's Committees of provinces and centrally-administered cities to direct the tax authorities to closely cooperate with relevant departments and local levels to carry out the following tasks:

1. Promptly develop plans for implementation in the locality, submit to the People's Committee of the province or city for decision to quickly implement.

2. Direct the tax authority to cooperate with the Ward Advisory Council on Tax and relevant departments to thoroughly understand the production and business situation in the locality and each business subject to accurately determine taxable revenue for each subject, thereby classifying business subjects to apply appropriate revenue management methods, and through this process, identify the number of small production and business households requiring tax rate stabilization so they can operate with peace of mind. Focus on managing large business establishments and households.

3. Direct the People's Committees of communes and towns and relevant departments in the locality to organize and coordinate the implementation of fixed-rate tax payments and the stabilization of revenue and fixed-rate tax levels for each business subject to solicit public and business household opinions, ensuring accurate and objective stabilization of revenue and tax levels for each household, and achieving and exceeding the state budget targets allocated.

4. Direct the propaganda agencies to widely disseminate government policies and regulations of the Ministry of Finance regarding operational methods, seek the agreement and support of small production and business households and the general public, and strongly condemn those distorting or exploiting this policy to deliberately conceal revenue and lower tax rates...

This Circular takes effect fifteen days after the date of issuance. During implementation, any difficulties or obstacles should be promptly reported to the Ministry of Finance for research and supplementary guidance.