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

 CIRCULAR

Guidelines for implementing Article 4 Section I Decision No. 1179/1997/QĐ-TTg dated December 30, 1997 of the Prime Minister on certain policies and measures to manage the plan for economic and social development and state budget estimates for 1998

Implementing Point 2 of Article 4 Section I of Decision No. 1179/1997/QĐ-TTg dated December 30, 1997 of the Prime Minister on certain policies and measures to manage the plan for economic and social development and state budget estimates 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 provides guidance as follows:

I. SUBJECTS TO STABILIZE AND PUBLICIZE TAX RATES

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

- Industry of production, construction, trade: under 8 million VND.

- Industry of transportation, catering: under 6 million VND.

- Service industry: under 4 million VND currently applying and paying taxes according to the quota method.

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

2. Small production and business households in commerce and services outside state ownership with average monthly revenue higher than the average monthly revenue prescribed in Point 1 above must comply with accounting records, invoices, and receipts and pay taxes according to the declaration method as required by the Tax Law. If these subjects do not fully comply with accounting records, invoices, and receipts, the tax authority will determine the tax quota according to the quota method.

II. MEASURES AND TIME PERIOD FOR STABILIZING TAX RATES:

1. Measures: Stabilizing tax rates for households calculating and paying taxes according to the quota 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 budget estimate assigned to each area (district, county, town, commune, and township) to guide the establishment of stable quota tax rates for each household.

- Specific quota rates for each household must be based on the declaration materials of the household (if available) and survey data. The tax authority closely cooperates with relevant departments and the Tax Advisory Council at the commune level to organize guidance for households to declare revenue and conduct typical surveys to have a basis for forecasting stable quota tax rates for households.

- Publicize the number of households paying taxes and the forecasted stable quota tax rates 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 them at the business association meeting for self-discussion.

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

- The quota method for stabilizing tax rates only applies to fixed business households, while seasonal and itinerant business households apply the method of determining revenue by season or shipment.

2. Duration for stabilizing tax rates:

The duration for 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 situation of the non-state-owned commerce and service sector, characteristics, and scale of business of the households collecting quotas within their jurisdiction.

For small production and business households in commerce and services outside state ownership as stipulated in Point 2 of Section I of this Circular who do not implement bookkeeping and record-keeping systems, the quota tax payment method shall be applied, with the application period of the quota tax rate depending on the actual production and business situation and the data surveyed by the directly responsible tax authority and decided by the Director. These subjects, although applying the quota tax rate, if found to have dishonest declarations or survey revenue higher than the taxed revenue, the tax authority has the right to recalculate the tax rate 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 policies, fairness, and 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 levels at the localities to carry out the following tasks:

1. Promptly develop implementation plans for 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 Tax Advisory Council at the commune level 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 simultaneously identifying the number of small production and business households requiring stable tax rates to ensure they can operate with peace of mind. Focus on managing large business establishments and households.

3. Direct the People's Committee of the commune, relevant departments in the locality to organize and coordinate the implementation of quota tax payments and the stabilization of revenue and quota tax rates for each business subject to solicit opinions from the public and business households, ensuring accurate and objective stabilization of revenue and tax rates for each household, and achieving and exceeding the state budget estimates assigned.

4. Direct the propaganda agency to widely publicize the policy, government regulations, and the Ministry of Finance's regulations on operational procedures, 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. Any difficulties or obstacles encountered during implementation shall be promptly reported to the Ministry of Finance for study and supplementary guidance./.