Tax administration law regulates almost all contents related to the management of tax collection for individuals and businesses in Vietnam.
Decree 126/2020 / ND-CP guiding the Law on Tax Administration officially comes into effect from December 05, 12.
In particular, the changes in tax declaration for businesses, applicable from the December 12 declaration period for businesses declaring monthly, and from the 2020th quarter for businesses declaring quarterly.
Enterprises that do not incur any withholding of personal income tax on a monthly or quarterly basis must still submit monthly / quarterly PIT returns.
From 12/2020: Amending the provision that organizations and individuals paying income without withholding personal income tax on a monthly or quarterly basis must still declare tax (Point b, Clause 3, Article 7).
Previous regulations: Under the provisions of Point a.1, Clause 1, Article 16 of Circular No. 156/2013 / TT-BTC dated November 6, 11, the income-paying organizations and individuals do not incur any withholding of personal income tax on a monthly basis. You do not have to file taxes.
Additional declaration and adjustment of personal income tax finalization data must be adjusted for the whole month or quarter that have been incorrectly declared
From 12/2020: Amending regulations on additional declaration of personal income tax finalization for organizations and individuals paying income from salaries and wages then at the same time, it is required to make additional declarations of monthly and quarterly declarations with corresponding errors and errors (Point a, Clause 4, Article 7).
Previous regulations: In Clause 5, Article 10 of Circular No. 156/2013 / TT-BTC stipulates: If the dossier has been submitted for annual tax finalization, only additional declarations of the annual tax finalization declaration are not required. , you have errors and errors, respectively.
Consequences: Previously, most enterprises added additional PIT to be paid in the year to the finalization declaration, now with the regulation that the quarter and month were adjusted incorrectly, it would lead to the payment of incorrectly declared quarters and months. .
The slower the adjustment declaration is, the higher the late payment penalty will be.
Clearly stipulating the case of PIT filing monthly or quarterly
From 12/2020: Amend regulations on organizations and individuals that pay incomes from salaries and wages with personal income tax withholding and declaring personal income tax on a monthly basis. In case income-paying organizations or individuals are eligible to declare value-added tax on a quarterly basis, they may choose to declare personal income tax on a quarterly basis (Point a, Clause 1, Article 8).
Previously: At Point a.2, Clause 1, Article 16 of Circular No. 156/2013 / TT-BTC stipulates: Organizations and individuals paying income with deductible tax amounts in the month of at least one type of tax return. Individual income from 50 million VND or more shall declare tax monthly, unless the income payer declares value added tax on a quarterly basis.
Thus: By default, PIT is declared monthly. If qualified, quarterly, VAT will be declared quarterly. If there is a PIT amount payable below 50 million / month, then declare quarterly.
Only additional declarations are made to increase the VAT amount requested for refund when the tax return for the next tax period has not been submitted and the application for tax refund has not been submitted.
From 12/2020: Amending the provision that taxpayers are only allowed to make additional declarations to increase the value-added tax amount requested for refund when they have not submitted tax declaration dossiers for the next tax period and have not yet submitted tax refund applications (Point b, Clause 4, Article 7).
Previous regulations: Pursuant to the provisions of Circular No. 156/2013 / TT-BTC dated November 6, 11 of the Ministry of Finance, the General Department of Taxation has instructed: If the deadline for tax declaration for the next tax period is not reached, Taxpayers who have not yet submitted tax declaration dossiers to bring the deducted VAT amount to convert the following period of the previous tax period into the norm of the deducted tax amounts in the previous period are transferred to the official declaration of the next tax period. If submitting the tax refund request dossier to the tax agency, it may make an additional declaration to increase the requested refund criterion on the additional declaration of that tax period.
The quarterly temporary corporate income tax calculation must be more accurate than before
From 12/2020: Amend regulations on the obligation to temporarily pay quarterly corporate income tax, according to which the total amount of provisional corporate income tax for the first three quarters of the tax year must not be less than 03% of the payable corporate income tax amount. The applicable annual settlement starts from the tax period of 75. If the taxpayer underpays the tax amount to be temporarily paid for the first 2021 quarters of the year, the late payment interest shall be calculated on the underpaid tax amount from the day following the date. the deadline of the third quarter of quarterly CIT payment deadline up to the date of paying the outstanding tax to the state budget (Point b, Clause 03, Article 03).
Previous regulations: In Clause 6 Article 4 of Decree No. 91/2014 / ND-CP and Article 17 of Circular 151/2014 / TT-BTC stipulating the case that the total of four temporary payments is 20% or more lower than the income tax amount. If the enterprise has to pay according to the settlement, the enterprise must pay late payment interest for the difference of 20% or more between the temporary payment amount and the settlement amount calculated from the day after the last day of the fourth quarter tax payment deadline. up to the date of actual payment of the missing tax compared with the settlement number.
Thus: The total amount of corporate income tax temporarily paid for the first three quarters of the tax year must not be lower than 03% of the payable corporate income tax amount according to the annual settlement.
Payments to individuals, including business households, have registered to pay presumptive tax, the enterprise is responsible for tax declaration and payment instead
From 12/2020: Additional regulations for organizations that pay bonuses, sales support, promotions, trade discounts, payment discounts, and other monetary or non-monetary support payments to individuals who are business households Businesses and individuals that pay flat tax, the organizations shall declare tax on their behalf and pay tax on behalf of such individuals as prescribed (Point dd, Clause 5, Article 7).
Previous regulations: There are no specific regulations on this issue. To solve problems, according to Circular No. 219/2013 / TT-BTC dated December 31, 12, Circular No. 2013/92 / TT-BTC dated June 2015, 15, the General Department of Taxation issued a number of a temporary document instructing the organization not to withhold tax, not to declare tax on behalf of, or to pay tax on behalf of an individual in case of commercial discount.