- 7 November, 2019
- Posted by: Expertis.vn
- Category: Knowledge of tax
After establishing an enterprise and operating, the company must pay fees and charges to the State in accordance with the law. Demonstrate the obligations of businesses to the home country. In Vietnam, businesses must pay the following taxes:
1. License fees - Excise
Excise is the compulsory tax that the company must pay annually based on the charter capital stated in the business license. After obtaining the business license, the company must submit the license fee declaration form to the managing tax office.
According to Article 4 of Decree 139 / 2016 / ND-CP and Circular 302 / 2016 / TT-BTC, stipulating the level of licensing fees for organizations producing and trading in goods and services deadlines for filing license tax returns.
However, from the year of import-export, under the provisions of the Law on Support for Small and Medium-sized Enterprises, the households transformed into small and medium-sized enterprises will be exempt from licensing fees in the first year.
- For representative offices, business locations, branches, non-business units, other economic organizations, the fee is 1.000.000 / year.
- If the charter capital or the investment capital of an enterprise / organization has an import value of VND billion or less, the fee is VND 5,000 / year.
- If the charter capital or the investment capital of an enterprise / organization is over VND 500 billion, the fee is VND 5,000 / year.
+ License tax declaration is the last day of the month in which the business is started.
+ In case a taxpayer has just established a business establishment but has not yet conducted production and business activities, he / she must make excise tax declaration within 30 days from the date the business registration certificate or certificate is issued. receive investment registration and tax registration.
+ The deadline for business license tax payment is on the annual import-export date of the annual export tax. In case the fee payer has just started operation or has just been established, the deadline for payment is the last day of the deadline for submitting fee declaration dossiers.
2. V.a.t tax (VAT)
VAT (Value Added) is a tax calculated on the added value of goods, which is the difference between the buying and selling prices of products, goods and services arising in the process of production, circulation. to consumption.
Pursuant to the Law on Value-Added Tax of Export Tax depending on each subject line VAT There are also differences: Tax rates can be 0%, 5% or 10%
+ 0% tax rate: For exported services and goods Article 9 Circular 219 / 2013 / TT-BTC
+ 5% tax rate: For some types of goods specified in Article 10 Circular 219 / 2013 / TT-BTC amended and supplemented by Circular 26 / 2015 / TT-BTC)
+ 10% tax rate: For the remaining services and goods in Article 11 Circular 219 / 2013 / TT-BTC
There are 2 methods of calculating value added tax:
- Deduction method:
Payable VAT amount = Output VAT - Input VAT
- Direct method:
Payable VAT amount = VAT of goods * VAT rate of such goods.
3. Corporate income tax (CIT)
After establishing a company or an enterprise which generates profits, it is obliged to pay CIT to the State.
Corporate income tax is a tax collected on the final profit of the business, after deducting reasonable expenses. All individuals, organizations, establishments producing and trading in goods and services with income are subject to CIT.
Like VAT, the corporate income tax for each business depends on the business lines, sectors and types of business that have different tax incentives.
Payable corporate income tax = Taxed price * Tax rate
According to Clause 1 Article 11 Circular 78 / 2014 / TT-BTC then from the date 01 / 01 / 2016
+ Revenue is less than 0, the enterprise will not have to pay CIT.
+ Turnover up to 20 billion VND: Tax rate of corporate income tax is 20%
+ Turnover from over 20 billion dong: Enterprise income tax rate is 22%
+ Particularly for enterprises engaged in oil and gas prospection, exploration and exploitation activities in Vietnam: The enterprise income tax rate is from 32% - 50%
+ Particularly for small and medium-sized enterprises, from the year of import-export, will be applied for a period of time that the CIT rate is lower than the ordinary tax rate.
4. Personal income tax (Personal Income Tax)
The PIT is the tax that an enterprise pays on behalf of its employees. When hiring employees and paying income to employees, enterprises that make tax deduction must declare and submit declarations to tax authorities.
PIT is calculated on a monthly basis, declared monthly or quarterly but finalized annually.
Personal income taxpayers are individuals who reside in Vietnam and have taxable incomes generated inside and outside the territory of Vietnam, and non-resident individuals, who have taxable incomes arising within the territory of Vietnam.
Payable PIT = Income subject to PIT * Tax rate
Income subject to PIT = Income subject to PIT - Deductions
- Deductions include:
+ Reduction based on family circumstances: For self, it is VND 5,000 / person / month. For dependents is VND 9.000.000 / person / month.
+ Compulsory insurance: Social insurance, health insurance, unemployment insurance and career insurance in some special fields.
If businesses do not know clearly, they can: Delayed tax declaration, late payment of tax or incorrect declaration and wrong payment of tax, .... Leads to administrative sanctions or, more importantly, criminal penalties.
When establishing an enterprise, it is obliged to know the provisions of the law in general and the tax law in particular
There are also a number of other taxes depending on the business activities of the business will be different, such as:
- Current tax
- Customs duty
- Special consumption tax
- Natural resources tax
- Import and export tax, ...