According to Article 5 of Circular 40/2021/TT-BTC, which stipulates the tax calculation method for business households and individuals who pay taxes according to the declaration method as follows:
- Declaration method applies to business households and individuals doing large-scale business; and business households and individuals do not meet the large-scale requirements but choose to pay taxes according to the declaration method.
- Business households and individuals pay taxes according to the method of declaration and tax declaration every month, except for cases where newly established business households and business households and individuals meet the criteria for quarterly tax declaration and choose to declare taxes quarterly as prescribed in Article 9 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government.
- Business households and individuals pay taxes according to the declaration method if determining that taxable revenue is not suitable for reality, the tax authority shall determine the taxable revenue according to the provisions of Article 50 of the Law on Tax Administration 2019.
- Business households and individuals paying taxes according to the declaration method must implement accounting, invoice, and document regimes. In case a business household or individual doing business in a field or profession has a basis for determining revenue according to the confirmation of the competent authority, they do not have to apply accounting regimes.
- Business households and individuals pay taxes according to the declaration method without having to settle taxes.
Thus, according to the above regulations, business households and individuals paying taxes according to the declaration method do not have to settle taxes.
