Ha Tinh Provincial Tax has Official Letter 130/TCS5-NVDTHCTH on the propaganda to abolish contract tax for business households and individuals from January 1, 2026.
Accordingly, in order to help taxpayers fully understand the benefits, rights and obligations when switching to the implementation of the declaration method, the 5 provinces of Ha Tinh Tax base introduce to taxpayers in the area a number of contents.
In particular, the things that business households must do when switching to the declaration method are guided to include:
- Complete contract tax obligations and switch to the declaration method: Business household declaration adjust and supplement the Contract Tax Declaration according to form No. 01/CNKD issued with Circular 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance.
- Implement the accounting regime in accordance with regulations: Business households paying taxes according to the declaration method must implement the accounting regime, invoices, and documents according to the provisions of Circular 88/2021/TT-BTC dated October 11, 2021 of the Ministry of Finance "Instructions for accounting regime for business households and individuals".
- Tax declaration and payment: When switching to the declaration method, business households need to declare and pay taxes according to regulations:
+ Tax declaration documents include: Tax declaration form form No. 01/CCGTD and Appendix of the Declaration Table form No. 01-2/BK-HDKD issued with Circular 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance (if there is a basis to determine revenue according to confirmation by the competent authority, it is not necessary to submit this Appendix).
+ Regarding the deadline for submitting tax declarations, according to the provisions of Clause 1, Article 44 of the Law on Tax Administration:
In case of monthly declaration: No later than the 20th of the month following the month in which the taxable liability arises.
In case of quarterly declaration: No later than the last day of the first month of the following quarter, tax obligations arise.
+ Regarding the tax payment period, according to the provisions of Clause 1, Article 55 of the Law on Tax Administration:
No later than the last day of the tax declaration deadline.
In case of additional tax declaration documents, the tax payment deadline is the deadline for tax declaration documents of the tax calculation period with errors and shortcomings.
Latest principles for tax calculation for business households
According to Article 4 of Circular 40/2021/TT-BTC, the principles for tax calculation for business households are as follows:
- The principle of tax calculation for business households and individuals is implemented in accordance with the provisions of current law on VAT, personal income tax and related legal documents.
- Business households and individuals with revenue from production and business activities in the calendar year of VND 100 million or less are not required to pay VAT and are not required to pay personal income tax according to the provisions of law on VAT and personal income tax. Business households and individuals are responsible for declaring taxes accurately, honestly, fully and submitting tax documents on time; responsible before the law for the accuracy, honesty and completeness of tax documents according to regulations.
- Business households and individuals doing business in the form of groups of individuals and households, the revenue level of VND 100 million/year or less to determine that individuals are not required to pay VAT, not required to pay personal income tax is determined to a single representative of the group of individuals and households in the tax calculation year.
