No business registration will not required to pay tax
Many people avoid registering a business because they think that if it is not made public, the tax authority cannot know to collect taxes. However, according to regulations, as long as there is an activity of purchasing and providing services, individuals and organizations must register for business and declare and pay taxes.
Not registering a business is both subject to handling for illegal business conduct and being collected and punished for tax evasion if not declared.
Opening lower revenue than the actual tax to avoid having to pay taxes
For the method of calculating contract tax, individuals and business households are allowed to self-declare the revenue level to calculate tax. Therefore, many people have deliberately declared lower revenue than the actual tax to reduce tax or avoid not having to pay taxes.
This is considered a tax evasion and can be subject to administrative sanctions or more serious than criminal prosecution. The tax authority has sufficient expertise to detect and calculate the revenue and remaining tax payment amount for collection. Therefore, businesses that declare incorrect revenue levels are easily punished.
No one knows if they collect cash, only a transfer fee must be paid
Many business households think that if they only receive cash, they will not be discovered by the tax authority. However, tax is calculated on total revenue, regardless of the form of payment, whether it is cash or by bank transfer.
Rejecting to transfer money and only accept cash like some restaurants and eateries are currently doing is an easy act that makes tax authorities suspicious. If signs of tax evasion are detected, the behavior will be collected and criminal liability can be prosecuted.
The act of hanging a " cash only receipt" sign for the authorities to have difficulty determining that revenue does not reduce tax obligations, but on the contrary, can become a suspicious sign of the act of concealing revenue.
At the same time, these acts also go against the trend of "digital society - digital economy - digital citizens" and the policy of developing non-cash payments of the Party and State.
Dividing revenue into many accounts to reduce taxes
Some people transfer revenue to many different personal accounts to avoid getting noticed. However, currently, the tax authority has a personal identification tool, linking the tax code with VNeID, bank accounts and the eTax Mobile system.
From July 1, 2025, the personal identification code will officially replace the tax code, helping management agencies track all cash flow. That is, even though the revenue is divided into many accounts, it is still assigned to one taxpayer.
Record the content of the transfer without clarification to avoid detection
Many business households believe that if the content of the sale is not clearly stated but the content of the transfer is ambiguous, they will not be subject to tax inspection or will have difficulty with the authorities determining revenue.However, the above behavior not only does not reduce tax obligations, but on the contrary, it can become a suspicious sign of the act of concealing revenue.
Even if it is stated differently, if cash flow is essentially revenue from business activities, the tax authority can completely verify and handle it.If it cannot be explained, individuals can be suspected of tax evasion and be handled according to the law.
