Tax settlement activities for business households are carried out according to the declaration method
According to the provisions of Article 5 of Circular 40/2021/TT-BTC on tax calculation methods for business households and individuals paying taxes according to the declaration method.
Accordingly, the declaration method is applied to business households and large-scale business individuals; and business households and individuals that 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 declaration method to declare taxes monthly, 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 No. 126/2020/ND-CP.
Business households and individuals who pay taxes by declaration method if determining that taxable revenue is not suitable for reality, the tax authority shall stamp the taxable revenue according to the provisions of Article 50 of the Law on Tax Administration.
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.
Notably, business households and individuals paying taxes according to the declaration method do not have to settle taxes.
Thus, in the case of business individuals paying taxes according to the declaration method, they do not have to settle taxes according to regulations.
Tax declaration documents for business individuals paying taxes according to the declaration method
Tax declaration for business individuals according to form No. 01/CNKD issued with Circular 40/2021/TT-BTC.
Appendix to the business performance statement for the period of business individuals (applicable to business individuals paying taxes according to the declaration method) according to form No. 01-2/BK-HDKD issued with Circular 40/2021/TT-BTC.
In case a business individual pays tax according to the declaration method, if there is a basis to determine revenue according to the confirmation of the competent authority, it is not necessary to submit the appendix to the form No. 01-2/BK-HDKD attached to Circular 40/2021/TT-BTC.
Deadline for extending the tax declaration submission period
Article 46 of the Law on Tax Administration 2019 stipulates the deadline for extending the submission of tax declarations as follows:
Taxpayers who are unable to submit tax declarations on time due to natural disasters, disasters, epidemics, fires, and unexpected accidents will be directly managed by the head of the tax authority to extend the submission of tax declarations.
The extension period is not more than 30 days for submitting monthly tax declarations, quarterly tax declarations, annual tax declarations, and tax declarations for each arising tax obligation; 60 days for submitting tax declarations and finalizations from the deadline for submitting tax declarations.
Taxpayers must send a document requesting an extension of tax declaration submission before the deadline for tax declaration submission, clearly stating the reason for the extension request with confirmation from the People's Committee at the commune level or the police of the commune, ward, or town where the extension case arises as prescribed in Clause 1, Article 46 of the Law on Tax Administration 2019.
Within 3 working days from the date of receipt of the document requesting an extension of tax declaration submission, the tax authority must respond in writing to the taxpayer about whether or not to accept the extension of tax declaration submission.
