Converting declaration methods - simple procedures
Pursuant to the provisions of Clause 4, Article 3; Point b Clause 3, Section b6, Point b Clause 4, Article 13 of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance, business households that are paying taxes under the contract method (household contract) can convert to the declaration method.
Accordingly, when switching to the declaration method, the contracted household will make adjustments and supplements to the contract tax declaration according to Form 01/CNKD issued with Circular 40/2021/TT-BTC of the Ministry of Finance. On the declaration, business households need to accumulate the option of "Conversion of tax calculation methods for households" so that the tax authority can use it as a basis for adjusting the contracted tax rate for the conversion period. The deadline for submitting adjusted declarations is no later than the 10th day from the date the business household begins to change the tax calculation method.
Households declaring to implement accounting regimes according to the instructions in Circular No. 88/2021/TT-BTC dated October 11, 2021 of the Ministry of Finance. Compliance with regulations helps business households be more proactive in managing production and business activities and fulfilling tax obligations to the State.
Some notes for business households paying taxes by declaration method
Tax declaration and payment for business households paying taxes according to the declaration method is implemented according to the instructions in Article 11 of Circular No. 40/2021/TT-BTC, specifically as follows:
(1) Regarding tax declaration documents, it is stipulated in Point 8.2 of Appendix I - List of tax declaration documents issued with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, including:
- Tax declaration form No. 01/CNKD according to Circular 40/2021/TT-BTC
- Appendix to the Business Activities List for the period of business households and individuals according to form No. 01-2/BK-HDKD according to Circular 40/2021/TT-BTC (if there is a basis to determine revenue according to confirmation by the competent authority, this Appendix does not have to be submitted)
(2) Regarding the form of tax declaration,
- Electronic Tax Portal at https://thuedientu.gdt.gov.vn, the "GREEN tax" sub system
- National Public Service Portal at https://dichvucong.gov.vn
- In case of failure to submit electronically: submit directly at the one-stop department or via the postal system.
(3) Regarding the place of tax declaration, according to the provisions of Clause 1, Article 45 of the Law on Tax Administration, the Tax Team directly manages the place of business household or individual doing business in production and business.
(4) Regarding the deadline for submitting tax declarations, as prescribed in 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.
(5) Regarding the tax payment period, as prescribed in Clause 1, Article 55 of the Law on Tax Administration:
- No later than the last day of the deadline for tax declaration
- 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 errors.
(6) Regarding tax payment methods:
- eTax Mobile application.
- Electronic Tax Portal at https://thuedientu.gdt.gov.vn, the "GREEN tax" sub system
- National Public Service Portal at https://dichvucong.gov.vn
(7) Obligation to declare tax in case of temporary suspension of operations and business:
- Notify tax authorities according to the provisions of Article 91 of Decree No. 01/2021/ND-CP, Article 4 of Decree No. 126/2020/ND-CP, Article 12 of Circular No. 86/2024/TT-BTC
- No tax declaration is required, except in cases where business households and individuals temporarily suspend operations or do not do business for a full month if they declare taxes monthly or temporarily suspend operations or do not do business for a full quarter if they declare taxes quarterly.
