Tax is a compulsory contribution to state revenue, as well as a tool for economy management. Before paying tax, enterprises have their duties to report and declare tax. Tax report and declaration help tax agencies establish grounds for tax assessment, tax exemption and reduction cases.
Some taxes and tax reporting terms are regulated in Circular No. 156/2013/TT-BTC issued by the Ministry of Finance on November 6, 2013, Decree No. 83/2013/NĐ-CP issued by the Government on July 22, 2013. Popular tax duties are VAT, enterprise income tax, personal income tax and license tax. However, depends on enterprise’s features and transactions incurred during the operation of enterprises, there might be other tax duties.
Kim Húc collects some regulations on tax report and declaration for enterprises as follow:
VAT (Value-added tax):
Declaration options:
– Monthly;
– Quarterly:
+ Applied when the taxpayer earns a total revenue of 50 billion VND or less from the sale of goods/services in the preceding year;
+ If the taxpayer have just started business, monthly option shall be applied. In the next calendar year after 12 months of business, application of monthly or quarterly option shall depend on the revenue from the sale of goods/services in the preceding year.
– Unscheduled (upon incurrence of tax):
+ Applied when goods/services are built, installed or sold by the taxpayer in other provinces (not the province where its head-office locates) without establishing any unit there;
+ If tax liabilities are incurred many times in a month, the taxpayer shall apply the monthly option.
A dossier for VAT declaration includes:
– Monthly and quarterly options:
If using credit-invoice method:
+ The VAT declaration using the form No.1/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The list of sold goods and services using the form No. 01-1/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The list of purchased goods and services using the form No. 01-2/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The list of goods and services eligible for 0% tax using the form No. 01-3/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The table of distribution of deductible input VAT in the month or quarter using the form No. 01-4A/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The table of adjustment of distributed deductible input VAT in the year using the form No. 01-4B/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The table of paid VAT on revenue from extra-provincial business using the form No. 01-5/GTGT as prescribed in the Circular 156/2013/TT-BTC;
+ The table of VAT distribution between the head-quarter and affiliates that do not keep accounting records (if any) using the form No. 01-6/GTGT as prescribed in the Circular 156/2013/TT-BTC.
If using direct method on added value:
The VAT declaration using the form No. 03/GTGT as prescribed in the Circular 156/2013/TT-BTC.
If using direct method on revenue:
The VAT declaration using the form No. 04/GTGT as prescribed in the Circular 156/2013/TT-BTC.
– Unscheduled option:
The VAT declaration using the form No. 05/GTGT as prescribed in the Circular 156/2013/TT-BTC.
Enterprise income tax:
Declaration options:
– Provisional quarterly;
– Unscheduled options: Real-estate transfer, whenever it incurred;
– Terminal declaration or whenever it incurred: for cooperation division, split, amalgamation, merger, conversion, dissolution or shutdown.
A dossier for enterprise income tax includes:
– Provisional quarterly:
+ The provisional quarterly declaration form using the form No. 01-A/TNDN as prescribed in the Circular 156/2013/TT-BTC;
+ If the taxpayer fail to declare the actual expense incurred in the period, the form No. 01-B/TNDN shall be used instead;
+ If the enterprise has just been established or suffers from loss in the preceding year, provisional quarterly declaration must be applied and the form No. 01-A/TNDN as prescribed in the Circular 156/2013/TT-BTC shall be used.
– Real-estate transfer:
+ The declaration form for income from real-estate transfer using the form No. 02/TNDN as prescribed in the Circular 156/2013/TT-BTC;
+ If the enterprise is licensed to real-estate trade, it may use the quarterly declaration option, using the form No. 02/TNDN as prescribed in the Circular 156/2013/TT-BTC.
– Terminal declaration:
+ The terminal declaration form using the form No. 03/TNDN as prescribed in the Circular 156/2013/TT-BTC;
+ An annual financial statement or a financial statement up to the time of division, split, amalgamation, merger, conversion, dissolution or shutdown;
+ One or some appendixes (case-by-case) for: business performance, loss transfer, tax incentives, enterprise income tax paid overseas or paid for real-estate transfer, the use of technology and science funds,…
Personal income tax:
According to Decree No. 83/2013/NĐ-CP and Circular 156/2013/TT-BTC, organizations or individuals paying taxable income have obligations to declare personal income tax. In other words, when an organizations or individuals pay income to their employees, they have to declare on behalf of those employees.
Declaration options:
– Monthly option:
Applied when organizations or individuals pay at least 50 million VND in personal income in a month.
– Quarterly option:
Applied when organizations or individuals pay less than 50 million VND for personal income in a month.
– Terminal declaration:
Applied when organizations or individuals pay taxable income and declare as authorized on behalf of employees, whenever tax is deducted or not.
A dossier for personal income tax declaration includes:
– Monthly and quarterly:
The personal income tax declaration form using the form No. 02/KK-TNCN as prescribed in Circular 156/2013/TT-BTC;
– Terminal declaration:
+ The personal income tax declaration form using the form No. 05/KK-TNCN as prescribed in Circular 156/2013/TT-BTC;
+ The tables form using the form No. 05-1/BK-TNCN, 05-2/BK-TNCN, 05-3/BK-TNCN as prescribed in Circular 156/2013/TT-BTC.
License tax:
Declaration options: Yearly;
– Enterprises just need to declare license tax one time when they have just started their business. The deadline is the last day of the month in which the business started. If the license tax is changed, re-declaration shall be performed;
– If enterprises have just been established but have not started operation yet, they must declare license tax within 30 days from the issue day of the Certificate of Business Registration and tax registration.
A dossier for license tax declaration includes:
The license tax declaration form using the form No. 01/MBAI as prescribed in Circular 156/2013/TT-BTC.
If clients need legal advice, please feel free to contact Kim Huc company to be supported!
KIM HUC CONSULT AND TRADING COMPANY LIMITED
Add: C36-TT8, Van Quan, Dist Ha Đong, Ha Noi, VietNam
Phone: 024.3225.2641 Fax: 024.3225.2640
Hotline: 024.3225.2641 / 0943.980.222
Email: consultant@kimhuc.com
