Tax is a mandatory payment that individuals and businesses are obliged to make to the state based on legal documents, this is a necessary source of funding to maintain, operate and perform functions, The tasks of state agencies aim to stabilize and develop society.

The following are the taxes that businesses need to pay attention to!

EXCISE

License tax is a direct fee levied on the charter capital or investment capital of newly established businesses that begin operating.

Legal grounds

• Decree 22/2020/ND-CP Amending Decree 139.2016/ND-CP on license fees;
• Decree 139/2016/ND-CP regulates license fees.

Regulations on license tax declaration

• Declare once when the fee payer has just started production or business activities or is newly established.
• The deadline for paying license fees is January 30 of the calendar calendar.
• From February 25, 2020, license fee exemption in the first year of establishment or production and business activities (from January 1 to December 31) for:
• New company;
• During the license fee exemption period, if an enterprise establishes a branch, representative office, or business location, the branch, representative office, or business location will be exempt from license fee.

License tax payment rate

The license tax payment rate is divided into 3 levels as follows:

Level 1: Charter capital >= 10ty, paid 3 million/year.

Level 2: Charter capital < 10ty, paid 2 million/year.

Level 1: Representative office or dependent accounting branch pays 1 million/year.

V.A.T TAX

Value added tax is an indirect tax, calculated on the added value of goods and services from production, circulation to consumption.

Legal grounds

• Value Added Tax Law 2008;
• Value Added Tax Law, Special Consumption Tax Law and Amended Tax Administration Law 2016.

Time limit for declaring VAT

• In case an enterprise declares monthly, the deadline for submission is 20 days from the end of that month.
• In case an enterprise declares quarterly, the deadline for submission is 30 days from the end of that quarter.
• VAT payment deadline: Coincides with the VAT declaration submission deadline.

VAT calculation method

Calculate VAT using the deduction method:

VAT amount payable = Output VAT amount - Deductible input VAT amount.

Calculate VAT using the direct method.

VAT payable = Revenue x Percentage.

In there:

• Revenue for calculating VAT is the total amount of actual sales of goods and services recorded on the sales invoice for goods and services subject to VAT, including surcharges and additional fees that the business establishment is entitled to. enjoy.
• The percentage to calculate VAT on revenue is specified for each activity as follows:
• Distribution and supply of goods: 1%.
• Services and construction excluding raw materials: 5%.
• Production, transportation, services associated with goods, construction including raw materials: 3%.
• Other business activities: 2%.

CORPORATE INCOME TAX

Corporate income tax is a direct tax, collected on the final results of production and business activities of an enterprise.

Legal grounds

• Law on corporate income tax 2008;
• Law amending the Tax Laws 2014.

Regulations on corporate income tax declaration

• According to Article 17 of Circular 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance: Enterprises do not have to prepare a provisional CIT declaration, just based on the results of the enterprise's production and business activities. The enterprise calculates the amount of temporary payment no later than the 30th day from the end of the quarter in which the tax liability arises.
• CIT finalization: Deadline for submission is the 90th day from the end of the calendar year or fiscal year. From July 1, 2020, according to the Law on Tax Administration 38/2019/QH14, the deadline for CIT finalization documents is the last day of the 3rd month from the end of the calendar year or fiscal year.

Method of calculating corporate income tax

Corporate income tax payable = (Taxable income - Scientific and technological fund appropriation) x Tax rate.

Taxable income = Taxable income - (Tax-free income + Carry-forward losses).

Taxable income = (Revenue – Deductible expenses) + Other income.

PERSONAL INCOME TAX

Personal income tax is a direct tax levied on the income of employees with income according to the provisions of law.

Legal grounds

• Personal Income Tax Law 2007 amended in 2012;
• Law amending the Tax Laws 2014;
• Circular 111/2013/TT-BTC.

Regulations on personal income tax declaration

• Enterprises declare and pay personal income tax monthly (in case the enterprise declares VAT monthly and the personal income tax payable in the month is 50 million VND or more): No later than the 20th day of the following month.
• Enterprises declare and pay personal income tax quarterly (in case the enterprise declares VAT quarterly or the enterprise declares VAT monthly and the personal income tax amount payable in the month is less than 50 million VND): No later than the date 30th of the following quarter.

Method of calculating personal income tax.

• For resident individuals with labor contracts of 3 months or more: Deductions are made according to the partially progressive tax schedule and employees are entitled to family deductions before deduction. The income paying organization is responsible for settlement on behalf of authorized individuals.
• For resident individuals without a labor contract or with a labor contract of less than 03 months: Direct deduction of 10% at source before paying income with total expenses of 2,000,000 VND or more, not allowed. Calculate family deductions but make commitment 02/CK-TNCN (if eligible) to organize temporary income payment without tax deduction of these individuals.
• For non-resident individuals: Deduct 20% before paying income.

SOME OTHER TYPES OF TAXES ARE BASED ON THE CHARACTERISTICS OF EACH ENTERPRISE

Resource tax

Natural resources tax is an indirect tax, this is the amount of money that organizations and individuals must pay to the state when exploiting natural resources.

• Applicable to businesses with mineral exploitation activities.
• Base for calculating tax: Base for calculating natural resource tax is taxable resource output, natural resource tax price, and natural resource tax rate.
• Natural resources tax = resource output x taxable price x tax rate.
• The deadline for submitting natural resource tax declarations for monthly declarations is the 20th of the following month at the latest. The annual resource tax finalization report must be submitted no later than the 90th day from the end of the calendar year or fiscal year.

Export and import taxes

Import-export tax is an indirect tax, levied on goods exported and imported through Vietnam's border gates; Goods traded and exchanged by border residents and other traded and exchanged goods are considered exported and imported goods.

• Export and import tax payable = actual quantity of exported or imported items on the customs declaration x value of each item x tax rate.
• The deadline for paying export tax and import tax is specified as follows:
• For exported goods, it is thirty days from the date the taxpayer registers the customs declaration.
• For imported goods that are consumer goods, taxes must be paid before receiving the goods; In case there is a guarantee for the tax amount payable, the tax payment deadline is the guarantee period, but must not exceed thirty days from the date the taxpayer registers the customs declaration.
• For imported goods that are supplies and raw materials for the production of exported goods, the tax payment deadline is two hundred seventy-five days from the date the taxpayer registers the customs declaration; In special cases, the tax payment deadline may be longer than two hundred and seventy-five days in accordance with the production cycle and reserve of supplies and raw materials of the enterprise according to the Government's regulations.
• For goods traded by temporary import for re-export or temporary export for re-import, fifteen days from the expiration date of temporary import for re-export or temporary export for re-import according to regulations of state agencies. have authority.
• In addition to the above cases, the tax payment deadline for imported goods is thirty days from the date the taxpayer registers the customs declaration.

Environmental Protection tax

Environmental protection tax is an indirect tax, collected on products and goods (hereinafter referred to as goods) that when used cause negative impacts on the environment.

• Applicable to businesses: If they produce or import goods subject to environmental protection tax according to the provisions of the Law on Environmental Protection Tax 2010.
• Environmental protection tax = Quantity of taxable goods x absolute tax rate.
• Environmental protection tax is only paid once for manufactured or imported goods.
• For domestically produced goods: environmental protection taxpayers must submit environmental protection tax declaration documents to the directly managing tax agency.
• For imported goods: taxpayers submit tax declaration documents to the customs office where customs procedures are carried out.

Special consumption tax

Special consumption tax is an indirect tax levied on a number of special goods directly produced and sold by enterprises or imported and sold by enterprises.

• Applicable to businesses: If there are activities of producing or importing goods or providing services subject to special consumption tax.
• Special consumption tax = taxable price x tax rate.
• The deadline for submitting a monthly special sales tax declaration is the 20th day of the month following the month in which the tax liability arises.

Non-agricultural land use tax

Non-agricultural land use tax is a direct tax levied on non-agricultural land used for production, implementation of investment projects, and construction of agency headquarters,….

• Local land use tax = Area of ​​land used x Taxable price of 1 m2 x tax rate.
• Non-agricultural production and business land applies a tax rate of 0.03%.
• The deadline for annual tax payment is December 31 of each year.
• Taxpayers have the right to choose to pay taxes once or twice a year and must complete their tax obligations no later than December 31 every year. The deadline for paying the difference as determined by the taxpayer in the General Declaration is March 31 of the following year.
• In case within a stable period of 5 years the taxpayer requests to pay tax once for many years, the tax payment deadline is December 31 of the year of request.

CPA HCM specializes in providing reputable - fast - accurate tax declaration services. If your business needs it, you can contact Hotline 19000380 for advice and support..