Can small-scale business households pay taxes using the declaration method?

The tax calculation method for business households is specified in Clause 1 Article 5 Circular 40/2021/TT-BTC as follows:

Tax calculation method for business households and individuals who pay tax according to the declaration method

1. The declaration method applies to business households and individuals doing large-scale business; and business households and individuals whose businesses are not large enough but choose to pay taxes using the declaration method.

2. Business households and individual businesses that pay taxes according to the declaration method shall declare tax monthly, except for cases where business households and individual businesses have just opened a business and business households and individual businesses meet the criteria for quarterly tax declaration and choose to declare tax quarterly according to the provisions of Article 9 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government.

3. If business households and individuals pay tax according to the declaration method, if the taxable revenue is determined to be inconsistent with reality, the tax authority shall determine the taxable revenue according to the provisions of Article 50 of the Law on Tax Administration.

According to the above regulations, the declaration method applies to large-scale business households and business households that do not meet the requirements for large scale but choose to pay tax according to the declaration method.

Thus, in case a small-scale business household chooses to pay tax by the declaration method, it can pay tax by the declaration method.

When is the deadline for paying business household tax in case of paying tax by the declaration method?

Business household tax payment deadline is specified in Clause 4 Article 11 Circular 40/2021/TT-BTC as follows:

Tax management for business households and individuals paying taxes according to the declaration method

3. Deadline for submitting tax declarations

Time limit for submitting tax declarations for business households and individuals paying taxes according to the declaration method specified in Clause 1, Article 44 of the Law on Tax Administration, specifically as follows:

a) The deadline for submitting tax declarations for business households and individuals paying taxes according to the monthly declaration method is the 20th day of the month following the month in which tax obligations arise.

b) The deadline for submitting tax declarations for business households and individuals paying taxes according to the quarterly declaration method is no later than the last day of the first month of the quarter following the quarter in which the obligation arises. tax service.

4. Tax payment deadline

The tax payment deadline for business households and individuals who pay tax according to the declaration method shall comply with the provisions of Clause 1, Article 55 of the Law on Tax Administration, specifically: The tax payment deadline is the last day of the tax declaration submission deadline. In case of additional tax declaration, the tax payment deadline is the tax declaration deadline for the tax period containing errors or omissions.

Thus, according to regulations, the deadline for paying business household tax in the case of paying tax using the declaration method is the last day of the tax declaration submission deadline.

In case of additional tax declaration dossiers, the tax payment deadline is the tax declaration dossier submission deadline for the tax period containing errors or omissions.

The deadline for submitting business household tax declaration documents is specifically specified as follows:

– The deadline for submitting tax declaration documents for business households that pay taxes using the monthly declaration method is the 20th day of the month following the month in which tax obligations arise.

– The deadline for submitting tax declaration documents for business households paying taxes according to the quarterly declaration method is the last day of the first month of the quarter immediately preceding the quarter in which tax obligations arise.

What does the tax declaration dossier for business households that pay taxes according to the declaration method include?

Tax declaration dossiers for business households paying taxes according to the declaration method are specified in Clause 1 Article 11 Circular 40/2021/TT-BTC as follows:

Tax management for business households and individuals paying taxes according to the declaration method

1. Tax declaration records

Tax declaration records for business households and individuals paying taxes according to the declaration method specified in Point 8.2 Appendix I – List of tax declaration records issued with Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, specifically as follows:

a) Tax declaration for Business households and individual businesses according to form No. 01/CNKD issued with this Circular;

b) Appendix List of business activities during the period of business households and individual businesses (applicable to business households and individual businesses that pay tax according to the declaration method) according to form No. 01-2/BK-HDKD issued with this Circular. In the case of business households or individuals paying taxes using the declaration method, if there is a basis to determine revenue as confirmed by the authorities, they do not have to submit Appendix Form No. 01-2/BK-HDKD issued with this circular.

2. Place to submit tax declaration documents

The place to submit tax declaration documents for business households and individuals who pay taxes according to the declaration method specified in Clause 1, Article 45 of the Law on Tax Administration is the Tax Department directly managing the place where business households and individuals conduct production and business activities.

Thus, according to regulations, tax declaration dossiers for business households paying taxes according to the declaration method include:

(1) Tax declaration according to form No. 01/CNKD issued with Circular 40/2021/TT-BTC

(2) Appendix List of business activities during the period of the business household according to form No. 01-2/BK-HDKD issued attached

In case a business household pays tax using the declaration method, if there is a basis for determining revenue as certified by the authorities, the Appendix of Business Activity Statement is not required.