{"id":4946,"date":"2022-08-12T11:06:02","date_gmt":"2022-08-12T04:06:02","guid":{"rendered":"https:\/\/pl-partners.vn\/?p=4946"},"modified":"2023-01-12T11:34:36","modified_gmt":"2023-01-12T04:34:36","slug":"which-taxes-do-business-households-have-to-pay","status":"publish","type":"post","link":"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/","title":{"rendered":"Which taxes do business households have to pay?"},"content":{"rendered":"<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">Business household is a production and business establishment registered to be established by an individual or members of a household and is responsible with <strong>all<\/strong> his\/her assets for the household&#8217;s business activities. Because of simple policies, easier to manage than enterprises, suitable for individuals and small households to do business, businesses household are chosen by many people.<\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">Determining whether a business household must pay tax is based on the household&#8217;s total revenue in a calendar year. Specifically:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #282828;\">If the revenue is <strong><u>NO MORE THAN<\/u><\/strong> VND100,000,000, there is NO TAX PAYMENT.<\/span><\/li>\n<li><span style=\"color: #282828;\">If the revenue is <strong><u>OVER<\/u><\/strong> VND100,000,000, they MUST PAY TAX.<\/span><\/li>\n<\/ul>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">Tax payable includes 03 main types: License Fee, Value Added Tax and Personal Income Tax (no corporate income tax as for enterprises). The payment amount for all three of these taxes are based on the annual revenue of the business household.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">N\u1ed9i dung b\u00e0i vi\u1ebft<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#1_LICENSE_FEES\" title=\"1. LICENSE FEES\">1. LICENSE FEES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#2_VALUE_ADDED_TAX_VAT_AND_PERSONAL_INCOME_TAX_PIT\" title=\"2. VALUE ADDED TAX (VAT) AND PERSONAL INCOME TAX (PIT)\">2. VALUE ADDED TAX (VAT) AND PERSONAL INCOME TAX (PIT)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#21_Tax_calculation_formula\" title=\"2.1. Tax calculation formula:\">2.1. Tax calculation formula:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#22_Tax_returns_submission_due_date\" title=\"2.2. Tax returns submission due date:\">2.2. Tax returns submission due date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#23_Tax_payment_due_date\" title=\"2.3. Tax payment due date:\">2.3. Tax payment due date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pl-partners.vn\/en\/which-taxes-do-business-households-have-to-pay\/#PL_AND_PARTNERS_LAW_FIRM\" title=\"PL AND PARTNERS LAW FIRM\">PL AND PARTNERS LAW FIRM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_LICENSE_FEES\"><\/span><span style=\"color: #003366;\"><strong>1. LICENSE FEES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">License fee (formerly known as License Tax) is a fee that business households must pay by <strong>January 30<\/strong> every year. This fee is determined based on the total revenue in a calendar year of the household, not based on the charter capital like enterprises.<\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">Business households that are exempt from paying license fees in the first year of establishment, from the second (02) year onwards, the payment shall be as follows:<\/span><\/p>\n<table style=\"font-weight: 400;\" width=\"100%\">\n<tbody>\n<tr>\n<td width=\"8%\"><span style=\"color: #282828;\"><strong>NO.<\/strong><\/span><\/td>\n<td width=\"62%\"><span style=\"color: #282828;\"><strong>Revenue<\/strong><\/span><\/td>\n<td width=\"29%\"><span style=\"color: #282828;\"><strong>Payment<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"8%\"><span style=\"color: #282828;\">1<\/span><\/td>\n<td width=\"62%\"><span style=\"color: #282828;\">More than VND100,000,000\/year to VND300,000,000\/year<\/span><\/td>\n<td width=\"29%\"><span style=\"color: #282828;\">VND500,000\/year<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"8%\"><span style=\"color: #282828;\">2<\/span><\/td>\n<td width=\"62%\"><span style=\"color: #282828;\">More than VND300,000,000\/year to VND500,000,000\/year<\/span><\/td>\n<td width=\"29%\"><span style=\"color: #282828;\">VND300,000\/year<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"8%\"><span style=\"color: #282828;\">3<\/span><\/td>\n<td width=\"62%\"><span style=\"color: #282828;\">More than VND500,000,000\/year<\/span><\/td>\n<td width=\"29%\"><span style=\"color: #282828;\">VND1,000,000\/year<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">Where the revenue used as the basis for determining the collection rate is the <strong>total taxable revenue for personal income tax of the preceding year<\/strong> of production and business activities (excluding property leasing activities) of business locations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_VALUE_ADDED_TAX_VAT_AND_PERSONAL_INCOME_TAX_PIT\"><\/span><span style=\"color: #003366;\"><strong>2. VALUE ADDED TAX (VAT) AND PERSONAL INCOME TAX (PIT)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #282828;\">Unlike enterprises that must pay tax by the periodic declaration method, business households are entitled to pay presumptive tax (annually) and do not have to follow the accounting system.<\/span><\/li>\n<li><span style=\"color: #282828;\">However, business households of the following sizes must comply with the accounting, invoice and voucher regimes and shall declare and pay taxes according to the <strong>periodic declaration method<\/strong> (monthly or quarterly):<\/span><\/li>\n<li><span style=\"color: #282828;\">Business households in the fields of agriculture, forestry, fishery, industry and construction: having the average number of employees participating in social insurance per year is more than <strong>10<\/strong>, or the total revenue of the preceding year is from <strong>3 billion dongs<\/strong> or more;<\/span><\/li>\n<li><span style=\"color: #282828;\">Business households in the field of commerce and services: having the average number of employees participating in social insurance per year is more than <strong>10,<\/strong> or the total revenue of the preceding year is <strong>10 billion dongs<\/strong> or more.<\/span><\/li>\n<\/ul>\n<p style=\"font-weight: 400; text-align: justify;\"><em><span style=\"color: #ed1c24;\"><strong>Note:<\/strong> <strong>Business households that use the periodic declaration method are not required to conduct tax finalization.<\/strong><\/span><\/em><\/p>\n<h3 style=\"font-weight: 400; text-align: justify;\"><span class=\"ez-toc-section\" id=\"21_Tax_calculation_formula\"><\/span><span style=\"color: #ed1c24;\"><strong>2.1. Tax calculation formula:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">VAT and PIT payable are calculated as follows:<\/span><\/p>\n<table style=\"font-weight: 400;\" width=\"101%\">\n<tbody>\n<tr>\n<td width=\"32%\"><span style=\"color: #282828;\"><strong>VAT payable<\/strong><\/span><\/td>\n<td width=\"4%\"><span style=\"color: #282828;\">=<\/span><\/td>\n<td width=\"32%\"><span style=\"color: #282828;\">Revenue subject to VAT<\/span><\/td>\n<td width=\"5%\"><span style=\"color: #282828;\">x<\/span><\/td>\n<td width=\"24%\"><span style=\"color: #282828;\">VAT rate<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"32%\"><span style=\"color: #282828;\"><strong>PIT payable<\/strong><\/span><\/td>\n<td width=\"4%\"><span style=\"color: #282828;\">=<\/span><\/td>\n<td width=\"32%\"><span style=\"color: #282828;\">Revenue subject to PIT<\/span><\/td>\n<td width=\"5%\"><span style=\"color: #282828;\">x<\/span><\/td>\n<td width=\"24%\"><span style=\"color: #282828;\">PIT rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>Where:<\/em><\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">&#8211; Revenue subject to VAT and revenue subject to PIT: is the <strong>tax-inclusive revenue<\/strong> (in taxable cases) of all sales, processing costs, commissions, and service fees arising in the tax period from the production and trading of goods and services, including bonuses, sales support, promotion, trade discount, payment discount, support in cash or in kind; price subsidies, surcharges, extras, and additional fees to which they are entitled according to regulations; compensation for breach of contract and other compensations (only included in the revenue subject to PIT); other revenue that the business household is entitled to, <strong>regardless of whether money has been collected or not.<\/strong><\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">&#8211; Applicable VAT and PIT rates in detail to each field and business line shall follow the guidance in Appendix I issued as an attachment to <span style=\"color: #0000ff;\">Circular 40\/2021\/TT-BTC<\/span> (the minimum rate is 0.5%, the maximum rate is 5%).<\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><strong><em>Note:<\/em><\/strong><\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\">In case a business household operates in many fields and business lines, it shall declare and calculate tax according to the applicable tax rate and the revenue of each field or business line. In case the taxable revenue of each field or business line cannot be determined or the determination is not suitable for the actual business, the tax authority shall determine the taxable revenue of each field or business line according to regulations on tax administration.<\/span><\/p>\n<h3 style=\"font-weight: 400; text-align: justify;\"><span class=\"ez-toc-section\" id=\"22_Tax_returns_submission_due_date\"><\/span><span style=\"color: #ed1c24;\"><strong>2.2. Tax returns submission due date:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>For periodic declaration method:<\/em><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #282828;\"><em>Monthly declaration: no later than the 20th day of the month following the month in which the tax liability arises;<\/em><\/span><\/li>\n<li><span style=\"color: #282828;\"><em>Quarterly declaration (applicable only to households that have just started doing business or households that meet the criteria for quarterly tax declaration and choose this method): no later than the last day of the first month of the consecutive quarter in which tax liability arises.<\/em><\/span><\/li>\n<\/ul>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>For presumptive tax:<\/em> December 15 of the year preceding the tax year at the latest.<\/span><\/p>\n<h3 style=\"font-weight: 400; text-align: justify;\"><span class=\"ez-toc-section\" id=\"23_Tax_payment_due_date\"><\/span><span style=\"color: #ed1c24;\"><strong>2.3. Tax payment due date:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>For periodic declaration method:<\/em> no later than the last day of the tax return due date. In case of additional declaration of tax declaration dossiers, the payment deadline shall be the due date for submitting tax returns of the tax period having errors.<\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>For presumptive tax<\/em>: pay tax according to the deadline on the Notice for Payment from tax authorities (which shall be sent no later than January 20 every year).<\/span><\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #282828;\"><em>\u00a0<\/em><em>***Legal basis:<\/em><\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\"><em>Law on Tax Administration 2019;<\/em><\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\"><em>Decree No. 139\/2016\/ND-CP (amended and supplemented by Decree No. 22\/2020\/ND-CP);<\/em><\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\"><em>Decree No. 126\/2020\/ND-CP;<\/em><\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #282828;\"><em>Circular No. 92\/2015\/TT-BTC (amended and supplemented by Circular No. 40\/2021\/TT-BTC).<\/em><\/span><\/li>\n<\/ul>\n<p>\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PL_AND_PARTNERS_LAW_FIRM\"><\/span><span style=\"color: #ed1c24;\"><strong>PL <\/strong><strong>AND<\/strong> <strong>PARTNERS<\/strong><strong> LAW FIRM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #282828;\"><span style=\"color: #000000;\"><em><strong>Head<\/strong><strong>quarters<\/strong><strong>:<\/strong><\/em><\/span> <span style=\"color: #000000;\">46<sup>th<\/sup> Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>O<\/strong><strong>ffice:<\/strong><\/span><\/em> <span style=\"color: #000000;\">Lot 1.16 Viva Riverside, 1472 Vo Van Kiet, Ward 3, District 6, HCMC<\/span><\/span><\/p>\n<p><span style=\"color: #282828;\"><em><span style=\"color: #000000;\"><strong>Hotline:<\/strong><\/span><\/em> <span style=\"color: #000000;\">093.1111.060<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Email:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"http:\/\/info@pl-partners.vn\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">info@pl-partners.vn<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Facebook:<\/em><\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.facebook.com\/PLLaw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">www.facebook.com\/PLLaw<\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong><em>Website:\u00a0<\/em><\/strong><a style=\"color: #000000;\" href=\"https:\/\/pl-partners.vn\/\"><em>www.PL-PARTNERS.vn<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.hoidapluat.net\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.HOIDAPLUAT.net<\/em><\/a><em> \u2013 <\/em><a style=\"color: #000000;\" href=\"http:\/\/www.thutucphaply.org\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><em>www.THUTUCPHAPLY.org<\/em><\/a><\/span><\/p>\n<p>\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014-<\/p>\n<table style=\"height: 93px; width: 100%; border-collapse: collapse; background-color: #ebf2ff;\" border=\"1\/2pt\">\n<tbody>\n<tr style=\"height: 93px;\">\n<td style=\"width: 100%; height: 93px;\">\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff; font-size: 16px;\">The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you are reading it due to changes of the law. The article, therefore, is seen as reference only.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Business household is a production and business establishment registered to be established by an individual or members of a household and is responsible with all his\/her assets for the household&#8217;s business activities. Because of simple policies, easier to manage than enterprises, suitable for individuals and small households to do business, businesses household are chosen by [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":4899,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[168],"tags":[195],"class_list":["post-4946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-law-focus-tdl","tag-legal-knowledge"],"_links":{"self":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/4946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/comments?post=4946"}],"version-history":[{"count":0,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/posts\/4946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media\/4899"}],"wp:attachment":[{"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/media?parent=4946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/categories?post=4946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pl-partners.vn\/en\/wp-json\/wp\/v2\/tags?post=4946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}