Tax arrears for business households and individuals paying taxes according to the flat method

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On April 4, 2024, the General Department of Taxation issued Circular No. 1388/TCT-DNNCN regarding the collection of taxes from business households and individual businesses using the presumptive tax method.

Based on legal provisions:

  • Determining Tax Rates for Presumptive Taxpayers:

The presumptive tax rate for business households and individual businesses is calculated annually in the Gregorian calendar or monthly for seasonal businesses. The presumptive tax rate must be publicly disclosed within the local administrative boundaries of communes, wards, and towns.

In cases where there are changes in the industry, profession, business scale, cessation, or temporary suspension of business, taxpayers must declare these changes to the tax authorities to adjust the presumptive tax rate.

If a presumptive taxpayer uses retail invoices issued by the tax authorities for each occurrence, they should declare taxes for each occurrence based on the revenue stated on the retail invoices. They should also use the prescribed tax declaration form for business households and individual businesses.

  • Adjustment of Revenue and Presumptive Tax Rates:

During the year, presumptive taxpayers who propose adjustments to their revenue or presumptive tax rates due to changes in business activities will have their tax rates adjusted by the tax authorities according to regulations. Specifically:

If a presumptive taxpayer changes their business scale (business area, labor usage, revenue), they must declare adjustments and supplement the tax declaration form.

The tax authorities will issue a notice of adjusted presumptive tax rates from the time of the change if the data in the tax declaration shows that the presumptive revenue has changed by 50% or more compared to the previously declared revenue.

If, based on the tax authorities’ database, verification, inspection, or audit, it is determined that the presumptive taxpayer does not meet the conditions for adjusting the presumptive tax rate as specified, the tax authorities will issue a notice stating that the tax rate will not be adjusted according to the prescribed form.


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