Reply:

1. What is a tax report?

Currently, there are no regulations that specifically define tax reporting, however, it can be understood that tax reporting is the activity of declaring input value-added tax invoices generated during the purchasing process. Services and sales invoices issued by the unit themselves are output Value Added Tax.

Tax reports are considered a bridge for tax authorities to grasp the business performance of businesses.

Therefore, it is important to clearly and accurately understand the legal provisions on tax reporting such as: Types of tax returns that businesses need to submit, deadlines for submitting tax returns and time to pay businesses' taxes when arising is a very necessary issue.

2. Tax reports must be submitted monthly and quarterly

2.1 Value added tax report

Pursuant to the provisions in Article 8Decree 126/2020/ND-CP, VAT is a tax declared monthly.

In case businesses meet the criteria prescribed in Article 9Decree 126/2020/ND-CP You can choose to declare taxes quarterly.

- In case an enterprise is operating and has revenue-generating activities, it is divided into 2 categories: Enterprises with revenue of less than 50 billion in the previous year and over 50 billion.

For businesses declaring VAT using the deduction or direct method:

- Declare VAT using the deduction method when the business is operating and has a revenue of less than 1 billion VND;

- Declare VAT using the direct method when the business is operating and has a business of less than 1 billion VND.

2.2 Personal income tax report

Personal income tax is a tax that income earners must deduct part of their salary or from other revenue sources into the state budget after calculating deductions. Subjects who must pay personal income tax include: resident individuals and non-resident individuals in Vietnam with taxable income.

+ For resident individuals, taxable income is income arising within and outside the territory of Vietnam, regardless of where the income is paid.

+ For non-resident individuals, taxable income is income arising in Vietnam, regardless of where the income is paid and received.

If an enterprise declares VAT quarterly, it also declares personal income tax quarterly. If an enterprise declares personal income tax monthly, the following two cases will occur:

+ The personal income tax amount payable in a month is greater than 50 million VND, then declare monthly.

+ The amount of personal income tax payable arising in a month is less than 50 million VND, it will be declared quarterly.

Pursuant to the provisions in Article 8Decree 126/2020/ND-CP, personal income tax is a tax declared monthly. In case tax-paying enterprises meet the criteria prescribed in Article 9Decree 126/2020/ND-CP You can choose to declare taxes quarterly. As follows:

Taxpaying businesses that submit monthly VAT returns must submit provisional personal income tax returns monthly. Taxpaying businesses that submit quarterly value-added tax returns can choose to declare income tax. Temporary personal income calculated monthly or quarterly. Taxpaying enterprises that are not required to submit value-added tax declarations according to regulations shall submit monthly personal income tax declarations.

In case of determining personal income tax declaration quarterly according to the provisions of Article 9Decree 126/2020/ND-CP Then send a written request specified in Appendix I issued herewithDecree 126/2020/ND-CP Request to change the tax period to the directly managing tax agency no later than January 31 of the year in which quarterly tax declaration begins. Monthly or quarterly tax declaration is determined once from the first month or quarter. tax declaration obligations arise and are applied stably throughout the entire calendar year.

2.3 Corporate income tax

Corporate income tax is a direct tax, collected based on the final results of production and business activities of organizations and enterprises. Subjects who must pay corporate income tax include organizations and businesses that produce and trade goods and services that generate income. When registering for tax, organizations, companies, and businesses will be granted a corporate tax code to use to pay corporate income tax.

Note: If the quarterly CIT amount temporarily paid is 20% or more lower than the tax amount payable according to the annual settlement declaration, the enterprise will be fined for late tax payment.