WHAT IS TAX REPORTING? THE TYPES OF TAX REPORTS MUST BE SUBMITTED MONTHLY, QUARTERLY

WHAT IS TAX REPORTING? THE TYPES OF TAX REPORTS MUST BE SUBMITTED MONTHLY, QUARTERLY

Tax reporting is the process of compiling and presenting information related to income, expenses, and other factors to calculate and report the amount of tax an individual or business needs to pay to tax authorities. Tax reporting plays an important role in financial management and ensures full compliance with tax regulations. So what types of tax reports are required to be filed monthly, and quarterly? Let’s find out with Siglaw Law Firm through the article below!

Types of tax reports payable monthly, quarterly

Value-added Tax (VAT)

Value added tax (VAT) is a tax on the added value of goods and services arising in the process from production, circulation to consumption.

VAT is a tax declared by month. For newly established enterprises, VAT will be declared quarterly. For operating enterprises, depending on the revenue of the preceding year, it will decide whether the enterprise declares VAT quarterly or monthly. In the case of enterprises with 50 billion VND or more, tax-paying enterprises are subject to monthly VAT declaration and are not eligible to declare tax quarterly. In case the annual turnover of the enterprise is less than 50 billion VND, the tax-paying enterprise may choose to declare tax monthly or quarterly.

In case the tax-paying enterprise that is declaring tax by month wants to convert to a quarterly tax return, it shall send a written request to the directly managing tax office no later than January 31 of the year in which the quarterly tax declaration begins. If after this time limit, the tax-paying enterprise does not send a document to the Tax Office, the tax-paying enterprise will continue to declare tax monthly.

The monthly and quarterly tax declaration is applied for the full calendar year.

Enterprises can choose whether to implement their VAT declaration method directly or indirectly. After that, it is necessary to prepare documents suitable for the defined VAT declaration form

Personal income tax

Personal income tax is a direct tax on the income of taxpayers, income earners must deduct a part of their salary or from other sources of revenue into the state budget after deducting tax-free incomes and family deductions.

In case the enterprises declare VAT quarterly, they also declare personal income tax quarterly. If the enterprise declares personal income tax monthly, the following 2 cases may arise:

• If the PIT amount to be paid in the month exceeds 50 million VND, it is declared monthly.
• If the PIT amount to be paid in the month is less than 50 million VND, individuals can choose to declare taxes monthly or quarterly.

Businesses subject to VAT declaration exemptions as stipulated are required to submit PIT declarations on a monthly basis.

Corporate Income Tax

Corporate income tax (CIT) is a direct tax, levied directly on taxable corporate income. Corporate income tax includes the enterprise’s income from the production and trading of goods, services and other types of income as prescribed by law.

CIT is calculated on the taxable income of the enterprise after deducting reasonable expenses. Based on the number of invoices, tax reports and accounting books of the enterprise to temporarily calculate the amount of CIT payable.

Corporate income tax reports are usually declared quarterly. In case the tax amount arises, it is necessary to pay such an amount in no later than the 30th of the next quarter.

Report on invoice usage

– Enterprises reporting on the use of invoices by month: the subjects that must report on the use of invoices by month are enterprises in the group of high tax risks.

– Enterprises submitting quarterly reports: The subjects of the form of submitting quarterly invoice status reports are enterprises that are not in the group of subjects in the category of high tax risks.

In case sales activities do not arise in the period and the enterprise does not use invoices, it is still necessary to report and record the number of used invoices “zero”. In case the enterprise has only just made the notice of invoice issuance but has not used it, it is allowed not to make reports.

Deadline for filing tax reports

In case of submitting tax reports late, they will face penalties according to legal regulations. Therefore, the accounting department must conduct the preparation of tax reports ahead of time. The deadline for submitting tax reports is as follows:

– For monthly tax reports, the deadline for filing tax returns and tax amounts of the enterprise is no later than the 20th day of the following month

– For quarterly tax reports, the deadline for filing tax returns and tax amounts of the enterprise is no later than the 30th day of the first month of the next quarter

The deadline for filing tax returns for taxes declared and filed according to each tax liability arising is no later than the 10th day from the date on which the tax liability arises. The deadline for filing tax returns in case of termination of operation, contract termination or reorganization of the enterprise is no later than the 45th day from the date of the event.

If you have any questions about the tax reporting service, you can contact Siglaw Law Firm directly  for assistance!

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

Headquarters: Floor 12A Sao Mai Building, 19 Le Van Luong Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi City.

Southern branch: No. 99 Cong Hoa, Ward 04, Tan Binh District, Ho Chi Minh City.

Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City

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