THE TAXES THAT BUSINESS HOUSEHOLDS NEED TO BE PAID IN 2022

1. What is a household business?

️⛳ Household business is not a type of business. A business household is registered to be established by an individual or members of a household and is responsible for all his/her assets for the household's business activities. In case household members register as business households, they shall authorize one member to act as the business household representative. For individuals registering business households, the person authorized by household members to act as the business household representative is the owner of the business household.

2. Taxes payable by business households:

✨ License fee: According to Decree No. 139/2016/ND-CP, Decree No. 22/2020/ND-CP, and Circular No. 65/2020/TT-BTC, the license fee rate for business households is calculated based on the average annual revenue. As follows:

⭕ Business households paying tax by the presumptive method will be exempted from license fees, including:

• Having a turnover of 100 million VND/year or less.
• Operating irregularly or without a fixed place of business.
• Production and business activities for the first time.
• Household business in salt production, aquaculture, fishing, fishery logistics.

➡️ Business households established after February 25, 2020, will be exempted from license fees for the first year.

⭕ Revenue over 500 million VND/year: 1,000,000 VND/year.

⭕ Revenue from 300 to 500 million VND/year: 500,000 VND/year.

⭕ Revenue from 100 to 300 million VND/year: 300,000 VND/year.

✨ Value added tax and personal income tax: Value added tax (VAT) and personal income tax (PIT) of business households are calculated according to the presumptive method. Individual business households pay fixed monthly/quarterly presumptive tax; The presumptive tax rate is determined by the tax authority based on the declared information/actual revenue from business activities.

 ✔ Business household paying tax according to the presumptive method is a business household that generates revenue from trading in goods and services in all fields and lines of production and business, except business households that pay tax each time arising, leasing assets; act as a lottery agent, insurance agent, multi-level sales agent.

✔ If the business household has a taxable turnover of 100 million/year or less, it is not required to pay VAT and PIT.

✔ In case an individual pays presumptive tax on business for less than a full year (not full 12 months in a calendar year), including individuals who have just started doing business; individuals doing regular business on a seasonal basis; If an individual stops/retires from business, the turnover of 100 million VND/year or less to determine that the individual is not required to pay value-added tax, is not required to pay personal income tax is the revenue subject to personal income tax one year (12 months);

✔ The actual taxable turnover to determine the payable tax amount in the year is the revenue corresponding to the actual number of months of business.

The tax calculation formula is as follows:

Amount of VAT payable = Taxable turnover x VAT rate

PIT payable amount = PIT taxable turnover x PIT rate

3. The deadline for submitting tax return and tax payment:

🍀 Tax declaration dossiers: Pursuant to Clause 1, Article 14 of the Law on Tax Administration:

• The deadline for submitting tax returns for business households paying tax by the monthly declaration method is the 20th day of the month following the month in which the tax liability arises.
• The deadline for submitting tax declaration dossiers for business households paying tax by the quarterly declaration method is the last day of the first month of the next quarter adjacent to the quarter in which the tax liability arises.

🍀 Tax payment: Pursuant to Clause 1, Article 55 of the Law on Tax Administration:

• The deadline for tax payment is the last day of the tax return submitting deadline.
• In case of additional declaration of tax return, the deadline for tax payment is the deadline for submitting the tax return of the tax period with errors or omissions.
• In case the business household suspends its operation or business, it shall notify the tax authority according to the provisions of Article 91 of Decree No. 01/2021/ND-CP, Article 4 of Decree No. 126/2020/ND-CP, Article 4. 12 Circular No. 105/2020/TT-BTC guiding on tax registration and not having to submit tax declaration dossiers, except for cases where the business household suspends operations, does not do business for a whole month if it declares tax on a monthly or is temporarily suspended if the tax is declared quarterly, it is not a full-quarter business.

Immediately contact TASCO Tax Agent in the following ways for a completely free consultation!!!

TASCO - Tax agent responsible for all service

           TASCO - Give trust - get value

Please contact TASCO for a free consultation:

 Hotline: 086.486.2446 - 0975.08.68 (zalo)

 Website: dailythuetasco.com hoặc dichvutuvandoanhnghiep.vn

 Email:  lienhe.dailythuetasco@gmail.com