Types of the tax quarterly report in Vietnam

Enterprises are responsible for preparing tax finalization reports and submitting them to tax agencies in accordance with regulations and are fully responsible for the law about the data that they report. To answer the client’s questions, Viet An Law Firm provides an article on types of the tax quarterly report in Vietnam below.

Legal basis

• Law on Tax Administration 2019;
• Law on Personal Income Tax 2007, as amended and supplemented in 2012, 2014, and 2020;
• Decree 12/2023/ND-CP on extending the deadline for paying the value added tax, corporate income tax, personal income tax, and land rent in 2023.
• Decree 123/2020/ND-CP prescribing invoices and records.
• Circular 93/2017/TT-BTC, as amended and supplemented Circular No. 119/2014/TT-BTC to reform and simplify tax administrative procedures.
• Circular 111/2013/TT-BTC guiding the Law on Personal Income Tax and Decree No. 65/2013/ND-CP, as amended and supplemented by Circular No. 92/2015/TT-BTC.
• Circular 96/2015/TT – BTC guiding on the corporate income tax.

What is the tax reporting?

Tax reporting is understood as an activity that declares and submits all taxes prescribed by the state. For example: Value added tax, license tax, personal income tax, corporate income tax, import and export tax,… Besides, tax reports also act as a bridge between tax administration agencies and enterprises.

The tax reporting helps tax administration agencies grasp the current operating situation of enterprises. Therefore, tax reporting plays an extremely important role and has a specific deadline for submission, the information in the report needs to be checked in detail and carefully.

All enterprises engaged in trading, manufacturing, and providing services must report taxes. However, depending on the revenue of each enterprise, the tax reporting period of each enterprise is different.

Deadline for submitting tax reports in Vietnam

Failure to submit tax reports on time will result in enterprises being fined according to the law, so the accounting departments of organizations and enterprises responsible for preparing tax reports need to pay attention. Depending on the monthly or quarterly tax reporting method, there will be different deadlines, specifically as follows:

• The deadline for submitting tax declarations and tax amounts of enterprises reporting quarterly is the 30^th day of the first month of the next quarter at the latest.

Types of the tax quarterly report in Vietnam

For enterprises subject to quarterly VAT declaration, each quarterly must be submitted the following tax:

Value added tax (VAT)

For the VAT, it is first necessary to determine whether the enterprise declares using the deduction method or the direct method. Normally, enterprises with revenue over 1 billion VND will have to apply the tax declaration using the deduction method or volunteer.

For the VAT declaration using the deduction method, enterprises need to prepare documents including:

• The VAT declaration according to form 01/GTGT;
• List of VAT invoices according to 2 forms 01-1/GTGT ​​and 01-2/GTGT;
• Attached appendix (if any);

For the VAT declaration using the direct method, enterprises need to prepare documents including:

• Directly according to VAT: VAT declaration according to form 03/GTGT;
• Directly according to the revenue: VAT declaration according to form 04/GTGT;
• List of the output VAT invoice declaration according to form 04-1/GTGT.

Personal income tax (PIT)

The PIT declaration is a mandatory declaration that enterprises must perform. Declaring PIT quarterly does not meet the conditions: the amount of the PIT monthly must be greater than 50 million VND/a month. The PIT declaration is based on the VAT declaration form. Specifically, if an enterprise declares VAT quarterly, the PIT will also be declared quarterly.

To declare the PIT, enterprises need to prepare documents including:

• The PIT declaration according to form 01/KK-TNCN for enterprises paying salaries;
• The PIT declaration according to form 03/KK-TNCN for enterprises paying for the investment capital or transferring shares.

Note: If there is no arose during the quarterly, this enterprise does not have to submit a declaration.

If the enterprise raises other taxes monthly such as Special Excise Duty, and resource tax, it must make a declaration according to the form on the latest HTKK software.

Corporate income tax (CIT)

The quarterly temporary CIT declaration dossier requires the following documents:

• Quarterly CIT declaration according to form 01A/TNDN.
• Quarterly CIT declaration according to form 01B/TNDN.

Reporting on the quarterly invoice usage

Reporting on the invoice usage for the first quarterly will be submitted no later than April 30^th, for the second quarterly no later than July 30^th, for the third quarterly no later than October 30^th, for the fourth quarterly no later than January 30^th of the next year:

• The report form: The report form is specified in Appendix IA Dossier of invoice and record – taxpayers issued with Decree No. 123/2020/ND-CP regulating invoices and records

If the enterprise arises other taxes during the quarterly such as Special Excise Duty, or resource tax, it must make a declaration according to the form on the latest HTKK software

Steps to submit the electronic tax report

After completing the tax declaration, enterprises need to submit a tax report to the tax agency. The simplest and most convenient way to submit is to submit via thuedientu.gdt.gov.vn with the following steps:

Step 1: Log in to the electronic tax reporting system

• Access: https://thuedientu.gdt.gov.vn – Electronic tax portal of the General Department of Taxation.
• Then go to the system login section and select “Enterprise”.
• Enter the login information > Log in

Note: The login name is the tax code that the enterprise is issued. The password will be issued immediately after the Commercial Bank approves the taxpayer’s registration for electronic tax payment.

Step 2: Declare and submit the tax report online

To be able to conduct electronic tax reporting, enterprises can choose to create declarations in one of the following two ways: Using the declaration support software or declaring directly in the tax declaration section on the Electronic Tax Portal.

• At the main interface, select Tax declaration > Submit the XML declaration > then click Select the declaration file.
• Select the XML declaration file created from the Declaration Support Software and click Open to upload it to the system.

Step 3: Electronically sign and complete the electronic tax report

• First, plug the USB Token containing the electronic digital signature into the computer.
• In the section of Submitting the XML declaration > select the Electronically sign.
• Enter the PIN in the window that appears > select Receive.
• After successfully electronically signing, select Submit the declaration to complete the process.

Step 4: Check the declaration results again

After completing the electronic tax reporting process, the tax agency will send 2 notifications to the registered enterprise’s email:

• Notification 1: This is a notification confirming that your dossier has been received.
• Notification 2: Notification of successful electronic report submission results will be sent to the enterprise within one day from the date that the tax agency receives the dossier.

In case, the enterprise receives a notification that it does not accept the electronic tax reporting dossier, it needs to check and adjust the declaration dossier according to the instructions attached to the notification.

Clients who need to use tax declaration services and quarterly tax reporting services, please contact Viet An Law Firm – Tax Agent for the best support!