Implementing the Government’s digital transformation process and the tax industry’s strategy of reforming and modernizing tax management, this article will guide you on how to pay business household taxes online in accordance with tax laws for widespread implementation to facilitate easy digital transformation, making it possible to look up and submit tax declarations anytime, anywhere.

1. Current regulations on business households

Currently, in our country’s economy, there are many types of enterprises expressed in the following forms: joint stock companies, limited liability companies, private companies, partnerships, business households, cooperatives, etc.

In which, the type of business household is one of the most popular types of enterprises in our country today.
Currently, the law does not have any specific regulations defining the concept of business households. However, according to the provisions of Clause 1, Article 79 of Decree 01/2021/ND-CP, we can understand that a business household is a type of business established by an individual or a group of people who are members of a household who are Vietnamese citizens. The person who establishes a business household must be of legal age and have the capacity to perceive and take responsibility for his or her actions according to the provisions of law. The person who registers to establish a business household must also be responsible for the business activities of the household with all of his or her assets.

Accordingly, any individual who registers a business household or a person who has been agreed and authorized by the members of the household to be the representative of the business household will be the owner of the business household. Individuals, or when a member of a household has registered a business household, will not be allowed to simultaneously be the owner of a private enterprise or partnership unless agreed by the remaining members in the case of a partnership.

According to current law, every business household with a stable business scale and 10 or more employees must register to establish a business according to the legal processes and procedures. As for cases where business households engage in agriculture, forestry, fishery, mobile business or street vending with low income, they do not have to register their business household.

2. Types of taxes that business households must pay

Tax is a mandatory amount of money that individuals or businesses in certain cases must pay to the state budget. Current laws of our country have issued specific regulations on types of taxes as well as tax rates for certain types of businesses. So how are taxes for business households regulated? Business households are also one of the entities subject to tax according to the provisions of our country’s laws, accordingly, individual business households must pay taxes including personal income tax (PIT) and value added tax (VAT).

In addition to the two types of taxes mentioned above, individual business households must also pay business license fees according to regulations during their operations. However, not all business households have to pay taxes, but business households only have to pay taxes when their revenue reaches a certain threshold as prescribed, specifically regarding the taxable revenue for business households as follows:

According to the law on Value Added Tax and Personal Income Tax, business households with production and business activities in the calendar year with a revenue of 100 million VND or less will not be subject to VAT and PIT.

In the case of business households with revenue of over 100 million VND/year, they are subject to VAT and PIT.

Currently, there are 3 forms of tax calculation commonly applied to business households: the method of calculating each occurrence; the declaration method and the lump-sum method.

According to current law, each individual, organization, and enterprise will have a separate tax code to use in the process of tax declaration, payment, and tax management, and so will business households. Specifically, according to the provisions of Point e, Clause 3, Article 30 of the Law on Tax Administration 2019, the issuance of a tax code to a business household will be carried out by issuing a tax code to the individual representative of the business household.

Regarding business license fees: According to current regulations, the business license fee for business households will also be calculated based on the average annual revenue of the business household (Based on Clause 2, Article 4 of Decree 139/2016/ND-CP; Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP). As with value added tax or personal income tax, the business license fee is only applied to business households with annual revenue of over 100 million VND/year.

In case a business household will be exempted from business license fee: in the year of establishment or the first year of production and business activities.

3. How to pay business household taxes online

Currently, with the development of science and technology, more and more administrative procedures as well as state management have been and are being carried out online, which has led to the emergence of online administrative procedures, creating many conveniences for people and management agencies.

The State, represented by the Tax Administration Agency, the General Department of Taxation of our country, has now deployed tax-related procedures online through the Electronic Tax Service system and the National Public Service Portal system.

Paying taxes online has brought many benefits to businesses and the State such as: Saving time, travel costs, simplicity, speed, avoiding loss or misplacement of documents, avoiding duplication of tax information with other businesses, convenient declaration anytime, anywhere when there is an internet connection…

To pay taxes online, first of all, business households need to register for electronic tax payment and need a digital signature as well as a bank account to register for online tax payment.

Steps to register for electronic tax payment:

Step 1: Access the website of the General Department of Taxation via the link: thuedientu.gdt.gov.vn

Next, select the “register” section and proceed to register for an online electronic tax payment account by entering information about the tax code, verification code provided by the system, then select individual or organization (depending on the type of registration) and click the “register” button.

Step 2: Fill in the information to complete the tax payment account registration

The declarant fills in all the information fields about the required declaration items, then clicks “continue”.

After declaring all the taxpayer’s information, the system will display the Tax Authority Transaction Declaration. Taxpayers need to check the declared information again to avoid errors. After checking the information, click “complete registration”.

Step 3: Complete the electronic transaction registration procedure

– A successful registration notification will be sent to the email previously declared by the taxpayer. Password information will be sent to the registered phone number. The registered account is the tax code of the registrant (For cases where the confirmation code has been received).

– In case the confirmation code has not been entered: The taxpayer will have to go to the nearest tax authority to complete the registration, when going, bring identification documents such as: ID card/Citizen ID card/Passport.

How to pay business household tax online:

Step 1: Log in to the website: thuedientu.gdt.gov.vn with the account previously registered for electronic tax payment.

Step 2: Click on “Pay tax” then select “Create payment slip”.

Next, select “Currency” as VND or other currencies (VND/USD) then select the taxpayer’s bank, fill in the account number -> Select the tax authority’s information.

Step 3: Select the Treasury information fields, select the selected Treasury bank then click on “Tax type”, Select “Tax calculation period” then select “tax item”.

Step 4: Select the tax items to be paid -> select search and select the appropriate sub-item.

Step 5: Fill in the tax amount that the business household must pay, select “Complete”.

Step 6: The taxpayer carefully checks the information shown on the payment slip, if the information is correct, select “Sign and pay” -> enter the pin code and wait for confirmation of successful digital signature.

Step 7: Next, the taxpayer selects “Pay Tax” then “Look up payment slip” and fills in the date of payment slip creation then selects “Look up”.

If the text “Tax payment successful” appears on the screen, online tax payment is complete.

Above is an article with detailed instructions on how to pay business household taxes online that VIET MY LAW AND ACCOUNTING would like to share with readers. We hope that with this information, you will grasp the relevant information as well as complete the online tax payment for business households as quickly as possible. If you have any further questions, please contact us immediately via the hotline number!