How to online business tax declaration is a question that many people are interested in. Currently, many business households are participating in social networking business activities on social networking platforms. At this time, taxable income will arise. Let’s find out about this issue to answer the question through the article below.

1. Types of taxes that individual business households need to declare and pay when doing business

Doing business on social networking platforms is a current trend. This activity brings a significant source of income to business people because it does not cost too much to do business. According to current tax laws, business households may have to pay: Business license fees, personal income tax (PIT), value added tax (VAT) and other taxes such as special consumption tax (if the goods are special consumption), environmental protection tax (if any), etc. Specifically and in detail about the conditions for paying taxes are as follows:

1.1. Business license fee

Business license fee is applied to both business organizations and individuals. Based on Article 4 of Decree 139/2016/ND-CP, the business license fee is prescribed for business activities as follows:

1.2. Personal Income Tax (PIT) and Value Added Tax (VAT)

If any business household has a revenue of over VND 100 million per year, it will incur Personal Income Tax (PIT) and Value Added Tax (VAT).

The formula for calculating Value Added Tax is as follows:

VAT = Taxable revenue x VAT rate

In case the revenue is from VND 100 million/year or more, the individual must pay VAT at 1% of the total revenue.

For PIT, it is calculated as follows:

Personal Income Tax (PIT) = Taxable revenue x PIT rate

In case the revenue is over VND 100 million/year or more, the individual must pay PIT at a rate of 0.5% of the total revenue.

In the calculation process, the revenue subject to value added tax (VAT) and the revenue subject to personal income tax (PIT) will include the total value of sales and other expenses. For those who pay lump-sum tax using tax authority invoices, taxable revenue will be calculated based on lump-sum revenue and revenue stated on the invoice. If business individuals cannot determine lump-sum taxable revenue or determine it incorrectly, the tax authority will then decide the amount of tax to be paid.

2. Steps to quickly online business tax declaration

To pay taxes and declare business taxes online, individual business households must first prepare the following documents and papers:

Tax registration form according to form 03-DK-TCT.
Business registration certificate (copy)
Identification documents of the business household such as citizen identification card or passport (provide a copy)

Steps to online business tax declaration are carried out in the following steps:

First step: Tax declarants access the website https://thuedientu.gdt.gov.vn, after accessing the homepage, select to log in to the system in the “INDIVIDUAL” section

Step 2: After selecting, the system will transfer to the website https://canhan.gdt.gov.vn/, the tax declarant selects the “Login” section

Step 3: Next, the tax declarant enters his/her tax code and the confirmation code in the box

Step 4: Next, the tax declarant enters the password provided in the text message to access the electronic tax declaration system for business households => Select “Login”

Step 5: After successfully logging in, the tax declarant selects the “Tax declaration” tab => Select the declaration form “Form 01/CNKD” => Select the declaration form (monthly or quarterly) => Click “Continue”

Step 6: When the screen displays the information of the declaration form 01/CNKD, the tax declarant selects “HKD, CNKD pay tax according to the declaration method” => Fully declare the information

Step 7: The tax declarant performs in the following order: Select 01-2/BK – HĐKD => Select “Continue” => Select “Accept”

Note: If the screen does not display Form 01-2/BK- HĐKD for selection, you need to click on “Options” to add an appendix.

Step eight: After the screen displays detailed information about the business activity list, the tax declarant clicks on the option “Complete declaration”.

Step nine: When all information is correct, the tax declarant selects “Submit declaration” => Click “Continue”

Note: If the screen requires attaching documents, the tax declarant chooses to skip and clicks Continue.

Step ten: The tax declarant enters the OTP code sent by the General Department of Taxation’s Application System => Click “Continue” => The screen will display the message “Submit declaration successfully”.

3. Benefits of registering for online tax declaration

Currently, with the digital technology revolution, paying and declaring taxes online is becoming a trend for all people, helping tax declarants to be more flexible in terms of time and save more effort when they do not need to go to the tax office but still declare taxes.

– Some benefits such as:

Declaring taxes online will save travel costs, save time and help simplify paperwork when performing tax obligations, expanding payment channels for taxpayers.

Taxpayers can be more proactive in paying taxes when they can pay taxes online anywhere with internet, regardless of time, location or on any means.

Taxpayers can access the Tax Authority’s Electronic Information Portal to review or download notices and payment slips that have been paid.
When declaring online, all information is recorded on the system, reducing errors in tax payment to the state budget, synchronizing with customs data, ensuring accurate debt deduction, ensuring customs clearance of goods immediately after receiving tax payment confirmation information from the coordinating bank.

Taxpayers register to pay taxes electronically when meeting the following conditions:

• Taxpayers are organizations or enterprises that are granted a tax code/enterprise code by state agencies and must still be operating.
• Taxpayers have a digital certificate issued by an organization providing digital signature certification services that is still valid.
• Taxpayers have a stable email address to contact the Tax Authority.
• Currently performing electronic tax declaration on the Tax Authority’s Electronic Information Portal.
• Have an account at a Commercial Bank (CB). At present, Taxpayers (TP) who want to use the service need to have an account at a bank that has cooperated with the General Department of Taxation to provide the service and is under the management of Tax Departments and Tax Branches nationwide.

4. Will business households be fined if they declare taxes late?

Business households that declare taxes late may be fined according to the provisions of Article 13, Decree 125/2020/ND-CP. This Article stipulates the level of fines for violations regarding late tax declaration submission as follows:

– Warning for late tax declaration submission from 1 to 5 days and with mitigating circumstances.

– Fine from VND 2 million to VND 5 million for late tax declaration submission from 1 to 30 days, except for the case specified in Clause 1 of this Article.

– Fine from VND 5 million to VND 8 million for late tax declaration submission from 31 to 60 days.

– Fine from VND 8 million to VND 15 million for one of the following acts:

Submitting tax declaration from 61 to 90 days;

Submitting tax declaration dossiers 91 days or more after the prescribed deadline but no tax payable arises;
Not submitting tax declaration dossiers but no tax payable arises;
Not submitting appendices as prescribed in tax management regulations for enterprises with related-party transactions attached to corporate income tax finalization dossiers.

– A fine of VND 15-25 million shall be imposed for the act of submitting tax declaration dossiers more than 90 days after the deadline for submitting tax declaration dossiers, with tax payable arising and the taxpayer has fully paid the tax amount and late payment fee to the state budget before the time the tax authority announces the decision to conduct tax inspection or audit or before the time the tax authority makes a record of the act of late submission of tax declaration dossiers as prescribed in Clause 11, Article 143 of the Law on Tax Administration.

In case the fine amount applied according to this clause is greater than the tax amount arising on the tax declaration, the maximum fine amount for this case is equal to the tax amount arising on the tax declaration but not lower than the average level of the fine bracket prescribed in Clause 4 of this Article.

VIET MY LAW AND ACCOUNTING hopes that the information in this article will help you better understand the steps to declare tax for individual business households online quickly and accurately. If you have any other questions or need support such as registering a business license for a business household, do not hesitate to contact us for the fastest service consultation.