Loading...

When trading meet difficulties, can businesses get a reduced presumptive taxation?

Wed, 08 Aug 2018 14:12:58 PM GMT + 7    Print   Email   Share:

Mr. Ho Chi Thien (in Khanh Hoa Province) does coffee and soft drinks business . He has registered business and tax declaration. He pays the monthly fixed tax of VND 380,000 and pays annual excise tax. Because of the unfavorable business, which affects Mr. Thien’s income, Can Mr. Thien propose a tax reduction? How is the procedure for proposing tax reduction?  

Regarding this issue, Tax Department of Nha Trang City - Khanh Hoa Tax Department has the following opinions:

At Point a, Clause 1, Article 46 of the Ministry of Finance's Circular No. 156/2013 / TT-BTC dated November 6, 2013 has stipulated:

 The tax authority shall check the application and issue a decision on tax exemption or reduction in the following cases:

1. Exemption or reduction of personal income tax:

a) Rules for exemption or reduction of personal income tax:

-  If the taxpayer suffers from a natural disaster, blaze, accident, or fatal disease, reduction of personal income tax shall be considered every calendar year...”.

At Point c, Clause 4, Article 6 of the Finance Ministry's Circular No. 92/2015 / TT-BTC dated June 15, 2015, the following guidance is issued:

 “c) Every fixed tax payer who makes changes to their business (business lines, scale, location, etc.) in the year must register the changes for tax authorities to re-calculate the fixed revenue, fixed tax level, and other information about the tax payer that is applied to the rest of the tax year. If the tax authority, through inspection, finds that the taxpayer does not make changes to his/her business but fixed revenue varies by 50% or more, the tax authority shall only recalculate the fixed revenue which is applied to the rest of the tax year. If the business lines are changed, adjustments shall be made accordingly”.

Clause 2 and 3, Article 6 of the Finance Ministry's Circular No. 92/2015 / TT-BTC dated June 15, 2015 that has provided the following guidance:

“… Tax documents to individuals paying fixed tax particularly is as follows

 - Fixed tax payers shall declare tax on flat revenue using declaration form no. 01/CNKD enclosed herewith.

3. Deadline for submitting tax declarations...

- Fixed tax payers who are new to business or changes their business lines or scale of business in the year shall submit tax declarations within 10 days from the beginning date or changing date.…”.

Pursuant to the above provisions, in case Mr. Ho Chi Thien does coffee and soft drinks business, paying tax by the presumptive method in the year due to unfavorable business impacts on income, it is not the case of tax exemption and reduction under the provisions of Point a, Clause 1, Article 46 of Circular No. 156/2013 / TT-BTC.

In case in the year that his business household has a contracted turnover of 50% reduction or more, the adjustment shall be made according to the Form 01 / CNKD and sent to the tax agency which directly manage it according to Clause 2 and 3, Article 6 of the Circular No. 92/2015 / TT-BTC, so that the tax agency has the basis to re-determine the revenue package, the fixed tax rate and other information on business individuals for the remaining period of the tax calculation year under Point c, Clause 4, Article 6 of the Circular No. 92/2015 / TT-BTC.

 

  • By : Online Newspaper of the Government / Translator: HaiYen-Bizic

---------------------------------------------

Same category News :

Other news :

Legal Documents

Circular No 24/2015/TT-BTTTT on Regulations on management and use of Internet resources

Contact

google+

linkedin