Effortless Tax Payment - Simple Secrets

Paying taxes is the obligation and responsibility of every citizen and organization in accordance with the law. However, many people encounter difficulties in paying taxes due to a lack of understanding of the procedures, formalities, and related regulations. This article will provide you with helpful advice on tax payment, helping you fulfill this obligation easily, accurately, and effectively.
 

1. Classification of Common Tax Types

Personal Income Tax (PIT)

  • Applies to individual income from work, business, investments, salaries, bonuses, wages, etc.
  • Tax rates applied according to progressive scale from 5% to 40%.
  • The tax base is the total taxable income of the individual during the tax period.

Value Added Tax (VAT)

  • Applies to goods and services circulated and consumed in the market.
  • The general tax rate is 10% and the preferential tax rates are 5% and 0%.
  • The tax base is the value added of goods and services circulated and consumed in the market.

Corporate Income Tax (TNDN)

  • Applies to the profits of businesses.
  • The general tax rate is 20% and the preferential tax rates are 10% and 15%.
  • The tax base is the pre-tax profit of the business.

Business License Fee

  • Applies to businesses and enterprises operating in the service sector.
  • Tax rates are prescribed according to the type of service business and business location.
  • The tax base is the revenue from the service business activities of the business or enterprise.

In addition, individuals and businesses also need to pay other types of taxes such as property tax, export tax, import tax, environmental protection tax, land use fee, etc.

2. Tax Payment Procedures

Prepare Documents

  • Tax declaration form according to regulations.
  • Invoices, documents related to business and production activities.
  • Other supporting documents (if any).

Submit Documents

  • Submit directly to the tax authority: Submit documents to the tax office according to the management area. Tax officials will guide you to complete the tax payment procedure.
  • Submit documents by post: Send documents by post to the tax authority at the specified address. Clearly indicate the full name and address of the taxpayer on the postcard.
  • Submit documents online: Submit documents through the National Electronic Portal (https://dichvucong.gov.vn/), the website of the General Department of Taxation (https://www.gdt.gov.vn/), or reputable electronic payment portals. You need to have an access account and follow the instructions on the system.

Pay Tax

  • Pay directly at the tax authority: Pay cash at the tax collection counter. Transfer through the bank at the tax office.
  • Pay by post: Send cash by post to the tax authority at the specified address. Clearly indicate the full name and address of the taxpayer on the postcard.
  • Pay online: Pay through the electronic payment system on the National Electronic Portal, the website of the General Department of Taxation, or reputable electronic payment portals. You need to have a bank account and follow the instructions on the system.

3. Common Tax Calculation Methods

Direct Tax Calculation Method

  • Applied to tax types such as Personal Income Tax (PIT), Corporate Income Tax (TNDN), Property Tax, etc.
  • Calculation method: Tax = Taxable Income x Tax Rate.
    • Taxable income: Is the total income after deducting income exempt from tax, deductions according to the law.
    • Tax rate: The percentage applied to taxable income to calculate the tax payable. The tax rate may vary depending on the type of tax, taxpayer, and income level.

Deduction Tax Calculation Method

  • Applied to Value Added Tax (VAT).
  • Calculation method: VAT payable = Output VAT – Deductible Input VAT.
    • Output VAT: Is the VAT included in the selling price of goods and services that the seller pays to the state budget.
    • Input VAT: Is the VAT paid to suppliers when purchasing goods and services for production and business.

Tax Calculation Method by Revenue Percentage

  • Applied to some types of taxes such as Business License Fee, Non-agricultural Land Use Fee, etc.
  • Calculation method: Tax = Revenue x Tax Rate.
    • Revenue: Is the total amount of money received from the sale of goods and services in a given tax period.
    • Tax rate: The percentage applied to revenue to calculate the tax payable. The tax rate may vary depending on the type of tax and taxpayer.

Tax Calculation Method by Unit

  • Applied to some types of taxes such as Excise Tax, Export Tax, etc.
  • Calculation method: Tax = Quantity of units x Tax rate.
    • Quantity of units: The quantity of goods, services subject to tax calculated in a certain tax period.
    • Tax rate: The amount of tax to be paid for each unit of goods, services.

4. Note

  • Carefully maintain your tax records: You should keep your tax records for at least 5 years after filing your taxes.
  • Be cautious when making online tax payments: When making online tax payments, you should use official tax agency websites or reputable payment portals.
  • Avoid sharing your tax information with anyone: Sharing your tax information with untrustworthy individuals can lead to the risk of fraud and tax evasion.

Below are some useful sources of information on tax payment:

In addition, you can also consult with tax advisory experts to receive specific advice on tax payments for your business or individual. 

If you encounter difficulties in tax payments, please contact us today for free tax consultation:

  • TPM TAX AGENCY & CONSULTING CORPORATION
  • (+84) 28 3505 1800
  • info@tpm.com.vn
  • https://tpm.com.vn
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