Block large business household tax loss


: Revenue must be controlled

As a rule, business households and business individuals whose revenue and labor scale can meet the highest level of criteria for a micro-enterprise in accordance with the law on support for small and medium-sized enterprises must comply with the accounting regime and pay taxes according to the declaration method. The draft guidance circular is being consulted by the Ministry of Finance, giving tax rates up to 5% of revenue for these subjects.

Add regulations to manage business households

The above regulation is said by experts to prevent tax loss in the area where business households do not want to go to enterprises, and are enjoying a very beneficial presumptive tax rate.

In fact, very few individual business households have transformed their operation model into a limited liability company, Mr. Nguyen Viet Toan – Chairman of the Association of Enterprises in Tan Phu District, Ho Chi Minh City – admitted to mobilizing individual business households to enterprises. get stuck. “The law allows for the existence of individual business households, instead of encouraging them to transform into enterprises, we only need to provide appropriate policies for tax administration and transparency of the operation of this type of business” – Mr. Toàn stated his point of view on the above tax policy.

According to Mr. Toan, the advantages and disadvantages of the form of presumptive tax collection being applied or actually arising, declare according to the draft circular guiding tax and tax administration for business households and individuals. belongs to the expertise of the tax industry. The most core thing is how to manage this business component to be truly transparent in financial obligations, workers in this environment are entitled to benefit from the laws on salary, social insurance and health insurance. Then it will create fairness in competition and in contributing to society. “I know that there are many large-scale individual business households, they do not have aspirations to go to businesses, so it is necessary to adjust tax management for these households, contributing to creating an equal competitive environment for them. all economic sectors “- Mr. Toan added.

Lawyer Tran Xoa, Minh Dang Quang Law Firm, also pointed out that for a long time there are many individual business households many times larger than enterprises, paying annual flat taxes and refusing to convert their business model into DN. Meanwhile, when giving opinions and voting at the last National Assembly session, most of the opinions agree that individual business households are not required to “go to” enterprises. However, the Law on Tax Administration in 2020 clearly stipulates that if a business household employs 10 or more employees, the turnover of more than 3 billion VND must pay tax according to the declaration, not apply presumptive tax as before. Decree 119/2018 / ND-CP also specifies that business households with revenue of 3 billion VND / year or more must have electronic invoices for tax administration.

: Revenue must be under control – Photo 1.

Block large business household tax loss

: Revenue must be under control – Photo 1.

Household businesses in Binh Tay market, HCMC. Photo: TAN THANH

Need a roadmap

According to the lawyer Tran Xoa, to thoroughly implement the tax administration with large business households, it is necessary to have many synchronous solutions, especially the support of tax departments and consumers.

“To find out the real revenue of businesses, business households, the easiest way is based on real invoices. To do so, people have to have an interest in getting invoices and should get invoices each. when buying goods “- Mr. Tran Xoa said and suggested the Ministry of Finance and the General Department of Taxation have solutions to encourage people to request invoices every time they buy goods. “For example, the total purchase bill of 2 million dong or more is converted to 1 liter of gasoline, 3 million dong or more will get other benefits … Gifts may not be big but will motivate people. in asking and receiving invoices every time they shop and consume. If everyone asks for invoices when they shop, businesses and household businesses will reveal their real revenue “- Mr. Xoa suggested.

A tax expert also said that state management agencies, especially tax agencies, need to have a further look at allowing tax deductions for individuals. “Previously, taxpayers were only allowed family deductions without a policy of deducting a portion of their monthly expenses from their tax payments. Tax authorities should be aware that deducting a small portion for consumers and giving incentives.” Encouraging them to request an invoice when shopping and using services exposes a much larger tax revenue that household businesses may have dodged. It should not be thought that the deduction of personal consumption tax will reduce tax revenue “- this expert analyzed.

According to this expert, it is only possible to encourage but not require business households and customers to transact through online platforms to collect taxes, because this is a spontaneous form of business, allowed to operate without subject to many constraints. It is also difficult to control each household business because the tax authority does not have enough manpower. “Previously, Circular 92 on guiding the implementation of tax for business households gave instructions to set up ward councils to do this task, but in the end it failed. There are many reasons, but partly because human resources are too thin to control all business households, because there is almost no way to accurately determine actual revenue when it is impossible to force business households to have invoices. hold people who report truthfully or issue invoices fully, but let them fall short or do not issue invoices completely “- this expert analyzed.

Mr. Tran Van Phat – Director of Robot Investment Joint Stock Company, Chairman of Business Association District 3, Ho Chi Minh City – said that in case of applying tax collection according to declaration for individual business households, the tax industry should have a roadmap. and have advice, training and guidance so that they are not surprised. “In fact, many business households today still record income and expenditure in notebooks, write sales invoices on white paper … so it should make them realize that making and paying tax according to revenue is easy and convenient. When seeing no fuss and problems, only paying taxes when making a profit instead of accepting a fixed amount, they will actively and voluntarily participate “- Mr. Phat commented.

Determined to stop the loss of online sales tax The draft circular requires intermediaries to declare information, even pay taxes on behalf of individuals and business households on technology platforms. Accordingly, the e-commerce floor or the freight forwarder is responsible for providing information of shop owners in Vietnam to the tax authority. As for business activities on social platforms (such as Facebook), local tax authorities exploit data published on sales pages, social networking sites to identify business individuals, thereby finding ways tax collection. However, the draft circular has not been adjusted with foreign suppliers. Mr. Nguyen Van Duoc, General Director of Trong Tin Accounting and Tax Consulting Co., Ltd., commented with the above content, the state management agency showed determination to stop tax loss in the form of online business. . However, some of the proposed regulations are not really feasible. For example, it is entirely possible to ask the e-commerce floor and the forwarder to provide information of business individuals, thereby revealing the cash flow for the tax authorities to take measures to collect taxes, but cannot request. to ask the intermediary to pay taxes on behalf of the shop owner. Or the fact that the local tax authority does its own scrutiny of social media sales pages can be a lot to be missed. Therefore, the General Department of Taxation needs to come up with technical solutions to assist branches in collecting sufficient and accurate information, limiting omission. “To grasp the cash flow of online business is not easy, the review takes time. Regulations also need to be improved step by step according to changes in the market, not necessarily apply regulations” hard “in the long run because this is a field with its own characteristics” – he said.

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