What-is-tax-Taxes-payable-after-the-establishment-of-company-2019

What is Tax? Taxes payable after the establishment of the company 2019 l G-OFFICE

After successful implementation of procedures for establishing businesses and being granted tax codes, enterprises are obliged to fulfill their tax payment obligations. According to regulations, enterprises must pay 4 types of taxes: value added tax, license tax, enterprise income tax, personal income tax.

What is tax?

Tax is a mandatory payment that all individuals and organizations are obliged to fulfill their civic responsibilities to contribute to the prosperous development of Vietnam.

Taxes are a source of funding to carry out the maintenance and operation of activities for the country in order to stabilize and develop our country.

Taxes that meet the budget collection purposes and regulate social income are called normal taxes.

Special tax: is a revenue for special purposes such as special consumption rental, which is used to import alcohol, beer, imported cars for the purpose of limiting the consumption of this item, or revenue for the restoration of the system. irrigation and regulation of local water systems.

After obtaining the Business Registration License and the Tax Code from the Department of Planning and Investment, the business owner must carry out the procedures for initial tax declaration for the competent authority, and at the same time perform the following taxes:

1. Pay excise tax

A license tax is an obligatory tax that an enterprise must fulfill its annual obligation, after receiving the business license, the enterprise must submit a license fee declaration to the tax authority directly managing it.

Pursuant to Article 4 of Circular 302/2016 / TT-BTC regulating the level of payment of license fees applicable to enterprises and business organizations of goods and services as follows:

Chartered capital or invested capital of more than VND 10 billion: VND 3 million / year

Chartered capital or invested capital of less than VND 10 billion: VND 2 million / year

Branches, representative offices, other economic organizations or business locations: Submit VND 1 million / year

Note: According to Decree 139/2016 / ND-CP, the deadline for submission of license tax returns from January 1, 2017 is as follows:

• The declaration of license fees shall be made no later than the last day of the month when the business activities start and shall be effected only once the fee payer has made business activities.
• When the fee payer establishes a business establishment but has not yet entered production and business activities, he / she must declare the license tax fee within 30 days from the date of receiving the business registration certificate or date of receiving Investment Registration Certificate and tax registration.
• Every year, the business must pay the license fee no later than January 30. In cases where enterprises newly established or newly put into operation, the time limit for payment of fees shall be the latest on the last day of the time limit for submission of fee declaration dossiers.

2. Payment of Value Added Tax (VAT)

Value-added tax (abbreviated as VAT of the English Value Added Tax) is a form of sales tax, which is the difference between the purchase price of goods, products and the selling price of goods and products.

There are two methods to calculate value added tax as follows:

First: Deduction method:

Amount of payable VAT = Output VAT - Input VAT

Second: Direct method:

VAT payable = VAT of goods * VAT rate of such goods.

3. Enterprise income tax

Enterprise income tax is a payable amount to the State Agency based on the final profit after deducting reasonable expenses that all businesses, individuals, and businesses must perform.

CIT payable = Price for CIT calculation * Tax rate

4. Personal income tax (PIT)

This is a tax that businesses pay on behalf of employees, this tax is calculated on a monthly basis, declared monthly or quarterly but is settled by year.

Payable PIT = Income from personal income tax * Tax rate

As follows:

- Income subject to PIT is PIT received from the paying company.

- Income from personal income tax = Income subject to PIT - Deductions

- Deductions include:

+ Reduction of family circumstances: For yourself is VND 9,000,000 / person / month. For dependents is VND 3,600,000 / person / month.

Compulsory insurance: Social insurance, health insurance, unemployment insurance and occupational insurance in some special areas.