To: Directors of Departments of Taxation of provinces and central-affiliated cities.

On February 15 of 2024, General Department of Taxation promulgated Official Dispatch No. 525/TCT-DNNCN on tax administration of household businesses, according to which, Departments of Taxation of provinces and cities have been requested to: review all households in provinces and central-affiliated cities, survey revenues and factors relating to actual business operation of household businesses; review and standardize personal tax registration information, including information on owners of household businesses; review database on website provided by online shopping platforms; promote e-invoices in household businesses, especially cooperation with local authorities in continuous management and expansion of e-invoices issued via cash registers. In order to further strengthen tax administration in respect of household businesses, General Department of Taxation hereby requests Directors of Departments of Taxation of provinces and cities to be attentive of the following:

1. Regarding communication and support for taxpayers

Strengthen communication and support for taxpayers regarding implementation of tax policies and laws in respect of household businesses. Guide household businesses to perform tax registration, declaration, and payment as per the law, especially details implemented by the tax sector to modernize tax administration in respect of household businesses such as: support for level 4.0 electronic tax throughout tax administration process (tax registration, declaration, and payment); support for tax duty lookup on Etax Mobile application; implementation of digital mapping of household businesses for disclosure of information of household businesses, payment of presumptive tax, and feedback to tax authorities regarding tax administration in respect of household businesses; application of e-invoices across the economy, including household businesses, etc.

2. Regarding management of household businesses

- Review tax administration dossiers of household businesses (including those that are operating, suspended, evaded tax payment, etc.) within their jurisdiction; take prompt actions against failure to adhere to tax administration laws in regard to household businesses.

- Carry out inspection and review within their jurisdiction so as to acknowledge any change in business operation of household businesses and promptly place these household businesses under management.

- Cross-check against information of relevant authorities (Statistic authority, business registration authority, local government, etc.) to determine the number of household businesses in their jurisdiction, identify causes for any discrepancy, cross-examine data between government authorities, place these household businesses under management so that existing household businesses are not omitted during tax estimation.

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- Provide business registration authorities with information on registered household businesses that no longer operate at registered address.

- Disclose information on household businesses paying presumptive tax as per the law and disclose on digital map of household businesses according to written direction of the Ministry of Finance and General Department of Taxation in a manner that the disclosure is transparent and enhances supervision capability of the general public, local authorities, and local government. r

3. Regarding inspection and supervision

- Review and survey revenues, presumptive tax amount on a regular basis, cross-check against separate databases, input database on invoices of households and actual business situations in the area to re-evaluate revenues, presumptive tax amount of household businesses. Adjust revenues, presumptive tax amount in order to stay in line with actual situation and other provinces, cities.

- Inspect tax administration in respect of household businesses at Tax Sub-departments according to plans an schemes under Clause 4 Article 18 of Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance, to be specific: (1) annual inspection of at least 10% of Tax Sub-departments in accordance with regulations on risk management regarding determination of expected revenues and presumptive tax; (ii) periodic inspection of at least 5% of Tax Sub-departments of every Quarter; (iii) inspection consists of: inspection on database; cross-examination of business registration and tax registration data; inspection of at least 2% of household businesses and relevant organizations in jurisdiction and 100% of household businesses under high risk as per the law.

- Direct Tax Sub-departments to conduct periodic and planned inspection at headquarters of tax authorities according to database in respect of household businesses and relevant organizations. In respect of high risks or possible violation, conduct physical inspection at headquarters of taxpayers to promptly detect and intercept violations of tax and tax administration laws.

4. Regarding consultation with local government

Consult People’s Committees of provinces and cities to coordinate relevant authorities (business registration, statistics, financial, banking, industry and trade, market authorization, police, communication, etc.) to cooperate with tax authorities on a regular basis in examining and reviewing within their jurisdiction so as to acknowledge business situations of household businesses for the purpose of tax administration as per the law.

5. Organizing implementation

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- Departments of Taxation shall submit reports on implementation results of this Official Dispatch and data on cross-examination and review of household business quantity according to Appendices (Appendix 01A, Appendix 01B, Appendix 02A, and Appendix 02B) attached hereto to General Department of Taxation by April 29 of 2024 at the latest.

Difficulties that arise during implementation must be reported to Dang Thi Phuong Hoa, telephone: 0912090950, email: dtphoa@gdt.gov.vn.

For your implementation./.

PP. GENERAL DIRECTOR
VICE GENERAL DIRECTOR




Mai Son