According to the provisions of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration, effective from December 5, 2020:
– In Clause 1, Article 8 stipulates:
“1. Taxes and other state budget payments managed and collected by tax administration agencies shall be declared on a monthly basis, including:
a) Value added tax, personal income tax. In case taxpayers meet the criteria specified in Article 9 of this Decree, they may choose to declare quarterly. “.
– Article 9 provides:
“ Article 9. Criteria for quarterly tax declaration for value-added tax and personal income tax
1. Criteria for quarterly tax declaration
a) Quarterly declaration of value-added tax applies to:
a.1) Taxpayers are eligible to declare value added tax on a monthly basis specified at Point a, Clause 1, Article 8 of this Decree if the total revenue from selling goods and providing services of the preceding year is 50 billion VND or less, they may declare value added tax on a quarterly basis. Revenue from selling goods and providing services is determined as the total revenue on value-added tax declarations of tax periods in the calendar year.
In case the taxpayer makes concentrated tax declaration at the head office for the dependent unit or business location, the revenue from selling goods and providing services shall include the revenue of dependent units and business locations.
a.2) In case taxpayers have just started operating or doing business, they may choose to declare value added tax quarterly. After full 12 months of production and business, from the next calendar year to the next full 12 months will be based on the revenue of the preceding calendar year (full 12 months) to make a VAT declaration according to the monthly or quarterly tax period.
b) Quarterly personal income tax declaration as follows:
b.1) Taxpayers subject to monthly personal income tax declaration specified at Point a, Clause 1, Article 8 of this Decree, if they are eligible for quarterly VAT declaration, may choose to declare quarterly personal income tax.
b.2) Quarterly tax declaration is determined once from the first quarter of which the tax obligation arises and is applied consistently throughout the calendar year.
2. Taxpayers are responsible for self-determination of quarterly tax declarations in order to make tax declarations according to regulations.
a) Taxpayers who meet the criteria for quarterly tax declaration may choose to declare tax on a monthly or quarterly basis for the whole calendar year.”.
Based on the above provisions, PIT is understood as a tax declared on a monthly basis. If the business is eligible to declare VAT quarterly, it can choose to declare PIT quarterly.