Can tax authorities delegate tax collection to other organizations or individuals in Vietnam?

Can tax authorities delegate tax collection to other organizations or individuals in Vietnam?

As stipulated in Article 19 of the Law on Tax Administration 2019, the authority of tax authorities is defined as follows:

Authority of tax authorities

1. Request taxpayers to provide information and documents related to determining tax obligations, including information on investment values; account numbers, content of transactions of accounts opened at commercial banks, other credit institutions, and explain tax calculation, tax declaration, tax payment.

2. Require relevant organizations and individuals to provide information, documents related to determining tax obligations, and cooperate with tax authorities to enforce tax laws.

3. Conduct tax inspection and examination as per legal provisions.

4. Determine taxes.

5. Enforce administrative decisions on tax management.

6. Impose administrative sanctions for tax management violations within their authority; publicize violations of tax laws in the mass media.

7. Apply preventive measures and ensure the enforcement of administrative penalties for tax management violations as per legal provisions.

8. Delegate agencies, organizations, individuals to collect certain types of taxes as stipulated by the Government of Vietnam.

9. Tax authorities apply advance pricing agreements with taxpayers, with foreign tax authorities, territories with which Vietnam has signed double taxation avoidance agreements and prevention of tax evasion regarding income tax.

10. Purchase information, documents, data from domestic and foreign providers to serve tax management tasks; pay tax collection delegation costs from the collected tax money or from the budget of the tax management agency as stipulated by the Government of Vietnam.

tax authorities have the authority to delegate tax collection to other agencies, organizations, or individuals as stipulated by the Government of Vietnam.

In addition, tax authorities will also pay tax collection delegation costs from the collected tax money or from the budget of the tax management agency as stipulated by the Government of Vietnam.

Can tax authorities delegate tax collection to other organizations or individuals in Vietnam? (Image from Internet)

Vietnam: What types of taxes can tax authorities delegate collection for?

Based on clause 1, Article 39 of Decree 126/2020/ND-CP, the regulations regarding the cases of delegated tax collection are as follows:

- tax authorities delegate the collection of taxes and other state budget revenues from individuals, households, and business households to organizations, state management agencies.

- Other cases are decided by the Minister of Finance.

Additionally, clause 1, Article 82 of Circular 80/2021/TT-BTC provides further guidance as follows:

Tax Authorities delegate organizations or individuals to collect certain taxes and other state budget revenues under the management of the tax authority, including:

- Agricultural land use tax of households, individuals;

- Non-agricultural land use tax of households, individuals;

- Taxes on business households, individuals paying tax according to a fixed method;

- Business license fees, environmental protection fees for business households, individuals paying tax according to a fixed method;

- Other types of taxes and state budget revenues if approved by the Minister of Finance.

How to calculate commission for individuals or organizations delegated to collect taxes in Vietnam?

According to clause 2, Article 82 of Circular 80/2021/TT-BTC, the provisions regarding the funding for delegated tax collection are as follows:

Funding for Delegated Tax Collection

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2. Level of funding for delegated tax collection:

The level of funding for the collection of revenues specified in clause 1 of this Article is determined as a percentage of the total tax amount and other state budget revenues stipulated in the Delegated Tax Collection Contract.

Tax Authorities set a level of funding for delegated tax collection appropriately to meet tax collection management requirements for each area, the level of funding for delegated tax collection is decided by the Director-General of the General Department of Taxation after being approved by the Ministry of Finance. Expenses for delegated collection are arranged outside the administrative management expense limit and allocated in the regular operating budget estimates of the Tax Authority as prescribed.

Thus, the commission for individuals or organizations delegated to collect taxes is calculated as a percentage of the total tax amount and other state budget revenues specified in the Delegated Tax Collection Contract.

This regulation does not specifically state the exact commission for delegated tax collectors. However, it can be understood that the commission for individuals or organizations delegated to collect taxes will be clearly specified in the delegated tax collection contract.