Do tax services provided to taxpayers by tax agents in Vietnam include tax settlement?

Do tax services provided to taxpayers by tax agents in Vietnam include tax settlement?

Based on Article 104 of the Law on Tax Administration 2019 which regulates the provision of tax services as follows:

Provision of tax services

1. Services provided by the tax agent to taxpayers under a contract include:

a) Procedures for taxpayer registration, tax declaration, tax payment, tax settlement, preparing applications for tax exemption, tax reduction, tax refund, and other tax procedures on behalf of taxpayers;

b) Tax consultancy services;

c) Accounting services for microenterprises as stipulated in Article 150 of this Law. Microenterprises are defined according to laws on supporting small and medium-sized enterprises.

2. The tax agent has the following rights and obligations:

a) To perform services for taxpayers as agreed in the contract;

b) To comply with the provisions of this Law, tax laws, and other relevant legal regulations in the practice of providing tax services;

c) To be responsible before the law and taxpayers for the contents of the services provided.

3. The Minister of Finance regulates the management of the business activities of providing tax services.

Services provided by the tax agent to taxpayers under a contract include:

- Procedures for taxpayer registration, tax declaration, tax payment, tax settlement, preparing applications for tax exemption, tax reduction, tax refund, and other tax procedures on behalf of taxpayers;

- Tax consultancy services;

- Accounting services for microenterprises as stipulated in Article 150 of the Law on Tax Administration 2019. Microenterprises are defined according to laws on supporting small and medium-sized enterprises.

Thus, the tax agent does provide tax settlement services for taxpayers under a contract.

Does a tax agent in Vietnam provide tax settlement for taxpayers under a contract? (Internet Image)

Is annual 40,000 VND tax from salary exempt in Vietnam?

Based on Article 79 of the Law on Tax Administration 2019 which regulates tax exemption and reduction as follows:

Tax Exemption, Reduction

1. Tax exemption and reduction are implemented according to the provisions of tax laws and clause 2 of this Article.

2. Tax exemption in the following cases:

a) Households, individuals who are subject to non-agricultural land use tax with annual tax payable of 50,000 VND or less;

b) Individuals with a payable tax arising from annual personal income tax settlement from salaries or wages of 50,000 VND or less.

Personal income tax settlement from salaries with an annual payable amount of 50,000 VND or less is eligible for tax exemption.

Thus, tax settlement from salaries with an annual payable amount of 40,000 VND is exempt from tax.

Is late submission of personal income tax settlement documents with a refundable tax amount subject to administrative penalties in Vietnam?

Based on clause 2, Article 141 of the Law on Tax Administration 2019 regarding violations of tax procedures as follows:

Violations of Tax Procedures

1. Violations of tax procedures include:

a) Violations of the deadline for taxpayer registration; the deadline for notification of changes in taxpayer registration information;

b) Violations of the deadline for submitting tax declaration documents within 90 days from the deadline for submission of tax declaration documents or the deadline for extension of submission of tax declaration documents as stipulated in this Law;

c) Violations of the deadline for submitting tax declaration documents from the expiry date for submitting customs declarations to before the date of handling uncollected goods according to the Customs Law;

d) Incorrect or incomplete declaration of contents in tax documents that do not lead to a lack of payable tax amount or increased tax exemption, reduction, refund, or non-collection, except in cases where taxpayers make supplementary declarations within the prescribed deadline;

dd) Violations of regulations on providing information related to tax obligation determination;

e) Violations of regulations on compliance with decisions on tax inspection, tax audits, and enforcement of administrative decisions on tax administration.

2. No administrative penalty for tax procedure violations in the following cases:

a) The taxpayer is granted an extension for submitting tax declaration documents;

b) Individuals directly finalizing personal income tax with late submission of tax settlement documents where there is a refundable tax amount;

c) Business households, individual businesses subject to presumptive tax as per Article 51 of this Law.

3. the Government of Vietnam stipulates details of this Article.

Thus, personal income tax settlement from salaries with late submission of tax settlement documents where there is a refundable tax amount is not subject to administrative penalties for tax violations.