Do taxpayers have to pay fines during settlement of complaints in Vietnam?

What is a tax complaint? What is the tax complaint form in Vietnam?

According to Article 147 of the 2019 Law on Tax Administration, the regulations are as follows:

Complaints and denunciations

1. Taxpayers, organizations, and individuals have the right to lodge complaints with the competent authorities against administrative decisions or administrative actions of tax administration agencies or tax officials when there are grounds to believe that such decisions or actions are illegal, infringing on their lawful rights and interests.

2. Individuals have the right to denounce tax-related legal violations of taxpayers, tax officials, or other organizations and individuals.

3. The authority, order, and procedures for resolving complaints and denunciations are implemented according to the legal provisions on complaints and denunciations.

Accordingly, a tax complaint can be understood as the action taken by taxpayers, organizations, or individuals to protest to the competent authorities against administrative decisions or actions of tax administration agencies or tax officials when there are grounds to believe that such decisions or actions are illegal, infringing on their lawful rights and interests.

The authority, order, and procedures for resolving tax complaints are implemented according to the legal provisions on complaints and denunciations.

Currently, there is no specific tax document that prescribes a tax complaint form. However, taxpayers can refer to the sample tax complaint form below:

Download tax complaint form: DOWNLOAD

What is a tax complaint? What is a tax complaint form in Vietnam?(Image from the Internet)

Do taxpayers have to pay fines during settlement of complaints in Vietnam?

According to Article 61 of the 2019 Law on Tax Administration, the regulations are as follows:

Payment of taxes during settlement of complaints and lawsuits

1. During settlement of complaints and lawsuits by taxpayers regarding tax amounts, late payment amounts, and fines calculated or determined by the tax administration agency, taxpayers are still required to pay those tax amounts, late payment amounts, and fines in full, except in cases where a competent state agency decides to temporarily suspend the execution of tax calculation decisions or tax determination decisions by the tax administration agency.

2. In cases where the tax amount, late payment, and fines paid exceed the amounts determined according to the decision resolving the complaint by the competent authority or a court judgment or decision, the taxpayer is entitled to a refund of the excess tax amount, late payment, and fines paid.

Taxpayers have the right to request the tax administration agency to pay interest at a rate of 0.03% per day on the excess tax amounts, late payments, and fines paid. The source of funds for interest payment is from the central budget according to the provisions of the law on state budgets.

3. Procedures for handling cases where the paid tax amount, late payment, and fines exceed the amounts determined according to the complaint resolution decision by the competent authority or court judgment or decision are implemented according to the provisions in Clause 5, Article 60 of this Law.

Accordingly, during the tax complaint resolution period by taxpayers regarding fines calculated or determined by the tax administration agency, the taxpayers are still obligated to pay those fines in full, except in cases where a competent state agency decides to temporarily suspend the execution of tax calculation decisions or tax determination decisions by the tax administration agency.

What are the rights and responsibilities of the tax administration agency during settlement of complaints in Vietnam?

According to Article 149 of the 2019 Law on Tax Administration, the responsibilities and authority of the tax administration agency during settlement of complaints are specified as follows:

- The tax administration agency receiving complaints regarding tax law enforcement has the right to request the complainant to provide related documents and materials. If the complainant refuses to provide documents and materials, the agency has the right to refuse to consider and resolve the complaint.

- The tax administration agency must refund incorrectly collected tax amounts, late payments, and fines to taxpayers or third parties within 15 days from the receipt of the resolution decision from the competent authority.

- In complicated complaint cases, the head of the tax administration agency responsible for resolving the complaint shall consult with relevant agencies and organizations, including in the first complaint resolution.

When conducting consultations, the head of the tax administration agency must issue a decision to establish a Consultation Council.

The Consultation Council operates on a majority voting principle. The result of the vote serves as a basis for the head of the tax administration agency in deciding on resolving the complaint.

The head of the tax administration agency is the person who issues the decision and is responsible for the decision on resolving the complaint.