From January 1, 2025, shall the regulation on supplementary tax declaration upon issuance of tax inspection and audit decisions be annulled in Vietnam?
From January 1, 2025, shall the regulation on supplementary tax declaration upon issuance of tax inspection and audit decisions be annulled in Vietnam?
Pursuant to Clause 6, Article 6 of the Law amending the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Law on Management and Use of Public Property, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violations Handling Law 2024 (effective from January 1, 2025) stipulating amendments and supplements to some articles of the Tax Administration Law as follows:
Amendment and supplementation of certain articles of the Tax Administration Law
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- Amend, supplement, and abolish some clauses of Article 47 as follows:
a) Amend and supplement Clause 1 as follows:
“1. Taxpayers discovering errors or omissions in tax returns already submitted to the tax authority are allowed to make supplementary tax declarations within 10 years from the deadline for submitting tax returns of the taxable period with errors or omissions in the following cases:
a) Before the tax authority, or the authorized agency announces the decision of inspection, audit;
b) The files are not within the scope and period of tax inspection and audit stated in the inspection and audit decision.
For matters within the scope of inspection and audit, taxpayers may supplement explanatory documents in accordance with the law on tax, law on inspection, and to the extent addressed in the conclusions and stipulations of the competent sectoral agency related to determining taxpayers’ tax liabilities.”
b) Abolish Clauses 2 and 3.
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Simultaneously, referencing the provision in Article 47 of the Tax Administration Law 2019 regulating supplementary tax declarations.
Thus, from January 1, 2025, the Law amending the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Law on Management and Use of Public Property, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violations Handling Law 2024 has annulled the regulation on supplementary tax declaration upon issuance of tax inspection and audit decisions.
Additionally, it redefines supplementary tax declaration requirements in relation to inspection and audit decisions as the submission of explanatory documents under the legal framework governing tax and inspection.
From January 1, 2025, shall the regulation on supplementary tax declaration upon issuance of tax inspection and audit decisions be annulled in Vietnam? (Image from the Internet)
What are new regulations on supplementary tax declarations in Vietnam?
Pursuant to Clause 6, Article 6 of the Law amending the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Law on Management and Use of Public Property, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violations Handling Law 2024 (effective from January 1, 2025), supplementary tax declarations are applicable in the following circumstances:
- Taxpayers discovering errors or omissions in tax returns submitted to the tax authority are allowed to make supplementary tax declarations within 10 years from the deadline for submitting tax returns of the taxable period with errors or omissions in the following cases:
+ Before the tax authority, or the authorized agency announces the decision of inspection, audit;
+ The files are not within the scope and period of tax inspection and audit stated in the inspection and audit decision.
When will supplementary tax declarations not be penalized in Vietnam?
Based on Clause 3, Article 9 of Decree 125/2020/ND-CP which specifies cases where no administrative penalties are imposed for tax and invoice violations:
Cases where no administrative penalties are imposed for tax and invoice violations
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- No administrative penalties will be imposed for tax violations in cases of incorrect declaration where the taxpayer has made a supplementary tax declaration and has voluntarily paid the full amount of tax due before the tax authority announces the tax inspection, audit decision at the taxpayer’s premises, or before the tax authority discovers the omission without any inspection or audit at the taxpayer’s premises, or before it is discovered by another competent authority.
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Therefore, taxpayers who make supplementary tax declarations will not be penalized in cases of incorrect declarations if the taxpayer has made the supplementary tax declaration and voluntarily paid the full amount of tax due before the tax authority announces the tax inspection, audit decision at the taxpayer’s premises, or before the tax authority discovers the omission without inspection or audit at the taxpayer’s premises, or before being discovered by another competent authority, will not incur administrative penalties related to tax violations.
