How to calculate tax payable when a taxpayer makes a getaway or fails to submit statements in Vietnam?
How to calculate tax payable when a taxpayer makes a getaway or fails to submit statements in Vietnam?
Pursuant to clause 3 of Article 67 of the Law on Tax Administration 2019 stipulated as follows:
Completion of Tax Obligations in Cases of Dissolution, Bankruptcy, Cessation of Activities
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- Enterprises that cease operations, abandon their registered business addresses without completing tax obligations shall have the remaining tax debt borne by the owner of the private enterprise, the single-member limited liability company owner, contributing shareholders, capital-contributing members, and partnership members in accordance with regulations for each type of enterprise as prescribed by the Law on Enterprises.
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Based on point b clause 10 Article 13 of Decree 126/2020/ND-CP provided as follows:
Cases Where the Tax Administration Authority Calculates and Notifies Tax Payment
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- For export and import goods, the customs authority calculates tax and notifies tax in the following cases:
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b) When the taxpayer ceases operations, does not operate at the registered business address, dissolves, or goes bankrupt without completing tax obligations, the customs authority calculates and notifies tax to determine the tax payable for related organizations and individuals according to the provisions of the law.
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Based on point b.2 clause 4 Article 60 of Circular 38/2015/TT-BTC (amended by clause 39 Article 1 of Circular 39/2018/TT-BTC as follows:
statement on the Use of Imported Materials, Inputs, and Exported Goods
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- Handling Late Submission of statements on the Use of Materials, Inputs, Machinery, Equipment, and Export Goods
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b) Measures following investigation, verification, and search efforts:
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b.2) In case organizations or individuals flee or disappear, and the customs authority does not have actual norms to determine the tax amount, they shall use the actual norms for similar goods of another organization or individual. After determining the tax amount, the case file shall be completed and transferred to the competent authority for investigation of smuggling and tax evasion offenses under the provisions of the Criminal Code.
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In addition, Official Dispatch 6060/TCHQ-TXNK 2024 from the General Department of Customs guides on determining the tax payable for enterprises that flee and fail to submit statements as follows:
- In cases where the taxpayer ceases operations, does not operate at the registered business address, dissolves, or goes bankrupt without completing tax obligations, the customs authority calculates and notifies tax to determine the tax payable for related organizations and individuals, such as the owner of the private enterprise, the owner of a single-member limited liability company, contributing shareholders, capital-contributing members, partnership members responsible for payment according to each enterprise type prescribed in the Law on Enterprises, relevant credit institutions, and competent authorities handling the case as per legal regulations.
- In cases where there are signs of smuggling or tax evasion, actions shall be taken according to the regulations in the Criminal Code, Criminal Procedure Code, and guidance at point b.2 clause 4 Article 60 of Circular 38/2015/TT-BTC (amended by clause 39 Article 1 of Circular 39/2018/TT-BTC) and point 3 of Official Dispatch No. 7420/TCHQ-TXNK dated November 28, 2019, by the General Department of Customs.
- Tax notifications are carried out according to Form No. 01/TBXNK Appendix II issued under Decree 126/2020/ND-CP.
How to calculate tax payable when a taxpayer makes a getaway or fails to submit statements in Vietnam? (Image from the Internet)
Which authority is responsible for updating the tax payable in the accounting system in Vietnam?
Pursuant to points a, d clause 3 Article 16 of Circular 174/2015/TT-BTC stipulating the tasks of export and import tax accounting as follows:
Tasks of Export and Import Tax Accounting
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- At Customs Sub-Departments and equivalents:
a) Check the validity of export and import tax accounting documents and update them into the accounting system;
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d) Organize the accounting work at their units to ensure the performance of assigned tasks under tax, customs, and accounting law.
Based on the above regulations, when the customs authority calculates tax and issues tax notifications to determine the tax payable, the customs authority updates the accounting system according to legal provisions.
What are regulations on recording and signing accounting documents in Vietnam?
Pursuant to Article 19 of Circular 174/2015/TT-BTC amended by clause 2 Article 1 of Circular 112/2018/TT-BTC regulating the recording, signing, and retention of accounting documents as follows:
(1) All occurrences related to recording tax and other collections in export and import accounting must have an accounting document. The accounting document should be created only once for each transaction.
(2) Accounting documents must be prepared according to the content specified on the template for each type of transaction, ensuring complete content and legal compliance for each type according to the Accounting Law and Decree 174/2016/ND-CP.
(3) Recording on Accounting Documents
- Entries on the document must be complete, clear, prompt, and precise following Article 18 of the Accounting Law and Decree 174/2016/ND-CP;
- Writing must be continuous, without breaks, abbreviations, erasures, or corrections; written with ballpoint pen or ink pen; not in red ink or pencil;
- The amount in words must match the amount in numbers. The first letter must be capitalized, subsequent letters must not be capitalized; written closely to the margin, numbers and letters must be written continuously without spacing, complete one line before starting another without overwriting or writing over pre-printed words; empty spaces must be crossed to prevent alterations. Erased or corrected documents are not valid for payment or accounting records. Incorrect entries on pre-printed forms must be voided by crossing out incorrect documents.
(4) Accounting documents must be prepared in the required number of copies. When preparing multiple copies for an economic, or financial transaction, all copies must have identical contents.
(5) Accounting documents created electronically must adhere to Articles 17, 18, and 19 of the Accounting Law and Decree 174/2016/ND-CP.
(6) Signing Accounting Documents
- Accounting documents must be signed as stipulated under Article 19 of the Accounting Law and Decree 174/2016/ND-CP. A person's signature on an accounting document must be consistent and match the registered signature;
- The creator, approver, and others signing an accounting document must be responsible for its contents;
- Those responsible for signing accounting documents shall only sign them after fully recording their responsibilities as stipulated.
