How to determine a tax year in Vietnam?

How to determine a tax year in Vietnam?

According to Clause 11, Article 3 of the Law on Tax Administration 2019, the tax year is defined as follows:

Interpretation of terms

In this Law, the following terms are understood as follows:

1. Tax is a mandatory contribution to the state budget by organizations, households, business households, and individuals as prescribed by the tax laws.

2. Other revenues belonging to the state budget managed and collected by tax authorities include:

a) Fees and charges as prescribed by the Law on Fees and Charges;

b) Land use fees contributed to the state budget;

c) Land rent, water surface rent;

d) Money for granting mining rights;

dd) Money for granting water resource exploitation rights;

e) Payments to the state budget from the sale of assets on land, transfer of land use rights as prescribed by the Law on Management and Use of Public Property;

g) Revenue from administrative penalties as prescribed by law on handling administrative violations in the fields of tax and customs;

h) Late payment fines and other revenues as prescribed by law.

3. Other revenues belonging to the state budget not managed and collected by tax authorities include:

a) Money for using the marine area for immersion according to the law on marine and island resources and environment;

b) Money for protecting and developing rice cultivation land as prescribed by the law on land;

c) Revenue from administrative penalties as prescribed by the law on handling administrative violations, except for the fields of tax and customs;

d) Payments to the state budget according to the law on management and use of public property from managing, using, and exploiting public property for business, renting, joint ventures, and associations, after fulfilling tax and other fiscal obligations;

dd) Aid revenues;

e) Other revenues as prescribed by law.

4. The headquarters of the taxpayer is the location where the taxpayer conducts part or all of its business activities, including the main office, branches, stores, manufacturing sites, warehouses, asset locations used for production and business; residence or the place where tax obligations arise.

5. Tax identification number is a series of 10 or 13 digits and other characters issued by the tax authorities to taxpayers for tax management purposes.

6. The tax period is the time interval during which the taxable amount payable to the state budget is determined according to the provisions of the tax law.

7. Tax declaration is a form document prescribed by the Minister of Finance, used by taxpayers to declare information to determine the payable tax amount.

8. Customs declaration is a form document prescribed by the Minister of Finance, used as a tax declaration for exported and imported goods.

9. Tax dossier is a set of documents including taxpayer registration, tax declaration, tax refund, tax exemption, tax reduction, exemption from late payment fines, non-calculation of late payment charges, extension of tax payments, installment payment of tax debts, non-collection of taxes; customs dossier; dossier of tax debt suspension; dossier of tax debt write-off, late payment fines, and penalties.

10. Tax finalization declaration is the determination of the taxable amount payable for the tax year or the period from the beginning of the tax year to the termination of activities giving rise to tax obligations or the period from the occurrence to the termination of such activities according to the law.

11. The tax year is determined according to the calendar year from January 1 to December 31; if the fiscal year differs from the calendar year, the tax year shall apply according to the fiscal year.

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Thus, according to the above provisions, the tax year is determined according to the calendar year from January 1 to December 31.

In the case of a fiscal year different from the calendar year, the tax year shall apply according to the fiscal year.

How to determine a tax year in Vietnam? (Image from the Internet)

What is the basis for determining the amount of tax payable for the tax year?

According to Clause 10, Article 3 of the Law on Tax Administration 2019, the tax year is defined as follows:

Interpretation of terms

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10. Tax finalization declaration is the determination of the taxable amount payable for the tax year or the period from the beginning of the tax year to the termination of activities giving rise to tax obligations or the period from the occurrence to the termination of such activities according to the law.

Thus, according to the above provisions, the amount of tax payable for the tax year is determined based on the tax finalization declaration, from which the amount of tax payable for the tax year will be identified.

What are the core principles in tax administration in Vietnam?

According to the provisions of Article 5 of the Law on Tax Administration 2019, the core principles in tax administration are stipulated as follows:

Principle 1. All organizations, households, business households, and individuals have the obligation to pay taxes as prescribed by law.

Principle 2. Tax authorities and other state agencies assigned to manage revenue shall perform tax administration as prescribed by this Law and other relevant legal provisions, ensuring openness, transparency, equality, and protecting the legitimate rights and interests of taxpayers.

Principle 3. Agencies, organizations, and individuals have the responsibility to participate in tax administration according to legal provisions.

Principle 4. Implement administrative procedure reforms and apply modern information technology in tax administration; apply international practice principles in tax management, including the principle that the substance of business and transaction activities determines tax obligations, risk management principles in tax administration, and other principles suitable to Vietnam's conditions.

Principle 5. Apply preferential measures in tax procedures for exported and imported goods in accordance with the law on customs and regulations of the Government of Vietnam.