Is failure to declare or truthfully and accurately declare tax imposed tax liability in Vietnam?

Is failure to declare or truthfully and accurately declare tax imposed tax liability in Vietnam?

Article 14 of Decree 126/2020/ND-CP provides:

Cases of tax liability imposition

Taxpayers are subject to tax liability imposition by the tax authority in the following cases:

1. Failure to register for taxpayer registration as specified in Article 33 of the Law on Tax Administration.

2. Failure to file taxes or to file accurate, truthful, and complete tax declarations as specified in Article 42 of the Law on Tax Administration.

3. Failure to submit supplementary tax dossiers requested by the tax authority or submission of incomplete, untruthful, and inaccurate tax bases for determining the tax payable.

4. Failure to reflect or fully, truthfully, and accurately reflect data in accounting books to determine tax obligations.

Failure to declare or truthfully and accurately declare tax as specified will result in tax liability imposition.

What are procedures for tax liability impositin Vietnam in Vietnam?

Pursuant to Article 16 of Decree 126/2020/ND-CP, the provisions are as follows:

Authority, procedures, and decision on tax liability imposition

1. Authority for tax liability imposition

The General Director of the General Department of Taxation; the Director of the Department of Taxation; the Chief of the District Tax Office have the authority to impose taxes.

2. tax liability imposition procedures

a) When imposing taxes, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue the tax liability imposition decision. The decision must clearly state the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment.

b) In the case where the tax authority conducts tax liability imposition through tax inspection or audit, the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and the tax handling decision by the tax authority.

c) If a taxpayer is imposed taxes according to the regulation, the tax authority shall impose administrative penalties and calculate late payment interest as prescribed by law.

The tax liability imposition procedures are carried out as follows:

- The tax authority will notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision. This decision must clearly state the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment.

- If the tax authority imposees taxes through tax inspection or audit, the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and the tax handling decision by the tax authority.

- If the taxpayer is subject to tax liability imposition according to the regulation, the tax authority shall impose administrative penalties and calculate late payment interest as prescribed by law.

Is failure to declare or truthfully and accurately declare tax imposed tax liability in Vietnam? (Image from the Internet)

Which entity has the authority to impose taxes in Vietnam?

According to Article 16 of Decree 126/2020/ND-CP on authority, procedures and decision on tax liability imposition as follows:

Authority, procedures, and decision on tax liability imposition

1. Authority for tax liability imposition

The General Director of the General Department of Taxation; the Director of the Department of Taxation; the Chief of the District Tax Office have the authority to impose taxes.

2. tax liability imposition procedures

a) When imposing taxes, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue the tax liability imposition decision. The decision must clearly state the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment.

b) In the case where the tax authority conducts tax liability imposition through tax inspection or audit, the reason for the imposement, the basis for the imposement, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and the tax handling decision by the tax authority.

c) If a taxpayer is imposed taxes according to the regulation, the tax authority shall impose administrative penalties and calculate late payment interest as prescribed by law.

3. tax liability imposition decision

a) When imposing taxes, the tax authority must issue a tax liability imposition decision according to Form No. 01/ADT in Appendix III issued together with this Decree, and simultaneously send it to the taxpayer within 03 working days from the date of signing the tax liability imposition decision;

In the case where taxpayers are subject to tax payment according to the tax authority’s notice, the tax authority is not required to issue a tax liability imposition decision as prescribed in this clause.

b) Taxpayers must pay the imposed tax amount according to the tax handling decision of the tax authority. In case taxpayers do not agree with the imposed tax amount determined by the tax authority, they must still pay the tax amount and have the right to request explanation from the tax authority or file a complaint or initiate a lawsuit regarding the tax liability imposition.

Thus, the authority to impose taxes belongs to the General Director of the General Department of Taxation; the Director of the Department of Taxation; and the Chief of the District Tax Office.