Is it necessary to notify the supervisory tax authority when selecting a currency unit in accounting in Vietnam?

Is it necessary to notify the supervisory tax authority when selecting a currency unit in accounting in Vietnam?

Based on Article 4 of Circular 200/2014/TT-BTC, it is stipulated as follows:

Selection of Accounting Currency Unit

1. Enterprises that primarily have income and expenditures in foreign currency, based on the provisions of the Law on Accounting, may consider and decide on the selection of the currency unit in accounting and are responsible for this decision under the law. When selecting the currency unit in accounting, the enterprise must notify the supervisory tax authority.

2. The currency unit in accounting is the currency unit that:

a) Is primarily used in the unit's sales transactions and provision of services, significantly affecting the sales price and the provision of services, and is often the currency used for listing sales prices and payment; and

b) Is primarily used in the procurement of goods, services, significantly affecting labor costs, materials, and other production and business expenses, and is usually the currency used to pay for these costs.

3. The following factors are also considered and provide evidence for the unit's accounting currency unit:

a) The currency unit used to mobilize financial resources (such as issuing shares, bonds);

b) The currency unit regularly derived from business activities and retained.

4. The accounting currency unit reflects transactions, events, and conditions related to the unit's operations. Once the accounting currency unit is determined, it cannot be changed unless there is a significant change in those transactions, events, and conditions.

Therefore, according to the above regulation, when selecting the currency unit in accounting, the enterprise must notify the supervisory tax authority.

Is it necessary to notify the supervisory tax authority when selecting a currency unit in accounting in Vietnam? (Image from the Internet)

Which authorities are considered supervisory tax authorities in Vietnam?

Based on Clause 5 of Article 3 Circular 80/2021/TT-BTC, the supervisory tax authorities include:

[1] The tax authority managing the locality where the taxpayer's headquarters is located, except as provided in [3] of this section;

[2] The tax authority managing the locality where the taxpayer has a dependent unit in a different province from where the headquarters is located, but the dependent unit directly files taxes with the tax authority of that locality;

[3] The Department of Large Enterprises Tax under the General Department of Taxation, established under Decision 15/2021/QD-TTg;

[4] For individuals earning income from salaries and wages, the supervisory tax authority is the one that issued the tax code, subject to change by the tax authority conducting tax settlement for the individual as prescribed;

[5] For individuals receiving inheritances or gifts in the form of securities or capital contributions in economic organizations or businesses in Vietnam, who are required to declare taxes directly to the tax authority, the supervisory tax authority is the one managing the issuing entity;

In cases where multiple tax authorities manage multiple issuing units, the supervisory tax authority is the one where the individual receiving the inheritance or gift resides.

The supervisory tax authority may be recorded on the taxpayer registration certificate, tax code notification, tax authority notification, or notice of tax authority assignment upon issuance of business registration codes, cooperative codes, tax codes, or when there is a change in registration information or reassignment of the tax authority under legal regulations.

What are the responsibilities of the supervisory tax authority in Vietnam?

Based on Clause 1 of Article 5 Circular 80/2021/TT-BTC, the supervisory tax authority has the following responsibilities:

- Receiving tax declaration dossiers, extending tax declaration dossier submission deadlines, and handling violations of tax legislation related to the submission of tax declaration dossiers by taxpayers.

- Calculating late payment interest and adjusting late payment interest for taxpayers.

- Guiding and urging taxpayers to declare taxes and pay money into the state budget.

- Implementing measures to urge tax debt payment, enforce tax debt collection.

- Receiving and resolving taxpayer requests for tax payment deferral, installment payment, debt settlement, tax debt forgiveness, exemption from late payment interest, and non-calculation of late payment interest.

- Receiving and resolving taxpayer requests for overpayment handling as prescribed in Articles 25 and 26 of Circular 80/2021/TT-BTC.

- Receiving and resolving taxpayer requests for tax refunds under Chapter V of Circular 80/2021/TT-BTC.

- Receiving and resolving taxpayer requests for tax exemption and reduction under Chapter VI of Circular 80/2021/TT-BTC.

- Conducting inspections and audits on taxpayers and penalizing violations identified during inspections (if any).

- If taxpayers fall under the tax obligation allocation scope, the supervisory tax authority performs additional tasks:

+ Identifying taxpayers under the tax obligation allocation scope as prescribed in Articles 12 to 19 of Circular 80/2021/TT-BTC to guide and urge taxpayers to determine the tax amount:

- Pay for each allocated area and submit the tax allocation table along with the tax declaration dossier to the supervisory tax authority; penalize violations of tax legislation related to the submission of tax declaration dossiers by taxpayers.

+ Calculating late payment interest, adjusting late payment interest for the entire tax amount payable by taxpayers (including tax payable in the allocated area).

+ Guiding and urging taxpayers to pay money into the state budget of the allocated area.

+ Leading the implementation of measures to urge tax debt payment, enforce tax debt collection for tax amounts payable to the allocated area; notifying the tax authority managing the allocated area as prescribed in point b clause 6 Article 3 of Circular 80/2021/TT-BTC to coordinate.

+ Leading the reception of requests for tax payment deferral, installment payment, debt settlement, and tax debt forgiveness of the allocated area; notifying the tax authority managing the allocated area as prescribed in point b clause 6 Article 3 of Circular 80/2021/TT-BTC to coordinate.

+ Leading the reception and resolution of exemption requests from late payment interest, non-calculation of late payment interest for tax debts in the allocated area.

+ Leading the reception of requests for handling overpaid tax amounts in the allocated area and coordinate with the tax authority managing the allocated area as prescribed in point b clause 6 Article 3 of Circular 80/2021/TT-BTC for handling as prescribed in Articles 25 and 26 of Circular 80/2021/TT-BTC.

+ Leading the reception and resolution of tax refund requests for allocated overpayments of taxpayers and coordinate with the tax authority managing the allocated area as prescribed in point b clause 6 Article 3 of Circular 80/2021/TT-BTC for handling as prescribed in Section 2 Chapter V of Circular 80/2021/TT-BTC.

+ Leading the reception and resolution of taxpayer requests for tax exemption and reduction in the allocated area and coordinate with the tax authority managing the allocated area as prescribed in point b clause 6 Article 3 of Circular 80/2021/TT-BTC for handling as prescribed in Chapter VI of Circular 80/2021/TT-BTC.

+ Leading and coordinating with the tax authority managing the allocated area in conducting inspections and audits of the entire production and business activities of taxpayers and penalizing violations identified during inspections (if any), including determining the tax amount payable to the allocated area.

+ Consolidating data and reporting to the People's Council and the People's Committee on the results of state budget collection as prescribed for all amounts paid into the state budget, reimbursements to taxpayers on the locality, including revenues managed by other supervisory tax authorities but the taxpayer's headquarters is located within the area.