Is it necessary to pay taxes during the resolution of complaints and lawsuits in Vietnam?

Is it necessary to pay taxes during the resolution of complaints and lawsuits in Vietnam?

Based on Article 61 of the 2019 Tax Administration Law, the provisions are as follows:

Tax payment during the resolution of complaints and lawsuits

1. During the period of resolving a taxpayer’s complaints and lawsuits regarding the tax amount, late payment interest, or fines calculated or determined by the tax authority, the taxpayer is still required to pay the full tax amount, late payment interest, or fines, except in cases where competent state authorities decide to temporarily suspend the implementation of the tax calculation decision or tax determination decision of the tax authority.

2. In cases where the tax amount, late payment interest, or fines already paid exceed the tax amount, late payment interest, or fines determined according to the competent authority’s complaint resolution decision or the court's judgment or decision, the taxpayer is entitled to a refund of the excess amount of tax, late payment interest, or fines.

The taxpayer has the right to request the tax authority to pay interest at the rate of 0.03% per day on the excess amount. The interest payment source is funded from the central budget as stipulated by the law on the state budget.

3. Procedures for handling cases where the tax amount, late payment interest, or fines paid exceed the tax amount, late payment interest, or fines determined according to the competent authority’s complaint resolution decision or the court's judgment or decision shall be carried out according to the provisions in Clause 5, Article 60 of this Law.

The taxpayer is still required to pay the full tax amount as calculated or determined by the tax authority during the period of resolving the taxpayer's complaints and lawsuits regarding the tax amount.

Except in cases where competent state authorities decide to temporarily suspend the implementation of the tax calculation decision or tax determination decision of the tax authority.

Is it necessary to pay taxes during the resolution of complaints and lawsuits in Vietnam? (Image from the Internet)

What are the taxpayer's responsibilities for paying taxes in Vietnam?

Based on Article 17 of the 2019 Tax Administration Law, the responsibilities are as follows:

Taxpayer Responsibilities

1. Implement taxpayer registration and use the tax identification number as stipulated by law.

2. Accurately, honestly, and fully declare taxes and submit tax dossiers on time; take legal responsibility for the accuracy, honesty, and completeness of tax dossiers.

3. Fully and timely pay taxes, late payment interest, and fines at the right location.

4. Comply with accounting, statistical policies, and manage, use invoices and documents as stipulated by law.

...

The taxpayer's responsibility for paying taxes is to pay fully, on time, and at the right location.

When will taxpayers have their taxes determined by the tax authorities in Vietnam?

According to Article 14 of Decree 126/2020/ND-CP, taxpayers are subject to tax determination by the tax authorities in the following cases:

- Failure to implement taxpayer registration as stipulated in Article 33 of the 2019 Tax Administration Law.

- Failure to declare taxes or incomplete, dishonest, and inaccurate tax declarations as stipulated in Article 42 of the 2019 Tax Administration Law.

- Failure to submit additional tax dossiers upon the request of the tax authority, or submission of additional tax dossiers that are incomplete, dishonest, and inaccurate, affecting the tax calculation basis.

- Failure to reflect or fully reflect, honestly, accurately the data in the accounting books for tax obligation determination.

- Failure to present accounting books, invoices, documents, and necessary materials related to determining tax calculation factors; determining the tax amount payable within the stipulated time or after the expiry of the tax inspection, tax audit at the tax authority headquarters.

- Failure to comply with the tax inspection decision within 10 working days from the date of decision signing, except in cases where the inspection time is postponed as stipulated.

- Failure to comply with the tax audit decision within 15 days from the date of decision signing, except in cases where the audit time is postponed as stipulated.

- Buying, selling, exchanging, and accounting for the value of goods and services not in accordance with the usual market transaction value.

- Buying, exchanging goods, services using illegal invoices, utilizing illegal invoices while the goods and services are genuine as determined by investigative, inspection, and inspection authorities and have been declared as revenue, cost for tax calculation.

- Showing signs of absconding or dispersing assets to evade tax obligations.

- Conducting transactions that are not consistent with economic substance, not in line with actual occurrences aimed at reducing taxpayer obligations.

- Failure to comply with the provisions on declaration obligations, determining linked transaction prices, or failure to provide information as stipulated for tax management of enterprises with linked transactions.