Is tax liability imposed when accurately providing information in accounting books in Vietnam?

Is tax liability imposed when accurately providing information in accounting books in Vietnam?

Based on Article 14 of Decree 126/2020/ND-CP, the regulations are as follows:

Cases of tax liability imposition

Taxpayers shall be assessed by the tax authority for the amount of tax payable in the following cases:

1. Failure to taxpayer registration as prescribed in Article 33 of the Law on Tax Administration 2019.

2. Failure to declare taxes or inadequate, honest, accurate tax declarations as prescribed in Article 42 of the Law on Tax Administration 2019.

3. Failure to submit supplementary tax records as required by the tax management authorities or submission of supplementary tax records that do not adequately, honestly, and accurately provide the tax calculation bases to determine the payable tax amount.

4. Failure to reflect or adequately, honestly, and accurately reflect the data on accounting books to determine tax obligations.

5. Failure to present accounting books, invoices, vouchers, and necessary documents related to the determination of the factors used as a basis to calculate tax; to determine the tax amount payable within the prescribed time limit or upon the expiration of the tax inspection, tax audit at the taxpayer’s headquarters.

6. Failure to comply with the tax inspection decision within 10 working days from the date of signing the decision, except in cases of postponed inspection as prescribed.

7. Failure to comply with the tax audit decision within 15 days from the date of signing the decision, except in cases of postponed audit as prescribed.

8. Buying, selling, exchanging, and recording the value of goods and services not according to the normal transaction value on the market.

9. Purchase, exchange goods, services using illegal invoices, or using invoices illegally, for genuine goods and services as determined by the investigative, inspection, and control agency and had declared revenue, tax costs.

10. Signs of evasion or dispersal of assets to avoid tax obligations.

11. Conducting transactions not aligned with the economic essence, not actual occurrences to reduce the taxpayer's tax liability.

12. Non-compliance with regulations on declaration obligations, determining transaction prices for related-party transactions, or failing to provide information as prescribed on tax administration for enterprises with related-party transactions.

Thus, not accurately reflecting data on accounting books to determine tax obligations is one of the cases subject to tax liability imposition.

Is tax liability imposed when accurately providing information in accounting books in Vietnam? (Image from the Internet)

What is the basis for determining the tax liability imposition in Vietnam?

Based on Article 15 of Decree 126/2020/ND-CP, the regulation on the basis for determining the tax liability imposition for an organization is as follows:

The basis is the tax management authority's database and commercial database; documents and valid inspection, audit results; verification results; the minimum average tax payable of 03 business establishments of the same item, industry, type, and scale in the locality. If the locality has no or insufficient information about the business item, industry, type, or scale of the business establishment, information from a business establishment in another locality shall be used to determine according to each factor.

Does the Head of the Tax Department have the authority to impose tax in Vietnam?

Based on Article 16 of Decree 126/2020/ND-CP, the following regulations apply:

Authority, Procedure, Decision on tax liability imposition

1. Authority for tax liability imposition

The General Director of the General Department of Taxation; Director of the Tax Department; Head of the Tax Department have the authority to impose tax.

2. Procedure for tax liability imposition

a) When assessing tax, the tax authority shall notify in writing to the taxpayer about the tax liability imposition decision. The tax liability imposition decision must clearly state the reason for tax liability imposition, the basis for tax liability imposition, the assessed tax amount, and the deadline for tax payment.

b) In cases where the tax authority conducts tax liability impositions through tax inspections or audits, the reasons for tax liability imposition, the basis for tax liability imposition, the assessed tax amount, and the deadline for tax payment must be recorded in the tax inspection report, tax audit report, and the tax handling decision of the tax authority.

c) If the taxpayer is subject to tax liability imposition as per regulations, the tax authority shall impose administrative penalties and calculate late payment interest according to the law.

3. Decision on tax liability imposition

a) When assessing tax, 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 send it to the taxpayer within 03 working days from signing the tax liability imposition decision;

In cases where taxpayers are required to pay tax as notified by the tax authority, the tax authority is not required to issue a tax liability imposition decision under this provision.

b) The taxpayer must pay the assessed tax amount according to the tax management authority's tax handling decision. If the taxpayer disagrees with the tax amount assessed by the tax authority, they still must pay that tax while having the right to request the tax authority to explain or file complaints, lawsuits regarding the tax liability imposition.

Thus, the Head of the Tax Department has the authority to impose tax as regulated.