Is the Customs Department a tax authority in Vietnam?

Is the Customs Department a tax authority in Vietnam?

Pursuant to Article 2 of the Law on Tax Administration2019, it is stipulated as follows:

Subjects of application

1. Taxpayers include:

a) Organizations, households, business households, and individuals that pay taxes according to tax laws;

b) Organizations, households, business households, individuals that pay other revenue items belonging to the state budget;

c) Organizations and individuals that deduct taxes.

2. Tax administration agencies include:

a) Tax agencies, which include the General Department of Taxation, Departments of Taxation, Sub-Departments of Taxation, and Regional Tax Sub-Departments;

b) Customs agencies, which include the General Department of Customs, Departments of Customs, Post-Clearance Audit Department, Customs Sub-Departments.

3. Tax administration officers include tax officials and customs officials.

4. Other related state agencies, organizations, and individuals.

Tax administration agencies include tax agencies and customs agencies, comprising:

- Tax agencies include the General Department of Taxation, Departments of Taxation, Sub-Departments of Taxation, Regional Tax Sub-Departments;

- Customs agencies include the General Department of Customs, Departments of Customs, Post-Clearance Audit Department, Customs Sub-Departments.

Thus, the Customs Department is one of the tax administration agencies.

Is the Customs Department a tax authority in Vietnam? (Image from the Internet)

Must the tax authority ensure the principle of ensuring legitimate rights and benefits of taxpayers when managing taxes?

Pursuant to Article 5 of the Law on Tax Administration2019 regarding the principles of tax administration, it is stipulated as follows:

Principles of tax administration

1. Every organization, household, business household, and individual is obliged to pay taxes according to the law.

2. Tax administration agencies and other state agencies assigned the task of managing revenues shall perform tax administration in accordance with this Law and other related legal provisions, ensuring transparency, equality, and protection of the lawful rights and interests of taxpayers.

3. Agencies, organizations, and individuals are responsible for participating in tax administration in accordance with the law.

4. Undertake administrative reform and apply modern information technology in tax administration; adopt tax administration principles in line with international practices, including the principles that the nature of activity and transaction determines tax obligations, risk management principles in tax administration, and other principles suitable to the conditions of Vietnam.

5. Apply preferential measures in carrying out tax procedures for export and import goods in accordance with customs laws and regulations of the Government of Vietnam.

Tax administration agencies, when performing tax administration duties, must perform tax administration in accordance with the Law on Tax Administration2019 and other related legal provisions, and must ensure transparency, equality, and protection of the lawful rights and interests of taxpayers.

Thus, according to the above regulations, when managing taxes, the tax authority must ensure the principle of ensuring legitimate rights and benefits of taxpayers.

Does the tax authority have the authority to consider tax exemptions in Vietnam?

The 11 duties of the tax authority are stipulated in Article 18 of the Law on Tax Administration2019 and include:

(1) Organize the implementation of tax collection management and other collections that belong to the state budget in accordance with tax laws and other related legal provisions.

(2) Propagate, disseminate, and guide tax law; publicly display tax procedures at the office, on the tax authority's website, and in public media.

(3) Provide explanations and information related to determining tax obligations to taxpayers; the tax agency has the responsibility to make public the amount of tax payable by business households and individual businesses on commune, ward, or commune-level town jurisdictions.

(4) Keep confidential information of taxpayers, except for information provided to competent agencies or information publicly disclosed according to legal provisions.

(5) Implement tax exemptions; tax reductions; tax debt cancellation, late payment interest, and penalties; exemption from late payment interest and penalties; non-calculation of late payment interest; tax payment extension; installment payment of tax debt; tax debt freezing, non-collection of tax; handling of overpaid tax, late payment interest, and penalties; tax refund according to this Law and other related legal provisions.

(6) Certify taxpayers' fulfillment of tax obligations when requested according to legal provisions.

(7) Resolve complaints and denunciations related to tax law implementation within their competence.

(8) Issue documents, conclusions, and decisions on tax handling after tax inspection and audit to taxpayers and provide explanations upon request.

(9) Compensate taxpayers for damages according to the law on state liability.

(10) Appraise to determine the tax amount payable by taxpayers upon request from competent state agencies.

(11) Develop and organize electronic information systems and apply information technology to perform electronic transactions in the tax sector.

Thus, it is evident that among the 11 duties of the tax agency, the tax authority does have the authority to consider tax exemptions.