May an erroneous tax declaration dossier be supplemented after 5 years in Vietnam?

May an erroneous tax declaration dossier be supplemented after 5 years in Vietnam?

Based on Article 47 of the 2019 Law on Tax Administration, regulations on filing tax dossier supplementations are as follows:

Filing tax dossier supplementations

1. Taxpayers who discover errors or mistakes in their submitted tax returns are allowed to file additional returns within 10 years from the deadline for submitting the tax return of the tax period with the discrepancy, but before the tax authority or the competent agency announces a decision to inspect or audit.

2. When the tax authority or competent agency has announced a decision to inspect or audit the tax at the taxpayer's headquarters, the taxpayer is still allowed to file tax dossier supplementations; the tax authority will impose administrative sanctions for tax management violations as stipulated in Articles 142 and 143 of this Law.

3. After the tax authority or competent agency has issued tax inspection or audit conclusions or decisions at the taxpayer's headquarters, the filing of tax dossier supplementations is regulated as follows:

a) Taxpayers are allowed to file additional returns for cases that increase the tax payable, decrease deductible tax, or reduce exempted, reduced, or refunded tax and will be subject to administrative sanctions for tax management violations as stipulated in Articles 142 and 143 of this Law;

b) If taxpayers discover errors or mistakes that, when rectified, reduce the tax payable or increase deductible tax, increase exempted, reduced, or refunded tax, they must follow the procedures for resolving tax complaints.

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Taxpayers discovering errors or mistakes in their submitted tax returns may file additional returns within 10 years from the deadline for the tax return of the period with the discrepancy.

Thus, according to the above regulation, tax return errors discovered after 5 years can still be rectified through additional filings.

However, taxpayers need to note that the timing for filing additional returns should be prior to the tax authority or competent agency announcing a decision on inspection or audit.

May an erroneous tax declaration dossier be supplemented after 5 years in Vietnam? (Image from the Internet)

Vietnam: Does an tax dossier supplementation dossier require an explanation for the supplementation?

According to Clause 4, Article 47 of the 2019 Law on Tax Administration, regulations on tax dossier supplementation dossiers are as follows:

- An tax dossier supplementation dossier includes:

+ Additional declaration form;

+ explanation for the supplementation and relevant documents.

- For export, import goods, tax dossier supplementation submissions are conducted in accordance with customs laws.

Thus, an tax dossier supplementation dossier must include an explanation for the supplementation.

What are procedures to submit tax dossier supplementation dossier in 2024?

Based on Clause 4, Article 7 of Decree 126/2020/ND-CP, taxpayers are allowed to submit additional filings for each erroneous tax return as per Article 47 of the 2019 Law on Tax Administration and according to the form specified by the Minister of Finance. Taxpayers should file corrections as follows:

- If the additional filing does not alter the tax obligation, only the explanation for the supplementation and relevant documents need to be submitted, not the Additional Declaration Form.

If the annual tax finalization return has not yet been filed, the taxpayer should file corrections for the erroneous monthly or quarterly tax returns and include the corrected figures in the annual tax finalization return.

If the annual tax finalization return has been submitted, only the annual tax finalization return can be corrected; however, for corrections to personal income tax finalization declarations concerning organizations or individuals paying income from wages or salaries, the corresponding monthly or quarterly declarations must also be corrected.

- If the additional filing results in an increased tax payable or a decrease in tax refunded by the state budget, the taxpayer must pay the additional tax or the excess refunded amount and any late payment interest to the state budget (if any).

If the additional filing only results in an increase or decrease in the deductible value-added tax carried over to the next period, it must be declared in the current tax period. Taxpayers can only file additional claims to increase the refundable value-added tax when the tax return for the subsequent period has not been filed and no tax refund claim has been submitted.