Shall tax liability be imposed if the taxpayer fails to apply for taxpayer registration in Vietnam?

Shall tax liability be imposed if the taxpayer fails to apply for taxpayer registration in Vietnam?

According to Clause 1, Article 14 of Decree 126/2020/ND-CP, the cases subject to tax liability imposition are specified as follows:

Cases of tax liability imposition

Taxpayers are imposed with tax amounts to be paid by the tax authorities in the following cases:

1. Failure to register as a taxpayer according to the provisions of Article 33 of the Law on Tax Administration.

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Thus, failure to register as a taxpayer as prescribed will be subject to tax liability imposition.

Shall tax liability be imposed if the taxpayer fails to apply for taxpayer registration in Vietnam? (Image from the Internet)

Apart from failing to apply for taxpayer registration, in what other cases do tax authorities impose taxes in Vietnam?

According to Article 14 of Decree 126/2020/ND-CP, besides the case of failing to apply for taxpayer registration, the tax authority imposes taxes in the following cases:

- Failure to file tax returns or incomplete, dishonest, and inaccurate fillings according to the provisions of Article 42 of the 2019 Law on Tax Administration.

- Failure to submit supplementary tax documents as required by the tax authority, or submitting supplementary tax documents that are incomplete, dishonest, and inaccurate for imposing the taxable amount.

- Failure to reflect or adequately and accurately reflect data on accounting books to impose tax obligations.

- Failure to present accounting books, invoices, documents, and necessary materials related to the imposition of elements for tax calculation; imposition of the tax amount payable within the specified timeframe or upon the expiration of the tax inspection or tax audit at the taxpayer's headquarters.

- Failure to comply with tax inspection decisions within 10 working days from the date of signing the decision, except for cases where the inspection time is postponed according to regulations.

- Failure to comply with tax audit decisions within 15 days from the date of signing the decision, except for cases where the audit time is postponed according to regulations.

- Purchasing, selling, exchanging, and recording the value of goods and services not according to the usual transaction value on the market.

- Purchasing or exchanging goods and services using illegal invoices or using illegal invoices when the actual goods and services exist according to the imposition of the investigative, inspection, and audit authority, and declaring the revenue and expenses for tax calculation.

- Exhibiting signs of absconding or dispersing assets to avoid tax obligations.

- Conducting transactions that do not reflect the economic substance, incorrectly reflecting actual occurrences to reduce the taxpayer's tax obligations.

- Non-compliance with regulations on declaring, imposing transaction prices involved with related parties or failing to provide information as prescribed on tax management regarding enterprises with related party transactions.

What are the authority, procedures, and decisions for tax liability imposition in Vietnam?

According to Article 16 of Decree 126/2020/ND-CP, the authority, procedures, and decisions for tax liability imposition are specified as follows:

* Authority for tax liability imposition

The General Director of the General Department of Taxation, the Director of the Tax Department, the Head of the Tax Sub-department have the authority to impose taxes.

* Procedures for tax liability imposition

- When imposing taxes, the tax authority informs the taxpayer in writing about the tax liability imposition and issues a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for the tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment.

- If the tax liability imposition is conducted through tax inspection or tax audit, the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection, tax audit minutes, and the tax handling decision of the tax authority.

- If the taxpayer is imposed to owe taxes according to regulations, the tax authority imposes administrative penalties and calculates late payment of taxes according to legal provisions.

* tax liability imposition decision

- When imposing taxes, the tax authority must issue a tax liability imposition decision and simultaneously send it to the taxpayer within 3 working days from the date of signing the tax liability imposition decision;

If the taxpayer falls into the category of paying taxes following the notification of the tax authority, the tax authority is not required to issue a tax liability imposition decision as prescribed in Clause 3, Article 16 of Decree 126/2020/ND-CP.

- The taxpayer must pay the imposed tax amount according to the tax handling decision of the tax management authority. If the taxpayer disagrees with the imposed tax amount, they must still pay the tax amount while having the right to request an explanation from the tax authority or file a complaint or lawsuit regarding the tax liability imposition.

What are the principles of tax liability imposition in Vietnam?

According to Article 49 of the 2019 Law on Tax Administration, the principles of tax liability imposition are as follows:

- tax liability imposition must be based on tax management principles, tax calculation bases, and tax calculation methods according to the provisions of tax law and customs law.

- Tax management authorities impose the payable tax amount or impose individual elements, tax calculation bases to identify the payable tax amount.