Vietnam: Can a tax return that was submitted to the tax authorities and found to be incorrect after 5 years be supplemented?

Vietnam: Can a tax return that was submitted to the tax authorities and found to be incorrect after 5 years be supplemented?

According to Clause 1, Article 47 of the Tax Administration Law 2019, regulations on the supplementation of tax returns are as follows:

Supplementing Tax Returns

1. If the taxpayer discovers that the tax return submitted to the tax authority has errors or omissions, they are entitled to supplement the tax return within 10 years from the deadline for submitting the tax return of the tax period that has errors or omissions, but before the tax authority or competent authority announces the decision of inspection, examination.

2. When the tax authority or competent authority has announced the decision to inspect or examine tax at the taxpayer's headquarters, the taxpayer is still allowed to supplement the tax return. The tax authority will impose administrative sanctions for tax management violations in accordance with Articles 142 and 143 of this Law.

3. After the tax authority or competent authority has issued a conclusion or decision on tax handling after the inspection or examination at the taxpayer's headquarters, the supplementation of tax returns is regulated as follows:

a) The taxpayer is allowed to supplement the tax return in cases where it increases the amount of tax payable, reduces the amount of deductible tax, or reduces the amount of tax exempted, reduced, or refunded, and is subject to administrative sanctions for tax management violations in accordance with Articles 142 and 143 of this Law;

b) If the taxpayer discovers errors or omissions in the tax return that result in a reduction of the tax payable, an increase in the deductible tax, or an increase in the exempted, reduced, or refunded tax, it must be handled according to the regulations on tax complaint resolution.

4. Supplementary tax return documents include:

a) Supplementary tax return;

b) Supplementary explanatory report and relevant documents.

5. For export and import goods, the supplementation of tax returns is carried out according to the provisions of customs law.

Therefore, according to the above regulations, if a taxpayer discovers that a tax return submitted to the tax authorities has errors after 5 years, it can still be supplemented, with this period extending up to a maximum of 10 years.

*Note: The deadline for submitting supplementary tax returns is calculated from the deadline for submitting the tax return of the tax period that has errors, but before the tax authority or competent authority announces the decision of inspection or examination.

Vietnam: Can a tax return that was submitted to the tax authorities and found to be incorrect after 5 years be supplemented? (Image from the Internet)

What is the responsibility of the tax authorities in Vietnam in receiving supplementary tax returns?

According to Article 48 of the Tax Administration Law 2019, the responsibility of the tax authorities in receiving supplementary tax returns is as follows:

- The tax authority receives the taxpayer's tax return through the following forms:

+ Direct receipt at the tax management office;

+ Receipt of mail through postal services;

+ Receipt of electronic files through the electronic transaction portal of the tax management office.

- The tax authority, upon receiving the tax returns, shall issue a notification of receipt to the taxpayer; in cases where the tax return is not valid, not complete, or not in the prescribed format, notify the taxpayer within 03 working days from the date of receipt.

Thus, if a taxpayer finds their submitted tax return incomplete after submission to any tax authority, they should contact that tax authority directly and send the supplementary documents in person or via postal services... Please contact the tax authority for the most accurate information.

Are taxpayers who suspend business operations for less than a month required to submit tax returns in Vietnam?

According to Clause 2, Article 4 of Decree 126/2020/ND-CP, the regulation is as follows:

Tax management for taxpayers during temporary suspension of operations, business

...

2. During the period of temporary suspension of operations, business:

a) Taxpayers are not required to submit tax returns, except where taxpayers temporarily suspend operations, business for less than a full month, quarter, calendar year, or financial year and still must submit monthly, quarterly, and annual settlement tax returns.

b) Business households and individual business taxpayers who submit tax according to the presumptive method temporarily suspend operations, business will have their tax obligations reassessed by the tax authority in accordance with regulations of the Minister of Finance.

c) Taxpayers are not allowed to use invoices and are not required to submit reports on the use of invoices. If the taxpayer is permitted by the tax authority to use invoices in accordance with the law on invoices, they must submit tax returns and reports on the use of invoices as prescribed.

d) Taxpayers must comply with decisions, notifications of the tax management authority on debt collection, enforcement of administrative decisions on tax management, inspection, examination of tax compliance, and handling of administrative violations on tax management in accordance with the Tax Administration Law.

...

During the period when taxpayers temporarily suspend business operations, they are not required to submit tax returns.

However, except in cases where taxpayers temporarily suspend operations, business for less than a full month, quarter, calendar year, or financial year, they must still submit monthly, quarterly, and annual settlement tax returns.

Thus, taxpayers who temporarily suspend business operations for less than a month are still required to submit monthly tax returns.