What are cases where taxpayers self-determine the amount of tax exemption or reduction in Vietnam?

What are cases where taxpayers self-determine the amount of tax exemption or reduction in Vietnam?

Based on Clause 1, Article 51 of Circular 80/2021/TT-BTC, the cases in which taxpayers can self-determine the amount of tax exemption or reduction include:

(1) Corporate income tax: Taxpayers eligible for tax rate incentives, tax exemption and reduction periods, and tax-exempt income as per corporate income tax laws;

(2) Natural resource tax: Organizations and individuals extracting natural aquatic products that are exempt from natural resource tax; individuals permitted to exploit branches, twigs, firewood, bamboo, reeds, rattan, ma, giang, thatch, vầu, and lồ ô for household use that are exempt from natural resource tax; natural water extracted by households and individuals for domestic use; natural water used for hydropower production by households and individuals for domestic use; land extracted and used on-site within the allocated or leased land area; land extracted for leveling and constructing security, military, and dyke works;

(3) License fee: Taxpayers eligible for license fee exemptions as stipulated in Article 3 of Decree 139/2016/ND-CP and Clause 1, Article 1 of Decree 22/2020/ND-CP.

(4) Personal income tax: Individuals with income from wages and salaries that results in tax payable after annual finalization of up to 50,000 VND;

(5) Other cases: Taxpayers self-determine the amount of tax exemption or reduction in their tax declaration dossier or the tax exemption/reduction dossier submitted to the direct managing tax authority or the tax authority managing state budget revenue collection, except for cases guided in Clause 1, Article 52 of Circular 80/2021/TT-BTC.

What are cases where taxpayers self-determine the amount of tax exemption or reduction in Vietnam? (Image from the Internet)

What are procedures for tax exemption or reduction dossiers in cases where taxpayers self-determine the amount of tax exemption or reduction

Based on Clause 2, Article 51 of Circular 80/2021/TT-BTC, the procedures for tax exemption or reduction dossiers in cases where taxpayers self-determine the amount of tax exemption or reduction are as follows:

(1) For corporate income tax as per Clause 1, Article 51 of Circular 80/2021/TT-BTC

- Tax finalization declaration form;

- Appendix of corporate income tax incentives;

- Documents related to determining the amount of tax exemption or reduction.

(2) For natural resource tax as per Clause 1, Article 51 of Circular 80/2021/TT-BTC

- Organizations and individuals are not required to make monthly natural resource tax declaration and annual natural resource tax finalization.

- Procedures for tax exemption for individuals permitted to exploit branches, twigs, firewood, bamboo, reeds, rattan, ma, giang, thatch, vầu, lồ ô for household use:

A tax exemption request form according to form 06/MGTH issued with Appendix I of Circular 80/2021/TT-BTC, with certification from the commune-level People's Committee where the individual resides. This document is submitted once before exploitation to the Tax Department where the individual resides.

- Procedures for tax exemption for natural water used for hydropower production by households and individuals for domestic use:

A tax exemption request form according to form 06/MGTH issued with Appendix I of Circular 80/2021/TT-BTC, accompanied by an explanation of hydropower production equipment for household use, certified by the commune-level People's Committee where the individual resides. This dossier is submitted once before exploitation to the directly managing tax authority where the exploitation occurs.

- Procedures for tax exemption for land extracted and used on-site within the allocated or leased land area; land extracted for leveling and constructing security, military, and dyke works:

Organizations and individuals who are allocated or leased land should submit a request form according to form 06/MGTH issued with Circular 80/2021/TT-BTC, accompanied by a copy of the approved dossier by the competent authority regarding local construction works of the investor, security, military, and dyke works; in cases where the contractor unit performs the construction, a contractual agreement with the investor is required. This dossier is submitted to the directly managing tax authority where the extraction occurs before exploitation to enjoy natural resource tax exemption.

(3) In cases where organizations and individuals extract natural aquatic products, natural water extracted by households and individuals for domestic use is exempt from natural resource tax and cases where taxpayers self-determine the amount of tax exemption or reduction guided at points c and d of Clause 1, Article 51 of Circular 80/2021/TT-BTC, there is no need to carry out procedures for tax exemption or reduction.

What is the time limit for processing tax exemption or reduction dossiers?

Based on Clause 1, Article 64 of Circular 80/2021/TT-BTC, the following is stipulated:

Time limit and results for processing tax exemption or reduction dossiers

1. Time limit for resolving tax exemption or reduction

Within 30 days from the date of receipt of a complete dossier, the tax authority receiving the dossier issues a decision on tax exemption or reduction; issues a written notification to the taxpayer if they do not qualify for tax exemption or reduction; or informs whether the taxpayer qualifies for tax exemption or reduction per the Tax Agreement or another international treaty.

In cases where on-site inspection is required to gather sufficient grounds for resolving tax exemption or reduction dossiers, the time limit is 40 days from the date of receipt of a complete dossier, the tax authority issues a decision on tax exemption or reduction; issues a written notification to the taxpayer if they do not qualify for tax exemption or reduction; or informs whether the taxpayer qualifies for tax exemption or reduction per the Tax Agreement or another international treaty.

For cases where the tax authority receives tax exemption or reduction dossiers together with tax declaration dossiers through the one-stop-shop mechanism, the processing time is 5 working days from the date of receipt of a lawful, valid, and properly formatted tax exemption or reduction dossier as transferred by the receiving authority through the one-stop mechanism, the tax authority determines the amount eligible for tax exemption or reduction or issues a written notification to the taxpayer of the reasons for non-qualification for tax exemption or reduction.

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The time limit for processing tax exemption or reduction dossiers is 30 days from the date of receipt of a complete dossier by the tax authority receiving the dossier or 40 days if on-site inspection is required to gather sufficient grounds for resolving the tax exemption or reduction dossier.