What are cases where the customs authority calculates and notifies taxes on exports and imports in Vietnam?

What are cases where the customs authority calculates and notifies taxes on exports and imports in Vietnam?

According to Clause 10, Article 13 of Decree 126/2020/ND-CP, the cases where the customs authority calculates and notifies taxes on exports and imports include:

- Taxpayers are subjected to tax imposition by the customs authority according to Article 52 of the Law on Tax Administration 2019 and Article 17 of Decree 126/2020/ND-CP.

- Taxpayers cease operation, do not operate at their registered business address, dissolve, or go bankrupt without completing tax obligations. In such cases, the customs authority calculates and notifies taxes to determine the amount of tax payable by relevant organizations and individuals according to legal regulations.

- The competent state authority requests the customs authority to determine the amount of tax on confiscated exported or imported goods as a basis for legal processing.

- Imported goods that have not paid taxes at the import stage are subject to compulsory enforcement by the competent authority through confiscation and auction sale. For goods that must pay taxes at the import stage, the customs authority calculates and notifies taxes to the authority collecting the auction proceeds for tax payment.

- Taxpayers are administratively penalized for tax management violations. The penalty amount is calculated based on the amount of tax under-declared or evaded.

- Imported goods are exempt from tax, not subject to tax. When the taxpayer mortgages or pledges these goods as collateral for loans, and the credit institution must handle the mortgaged or pledged assets to recover the debt but the taxpayer has not declared a new customs declaration or paid sufficient taxes, the customs authority calculates and notifies the credit institution about the tax amount payable.

- Customs fees; transit fees for goods, luggage, and means of transport.

What are cases where the customs authority calculates and notifies taxes on exports and imports in Vietnam? (Image from the Internet)

What are cases where the tax authority calculates taxes and notifies the tax amount payable according to the taxpayer's tax dossier in Vietnam?

According to Clause 1, Article 13 of Decree 126/2020/ND-CP, the cases where the tax authority calculates taxes and notifies the tax amount payable according to the taxpayer's tax dossier include:

- Personal income tax from inheritance and gifts (excluding inheritance and gifts being real estate as specified at Point a, Clause 2, Article 13 of Decree 126/2020/ND-CP).

- Non-agricultural land use tax for households and individuals (excluding cases of aggregated declarations where taxpayers must self-determine the additional tax amount payable due to aggregated declarations and pay it into the state budget).

- Agricultural land use tax for households and individuals.

- Various taxes, fees, charges, and other collections under the state budget for business households and individuals paying tax under a fixed rate method.

- Land rent and water surface rent applied when there is no decision or contract for land lease (excluding land rent and water surface rent arising in economic zones and high-tech zones).

- License fees for business households and individuals paying tax under the declaration method.

- Before and after fees (excluding houses and land specified at Point a, Clause 2, Article 13 of Decree 126/2020/ND-CP).

- Personal income tax from real estate transfers; from inheritance and gifts being real estate (applicable to cases specified at Points đ.2 and đ.3, Clause 7, Article 11 of Decree 126/2020/ND-CP).

What are responsibilities of taxpayers when the tax authority calculates and notifies the tax amount in Vietnam?

The responsibilities of taxpayers, tax authority, and competent authorities when the tax authority calculates and notifies the tax amount are specified in Clause 11, Article 13 of Decree 126/2020/ND-CP as follows:

* Taxpayer:

Taxpayers are responsible for accurately, honestly, and fully declaring information in their tax dossiers or financial obligation determination dossiers and submitting the dossiers to the tax authority or competent state authority as per legal regulations, and they are responsible for the declared information. They must also provide explanations and additional documents timely as requested by the tax authority.

* Tax authority:

- When the tax authority calculates and notifies the tax amount based on the taxpayer's tax dossier, it must verify the declared information and perform the calculation and notification of taxes. If the information is incomplete or inaccurate, the tax authority will not accept the tax dossier or will notify the taxpayer using Form No. 01/TB-BSTT-NNT in Appendix II issued together with Decree 126/2020/ND-CP to provide additional information or documents or impose tax according to legal regulations.

- When the tax authority calculates and notifies the tax amount based on the financial obligation determination dossier transferred by the competent state authority, it must verify the information in the dossier and perform the tax calculation and notification.

- If the information from the competent state authority is incomplete or incorrect, the tax authority must notify the sending authority in writing within 3 working days from receipt of the dossier for supplemental or corrected information. Upon receiving complete information, the tax authority must calculate and issue the tax payment notice within the time limit specified in the relevant articles of Decree 126/2020/ND-CP.

- The tax authority must notify the tax amount payable according to the determination document of the competent state authority as specified in the relevant articles of Decree 126/2020/ND-CP. If the received information is insufficient, the tax authority must notify the sending authority in writing within 3 working days from the receipt of the document for supplemental or corrected information. Upon receiving complete information, the tax authority must issue the tax payment notice within the prescribed time limit of the relevant articles of Decree 126/2020/ND-CP.

- For the cases specified in Points b, c, d, e, and g, Clause 10, Article 13 of Decree 126/2020/ND-CP, the customs authority uses tax management data and relevant documents to determine tax payable for exports and imports.

* Competent state authorities:

- Ensure the completeness and accuracy of information in the financial obligation determination dossier or document;

- Promptly transfer the complete dossier or document to the tax authority;

- Adjust and supplement information at the request of the tax authority;

- Promptly send adjusted or supplemental documents to the tax authority to adjust tax obligation and previously issued tax notices;

- Collaborate with the tax authority in building an information system to automatically transfer information electronically;

- Commune or ward tax advisory councils have responsibilities as per Article 28 of the Law on Tax Administration 2019 to help the tax authority determine payable taxes for business households and individuals;

- Commune-level People's Committees or land use right registration offices must confirm non-agricultural land use tax information for taxpayers within their responsibilities within 3 working days from the request of the taxpayer or the tax authority.

* Credit institutions:

For imported goods exempt from tax or not subject to tax, mortgaged or pledged by the taxpayer as collateral for loans, when the credit institution must handle these assets to recover the debt but the taxpayer has not filed a new customs declaration or paid sufficient taxes, the credit institution is responsible for providing information on the mortgaged or pledged goods to the customs authority for tax determination. The credit institution must pay the tax on behalf of the taxpayer.