What are contents to be amended to the Law on Tax Administration in Vietnam?

Draft Law amending and supplementing certain articles of the Law on Tax Administration proposed in Vietnam?

According to the latest information, the Ministry of Finance is proposing the development of a project to amend and supplement certain articles of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, and the Law on National Reserves.

Download the Draft Law amending and supplementing certain articles of the Law on Tax Administration: Here

What are contents to be amended to the Law on Tax Administration in Vietnam? (Image from the Internet)

What are contents to be amended to the Law on Tax Administration in Vietnam?

According to Article 6 of the Draft Law amending and supplementing certain articles of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, and the Law on National Reserves, it is expected to amend the Law on Tax Administration 2019 as follows:

(1) Amend and supplement Clause 2 of Article 5 Law on Tax Administration 2019 on the principles of tax administration

Supplement regulations on the responsibility of tax officials to fully perform their assigned duties in accordance with the law to best serve the tax obligations of taxpayers.

(2) Amend and supplement Clause 1 of Article 11 Law on Tax Administration 2019 on modernization of tax administration

Supplement content to promote digital transformation, regulations on electronic invoices, and using the electronic invoice database to organize management measures for the implementation of invoice and document obligations.

(3) Amend and supplement Clause 11 of Article 15 Law on Tax Administration 2019 on the duties, powers, and responsibilities of Ministries, Ministry-equivalent agencies, and agencies under the Government of Vietnam in tax administration

Supplement regulations on the responsibilities of related ministries (Ministry of Industry and Trade, Ministry of Public Security, Ministry of Information and Communications, Ministry of Planning and Investment, Ministry of Transportation, State Bank of Vietnam, and other related ministries) to coordinate in building databases, providing information, and connecting to share data related to business entities in the field of e-commerce and digital platform business to serve the tax management of e-commerce activities.

(4) Amend and supplement Clause 8 of Article 16 Law on Tax Administration 2019 on the rights of taxpayers

Supplement regulations regarding the rights of taxpayers to be compensated for damages caused by tax management agencies and tax officials in accordance with the law on State compensation liability.

(5) Amend Clause 4 of Article 42 Law on Tax Administration 2019 on the principles of tax declaration and tax calculation

Amend regulations for foreign providers when conducting e-commerce, digital platform business, and other services to declare and pay taxes through the General Department of Taxation's Electronic Portal, regardless of whether they have a permanent establishment in Vietnam.

Supplement regulations on cases of declaring and paying taxes on behalf of business households and individuals engaged in e-commerce, and direct tax declaration for business households and individuals engaged in e-commerce to reform administrative procedures, focus on centralized tax declaration, and respond to the unique requirements of e-commerce activities while broadening revenue sources and promoting economic growth.

(6) Amend and supplement Point b Clause 2 of Article 59 Law on Tax Administration 2019 on handling late payment of tax

Amend and supplement regulations on the time frame for calculating late payment from the day following the last day of the tax payment deadline, the tax payment extension deadline, or the date specified in tax assessment or handling notification or decision of the tax administration agency to ensure consistency in the rules for calculating late payment under the Law on Tax Administration and its guiding documents.

(7) Amend and supplement Clause 1 of Article 66 Law on Tax Administration 2019 on handling late payment of tax

Add individuals who are legal representatives of businesses under Clause 7 of Article 124 of the Law on Tax Administration to Clause 1 of Article 66 Law on Tax Administration 2019 for consistency, and additionally include individuals who are legal representatives of cooperatives, cooperative unions, heads of business households, and individual businesses as subjects who may be temporarily suspended from exit.

(8) Amend and supplement Clause 1 of Article 76 Law on Tax Administration 2019 on the authority to decide tax refunds

Supplement regulations on the authority to decide tax refunds of the Director-General of the Large Business Tax Department, Director of the Tax Department, and Area Tax Department Directors to bind the responsibility of the tax administration agency directly managing taxpayers who receive tax refund files, so that this tax administration agency handles the tax refund.

(9) Amend and supplement Clause 1 of Article 90 Law on Tax Administration 2019 on principles for the issuance, management, and use of electronic invoices

Supplement principles for electronic invoices of organizations and individuals when conducting e-commerce, digital platform business, and other services in accordance with the regulations of the Government of Vietnam to ensure fairness and consistency with the laws on value-added tax.

(10) Amend and supplement Article 98 Law on Tax Administration 2019 (add Point e to Clause 2; add Clause 4a after Clause 4) on the responsibility of organizations and individuals related to providing taxpayer information

Supplement regulations on the responsibility of providing information to the management of identity cards for the use of personal identification numbers instead of taxpayer identification numbers. Codify regulations on the responsibility of e-commerce platform service providers and logistics service providers supporting e-commerce activities to enhance tax management efficiency and prevent tax evasion in e-commerce activities.

(11) Amend and supplement Points b and c Clause 3 of Article 125 Law on Tax Administration 2019 and add Point d to Clause 3 of Article 125 Law on Tax Administration 2019 on enforcement measures for implementing administrative decisions on tax management

Amend and supplement regulations so that the tax administration agency only applies enforcement measures (asset seizure and third-party enforcement) when there is sufficient information and conditions to implement enforcement, not mandatory for all subjects, to help the tax administration agency focus resources on key subjects with the potential to recover debt, thereby enhancing the efficiency of tax debt enforcement.

Remove qualitative regulations such as "some measures", "ineffectiveness" because the tax administration agency finds it difficult to determine and implement. Add principles for taxpayers who disperse assets or escape so that appropriate enforcement measures can be promptly applied among the seven enforcement measures to quickly collect tax arrears into the state budget.

What are contents to be abolished from the Law on Tax Administration in Vietnam?

According to Clauses 8 and 12 of Article 6 of the Draft Law amending and supplementing certain articles of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, and the Law on National Reserves, it is expected to abolish the following contents from the Law on Tax Administration 2019:

(1) Abolish Clause 3 of Article 75 Law on Tax Administration 2019 on the timeframe for resolving tax refund dossiers

Abolish Clause 3 of Article 75 Law on Tax Administration 2019 (taxpayers' claims related to interest payments by tax agencies shall be handled according to the provisions of the Law on State Compensation Liability 2017).

(2) Abolish Clause 7 of Article 124 Law on Tax Administration 2019 on cases subject to enforcement of administrative decisions on tax management

Abolish the provisions of Clause 7 of Article 124 Law on Tax Administration 2019 to unify the subjects specified in the Law on Tax Administration in the case of exit to enhance the effectiveness of tax debt collection.