What are principles of tax administration in Vietnam?

What are principles of tax administration in Vietnam?

Pursuant to Article 5 of the 2019 Tax Administration Law, there are 05 principles for implementing tax administration as follows:

- All organizations, households, businesses, and individuals have the obligation to pay taxes as prescribed by law.

- Tax administration agencies and other State agencies assigned the task of tax collection management shall perform tax administration in accordance with this Law and other relevant legal regulations, ensuring transparency, equality, and protecting the lawful rights and interests of taxpayers.

- Agencies, organizations, and individuals are responsible for participating in tax administration as prescribed by law.

- Implement administrative procedure reforms and apply modern information technology in tax administration; apply international tax administration principles, including the principle that the substance of operations and transactions determines tax obligations, risk management principles in tax administration, and other principles suitable to Vietnam’s conditions.

- Apply preferential measures when performing tax procedures for exported and imported goods in accordance with the customs law and the regulations of the Government of Vietnam.

What are principles of tax administration in Vietnam? (Image from the Internet)

What are the powers of tax administration agencies in Vietnam?

Pursuant to Article 19 of the 2019 Tax Administration Law, the powers of tax administration agencies are as follows:

- Require taxpayers to provide information and documents related to the determination of tax obligations, including information on investment value; transaction numbers, and content of accounts opened at commercial banks, other credit institutions, and explain tax calculation, declaration, and payment.

- Require organizations and individuals to provide information and documents related to the determination of tax obligations and cooperate with tax administration agencies to implement tax laws.

- Conduct tax inspections and audits as prescribed by law.

- Determine taxes to be imposed.

- Enforce the execution of administrative decisions on tax administration.

- Penalize administrative violations in tax administration within their authority; make public on mass media the cases of law violations concerning taxes.

- Apply preventive measures to ensure the penalization of administrative violations in tax administration as prescribed by law.

- Delegate agencies, organizations, and individuals to collect certain types of taxes as prescribed by the Government of Vietnam.

- Tax agencies apply pre-agreement mechanisms on methods of determining taxable prices with taxpayers, with foreign tax agencies, and territories with which Vietnam has signed an agreement to avoid double taxation and prevent tax evasion on income tax.

- Purchase information, documents, and data from domestic and foreign suppliers for tax administration purposes; pay the cost of tax collection delegation from the collected taxes or from the tax administration agency's budget as prescribed by the Government of Vietnam.

What are the principles of administrative sanctioning for tax administration violations in Vietnam?

According to Article 136 of the 2019 Tax Administration Law, the principles for handling administrative violations in tax administration are as follows:

- Handling of administrative violations in tax administration is carried out according to the provisions of the ax Administration Law and the law on handling administrative violations.

- Administrative violations related to the illegal use of invoices, illegal use of non-conformable invoices leading to tax deficiencies or tax evasion shall not be subject to administrative penalties regarding invoices but instead, administrative penalties for tax administration.

- The maximum fine for acts of incorrect declaration leading to tax deficiencies or increasing the tax amount eligible for exemption, reduction, refund, non-collection, or acts of tax evasion is implemented according to the 2019 Tax Administration Law.

- For the same act of administrative violation in tax administration, the fine imposed on organizations is twice the fine imposed on individuals, except for the fine for acts of incorrect declaration leading to tax deficiencies or increasing the tax amount eligible for exemption, reduction, refund, or non-collection, tax evasion.

- In the case where taxpayers are subject to tax imposition as prescribed in Articles 50 and 52 of the 2019 Tax Administration Law, depending on the nature and severity of the violation, administrative penalties may be imposed according to the 2019 Tax Administration Law.

- An authorized person performing official duties who detects an administrative violation in tax administration is responsible for making a record of the administrative violation as prescribed.

In cases where taxpayers register, submit tax declarations, and settle taxes electronically, if the electronic notification of receipt of the taxpayer’s registration, tax declaration, and tax settlement files clearly identify an administrative violation of tax administration by the taxpayer, this notification serves as an administrative violation record as a basis for issuance of a penalty decision.

- In cases where violations of Tax Administration Laws reach the level of criminal liability, the provisions of criminal law shall apply.