What are regulations on the fulfillment of tax liability upon enterprise rearrangement in Vietnam?

What are regulations on the fulfillment of tax liability upon enterprise rearrangement in Vietnam?

According to Article 68 of the Law on Tax Administration 2019, specific regulations on fulfillment of tax liability upon enterprise rearrangement are as follows:

[1] An enterprise that is being divided has the responsibility to complete its tax liability before proceeding with the division; if the tax liability have not been completed, the newly established enterprises formed from the divided enterprise have the responsibility to fulfill these tax liability.

[2] An enterprise that is being divided, merged, or consolidated must complete its tax liability before the division, merger, or consolidation takes place; if the tax liability have not been completed, the divided enterprise, the new enterprise formed from the division, the merged enterprise, and the enterprise receiving the consolidation have the responsibility to complete the tax liability.

[3] An enterprise that is converting its business type must fulfill its tax liability before the conversion; if the tax liability have not been completed, the converted enterprise has the responsibility to fulfill these tax liability.

[4] The reorganization of an enterprise does not alter the tax payment deadlines for the reorganized enterprise. If the reorganized enterprise or newly established enterprises fail to pay taxes as per the prescribed deadlines, penalties will be imposed in accordance with the law.

What are regulations on the fulfillment of tax liability upon enterprise rearrangement in Vietnam? (Image from the Internet)

When is the tax payment deadline in Vietnam?

According to Article 55 of the Law on Tax Administration 2019, specific regulations regarding tax payment deadlines are as follows:

[1] In cases where taxpayers calculate tax, the latest tax payment deadline is the last day of submitting the tax declaration. For supplementary tax declarations, the deadline aligns with that of the tax period in which errors were found.

- For corporate income tax, provisional payments are made quarterly, with the payment deadline being the 30th day of the first month of the subsequent quarter.

- For crude oil, the payment deadline for natural resource tax and corporate income tax following each crude oil sale is 35 days from the sale date for domestic sales or from customs clearance for exports as per customs law.

- For natural gas, the taxes are paid monthly.

[2] If the tax authorities calculate the tax, the payment deadline is indicated in the notice from the tax authorities.

[3] For other state budget revenue from land, fees for granting water resource exploitation rights, mineral resources, registration fees, and license fees, the deadline is as specified by the Government of Vietnam.

[4] For export and import goods subject to tax under tax law, the tax payment deadline follows the Export and Import Tax Law. If payable tax amounts arise after the goods have been cleared or released, the tax deadline is as follows:

- The supplementary declaration tax and assessed tax payment follow the original customs declaration deadline.

- The payment deadline for goods requiring analysis or inspection to accurately determine payable tax, and goods without official prices at the customs declaration registration time; or goods with indeterminate sums payable at the customs declaration time, follows the Ministry of Finance's regulations.

Where and how to pay taxes in Vietnam?

According to Article 56 of the Law on Tax Administration 2019, specific regulations on locations and methods of tax payment are as follows:

[1] Taxpayers pay taxes into the state budget as per the following arrangements:

- At the State Treasury;

- At the tax management authority receiving the tax declaration;

- Through organizations authorized by the tax management to collect taxes;

- Via commercial banks, other credit institutions, and service organizations as prescribed by law.

[2] The State Treasury, commercial banks, other credit institutions, and service organizations are required to provide locations, means, officials, and staff to ensure taxpayers can promptly pay taxes into the state budget.

[3] Agencies and organizations, upon receiving or deducting tax payments, must issue taxpayers with documentation of the tax payments received.

[4] Within 8 working hours from collecting taxes from taxpayers, the receiving agency or organization must transfer the funds to the state budget. For cash tax collection in remote, island, or difficult areas, the transfer deadline is guided by the Ministry of Finance.