What are rules for declaring tax with predetermined taxable price calculation method in Vietnam?

What are rules for declaring tax with predetermined taxable price calculation method in Vietnam?

Based on Clause 6, Article 42 of the Law on Tax Administration 2019, the rules for declaring tax with the predetermined taxable price calculation method are stipulated as follows:

- The application of the predetermined taxable price calculation method for determining taxable prices is conducted based on the request of the taxpayer, with an agreement between the tax authority and the taxpayer. This involves unilateral, bilateral, and multilateral agreements between the tax authority, taxpayer, and foreign tax authorities or relevant territories.

- The application of the predetermined taxable price calculation method must be based on the taxpayer's information, commercial databases with verified legal validity.

- The application of the predetermined taxable price calculation method must be approved by the Minister of Finance before implementation. For bilateral and multilateral agreements involving foreign tax authorities, the implementation follows the provisions of the law on international treaties and international agreements.

What are rules for declaring tax with predetermined taxable price calculation method in Vietnam? (Image from the Internet)

When is the taxpayer exempt from submitting a tax declaration dossier in Vietnam?

According to Clause 3, Article 7 of Decree 126/2020/ND-CP (supplemented by Clause 2, Article 1 of Decree 91/2022/ND-CP), taxpayers are not required to submit tax declaration dossiers in the following cases:

- The taxpayer only has activities or businesses that are not subject to tax according to the law on each type of tax.

- Individuals with tax-exempt income under the law on personal income tax and as stipulated at point b, clause 2, Article 79 of the Law on Tax Administration 2019, except for individuals receiving inheritance or gifts as real estate, or transferring real estate.

- Export processing enterprises with only export activities are not required to submit value-added tax declaration dossiers.

- Taxpayers temporarily ceasing operations or business activities according to Article 4 of Decree 126/2020/ND-CP.

- Taxpayers submitting dossiers to terminate tax registration, except in cases of termination of operations, termination of contracts, or reorganization of enterprises as per clause 4, Article 44 of the Law on Tax Administration 2019.

- Personal income tax declarants who are organizations or individuals paying income subject to personal income tax declaration on a monthly or quarterly basis, provided there is no deduction of personal income tax for the income recipient in that month or quarter.

What are the responsibilities of taxpayers in Vietnam?

Based on the provisions of Article 17 of the Law on Tax Administration 2019, taxpayers have the following responsibilities:

(1) Perform taxpayer registration and use their tax identification number as prescribed by law.

(2) Accurately, truthfully, and fully declare taxes and submit tax dossiers on time; bear responsibility before the law for the accuracy, truthfulness, and completeness of tax dossiers.

(3) Fully and timely pay taxes, late payment penalties, fines, and do so at the correct location.

(4) Comply with accounting, statistics, and invoice management policies as prescribed by law.

(5) Accurately, truthfully, and fully record activities generating tax obligations, tax deductions, and transactions requiring tax information declaration.

(6) Prepare and provide invoices and documents to the buyer according to the correct quantity, type, and actual payment value when selling goods and providing services as prescribed by law.

(7) Provide accurate, complete, and prompt information and documents related to tax obligation determination, including investment value information; account numbers and transaction content with banks and other credit institutions; explain taxation, tax declaration, and tax payment as required by the tax administration authority.

(8) Comply with decisions, notifications, and requirements of the tax administration authority or tax officials as prescribed by law.

(9) Bear responsibility for executing tax obligations according to law if a legal representative or authorized representative incorrectly handles tax procedures.

(10) Taxpayers conducting business in areas with information technology infrastructure must declare, pay taxes, and conduct transactions with tax authorities electronically according to the law.

(11) Based on the actual situation and information technology equipment conditions, the Government of Vietnam details cases where taxpayers do not need to submit documents in tax declarations, tax payments, tax refund dossiers, and other tax records already held by state management agencies.

(12) Develop, manage, and operate technical infrastructure systems to ensure electronic transactions with tax authorities, apply information connections related to tax obligation fulfillment with tax authorities.

(13) Taxpayers with associated transactions must prepare, store, declare, and provide information dossiers about the taxpayer and associated entities, including those residing in countries or territories outside Vietnam, as stipulated by the Government of Vietnam.