What are supervisory tax authorities in Vietnam?

What are the supervisory tax authorities in Vietnam?

According to the provisions at Clause 5 Article 3 of Circular 80/2021/TT-BTC, the supervisory tax authorities include:

[1] The tax authority managing the area of the taxpayer’s head office, except as stipulated in item [3];

[2] The tax authority managing the area where the taxpayer has a dependent unit located in a different province than the head office, but the dependent unit directly declares taxes with the tax authority in that area;

[3] The Large Business Tax Department under the General Department of Taxation established according to provisions in Decision 15/2021/QD-TTg;

[4] For individuals with income from salaries and wages, the directly managing tax authority is the one issuing the tax code and may change according to the tax authority handling the tax settlement for the individual as per regulations;

[5] For individuals receiving inheritance or gifts in the form of securities or capital contributions in economic organizations or business establishments in Vietnam, who are subject to direct tax declaration with the tax authority, the directly managing tax authority is the one managing the issuing unit; in cases where multiple tax authorities manage different issuing units, the directly managing tax authority is the one where the individual receiving the inheritance or gifts resides.

The directly managing tax authority can be stated on the Taxpayer Registration Certificate or the Tax Code Notification or Notification of Managing Tax Authority or Notification of Assignment of Managing Tax Authority when granting enterprise code, cooperative code, tax code, or when changing registration information or reassigning managing tax authority according to legal regulations.

What are supervisory tax authorities in Vietnam? (Image from the Internet)

What are the responsibilities of the supervisory tax authority in Vietnam?

The responsibilities for tax management of the supervisory tax authority are stipulated in Clause 1 Article 5 of Circular 80/2021/TT-BTC as follows:

The directly managing tax authority is responsible for fully implementing regulations on tax management for taxpayers as per Law on Tax Administration 2019 and guiding documents (except for regulations in Clause 3 Article 5 of Circular 80/2021/TT-BTC), specifically:

- Receiving tax declaration dossiers, extending the deadline for submission of tax declarations, and implementing penalties for tax-related violations associated with the submission of tax declarations.

- Calculating late payment interest, adjusting late payment interest of taxpayers.

- Guiding and urging taxpayers to declare and pay money into the state budget.

- Implementing measures for urging tax debts and enforcing tax debts.

- Receiving and resolving applications for tax deferral, gradual tax payments, debt rescheduling, debt write-off, exemption from late payment interest, and non-calculation of late payment interest.

- Receiving and resolving documents requesting the handling of overpaid amounts by taxpayers according to Article 25 of Circular 80/2021/TT-BTC, Article 26 of Circular 80/2021/TT-BTC.

- Receiving and resolving tax refund applications from taxpayers according to Chapter V of Circular 80/2021/TT-BTC.

- Receiving and resolving tax exemption and reduction applications from taxpayers according to Chapter VI of Circular 80/2021/TT-BTC.

- Conducting inspections and audits on taxpayers and penalizing violations of law discovered through inspections and audits (if any).

- In cases where taxpayers fall under the tax obligation allocation scope, the directly managing tax authority performs additional duties as follows:

+ Determine taxpayers within the tax obligation allocation scope as stipulated in Articles 12, 13, 14, 15, 16, 17, 18, 19 of Circular 80/2021/TT-BTC to guide and urge taxpayers to determine tax amounts payable for each allocation area and submit the Tax Allocation Table along with tax declarations to the directly managing tax authority; implement penalties for tax-related violations associated with the submission of tax declarations.

+ Calculate late payment interest, adjust late payment interest for all taxes payable by taxpayers (including taxes payable in the allocation area).

+ Guide and urge taxpayers to pay money into the state budget for the allocation area.

+ Lead in implementing measures to urge tax debts and enforce tax debts for tax amounts payable in the allocation area; simultaneously notify the tax authority managing the allocation area as per the provisions at point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC for coordination.

+ Lead in receiving tax deferral applications, gradual tax payments, debt rescheduling, debt write-off for the allocation area; concurrently notify the tax authority managing the allocation area according to point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC for coordination.

+ Lead in receiving and resolving applications for exemption from late payment interest, and non-calculation of late payment interest on tax debts in the allocation area.

+ Lead in receiving documents requesting the handling of overpaid tax amounts in the allocation area and cooperate with the tax authority managing the allocation area according to the provisions at point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to handle according to Article 25 of Circular 80/2021/TT-BTC, Article 26 of Circular 80/2021/TT-BTC.

+ Lead in receiving and resolving tax refund applications for surplus payments of taxpayers and cooperate with the tax authority managing the allocation area according to the provisions at point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to handle according to Section 2 Chapter V of Circular 80/2021/TT-BTC.

+ Lead in receiving and resolving tax exemption and reduction applications from taxpayers in the allocation area and cooperate with the tax authority managing the allocation area according to the provisions at point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to handle according to Chapter VI of Circular 80/2021/TT-BTC.

+ Lead and cooperate with the tax authority managing the allocation area to conduct inspections and audits on the entire production and business activities of the taxpayer and impose penalties for violations of law discovered through inspections and audits (if any), including the determination of taxes payable for the allocation area.

+ Compile data and report to the People's Council and People's Committee the results of state budget revenue collection according to provisions for all amounts paid into the state budget and refunded to taxpayers within the area, including collections under the management responsibility of other directly managing tax authorities, but the taxpayer's head office is located within the area.

What are the principles in tax management in Vietnam?

The principles of tax management are stipulated in Article 5 of Law on Tax Administration 2019 as follows:

- All organizations, family households, business households, and individuals are obliged to pay taxes according to the law.

- Tax management authorities and other state bodies assigned tax collection management duties execute tax management according to the provisions of Law on Tax Administration 2019 and other related laws, ensuring transparency, equality, and protection of the lawful rights and interests of taxpayers.

- Agencies, organizations, and individuals have the responsibility to participate in tax management according to the law.

- Implement administrative procedure reforms and apply modern information technology in tax management; apply tax management principles according to international practice, including the principle of business transactions determining tax obligations, risk management in tax management, and other principles suitable to Vietnam’s conditions.

- Apply prioritization measures in performing tax procedures for export and import goods according to customs law and regulations of the Government of Vietnam.