What are the 04 bases for tax liability imposition for individuals subject to tax liability imposition in case of tax offences in Vietnam?

What are the 04 bases for tax liability imposition for individuals subject to tax liability imposition in case of tax offences in Vietnam?

According to Clause 2, Article 50 of the Law on Tax Administration 2019, regulations on tax liability imposition for taxpayers in case of tax offences are as follows:

tax liability imposition for taxpayers in case of tax offences

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2. bases for tax liability imposition include:

a) The database of the tax administration authority and commercial databases;

b) Comparison of the tax amount payable by business establishments dealing in the same goods, fields, professions, and scale in a locality; in cases where the local business establishments have no information on goods, fields, professions, or scale, comparison is made with another locality;

c) Documents and results of effective inspections and examinations;

d) Tax collection rate on turnover for each field, profession as stipulated by tax laws.

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Thus, the 4 detailed bases for tax liability imposition are as follows:

- The database of the tax administration authority and commercial databases;

- Comparison of the tax amount payable by business establishments dealing in the same goods, fields, professions, and scale in a locality; in cases where the local business establishments have no information on goods, fields, professions, or scale, comparison is made with another locality;

- Documents and results of effective inspections and examinations;

- Tax collection rate on turnover for each field, profession as stipulated by tax laws.

Additionally, at point b, Clause 1, Article 15 of Decree 126/2020/ND-CP provides detailed guidance on the bases for tax liability imposition as follows:

- For taxpaying organizations

The basis includes the database of the tax administration authority and commercial databases; documents and results of effective inspections and examinations; verification results; average minimum tax amounts payable by three local business establishments dealing in the same goods, fields, professions, and scale; if there is no or insufficient information in the locality about goods, fields, professions, or scale, then use information from business establishments in other localities for determination based on individual factors.

- For individuals involved in real estate transfers, inheritances, and gifting

The tax authority determines the taxable price when it is identified that the individual declares, pays tax at a price lower than the usual market transaction price. The taxable price set by the tax authority must ensure it is consistent with the usual market transaction prices, but not lower than the price prescribed by the provincial or city People's Committee at the time of price determination.

What are the 04 bases for tax liability imposition for individuals subject to tax liability imposition in case of tax offences in Vietnam? (Image from Internet)

What are the principles for tax liability imposition in Vietnam?

According to Article 49 of the Law on Tax Administration 2019, the principles for tax liability imposition are stipulated as follows:

- tax liability imposition must be based on tax management principles, tax computation bases, tax computation methods as prescribed by tax laws and customs laws.

- The tax administration authority imposes the amount of tax payable or determines each factor and tax calculation basis to determine the tax amount payable.

When are taxpayers subject to tax liability imposition in Vietnam?

According to Clause 1, Article 50 of the Law on Tax Administration 2019, a taxpayer is subject to tax liability imposition in one of the following cases of tax law violations:

- Failure to register for taxation, failure to declare tax, failure to submit additional tax documents upon the tax authority's request, or failure to declare tax fully, honestly, and accurately based on tax calculation bases;

- Failure to record or adequately, honestly, and accurately reflect figures in accounting books to determine tax liability;

- Failing to present accounting books, invoices, vouchers, and necessary documents related to determining tax amounts payable within the prescribed time;

- Non-compliance with tax inspection and audit decisions according to regulations;

- Buying, selling, exchanging, and accounting for the value of goods and services not following the usual market transaction prices;

- Purchasing, exchanging goods using illegal invoices, illegally using invoices while goods are actually verified by competent authorities and have been declared for revenue to calculate tax;

- Showing signs of fleeing or dissipating assets to avoid tax obligations;

- Engaging in transactions not consistent with economic substance, not in line with actual occurrences to reduce the taxpayer's obligations;

- Failing to comply with the obligation to declare, determine linked transaction prices, or failing to provide information according to regulations regarding tax management for enterprises with linked transactions.