What are the responsibilities of supervisory tax authorities in Vietnam?

What are the supervisory tax authorities in Vietnam?

Pursuant to Clause 5, Article 3 of Circular 80/2021/TT-BTC regulating the supervisory tax authorities as follows:

The supervisory tax authorities include:

- The tax authority managing the area where the taxpayer's main office is located, except as stipulated in Point c, Clause 5, Article 3 of Circular 80/2021/TT-BTC;

- The tax authority managing the area where the taxpayer has dependent units located in a different province from the main office, but these units directly file taxes with the tax authority in the area;

- The Large Enterprise Department under the General Department of Taxation established as per Decision 15/2021/QD-TTg;

- For individuals with income from salaries or wages, the directly managing tax authority is the one issuing the tax identification number and may change according to the tax authority that performs the individual's tax finalization as per regulations;

- For individuals receiving inheritances or gifts in the form of securities or capital contributions in economic organizations or business establishments in Vietnam that declare tax directly with the tax authority, the directly managing tax authority is the one managing the issuing entity; in case there are multiple managing tax authorities, the directly managing tax authority is the one where the individual resides.

Additionally, the directly managing tax authority may be indicated on the Taxpayer Registration Certificate or Tax Code Notification or Tax Authority Management Notification or Assigned Tax Authority Notification when issuing business codes, cooperative codes, tax codes, or when changing registration information or reallocating the managing tax authority as per legal regulations.

What are the responsibilities of supervisory tax authorities in Vietnam?

Pursuant to Clause 1, Article 5 of Circular 80/2021/TT-BTC, the responsibilities of supervisory tax authorities are as follows:

supervisory tax authorities are responsible for fully implementing tax management regulations according to the Tax Administration Law 2019 and its guiding documents (except as provided in Clause 3, Article 5 of Circular 80/2021/TT-BTC), specifically:

- Receiving tax declarations, extending tax declaration deadlines, and handling tax-related law violations concerning tax declaration submissions by taxpayers.

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

- Guiding and encouraging taxpayers to declare taxes and pay money to the state budget.

- Implementing debt recovery measures and enforcing tax debt payments.

- Receiving and addressing applications for tax payment deadline extensions, installment tax payments, debt freezing, debt cancellation, waiver of late payment interest, and exclusion from late payment interest calculation.

- Receiving and processing applications for handling taxpayers' overpaid amounts according to Articles 25 and 26 of Circular 80/2021/TT-BTC.

- Receiving and processing tax refund applications for taxpayers as per Chapter V of Circular 80/2021/TT-BTC.

- Receiving and processing applications for tax exemption and reduction for taxpayers as per Chapter VI of Circular 80/2021/TT-BTC.

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

- If the taxpayer is within the tax obligation allocation scope, the directly managing tax authority undertakes the following additional responsibilities:

+ Identifying taxpayers within the tax obligation allocation scope as stipulated in Articles 12 through 19 of Circular 80/2021/TT-BTC to guide and urge taxpayers to determine tax payable for each allocation area and submit a Tax Allocation Schedule with the tax declaration to the directly managing tax authority; conduct penalties for tax-related legal violations concerning tax declaration submissions by taxpayers.

+ Calculating late payment interest and adjusting late payment interest for the total tax payable by taxpayers (including the tax payable at the allocated area).

+ Guiding and urging taxpayers to pay money into the state budget of the allocated area.

+ Leading debt recovery measures and enforcing tax debt payments for the tax payable of the allocated area; additionally, notifying the tax authority managing the allocated area as per Point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC, and coordinating accordingly.

+ Leading in receiving tax payment deadline extension applications, installments payments, debt freezing, debt cancellation of the allocated area; additionally, notifying the tax authority managing the allocated area as per Point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC and coordinating accordingly.

+ Leading in receiving and resolving applications for waiving late payment interest, excluding calculation of late payment interest for tax debts in the allocated area.

+ Leading in receiving documents requesting the processing of overpaid tax amounts at the allocated area, and cooperating with the tax authority managing the allocated area as per Point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to process according to the provisions in Articles 25 and 26 of Circular 80/2021/TT-BTC.

+ Leading in receiving and resolving overpaid tax refund applications of taxpayers and cooperating with the tax authority managing the allocated area as per Point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to process according to the provisions in Section 2, Chapter V of Circular 80/2021/TT-BTC.

+ Leading in receiving and processing tax exemption and reduction applications of taxpayers at the allocated area and cooperating with the tax authority managing the allocated area as per Point b, Clause 6, Article 3 of Circular 80/2021/TT-BTC to process according to the provisions in Chapter VI of Circular 80/2021/TT-BTC.

+ Leading and cooperating with the tax authority managing the allocated area to perform inspections and audits on all production and business activities of taxpayers, and penalizing law violations discovered through inspections and audits (if any), including determining the payable tax for the allocated area.

+ Aggregating data and reporting to the People's Council and the People's Committee the results of state budget revenue according to regulations for all amounts paid into the state budget, and amounts returned to taxpayers in the area, including the revenue under the management of the directly managing tax authority that is located elsewhere but where the taxpayers' main office is on the premises.

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

What are the rights of tax management authorities in Vietnam?

According to Article 19 of the Tax Administration Law 2019, the rights of tax management authorities are as follows:

- Requesting taxpayers to provide information and documentation related to tax obligations, including information about investment value; account numbers, and transaction details of accounts opened at commercial banks or other credit institutions, and explaining tax calculation, declaration, and payment.

- Requesting relevant organizations and individuals to provide information and documentation related to tax obligations and cooperating with tax management authorities to enforce tax law.

- Conducting tax inspections and audits as stipulated by law.

- Assessing tax determination.

- Enforcing the execution of administrative decisions on tax management.

- Imposing fines for administrative violations of tax management within the authority; publicizing tax law violations in the media.

- Applying preventive measures and ensuring the enforcement of penalties for administrative violations of tax management as stipulated by law.

- Entrusting agencies, organizations, and individuals to collect certain taxes as regulated by the Government of Vietnam.

- Tax authorities apply advance pricing agreements in tax determination methods with taxpayers and with tax authorities from foreign countries or territories with which Vietnam has signed agreements to avoid double taxation and prevent tax evasion concerning income tax.

- Purchasing information, documentation, data from domestic and international providers to serve tax management tasks; disbursing expenses for tax collection delegation from collected tax money or from the budget of the tax management authority as regulated by the Government of Vietnam.