What are the responsibilities of tax authorities in tax liability imposition in Vietnam?

What are the responsibilities of tax authorities in tax liability imposition in Vietnam?

According to the provisions of Article 53 of the 2019 Law on Tax Administration, the responsibilities of tax authorities in tax liability imposition include:

- The tax administration agency shall notify the taxpayer in writing of the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment.

- In cases where the tax administration agency imposes tax through tax inspections or audits, the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and in the tax handling decision of the tax administration agency.

- In cases where the imposed tax amount of the tax administration agency is larger than the tax amount payable according to the decision on complaint resolution of the competent authority or the judgment or decision of the Court, the tax administration agency must refund the overpaid tax amount.

- If the tax amount imposed by the tax administration agency is smaller than the tax amount payable according to the decision on complaint resolution of the competent authority or the judgment or decision of the Court, the taxpayer is responsible for paying the additional tax amount. The tax administration agency is responsible for the tax liability imposition.

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

Which entity has the authority to impose taxes in Vietnam?

According to Article 16 of Decree 126/2020/ND-CP, the regulations are as follows:

Authority, Procedures, and Decisions for tax liability imposition

1. Authority to impose Taxes

The General Director of the General Department of Taxation; the Directors of the Departments of Taxation; the Heads of the Sub-Departments of Taxation have the authority to impose taxes.

2. Procedures for tax liability imposition

a) When imposing taxes, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment.

b) In cases where the tax authority imposes taxes through tax inspections or audits, the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and in the tax handling decision of the tax authority.

c) In cases where the taxpayer is subject to tax liability imposition as prescribed, the tax authority shall impose administrative penalties and calculate late payment interest according to the legal regulations.

3. tax liability imposition Decisions

a) When imposing taxes, the tax authority must issue a tax liability imposition decision according to Form No. 01/ADT in Appendix III issued together with this Decree, and send it to the taxpayer within 03 working days from the date of signing the tax liability imposition decision;

In cases where the taxpayer is subject to tax payment according to the notice of the tax authority, the tax authority is not required to issue a tax liability imposition decision as prescribed in this clause.

b) The taxpayer must pay the imposed tax amount according to the tax handling decision of the tax administration agency. In cases where the taxpayer disagrees with the tax amount imposed by the tax authority, the taxpayer must still pay the tax amount and has the right to request an explanation from the tax authority or file a complaint or lawsuit regarding the tax liability imposition.

Therefore, according to the above regulations, the individuals authorized to impose taxes include:

- The General Director of the General Department of Taxation;

- The Directors of the Departments of Taxation;

- The Heads of the Sub-Departments of Taxation.

When imposing taxes in Vietnam, does the tax authority notify the tax liability imposition?

According to point a, clause 2, Article 16 of Decree 126/2020/ND-CP, the authority, procedures, and tax liability imposition decisions are regulated as follows:

Authority, Procedures, and Decisions for tax liability imposition

1. Authority to impose Taxes

The General Director of the General Department of Taxation; the Directors of the Departments of Taxation; the Heads of the Sub-Departments of Taxation have the authority to impose taxes.

2. Procedures for tax liability imposition

a) When imposing taxes, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment.*

b) In cases where the tax authority imposes taxes through tax inspections or audits, the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment must be recorded in the tax inspection or audit report, and in the tax handling decision of the tax authority.

c) In cases where the taxpayer is subject to tax liability imposition as prescribed, the tax authority shall impose administrative penalties and calculate late payment interest according to the legal regulations.

...

Therefore, according to the above regulation, when imposing taxes, the tax authority will notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision, which includes the reasons for tax liability imposition, the basis for tax liability imposition, the imposed tax amount, and the deadline for tax payment.