What are the rules for tax declaration in Vietnam?

What are the rules for tax declaration in Vietnam?

According to the provisions of Article 42 of the Tax Administration Law 2019 on tax declaration:

Rules for tax declaration and tax calculation

1. Taxpayers shall fully and accurately provide information on the tax declaration provided by the Minister of Finance and submit adequate documents to the tax authority.

2. Taxpayers shall calculate the tax payable themselves, except for the cases in which tax has to be calculated by the tax authority as specified by the Government.

3. Taxpayers shall declare tax at the local tax authority in charge of the area in which their headquarters are based. A taxpayer that does accounting mainly at the headquarters and has dependant units in other provinces shall declare tax in the province in which the headquarters are based and distribute tax incurred in each province. The Minister of Finance shall elaborate this Clause.

The taxpayers shall fully and accurately provide information on the tax declaration provided by the Minister of Finance and submit adequate documents to the tax authority.

What are the rules for tax declaration in Vietnam? (Image from the Internet)

Is inadequate tax declaration one of the prohibited acts in tax administration in Vietnam?

Under Article 6 of the Tax Administration Law 2019:

Prohibited activities in tax administration

1. Collusion, connection, cover-up between taxpayers and tax officials, tax authorities for price transfer and/or tax evasion.

2. Inconvenience, burden to tax payers.

3. Taking advantage to seize or put tax money to illegal use.

4. Deliberate avoidance of declaration or inadequate, late, inaccurate declaration of tax liabilities.

5. Obstructing operations of tax officials.

6. Using tax identification numbers of other persons to conduct violations against the law or allowing other persons illegal use of one’s tax identification number.

7. Selling goods and providing services without issuance of invoices as prescribed by law, using illegal invoices and using invoices illegally.

8. Alteration, misuse, illegal access or destruction to taxpayer information system.

Inadequate tax declaration is one of the prohibited acts in tax administration in Vietnam.

What are the responsibilities of taxpayers in Vietnam?

Under Article 17 of the Tax Administration Law 2019, the responsibilities of taxpayers in Vietnam are as follows:

- Apply for taxpayer registration and use TINs as prescribed by law.

- Declare tax accurately, honestly and adequately and submitting tax dossiers on time; take legal responsibility for the accuracy, honesty and adequacy of tax dossiers.

- Pay tax, late payment interest and/or penalties fully, on schedule and at the right location.

- Conform to regulations on accounting, statistics and management, use of invoices and records as prescribed by law.

- Truthfully and fully record the taxable activities and transactions.

- Issue and deliver invoices and records to buyers with the correct quantity, type and actual payment amount when selling goods and/or providing services as prescribed by law.

- Provide information and/or materials related to the determination of tax liabilities accurately, fully and promptly, including information on investment value; transaction IDs and contents of accounts opened at commercial banks and/or other credit institutions; explain declared tax and/or tax payment as requested by tax authorities.

- Comply with decisions, notifications and requests of tax authorities, tax officials as prescribed by law.

- Take responsibility for the fulfillment of tax liabilities as prescribed by law in case the taxpayer’s legal representative or authorized representative fails to follow tax procedures.

- Taxpayers operating businesses in areas with available information technology infrastructure must declare and pay tax and carry out transactions with tax authorities electronically as prescribed by law.

- Based on the availability of information technology equipment, the Government shall specify the documents that regulatory authorities already have and thus can be excluded from tax declarations, applications for tax refund and other tax dossiers.

- Develop, manage and operate systems of technical infrastructure so as to ensure e-transactions with tax authorities; sharing information related to the fulfillment of tax liabilities with tax authorities

- Taxpayers who have entered into related-party transactions have the responsibility to create, retain, declare and provide documents on taxpayers and their related parties, including information on related parties residing in foreign countries or territories according to the Government's regulations.