What is the Form 01/DUQT - Application for tax exemption or reduction under an international treaty in Vietnam?

What is the Form 01/DUQT - Application for tax exemption or reduction under an international treaty in Vietnam?

The tax reduction proposal form under international treaties for foreign individuals registering directly with the tax authority is Form 01/DUQT issued in conjunction with appendix 1 specified in Circular 80/2021/TT-BTC.

Download Form 01/DUQT Application for tax exemption or reduction under an international treaty: Here

What is the Form 01/DUQT - Application for tax exemption or reduction under an international treaty in Vietnam?  (Image from the Internet)

Vietnam: What does the tax exemption or reduction dossier under international treaties include?

According to clause 1, Article 63 of Circular 80/2021/TT-BTC within 03 working days from the date of signing the contract with the Vietnamese party, foreign organizations or individuals shall send the tax exemption or reduction dossier to the tax authority where they registered the taxpayer, including:

+ Proposal document according to form number 01/DUQT issued with appendix 1 in Circular 80/2021/TT-BTC with certification from the agency proposing the signing of the international treaty;

+ Copy of the international treaty;

+ Copy of the contract with the Vietnamese party certified by the foreign organization or individual or their authorized representative;

+ Summary of the contract certified by the foreign organization or individual or their authorized representative. The contract summary includes the following contents: Name of the contract and the name of the contract's clauses, scope of work of the contract, tax obligations under the contract;

+ Power of attorney in case the foreign organization or individual authorizes a Vietnamese organization or individual to handle the tax exemption or reduction procedures. The power of attorney must bear the signatures of the representatives of both parties.

- In cases where due to the nature of the transaction, the foreign organization or individual cannot provide the contract with the Vietnamese party, the foreign organization or individual shall submit equivalent documents with contractual value and provide specific explanations in the proposal document according to form number 01/DUQT issued with appendix 1 in Circular 80/2021/TT-BTC for the tax authority to consider and decide.

What is the processing time for tax reduction dossiers under international treaties in Vietnam?

Based on clause 1, Article 64 of Circular 80/2021/TT-BTC the provisions are as follows:

- Within 30 days from the date of receipt of the complete dossier, the tax authority processing the dossier shall issue a decision on tax exemption or reduction;

+ Notify in writing the taxpayer of the reason for not being eligible for tax exemption or reduction;

+ Notify whether the taxpayer is eligible or not for tax exemption or reduction under the international treaty.

- In cases where an actual inspection is required for sufficient grounds to process the tax exemption or reduction dossier, within 40 days from the date of receipt of the complete dossier, the tax authority shall issue a decision on tax exemption or reduction;

+ Notify in writing the taxpayer of the reason for not being eligible for tax exemption or reduction;

+ Notify whether the taxpayer is eligible or not for tax exemption or reduction under another international treaty.

- For cases where the tax authority processes tax exemption or reduction dossiers along with tax declaration dossiers under the single-window mechanism, within 05 working days from the date of receipt of a legally compliant, complete, and correctly formatted tax exemption or reduction dossier from the single-window processing agency, the tax authority shall determine the amount of tax exempted or reduced or notify in writing the taxpayer of the reason for not being eligible for tax exemption or reduction.

Note:

The return of results processing the tax exemption or reduction dossier for foreign individuals falling under tax exemption or reduction under international treaties is provided for in clause 2, Article 64 of Circular 80/2021/TT-BTC as follows:

In case the tax authority directly processes the tax exemption or reduction dossier of the taxpayer:

- Issue a Tax Exemption or Reduction Decision according to form number 03/MGTH issued with appendix I Circular 80/2021/TT-BTC for cases eligible for tax exemption or reduction;

- Issue a Notification of non-eligibility for tax exemption or reduction according to form number 04/MGTH issued with appendix I Circular 80/2021/TT-BTC and clearly state the reason for non-eligibility;

- Issue a Notification according to form number 03-1/MGTH issued with appendix I Circular 80/2021/TT-BTC on whether the taxpayer is eligible or not for tax exemption or reduction under the international treaty;

+ During the process of processing the tax exemption or reduction dossier, if additional information is needed, the tax authority shall send an Explanation and Document Supplement Notification according to form number 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP to the taxpayer requesting explanations and additional documents.

In case the tax authority processes tax exemption or reduction dossiers along with tax declaration dossiers under the single-window mechanism:

- The tax authority shall determine the amount of tax exempted or reduced and record it in the Tax Payment Notification issued with appendix II of Decree 126/2020/ND-CP for cases eligible for tax exemption or reduction.

- Issue a Notification of non-eligibility for tax exemption or reduction according to form number 04/MGTH issued with appendix I of Article 64 Circular 80/2021/TT-BTC and clearly state the reason for non-eligibility.

+ During the process of processing the tax exemption or reduction dossier, if additional information is needed, the tax authority shall send an Explanation and Document Supplement Notification to the single-window processing agency requesting the taxpayer to provide explanations and additional documents.

- For tax exemption as provided in point a, clause 2, Article 79 of the Tax Management Law 2019: The tax authority shall issue a Decision on the List of households and individuals eligible for tax exemption according to form number 05/MGTH issued with appendix I Circular 80/2021/TT-BTC.