What is the tax authority in Vietnam? Do tax authorities in Vietnam also disseminate guidelines on tax regulations apart from tax collection?

What is the tax authority in Vietnam?

Based on Clause 2, Article 2 of the Law on Tax Administration 2019, it is stipulated as follows:

Subjects of application

1. Taxpayers include:

a) Organizations, households, business households, individuals who pay taxes according to tax laws;

b) Organizations, households, business households, individuals who pay other revenues belonging to the state budget;

c) Organizations, individuals who withhold taxes.

2. Tax administration agencies include:

a) Tax authorities including the General Department of Taxation, Department of Taxation, Sub-Department of Taxation, Regional Sub-Department of Taxation;

b) Customs authorities including the General Department of Customs, Customs Department, Post-Clearance Audit Department, Customs Sub-Department.

3. Tax administration officers include tax officials and customs officials.

4. Other relevant state agencies, organizations, individuals.

Thus, the tax authority is a state agency responsible for managing tax collection and other revenues belonging to the state budget according to the provisions of the law, including the following agencies:

- Tax authorities including the General Department of Taxation, Department of Taxation, Sub-Department of Taxation, Regional Sub-Department of Taxation.

Do tax authorities in Vietnam also disseminate guidelines on tax regulations apart from tax collection?

Based on Article 18 of the Law on Tax Administration 2019, tax authorities have several duties as follows:

[1] Organize the implementation of tax collection and other revenues belonging to the state budget according to the provisions of tax laws and other relevant legal provisions.

[2] Propagate, disseminate, and guide the laws on taxes; publicize tax procedures at head offices, on the websites of tax administration agencies, and in mass media.

[3] Explain and provide information related to the determination of tax obligations to taxpayers; tax authorities are responsible for publicizing the tax amounts to be paid by business households and individuals in the locality (commune, ward, commune-level town).

[4] Keep taxpayer information confidential, except for information provided to authorities or information required to be publicly disclosed according to the legal provisions.

[5] Implement tax exemption; tax reduction; cancellation of tax debts, late payment money, fines; exemption of late payment money, fines; non-calculation of late payment money; extension of tax payment; installment payment of tax debts; freezing of tax debts, non-collection of taxes; handling of overpaid tax, late payment money, fines; tax refund.

[6] Confirm the fulfillment of tax obligations of taxpayers upon request in accordance with the law.

[7] Resolve complaints and denunciations related to the implementation of tax laws within their competence.

[8] Deliver records, conclusions, tax handling decisions after tax audits and tax inspections to taxpayers and explain upon request.

[9] Compensate taxpayers for damages according to the provisions of the law on state compensation liability.

[10] Appraise to determine the tax amounts to be paid by taxpayers upon request from competent state agencies.

[11] Build and organize an electronic information system and apply information technology to perform electronic transactions in the tax field.

Thus, apart from the duty of tax collection, tax authorities are also responsible for propagating, disseminating, and guiding tax laws to the public.

What are management scopes of supervisory tax authorities in Vietnam?

Based on Clause 5, Article 3 of Circular 80/2021/TT-BTC, the management scopes of supervisory tax authorities is specified as follows:

The management scopes of supervisory tax authorities is divided as follows:

- Tax authorities manage the locality of the taxpayer's headquarters, except for the Large Enterprise Tax Department under the General Department of Taxation.

- Tax authorities manage the locality where the taxpayer has dependent units in a different province from the headquarters location, but the dependent unit directly declares tax to the local tax authority.

- The Large Enterprise Tax Department under the General Department of Taxation is established according to the provisions of Decision 15/2021/QD-TTg.

- For individuals with income from wages, salaries, the direct managing tax authority is the one that issues the tax code and changes according to the tax authority performing the tax finalization for individuals as prescribed.

- For individuals receiving inheritance, gifts as securities or capital contributions in economic organizations, business establishments in Vietnam, required to declare tax directly with the tax authority, the direct managing tax authority is the one managing the issuing unit; if there are multiple tax authorities managing multiple issuing units, the direct managing tax authority is where the individual receiving inheritance, gifts resides.

The direct managing tax authority can be stated on the taxpayer registration certificate or the tax code notification or the tax authority management notification or the tax authority assignment notification when issuing enterprise codes, cooperative codes, tax codes, or when changing registration information or reassigning managing tax authorities in accordance with the law.