What is the tax authority of the receiving province in Vietnam?

What is the tax authority of the receiving province in Vietnam?

Based on the provisions in Clause 6, Article 3 of Circular 80/2021/TT-BTC, the term "tax authority of the receiving province" is explained as the tax authority in the area that receives the state budget revenues determined by the taxpayer on the tax declaration but does not receive the taxpayer's tax declaration dossier as per regulations.

The tax authority of the receiving province includes:

- The tax authority in the area where the taxpayer is headquartered but does not directly manage the taxpayer;

- The tax authority in a different province than the one where the taxpayer is headquartered but receives state budget revenues according to the provisions in Clause 2, Clause 4, Article 11 of Decree 126/2020/ND-CP and Articles 12 to 19 of Circular 80/2021/TT-BTC.

What is the tax authority of the receiving province in Vietnam? (Image from the Internet)

What are regulations on tax management responsibility for the tax authority of the receiving province in Vietnam?

The tax management responsibility for the tax authority of the receiving province is regulated in Clause 2, Article 5 of Circular 80/2021/TT-BTC as follows:

- Monitor and supervise the taxpayer's declaration and distribution of the tax amount payable and payment of tax into the state budget at the allocated area; require the taxpayer to provide information and documents related to the allocated revenue; notify the direct managing tax authority when the taxpayer fails to declare or improperly allocates tax obligations.

- Implement measures to urge tax debt, enforce tax debt on the tax amount payable at the allocated area, and notify the direct managing tax authority (excluding authorities managing the allocated area as stipulated in Point a, Clause 6, Article 3 of Circular 80/2021/TT-BTC).

- Coordinate in resolving applications for tax payment extension, installment tax payments, debt deferral, tax debt cancellation at the province benefiting from the allocated revenue as proposed by the direct managing tax authority (excluding authorities managing the allocated area as stipulated in Point a, Clause 6, Article 3 of Circular 80/2021/TT-BTC).

- Lead or cooperate with the direct managing tax authority to offset tax overpayments according to Articles 25 and 26 of Circular 80/2021/TT-BTC (excluding authorities managing the allocated area as stipulated in Point a, Clause 6, Article 3 of Circular 80/2021/TT-BTC).

- Coordinate the settlement of tax refunds for tax overpayments for taxpayers as proposed by the direct managing tax authority per Section 2, Chapter V of Circular 80/2021/TT-BTC (excluding authorities managing the allocated area as stipulated in Point a, Clause 6, Article 3 of Circular 80/2021/TT-BTC).

- Cooperate in conducting inspections and audits of taxpayers at the request of the direct managing tax authority.

What are regulations on the distribution of tax obligations of taxpayers doing centralized accounting and having dependent units or business locations in multiple provinces in Vietnam?

Based on the provisions of Article 12 of Circular 80/2021/TT-BTC regarding the distribution of tax obligations of taxpayers doing centralized accounting and having dependent units or business locations in multiple provinces from the headquarters:

- Taxpayers conducting operations and business in various provincial areas other than where their headquarters is located must conduct centralized accounting at the headquarters according to Clause 2, Clause 4, Article 11 of Decree 126/2020/ND-CP, declare, calculate, and submit tax declarations to the direct managing tax authority, and allocate the tax payable to each province where business activities occur.

- Cases involving distribution , distribution methods, tax declaration, calculation, and finalization for taxes to be allocated are implemented according to the provisions of Articles 13 to 19 of Circular 80/2021/TT-BTC.

- Taxpayers are responsible for fully and accurately declaring taxes and allocating tax obligations promptly and conformably. The distribution of tax payable to the provinces benefiting from state budget revenues must not exceed the tax payable on the taxpayer's tax return.

+ If the taxpayer incurs no tax payable, they are not required to determine the tax payable for the provinces benefiting from state budget revenues.

+ The provisions in Points b and c, Clause 2, Article 13 (Circular 80/2021/TT-BTC) and Point b, Clause 2, Article 17 (Circular 80/2021/TT-BTC) do not adhere to this distribution principle.

- Taxpayers shall base their tax payable on each province benefiting from allocated revenue to issue remittance vouchers and remit funds to the state budget as regulated. The State Treasury where the taxpayer's budget remittance voucher is received accounts for the collection distribution per district benefiting from allocated revenue.

- If during inspection or audit, it is found that the taxpayer incorrectly declared or allocated, the direct managing tax authority will redetermine the distribution for the provinces benefiting from allocated revenue.

- In cases where VAT, CIT, and resource tax of hydropower generating units are divided across multiple provinces, the Tax Department of the locality where the hydropower plant office is located shall take responsibility, in accordance with Articles 13, 15, and 17 of Circular 80/2021/TT-BTC, to lead and cooperate with the hydropower plant project investor and the Tax Departments of the localities where hydropower plants, reservoirs are co-located to agree on the distribution of tax obligations ratio for each tax for the provinces benefiting from the revenue. If they cannot agree on the distribution ratio for each province, the Tax Department of the locality where the hydropower plant office is located will report to the Ministry of Finance (General Department of Taxation) for guidance.