What rights does the tax authority have to prevent tax evasion concerning income tax in Vietnam?

What rights does the tax authority have to prevent tax evasion concerning income tax in Vietnam?

Pursuant to Article 19 of the Law on Tax Administration 2019, the powers of the tax authority are prescribed as follows:

Powers of the tax authority

1. Request taxpayers to provide information and documents related to determining tax obligations, including information about investment values; account numbers, transaction contents of accounts opened at commercial banks, other credit institutions, and explanations for tax calculation, declaration, and payment.

2. Request related organizations and individuals to provide information and documents related to determining tax obligations, and cooperate with the tax authority to enforce tax laws.

3. Conduct tax audits, tax inspections as prescribed by law.

4. Determine taxable amounts.

5. Enforce administrative decisions regarding tax management.

6. Penalize administrative violations related to tax management within its authority; publicly announce on mass media the cases of violations of tax laws.

7. Apply preventive measures and ensure the handling of administrative violations related to tax management as prescribed by law.

8. Delegate to agencies, organizations, and individuals to collect certain types of taxes as prescribed by the Government of Vietnam.

9. The tax authority applies advance pricing agreements with taxpayers, with foreign tax authorities, and territories that Vietnam has signed agreements to avoid double taxation and to prevent tax evasion concerning income tax.

10. Purchase information, documents, and data from domestic and foreign providers to serve tax management tasks; pay tax collection commission fees from the collected tax or from the budget of the tax authority as prescribed by the Government of Vietnam.

Thus, according to the above provisions, the tax authority has the right to apply advance pricing agreements for tax calculation methods with taxpayers, with foreign tax authorities, and territories that Vietnam has signed agreements to avoid double taxation to prevent tax evasion concerning income tax.

What rights does the tax authority have to prevent tax evasion concerning income tax in Vietnam? (Image from the Internet)

What are the 11 current tasks of the tax authority in Vietnam?

Based on Article 18 of the Law on Tax Administration 2019, they include:

(1) Organize and implement tax collection management and other revenues belonging to the state budget according to the provisions of the tax law and other relevant laws.

(2) Propagate, disseminate, and guide tax laws; publicly announce tax procedures at headquarters, on the electronic information site of the tax authority, and through mass media.

(3) Explain and provide information relating to the determination of tax obligations to taxpayers; the tax authority has the responsibility to publicly announce the tax payable for business households and individuals operating businesses in the commune, ward, and town.

(4) Protect taxpayer information, except for information provided to competent authorities or information publicly disclosed according to the law.

(5) Implement tax exemptions; tax reductions; erase tax debts, late payment charges, fines; exempt late payment charges, fines; not charge late payment charges; extend tax payment deadlines; stagger tax debt payments; suspend tax debts, not collect tax; handle overpaid tax, late payment charges, fines; and tax refunds according to this Law and other relevant legal regulations.

(6) Confirm the performance of tax obligations of taxpayers upon request by law.

(7) Resolve complaints, denouncements relating to the enforcement of tax laws within its jurisdiction.

(8) Deliver minutes, conclusions, and handling decisions about tax after tax audits, tax inspections to taxpayers and provide explanations when requested.

(9) Compensate for damages to taxpayers according to the law on state compensation liability.

(10) Forensically determine tax amounts payable by taxpayers upon request and mandates by competent state agencies.

(11) Develop, organize electronic information systems, and apply information technology for electronic transactions in the tax field.

Are Sub-departments of Taxation of districts considered tax authorities in Vietnam?

The tax authority is prescribed in Article 2 of the Law on Tax Administration 2019 as follows:

Entities applied

1. Taxpayers include:

a) Organizations, households, business households, individuals paying tax as prescribed by tax law;

b) Organizations, households, business households, individuals paying other state budget revenues;

c) Organizations, individuals withholding tax.

2. Tax administration authorities include:

a) Tax agencies including the General Department of Taxation, Tax Departments, Tax Sub-departments, Sub-department of Taxation of districts;

b) Customs agencies including the General Department of Customs, Customs Departments, Post-Clearance Audit Departments, Customs Sub-departments.

3. Tax management officials include tax officials, customs officials.

4. Other related state agencies, organizations, individuals.

Thus, Sub-department of Taxation of districts are indeed considered tax administration agencies according to legal regulations.