When does the tax authority issue a tax liability imposition decision in Vietnam?

When does the tax authority issue a tax liability imposition decision in Vietnam?

According to the provisions of Article 14 of Decree 126/2020/ND-CP, taxpayers in the following cases are subject to the tax authority's determination of the amount of tax payable:

- Failing to register for taxpayer registration as stipulated in Article 33 of the Law on Tax Administration 2019.

- Failing to declare taxes or declaring taxes incompletely, honestly, and accurately as stipulated in Article 42 of the Law on Tax Administration 2019.

- Failing to supplement tax files as required by the tax authority or having supplemented the tax files but not completely, honestly, or accurately providing the tax calculation bases to determine the amount of tax payable.

- Failing to reflect or reflecting incompletely, honestly, and accurately the figures in the accounting books to determine the tax obligations.

- Failing to present the accounting books, invoices, vouchers, and necessary documents related to determining the tax calculation factors; determining the amount of tax payable within the prescribed time or when the time limit for tax inspection and audit at the taxpayer's office has expired.

- Failing to comply with the tax inspection decision within 10 working days from the date of signing the decision, except for cases of a delayed inspection time as per regulations.

- Failing to comply with the tax audit decision within 15 days from the date of signing the decision, except for cases of a delayed audit time as per regulations.

- Buying, selling, exchanging, and accounting for the value of goods and services not according to the normal transaction value on the market.

- Buying, exchanging goods, and services using illegal invoices, using illegal invoices whereas the goods and services are real according to the determination of the investigating, auditing, inspecting authorities and have been declared for revenue and cost for tax calculation.

- Showing signs of absconding or dispersing assets to avoid tax obligations.

- Conducting transactions that do not correspond with the economic nature, do not truly occur for the purpose of reducing the taxpayer’s tax obligations.

- Failing to comply with the declaration, determining the transaction value regulations or not providing information as stipulated on tax management for enterprises with related party transactions.

When does the tax authority issue a tax liability imposition decision in Vietnam? (Image from the Internet)

Who has the authority to issue a tax liability imposition decision in Vietnam?

Based on Article 16 of Decree 126/2020/ND-CP, the regulation is as follows:

Authority, procedures, tax liability imposition decision

1. Authority to assess tax

The Director General of the General Department of Taxation; Directors of Tax Departments; Heads of Tax Sub-Departments have the authority to assess tax.

2. tax liability imposition procedures

a) When assessing tax, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for the tax liability imposition, the basis for the tax liability imposition, the assessed tax amount, and the deadline for paying the assessed tax.

b) In cases where the tax authority conducts tax liability imposition through tax inspection or audit, the reasons for the tax liability imposition, the basis for the tax liability imposition, the assessed tax amount, and the deadline for paying the assessed tax must be clearly stated in the tax inspection, audit minutes, and tax handling decision of the tax authority.

c) In cases where the taxpayer is assessed tax as per regulations, the tax authority shall impose administrative penalties and calculate late payment interest according to the legal provisions.

3. tax liability imposition decision

a) When assessing tax, the tax authority must issue a tax liability imposition decision according to Form No. 01/ADT in Appendix III issued together with this Decree and send it to the taxpayer within 03 working days from the date of signing the tax liability imposition decision;

In cases where the taxpayer is subject to tax payment according to the tax authority's notification, the tax authority does not need to issue a tax liability imposition decision as stipulated in this clause.

b) Taxpayers must pay the assessed tax amount according to the tax handling decision of the tax authority. In cases where taxpayers disagree with the assessed tax amount determined by the tax authority, the taxpayers still must pay the assessed tax amount and simultaneously have the right to request an explanation from the tax authority or lodge a complaint or initiate a lawsuit regarding the tax liability imposition.

The following individuals have the authority to assess tax:

- Director General of the General Department of Taxation

- Directors of Tax Departments

- Heads of Tax Sub-Departments

What are the procedures for tax liability imposition in Vietnam?

According to Clause 2, Article 16 of Decree 126/2020/ND-CP on tax liability imposition procedures, they are as follows:

- When assessing tax, the tax authority shall notify the taxpayer in writing about the tax liability imposition and issue a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for the tax liability imposition, the basis for the tax liability imposition, the assessed tax amount, and the deadline for paying the assessed tax.

- In cases where the tax authority conducts tax liability imposition through tax inspection or audit, the reasons for the tax liability imposition, the basis for the tax liability imposition, the assessed tax amount, and the deadline for paying the assessed tax must be clearly stated in the tax inspection, audit minutes, and tax handling decision of the tax authority.

- In cases where the taxpayer is assessed tax as per regulations, the tax authority shall impose administrative penalties and calculate late payment interest according to the legal provisions.