When does the tax year end? What are the principles of tax administration in Vietnam from 2025?

Vietnam: When does the tax year end?

Pursuant to Clause 11, Article 3 of the Law on Tax Administration 2019, the definition of the tax year is as follows:

Definitions

In this Law, the following terms are construed as follows:

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11. The tax year is determined according to the calendar year from January 1 to December 31; in cases where the fiscal year differs from the calendar year, the tax year shall be applied according to the fiscal year.

12. Completing the tax obligation is the act of paying the full amount of tax, late payment interest, fines for violations of tax laws, and other collections belonging to the state budget.

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The tax year is determined according to the calendar year from January 1 to December 31.

However, if the fiscal year differs from the calendar year, the tax year is applied according to the fiscal year.

When does the tax year end? What are the principles of tax administration in Vietnam from 2025? (Image from the Internet)

What is a tax period in Vietnam?

According to the provision in Clause 6, Article 3 of the Law on Tax Administration 2019, it is stated as follows:

Definitions

In this Law, the following terms are construed as follows:

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6. A tax period is the time frame used to determine the amount of tax that must be paid to the state budget as prescribed by tax law.

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A tax period is understood to be the time frame used to determine the amount of tax that an individual/organization must pay to the state as prescribed by tax law.

What are the principles of tax administration in Vietnam from 2025?

Pursuant to Article 5 of the Law on Tax Administration 2019, it is stipulated as follows:

Principles of tax administration

1. All organizations, households, business households, and individuals have the obligation to pay tax in accordance with the law.

2. Tax administration agencies and other State agencies assigned with the task of revenue management shall carry out tax administration in accordance with this Law and other relevant legal provisions, ensuring publicity, transparency, equality, and ensuring the rights and legitimate interests of taxpayers.

3. Agencies, organizations, and individuals have the responsibility to participate in tax administration as prescribed by law.

4. Implement administrative reform and apply modern information technology in tax administration; apply tax administration principles according to international practices, including the principle that the nature of activities or transactions determines the tax obligation, the principle of risk management in tax administration, and other principles suitable to the conditions of Vietnam.

5. Apply preferential measures when performing tax procedures for exported and imported goods as prescribed by the customs law and the regulations of the Government of Vietnam.

However, from January 1, 2025, Clause 1, Article 6 of the Law Amending the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, the Law on Handling of Administrative Violations 2024 modifies the content in Clause 2, Article 5 of the Law on Tax Administration 2019 as follows:

Principles of tax administration

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2. Tax administration agencies and other State agencies assigned with the task of revenue management shall carry out tax administration in accordance with this Law and other relevant legal provisions, ensuring publicity, transparency, equality, and ensuring the rights and legitimate interests of taxpayers.

Tax administration officials are responsible for processing tax records within the scope of the dossiers, documents, information provided by taxpayers, the database of the tax administration agency, information provided by competent state agencies related to taxpayers, the results of applying risk management in tax administration, ensuring compliance with duties, responsibilities, and observing the legal provisions on tax administration and other relevant tax laws.

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Thus, from January 1, 2025, tax administration will be implemented according to the following principles:

- All organizations, households, business households, and individuals have the obligation to pay tax in accordance with the law.

- Tax administration agencies and other State agencies assigned with the task of revenue management shall carry out tax administration in accordance with this Law and other relevant legal provisions, ensuring publicity, transparency, equality, and ensuring the rights and legitimate interests of taxpayers.

Tax administration officials are responsible for processing tax records within the scope of the dossiers, documents, information provided by taxpayers, the database of the tax administration agency, information provided by competent state agencies related to taxpayers, the results of applying risk management in tax administration, ensuring compliance with duties, responsibilities, and observing the legal provisions on tax administration and other relevant tax laws.

- Agencies, organizations, and individuals have the responsibility to participate in tax administration as prescribed by law.

- Implement administrative reform and apply modern information technology in tax administration; apply tax administration principles according to international practices, including the principle that the nature of activities or transactions determines the tax obligation, the principle of risk management in tax administration, and other principles suitable to the conditions of Vietnam.

- Apply preferential measures when performing tax procedures for exported and imported goods as prescribed by the customs law and the regulations of the Government of Vietnam.