When to supplement tax declaration dossiers in Vietnam? If the tax dossier supplementation is submitted, will it be subject to violation handling?

When to supplement tax declaration dossiers in Vietnam?

Based on Article 47 of the 2019 Law on Tax Administration which provides regulations on supplementing tax declaration dossiers as follows:

Supplementing Tax Declaration Dossiers

1. Taxpayers who discover errors or omissions in their submitted tax declaration dossiers may supplement these dossiers within 10 years from the expiration of the submission deadline of the tax period in which the errors or omissions occurred, but before the tax authority or a competent authority publishes an inspection or examination decision.

2. If the tax authority or a competent authority has announced an inspection or examination decision at the taxpayer's headquarters, the taxpayer is still allowed to supplement the tax declaration dossier; the tax authority shall impose administrative penalties for tax management violations as specified in Articles 142 and 143 of this Law.

3. After the tax authority or a competent authority has concluded and issued a tax handling decision following an inspection or examination at the taxpayer's headquarters, the supplementation of tax declaration dossiers is regulated as follows:

a) Taxpayers are allowed to supplement tax declaration dossiers in cases that increase the tax payable, decrease the tax deductible, or decrease the exempted, reduced, or refunded tax amount and shall be subject to administrative penalties for tax management violations as specified in Articles 142 and 143 of this Law;

b) If taxpayers discover errors or omissions in their tax declaration dossiers that result in a reduction of the tax payable or an increase in the tax deducted, exempted, reduced, or refunded, they shall follow the regulations on tax complaint resolution.

4. A supplemented tax declaration dossier includes:

a) The supplementary declaration form;

b) An explanatory statement for the supplementary declaration and relevant documents.

5. For exported and imported goods, the supplementation of tax declaration dossiers shall comply with customs law.

Thus, according to the law, taxpayers can supplement their tax dossiers when they find errors or omissions in the tax declaration files they have submitted to the tax authorities.

When to supplement tax declaration dossiers in Vietnam? If the tax dossier supplementation is submitted, will it be subject to violation handling? (Image from the Internet)

Vietnam: If the tax dossier supplementation is submitted, will it be subject to violation handling?

According to Clause 3, Article 9 of Decree 125/2020/ND-CP, the provisions are as follows:

Cases Where Administrative Penalties for Tax and Invoice Violations are Not Imposed

1. No administrative penalties for tax, invoice violations are imposed in cases where no administrative penalties are stipulated by law on administrative violations.

Where taxpayers fail to perform tax or invoice procedures timely by electronic means due to a technical incident of the information technology system as notified on the tax authority's electronic portal, it is considered a force majeure event as stipulated in Clause 4, Article 11 of the Law on Handling Administrative Violations.

2. No administrative penalties are imposed for tax violations, and no late payment interest is calculated on taxpayers who violate tax administration due to following written guidance or handling decisions of the tax authority or a competent state agency relating to the determination of the taxpayer’s tax obligations (including guidance documents, handling decisions issued before this Decree comes into effect), except where tax inspection at the taxpayer's premises does not detect errors in the taxpayer's tax declaration or determination, but later administrative violations by the taxpayer are discovered.

3. No administrative penalties for tax violations are imposed where inaccuracies are declared, and the taxpayer has supplemented the tax declaration dossier and paid in full the payable tax amount before the tax authority announces the inspection or examination decision at the taxpayer's premises, or before the tax authority discovers the violations without an inspection or examination, or before other competent authorities discover.

4. No penalties for tax procedure violations against individuals directly self-assessing personal income tax who delay in filing personal income tax returns where a tax refund arises; household businesses, individual businesses subjected to tax determination as prescribed in Article 51 of the Law on Tax Administration.

5. No penalties for late tax declaration submission violations during the extension period for submitting tax declarations applicable to the taxpayer.

Thus, if taxpayers supplement their tax declaration dossiers upon discovering errors or omissions and pay the full amount of tax due before the tax authority announces an inspection or examination decision at their premises, or before the tax authority discovers the error without an inspection or examination, or before another competent authority discovers, no penalties will be imposed.

What are responsibilities of tax authorities in Vietnam in receiving tax dossier supplementation?

According to Article 48 of the 2019 Law on Tax Administration, the responsibilities of tax authorities in receiving tax dossier supplementation are as follows:

- Tax authorities receive tax declaration dossiers from taxpayers through the following methods:

+ Receive dossiers directly at the tax administration agency.

+ Receive dossiers through postal services.

+ Receive electronic dossiers via the tax authority's electronic transaction portal.

- Tax authorities receiving tax declaration dossiers notify the receipt of the dossiers; if the dossiers are illegal, incomplete, or not in the correct format, they must notify the taxpayer within 03 working days from the date of receipt of the dossiers.