Vietnam: When does the tax authority make a decision to fix taxes? How is tax fixing done procedurally?
When does the tax authority make a decision to fix taxes in Vietnam?
According to the provisions of Article 14 of Decree 126/2020/ND-CP, taxpayers in the following cases shall be assigned the amount of tax payable by the tax authority:
- Fails to apply for taxpayer registration in accordance with Article 33 of the Law on Tax administration.
- Fails to declare or truthfully and accurately declare tax in accordance with Article 42 of the Law on Tax administration.
- Fails to submit supplementary tax documents or adequate and accurate supplementary tax documents as the basis for determination of tax payable as requested by the tax authority.
- Fails to provide or truthfully and accurately provide information in accounting books as the basis for determination of tax obligations.
- Fails to present accounting books, invoices and documents necessary as the basis for tax calculation by the deadline or within the time limit for tax audit or tax inspection at the taxpayer’s premises.
- Fails to implement the decision on tax audit within 10 working days from the day on which the decision is signed, unless the inspection date is delayed as per regulations.
- Fails to implement the decision on tax inspection within 15 working days from the day on which the decision is signed, unless the inspection date is delayed as per regulations.
- Sells, buys, exchanges goods with unusual values; records unusual value of goods.
- Buys, exchanges goods, services using illegal invoices; illegally uses invoices for actual goods and services as discovered by an investigating or inspecting authority while revenues and expenses as the basis for tax calculation have been declared.
- Is suspected absconding or liquidating assets to avoid tax obligations.
- Conducts misleading or false transactions to reduce tax obligations.
- Fails to declare values of related-party transactions (if any) or fails to provide information about related-party transactions (if any) in accordance with tax administration regulations.
Vietnam: When does the tax authority make a decision to fix taxes? How is tax fixing done procedurally?
Who has the authority to make tax-fixing decisions in Vietnam?
According to the provisions of Clause 1, Article 16 of Decree 126/2020/ND-CP on this content as follows:
Article 16. Tax liability imposition authority, procedures and decision
1. Authority for tax liability imposition
the Director of the General Department of Taxation, Directors of Provincial Departments of Taxation and Directors of District-level Departments of Taxation have the authority to impose tax liability.
...
Accordingly, the following persons have the authority to fix taxes including:
- Director General of the General Department of Taxation
- Director of the Department of Taxation
- Director of the Tax Branch
How is tax fixing done procedurally in Vietnam?
According to the provisions of Clause 2, Article 16 of Decree 126/2020/ND-CP on tax assessment procedures as follows:
- When imposing tax liability, the tax authority shall send a written notice to the taxpayer and issue the tax liability imposition decision, which must specify the reasons and basis for imposition, the tax amount payable and payment deadline.
- In case the tax authority imposes tax liability through tax audit or tax inspection, the reasons and basis for imposition, the tax amount payable and payment deadline shall be written in the tax audit or tax inspection record and tax decision issued by the tax authority.
- In case tax liability is imposed due to the taxpayer’s violation, the tax authority shall impose administrative penalties and calculate late payment interest as prescribed by law.
How is the tax decision of the tax authority regulated in Vietnam?
Pursuant to Clause 3, Article 16 of Decree 126/2020/ND-CP on tax assessment decisions of tax authorities as follows:
Article 16. Tax liability imposition authority, procedures and decision
…
3. Decision on tax liability imposition
a) When imposing tax liability, the tax authority shall issue a decision (Form No. 01/ADT in Appendix III hereof) and send it to the taxpayer within 03 working days from the day on which it is signed;
If the taxpayer has to pay tax under the tax authority’s notice, such a decision is not necessary.
b) The taxpayer shall pay tax as imposed by the tax authority. If the taxpayer does not concur with the tax liability imposed by the tax authority, the taxpayer still has to pay the tax and may request the tax authority to provide explanation or file a complaint or lawsuit against the tax authority’s decision.
Accordingly, the tax assessment decision of the tax authority is as follows:
See the tax authority's tax assessment decision here
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