What is tax? What are the prohibited activities in tax administration in Vietnam?
Vietnam: What is tax?
Pursuant to Clause 1, Article 3 of the Law on Tax Administration 2019 stipulates as follows:
1. “tax” means a compulsory amount payable to the state budget by organizations, households, household businesses, individuals as prescribed by tax laws.
Accordingly, Tax is a compulsory amount payable to the state budget.
What is tax? What are the prohibited activities in tax administration in Vietnam?
What are the duties and powers of tax authorities in Vietnam?
Pursuant to the provisions of Articles 18 and 19 of the Law on Tax Administration 2019, the duties and powers of tax authorities are prescribed as follows:
Duties of tax authorities
- Organize collection of tax and other amounts payable to the state budget in accordance with tax regulations and other relevant provisions.
- Disseminate and provide guidelines on tax regulations; publish tax procedures on tax authorities’ premises and websites and via mass media.
- Provide explanation and information related to the determination of tax liabilities to taxpayers; take responsibility for publicly announcing tax rates of household and individual businesses in communes.
- Protect confidentiality of information of taxpayers, except for information provided to competent authorities or publicly announced as prescribed by law.
- Consider tax exemption; tax reduction; cancellation of tax debts, late payment interest, penalties; late payment interest and penalty exemption; late payment interest cancellation; extension of tax payment deadline; tax payment by installments; tax debt freezing, tax cancellation; settlement of overly paid tax, late payment interest, penalties; tax refund as prescribed in this Law and other relevant provisions.
- Confirm tax liability fulfillment of taxpayers upon request as prescribed by law.
- Settle complaints and denunciations related to the implementation of tax regulations as authorized.
- Provide tax-related records, conclusions and/or tax decisions after tax audits/inspections for taxpayers and provide explanation upon request.
- Compensate taxpayers in accordance with provisions on the State’s compensation responsibilities.
- Carry out assessment to determine tax liabilities of taxpayers as requested by State authorities.
- Develop and organize the electronic information systems and apply information technology to e-transactions in taxation.
Powers of tax authorities
- Request taxpayers to provide information and/or materials related to the determination of tax liabilities, including information on investment value; transaction IDs and contents of accounts opened at commercial banks and/or other credit institutions and explaining tax calculation, tax declaration and/or tax payment.
- Request relevant organizations and/or individuals to provide information and/or materials related to the determination of tax liabilities and cooperate with tax authorities in implementing provisions on taxation.
- Conduct tax audits/inspections as prescribed by law.
- Impose fixed tax.
- Enforce tax decision.
- Impose penalties for administrative violations of tax administration as authorized; publish tax-related regulatory violations on mass media.
- Implement preventive measures and ensuring that actions are taken against tax-related administrative violations.
- Delegate collection of some taxes to agencies, organizations and/or individuals in accordance with the Government’s provisions.
- Apply advance pricing agreement to taxpayers and tax authorities of foreign countries and territories with whom Vietnam signed and acceded to agreements on prevention of double taxation and tax evasion for income tax.
- Purchase information, materials and data from domestic and foreign providers to serve tax administration; pay for delegation of tax collection from collected tax or from budget of tax authorities as prescribed in the Government’s provisions.
What are the prohibited activities in tax administration in Vietnam?
Pursuant to the provisions of Article 6 of the Law on Tax Administration 2019, it clearly states that prohibited activities in tax administration are as follows:
Prohibited activities in tax administration
1. Collusion, connection, cover-up between taxpayers and tax officials, tax authorities for price transfer and/or tax evasion.
2. Inconvenience, burden to tax payers.
3. Taking advantage to seize or put tax money to illegal use.
4. Deliberate avoidance of declaration or inadequate, late, inaccurate declaration of tax liabilities.
5. Obstructing operations of tax officials.
6. Using tax identification numbers of other persons to conduct violations against the law or allowing other persons illegal use of one’s tax identification number.
7. Selling goods and providing services without issuance of invoices as prescribed by law, using illegal invoices and using invoices illegally.
8. Alteration, misuse, illegal access or destruction to taxpayer information system.
Thus, the above acts are strictly prohibited in tax administration.
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