Decree 91/2022/ND-CP: Additional cases where taxpayers in Vietnam are not required to submit tax returns

Hello, Lawnet would like to address your questions as follows:

On December 30, 2022, the Government of Vietnam issued Decree 91/2022/ND-CP amending and supplementing Decree 126/2020/ND-CP on the guidance of the Law on Tax Administration.

The Government of Vietnam introduced several amendments to policies beneficial to businesses:

Additional cases where taxpayers in Vietnam are not required to submit tax returns

Decree 91 added another case where taxpayers are not required to submit tax returns. To be specific:

Taxpayers are not required to submit tax returns in the following cases:

- Taxpayers engage solely in activities or business that are not subject to tax according to the tax law provisions for each type of tax.

- Individuals whose income is exempt from tax as stipulated by the personal income tax law and under Point b, Clause 2, Article 79 of the Law on Tax Administration, except individuals receiving inheritances or gifts that are real estate or transferring real estate.

- Export processing enterprises engaged solely in export activities are not required to submit VAT tax returns.

- Taxpayers temporarily cease operations or business as regulated in Article 4 of Decree 126/2020/ND-CP.

- Taxpayers submitting dossiers to terminate the validity of tax codes, except in cases of cessation of activities, termination of contracts, or reorganization of enterprises as provided in Clause 4, Article 44 of the Law on Tax Administration.

- Personal income tax declarants who are organizations or individuals paying income and falling under the case of monthly or quarterly personal income tax declarations where no income tax deductions arise for the income recipients during the month or quarter. (Currently not stipulated)

Additional regulations on the end of the tax management procedure deadline in Vietnam

Article 6a is added to Decree 126/2020/ND-CP regulating the deadline for completing tax management procedures:

- The deadlines for submitting tax returns, paying taxes, tax administrative agency resolution of dossiers, and the validity of enforcement decisions of administrative decisions on tax management are performed according to the regulations in the Law on Tax Administration and Decree 126/2020/ND-CP.

- In cases where the last day of the deadline for submitting tax returns, paying taxes, tax administrative agency resolution of dossiers, or the validity of enforcement decisions coincides with a holiday, the last day of the deadline is considered the next working day after the holiday.

Temporary payment of Corporate Income Tax (CIT) for 04 quarters in Vietnam must not be less than 80% of the annual finalization

Decree 91 prescribes the temporary payment of CIT as follows:

- The total CIT, total after-tax profit remaining after setting up funds, and the total CIT of foreign shipping lines temporarily paid for 04 quarters must not be less than 80% of the annual finalized CIT.

(Previously, the total CIT, total after-tax profit remaining after setting up funds, and the total CIT of foreign shipping lines temporarily paid for the first 03 quarters of the taxable year must not be less than 75% of the annual finalized CIT.)

Temporary payment for 04 quarters of foreign shipping lines in Vietnam must not be less than 80% of the annual finalization

The CIT of foreign shipping lines is temporarily paid quarterly and annually finalized. The total CIT temporarily paid for 04 quarters must not be less than 80% of the CIT payable according to the annual finalization.

In case the taxpayer underpays compared to the required temporary payment for 04 quarters, they must pay late payment interest on the underpaid tax amount from the day after the last due date for the 4th quarter temporary CIT payment until the day before the additional tax is paid into the state budget.

Previously, the CIT of foreign shipping lines was temporarily paid quarterly, and annual finalization was performed. The total CIT temporarily paid for the first 03 quarters of the taxable year must not be less than 75% of the CIT payable according to the annual finalization.

In case the taxpayer underpays compared to the required temporary payment for the first 03 quarters, they must pay late payment interest on the underpaid tax amount from the day after the last due date for the 3rd quarter temporary CIT payment until the additional tax is paid into the state budget.

Refer to Decree 91/2022/ND-CP of Vietnam effective from the issuance date.

Best regards!

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