Which agency does the Department of Taxation belong to in Vietnam? Tasks and powers of the Department of Taxation in Vietnam

Hello, Lawnet would like to answer as follows:

1. Which agency does the Department of Taxation belong to in Vietnam?

Clause 1 of Article 1 of Decision 1836/QD-BTC stipulates the position and functions of the Department of Taxation as follows:

Department of Taxation of province or central-affiliated city (hereinafter referred to as Department of Taxation) is an affiliate of General Department of Taxation which is tasked to manage taxes, fees, and charges and other amounts payable to state budget (hereinafter referred to as taxes) within the duties of collecting tax authority in the province as per the law.

Department of Taxation has legal status, a separate seal and is allowed to open an account in the State Treasury as per the law.

Thus, the Department of Taxation is an organization under the General Department of Taxation with the function of organizing and implementing tax management within the scope of the duties of the tax agency managing revenue in the area.

2. Tasks and powers of the Department of Taxation in Vietnam

Department of Taxation shall perform the tasks and powers as specified in the Law on Tax Administration 2019, tax laws, relevant laws and specific tasks and powers below:

(1) Direct, guide and initiate implementation of tax and tax administration legislative documents and relevant law documents; tax administration practices regulations, procedures issued by the Ministry of Finance, General Department of Taxation in the province or city (hereinafter referred to as province).

(2) Analyze, aggregate and evaluate the tax administration practices; advise the Party executive committee, local government on making of state budget estimates, tax administration practices in the province; take charge and cooperate with relevant agencies and organizations in performing the assigned tasks.

(3) Perform the tax administration duties with respect to taxpayers within the scope of management of Department of Taxation: tax registration; tax declaration; tax calculation, notices; tax payment; tax refund; tax deduction; tax exemption and reduction; tax or fine writing-off; tax accounting for taxpayers; expediting taxpayers to discharge full tax liabilities to the state budget in a timely manner.

(4)  Manage information about taxpayers; build a taxpayer data system.

(5) Reform the tax system aiming at improving the quality, publishing procedures to the public, improving tax administration practices and providing information to enable taxpayers to implement tax policies and laws.

(6) Introduce, guide and explain tax policies of the state; enable taxpayers in the province to discharge the tax liabilities as per the law.

(7) Initiate the assigned annual tax collection estimates, perform tax administration practices, perform tax administration duties with respect to taxpayers within scope of management of Department of Taxation as per the law and regulations, procedures, practices of the Ministry of Finance, General Department of Taxation.

(8) Guide, direct and inspect Sub-departments of Taxation in performance of tax administration duties.

(9) Take technical measures for risk management in tax administration;

(10) Directly perform tax inspection and checking, supervise tax declaration; tax refund; tax deduction; tax exemption and reduction; tax payment and compliance with tax laws by taxpayers; tax-collecting organizations and individuals, authorized tax-collecting organizations under management of Director of Department of Taxation.

(11) Inspect the performance of duties by tax authorities, tax officers under management of Director of Department of Taxation.

(12) Handle complaints and whistleblowing reports on taxes and performance of duties by tax authorities, tax officers under management of Director of Department of Taxation as per the law; take actions against administrative violations of taxes, file reports with competent authorities to bring a charge against organizations or individuals committing tax-related violations.

(13) Release statistics data, do tax accounting, manage receipts, tax printed papers, make reports on tax collection and reports for direction and administration of superior authorities, the People’s Committee of the same administrative level and relevant agencies; review and evaluate performance of Department of Taxation.

(14) File reports to the Director of the General Department of Taxation on difficulties that need amendments to tax legislative documents, regulations of General Department of Taxation on specialized practices and internal management; promptly file reports to the Director of the General Department of Taxation on difficulties and issues beyond the authority of Department of Taxation.

(15) Decide or request the competent authorities to decide tax exemption and reduction, tax refund, extension of submission of tax declaration documents, tax deferral, tax, fine or late payment interest writing-off; tax fine exemption as per the law.

(16) Request taxpayers, regulatory agencies, relevant entities to provide information necessary for tax collection management; request competent authorities to take actions against organizations or individuals for failure to cooperation with tax authorities in collecting taxes to the state budget.

(17) Impose taxes, take measures to enforce the implementation of tax administrative decision as per the law; publish on means of mass media taxpayers in violations of tax laws.

(18) Make restitution to taxpayers, keep taxpayer’s information confidential; confirm taxpayer’s discharge of tax liabilities upon request as per the law under management of Department of Taxation.

(19) Carry out an assessment to determine the amount of tax due incurred by a taxpayer upon request of a competent authority.

(20) Initiate application software, information technology infrastructure that cater that meet the requirements of modernizing tax administration and in-sector management into the activities of the Department of Taxation;

(21) Manage the staff, officials and public employees, workers and provide refresher courses for officials and public employees of Department of Taxation as stipulated by the State, Ministry of Finance and General Department of Taxation.

(22) Manage, keep records, tax printed papers and funding, property handed over as per the law.

(23) Perform other tasks designated by the Director of the General Department of Taxation.

(Pursuant to Article 2 of Decision 1836/QD-BTC)

Thus, the Department of Taxation will have main tasks and powers such as:

- Direct, guide and initiate implementation of tax regulations and tax management.

- Manage taxpayers and information about taxpayers.

- Implement tax revenue estimates, tax inspections, and tax audits.

- Resolve tax complaints and denunciations.

- Have the right to request information, determine taxes, and enforce tax decisions.

- Manage the apparatus, officials, and assigned assets.

In summary, the Department of Taxation plays a key role in managing, implementing, and organizing the implementation of tax policies and regulations in the area.

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