In Vietnam, the powers and responsibilities of tax authorities when applying APA

In Vietnam, the powers and responsibilities of tax authorities when applying APA

Pursuant to Clause 1, Article 10 of Circular 45/2021/TT-BTC, the tax authorities' powers when applying APA are as follows:

a) The tax authority has the right to request the taxpayer to explain and clarify the information provided by the taxpayer during the processing of the application for APA.

b) The tax authority has the right to stop the negotiation when one of the following cases arises:

b1) The continuation of APA negotiation does not meet the principles of APA application specified in the Law on Tax Administration, Decree No. 126/2020/ND-CP and Article 5 of this Circular;

b2) The involved parties cannot agree on the content of the APA when the proposed period for the application of the APA ends;

b3) The taxpayer or the partner tax authority proposes to stop the APA negotiation.

The General Department of Taxation shall notify taxpayers (for unilateral APAs) or taxpayers and notify or confirm with foreign tax authorities (for bilateral or multilateral APAs) of the cessation of APA negotiations.

In Vietnam, responsibilities of tax authorities when applying APA

Pursuant to Clause 2 of this Article, the tax authorities' responsibilities when applying APA are as follows:

a) Based on the authority prescribed in Article 41 of Decree No. 126/2020/ND-CP, the General Department of Taxation shall receive taxpayers' dossiers; handling the taxpayer's request on the application of APA, extension and amendment of the signed APA; cancel, revoke the signed APA.

b) Tax authorities are responsible for managing, examining and inspecting the implementation of signed APA by taxpayers according to the provisions of Clause 9 Article 20 of Decree No. 132/2020/ND-CP according to their functions and duties. assigned tasks, including: Inspecting, examining and determining the actual observance of the provisions of the signed APA; inspect, examine, determine the declaration and payment of tax and adjust taxable income according to the provisions of the signed APA; checking and determining information in annual APA reports and ad hoc reports reported by taxpayers to be consistent with arising reality.

The management, examination and inspection of tax authorities is to monitor the compliance of taxpayers in the implementation of the signed APA, not to re-evaluate the signed APA.

c) The Tax Department participates and is responsible for the contents involved in the process of consultation, exchange and negotiation of APA within the scope of state management as assigned; manage, examine and inspect the implementation of signed APAs according to the functions and tasks of the Tax Department.

Best regards!