How to differentiate tax, fee and charge according to the law in Vietnam?
How to differentiate tax, fee and charge according to the law in Vietnam? Who are entitled to fee and charge reduction or exemption in Vietnam? Thank you!
How to differentiate tax, fee and charge according to the law in Vietnam?
You may refer to the following table on the diffrences between tax, fee and charge:
|
Thuế |
Phí |
Lệ phí |
|
|
Legistrative document |
Law on Tax administration in 2019 and other related documents |
Law on Fees and Charges in 2015 |
Law on Fees and Charges in 2015 |
|
Definition |
A compulsory amount payable to the state budget by organizations, households, household businesses, individuals as prescribed by tax laws. |
An amount of money that shall be paid by organizations or individuals to make up for expenses for public services provided by regulatory agencies, public service providers as assigned by competent state agencies as prescribed in the list of fees and charges enclosed with the Law on Fees and Charges in 2015. |
Charges are a fixed amount of money that shall be paid by organizations or individuals for public services for state management provided by regulatory agencies as prescribed in the list of fees and charges enclosed with the Law on Fees and Charges in 2015. |
|
Payers |
- Organizations, households, household businesses and individuals paying taxes in compliance with provisions on taxation; - Organizations, households, household businesses, individuals paying other amounts to the state budget; - Organizations and individuals deducting tax from income. (According to Clause 1 Article 2 of the Law on Tax administration in 2019) |
Organizations or individuals that are provided with public services for state management (According to Article 6 of the Law on Fees and Charges in 2015) |
Organizations or individuals that are provided with public services for state management (According to Article 6 of the Law on Fees and Charges in 2015) |
|
Collectors |
Tax authorities, including: a) General Department of Taxation, Departments of Taxation of provinces, and Sub-departments of Taxation of districts; b) General Department of Vietnam Customs, Departments of Customs, Post Clearance Audit Departments, Sub-department of Customs. (According to Clause 2 Article 2 of the Law on Tax administration in 2019) |
Regulatory agencies, public service providers, and organizations tasked with providing public services for state management tasks by competent state agencies (According to Article 7 of the Law on Fees and Charges in 2015) |
Regulatory agencies, public service providers, and organizations tasked with providing public services for state management tasks by competent state agencies (According to Article 7 of the Law on Fees and Charges in 2015) |
|
Purposes |
To perform the functions and tasks of the state. |
To offset the cost of providing public services. |
To offset the cost of providing public services. |
Who are entitled to fee and charge reduction or exemption in Vietnam?
Pursuant to Article 10 of the Law on Fees and Charges in 2015 stipulating exemption, reduction of fees, charges as follows:
Exemption, reduction of fees, charges
1. Persons who are entitled to exemption, reduction of fees and charges include children, poor households, senior citizens, the disabled, and persons with meritorious services to the Revolution, ethnic minorities living in communes facing extreme socio-economic difficulties and others as prescribed.
2. The Standing committee of the National Assembly shall stipulate persons entitled to exemption and reduction of legal fees and charges.
3. The Government shall stipulate persons entitled to specific exemption and reduction within competence.
4. The Minister of Finance, provincial People’s Councils shall stipulate persons entitled to specific exemption and reduction within competence.
As regulations above, Persons who are entitled to exemption, reduction of fees and charges include:
Children, poor households, senior citizens, the disabled, and persons with meritorious services to the Revolution, ethnic minorities living in communes facing extreme socio-economic difficulties and others as prescribed by law.
In addition, other entities who are entitled to legal fees and charges reduction or exemption shall be prescribed by the Standing committee of the National Assembly.
How to differentiate tax, fee and charge according to the law in Vietnam? - Image from Internet
What are methods of payment of fees and charges in Vietnam?
Pursuant to Article 11 of the Law on Fees and Charges in 2015 stipulating declaration, payment as follows:
Declaration, payment
1. Fees and charges as prescribed hereof are receipts of government revenues not subject to taxation.
2. Payers shall carry out declaration and payment of fees and charges on a monthly, quarterly and annual basis or when they arise.
3. Payers shall pay fees and charges to collectors or State Treasuries by cash, through credit institutions, service institutions and other manners as prescribed.
4. Fees and charges collected in Vietnam shall be in Vietnam dong unless otherwise as regulated. Fees and charges collected overseas shall be in currency of home country or in freely convertible foreign currencies.
5. The Government shall detail this Article.
As regulations above, fees and charges are paid via following methods:
- In cash
- Through credit institutions, service institutions
- Other manners as prescribed by law.
Best regards!
