12 cases of tax liability imposition in Vietnam

According to Article 14 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, tax liability will be imposed by the tax authority if the taxpayer:

1. Fails to apply for taxpayer registration in accordance with Article 33 of the Law on Tax Administration of Vietnam.

2. Fails to declare or truthfully and accurately declare tax in accordance with Article 42 of the Law on Tax Administration of Vietnam.

3. Fails to submit supplementary tax documents or adequate and accurate supplementary tax documents as the basis for determination of tax payable as requested by the tax authority.

4. Fails to provide or truthfully and accurately provide information in accounting books as the basis for determination of tax obligations.

5. Fails to present accounting books, invoices and documents necessary as the basis for tax calculation by the deadline or within the time limit for tax audit or tax inspection at the taxpayer’s premises.

6. Fails to implement the decision on tax audit within 10 working days from the day on which the decision is signed, unless the inspection date is delayed as per regulations.

7. Fails to implement the decision on tax inspection within 15 working days from the day on which the decision is signed, unless the inspection date is delayed as per regulations.

8. Sells, buys, exchanges goods with unusual values; records unusual value of goods.

9. Buys, exchanges goods, services using illegal invoices; illegally uses invoices for actual goods and services as discovered by an investigating or inspecting authority while revenues and expenses as the basis for tax calculation have been declared.

10. Is suspected absconding or liquidating assets to avoid tax obligations.

11. Conducts misleading or false transactions to reduce tax obligations.

12. Fails to declare values of related-party transactions (if any) or fails to provide information about related-party transactions (if any) in accordance with tax administration regulations.

View more details at the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, effective from December 05, 2020.

Ty Na

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