Some important provisions in Law on Tax Administration 2019 in Vietnam

Some important provisions in Law on Tax Administration 2019 in Vietnam​ (Illustrative Image)

1. Additional rights for taxpayers in Vietnam

According to Article 16 of the Tax Administration Law 2019, taxpayers are granted the following additional rights:

- The right to receive documents related to tax obligations from competent authorities during inspections, audits, and audits.

- The right to be informed of the deadline for tax refund processing, the amount of tax not refunded, and the legal basis for the non-refundable tax amount.

- The right to receive decisions on tax handling, tax inspection records, tax audit records, and to request explanations of the contents of tax handling decisions.

- The right not to be administratively penalized for tax violations or charged late payment interest if the taxpayer performs according to guidelines and handling decisions of tax authorities and competent state agencies related to determining the taxpayer’s tax obligations.

2. Extension of deadline for filing oersonal income tax finalization dossier in Vietnam

Under Clause 2, Article 32 of the Tax Administration Law 2006, the deadline for filing personal income tax finalization dossier is no later than the 90th day from the end of the calendar year or fiscal year. However, the new regulation at Point b, Clause 2, Article 44 of the Tax Administration Law 2019 stipulates that the deadline is no later than the last day of the fourth month from the end of the calendar year for personal income tax finalization dossiers of individuals who directly finalize tax. Thus, the deadline for filing personal income tax finalization dossier has been extended by about one month.

3. Shortening the deadline for issuing taxpayer registration certificate in Vietnam

According to Article 34 of the Tax Administration Law 2019, the Taxpayer Registration Certificate must be issued within 3 working days from the date of receipt of complete taxpayer registration dossiers. In case of loss, tear, destruction, or fire, the tax authority will reissue it within 2 working days from the date of receipt of the complete dossier.

This period has been shortened as, under Article 26 of the Tax Administration Law 2006, the time limit for issuing the Taxpayer Registration Certificate was 10 working days from the date of receiving valid taxpayer registration dossiers. In case of loss or damage, the tax authority reissues it within 5 working days from the date of receipt of the taxpayer’s request.

4. No longer a deadline for taxpayer registration in Vietnam

Specifically, Article 30 of the Tax Administration Law 2019 stipulates that taxpayers must complete taxpayer registration and be issued tax codes by the tax authority before starting production or business activities or incurring obligations to the state budget. Thus, taxpayers only need to register before starting production or business activities rather than being required to register within ten working days from the date of being granted a business registration certificate, establishment and operation license, or investment certificate as specified in Article 22 of the Tax Administration Law 2006.

5. Legalizing the regulation on electronic invoices in Vietnam

This is one of the notable contents of the Tax Administration Law 2019 that will take effect from July 1, 2022. Previously, the regulation on electronic invoices was stipulated in Decree 119/2018/ND-CP and some related sub-law documents. Now, the Tax Administration Law 2019 has a separate chapter (Chapter X) on electronic invoices and documents, effective from July 1, 2022.

The above are some key changes that have been amended, added, or noted for the first time in the Tax Administration Law 2019. LAWNET would like to provide our customers and members with useful information about the new points of the Tax Administration Law 2019.

Thuy Tram

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