On October 19, 2020, the Government of Vietnam issued the Decree No. 126/2020/NĐ-CP on elaboration of the Law on Tax Administration. This Decree guides the determination of locations to submit tax declaration dossiers for enterprises doing business in many localities.
Article table of contents
Specifically, according to Article 45 of the Law on Tax Administration of Vietnam, receiving authorities are specified as follows:
- Taxpayers shall submit tax declaration dossiers at their supervisory tax authorities.
- Receiving authorities of tax declaration dossiers submitted through the single-window system shall be specified by the regulations of the single-window system.
- Receiving authorities of customs dossiers of exports and imports are specified by the Law on Customs of Vietnam.
- The Government shall specify receiving authorities of tax declaration dossiers submitted by:
+ A taxpayer who has more than one business activities;
+ A taxpayer who is running business in more than one administrative division; tax declared upon incurrence
+ Taxpayers who incur tax on revenue from land; grant of the right to water resource extraction or mineral extraction;
+ Taxpayers who have to complete their own personal income tax returns;
+ Taxpayers who declare tax electronically, and other cases.
According to Article 11 of the Decree No. 126/2020/NĐ-CP of Vietnam’s Government, a taxpayer that has business operation in more than one province shall submit tax declaration dossiers as follows:
* A taxpayer that has business operation in more than one province as prescribed in Point a and Point b Clause 4 Article 45 of the Law on Tax Administration of Vietnam shall submit tax declaration dossiers to the tax authority of the province other than the province in which the taxpayer is headquartered in the following cases:
- VAT of an investment project in the cases “the taxpayer has operational investment projects eligible for VAT refund, in which case a VAT declaration dossier shall be separately prepared for each project and VAT on purchases of each project shall be offset against VAT payable (if any) in the same tax period” shall be declared where the project is located.
- VAT on transfer of real estate or an infrastructure or housing development project for transfer (even if progress payments are collected) shall be declared where the transfer takes place.
- VAT shall be declared where the power plant is located.
- Excise tax shall be declared where the taxed goods are produced or processed or where the taxed services are provided (except computerized lottery business).
In case the taxpayer directly imports the goods that are subject to excise tax and then sell them domestically, excise tax shall be declared at the supervisory tax authority in charge of the area where the taxpayer is headquartered.
- Environment protection tax shall be declared where the tax goods are manufactured, except environment protection tax on oil and gas trade specified in Point a Clause 4 of this Article.
- Environment protection tax shall be declared where the coal is manufactured or sold, even if coal is internally consumed, except the case specified in Point b Clause 4 of this Article.
- Resource royalty (except resource royalty on hydropower generation where the reservoir of the power plant is located in the same province; extraction and sale of natural gas; sale of confiscated resources; irregular extraction of resources licensed by competent authorities or exempted from licensing as prescribed by law).
- Corporate income tax shall be declared where the dependent unit or business location generates income eligible for corporate income tax incentives.
- Environmental safety fee shall be declared where minerals are extracted (except crude oil, natural gas and coal gas; buyers of minerals in bulk from independent miners).
- Licensing fees shall be declared where the dependent units and business locations are located.
* In case a taxpayer that has business operation in more than one province and do accounting in the province where the taxpayer is headquartered (except the cases specified in Clauses 1, 3, 4, 5 and 6 of this Article), tax declaration dossiers shall be submitted to the supervisory tax authority of the headquarters. The taxpayer shall also submit a document specifying taxes paid in each province to the same tax authority, except:
- VAT on transport business where the routes go through provinces other than the province in which the taxpayer is headquartered.
- VAT on insurance and reinsurance business.
- VAT on construction business (including construction of roads, power lines, water pipelines, oil pipelines, gas pipelines) in provinces other than the province where the taxpayer is headquartered without establishment of dependent units or business locations in these provinces and the construction value inclusive of VAT is below 1 billion VND.
- Corporate income tax of the dependent unit or business location whose income is eligible for corporate income tax incentives. In this case, the taxpayer shall separately declare the corporate income tax on the activities eligible for incentives with the supervisory tax authority of the dependent unit or business location and must not distribute this tax to other dependent units and business locations of the taxpayer.
- VAT, corporate income tax of dependent units and business locations of taxpayers that are micro-enterprises defined by regulations of law on medium and small enterprises.
In addition to guidelines on the determination of locations to submit tax declaration dossiers for enterprises doing business in many localities, Customers and Members can view more guidelines on determination of locations to submit tax declaration dossiers for enterprises doing business in other cases, which are specified in Article 11 of Decree No. 126/2020/NĐ-CP of Vietnam’s Government.
Thuy Tram
- Key word:
- Decree No. 126/2020/NĐ-CP
