Cases not required to declare tax in Vietnam 2023

Cases not required to declare tax in Vietnam 2023 (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases not required to declare tax in Vietnam 2023

According to Clause 3, Article 7 of Decree 126/2020/ND-CP (amended in Decree 91/2022/ND-CP), a taxpayer is not required to declare tax in the following cases:

- The taxpayer only has business operations that are not subject to any tax.

- The taxpayer is an individual earning tax-free income as prescribed by personal income tax laws and Point b Clause 2 Article 79 of the Law on Tax administration, except individuals that receive real estate as inheritance or gift and individuals that transfer real estate.

- An enterprise that only exports is not required to declare VAT.

- The taxpayer’s business suspension is suspended as prescribed in Article 4 of Decree 126/2020/ND-CP.

- The taxpayer applies for TIN invalidation, except termination of business operation, contract or business rearrangement prescribed in Clause 4 Article 44 of the Law on Tax administration.

2. Regulations on tax declaration dossiers in Vietnam

Regulations on tax declaration dossiers in Vietnam under Clause 1, Article 7 of Decree 126/2020/ND-CP are as follows:

A tax declaration dossier consists of the tax return and documents that are the basis for determination of the taxpayer’s tax obligations, is prepared and sent by the taxpayer to the tax authority.

A tax declaration dossier can be electronic or physical. The taxpayer shall use the set forms provided by the Minister of Finance and be legally responsible for  the information provided therein; include adequate documents required in the tax declaration dossier.

For documents without set forms provided by the Ministry of Finance, relevant laws shall apply.

-Taxpayers shall calculate tax, late payment interest (if any) and pay them to state budget, except the cases specified in Article 13 of Decree 126/2020/ND-CP) according to the tax declaration and supplementary tax declaration.

The tax authority shall impose tax in accordance with Article 50 and Article 52 of the Law on Tax administration if the tax calculation basis or tax payable in the tax declaration dossier is found to be inadequately or inaccurately declared.

- On the basis of the tax declaration dossier, information provided by competent authorities and tax administration information, tax authorities shall calculate tax and inform taxpayers in accordance with Article 13 of Decree 126/2020/ND-CP.

- For household businesses and individual businesses paying presumptive tax, tax authorities shall decide the tax payable on the basis of their tax declaration dossiers and tax administration information and in accordance with Article 51 of the Law on Tax administration and regulations of the Minister of Finance.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE