Cases of tax declaration currencies, tax payment in convertible foreign currencies in Vietnam

Cases of tax declaration currencies, tax payment in convertible foreign currencies in Vietnam
Lê Trương Quốc Đạt

What are the cases of tax declaration currencies, tax payment in convertible foreign currencies in Vietnam? - Thien Kim (Tien Giang, Vietnam)

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Cases of tax declaration currencies, tax payment in convertible foreign currencies in Vietnam (Internet image)

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

1.  Tax declaration currencies, tax payment in convertible foreign currencies in Vietnam

According to Clause 1, Article 4 of Circular 80/2021/TT-BTC, cases of tax declaration and tax payment in convertible foreign currencies:

- Petroleum exploration and extraction (except crude oil, condensate, natural gas for sale in Vietnam or otherwise prescribed by the Government), including:

+ Resource royalty, corporate income tax (CIT);

+ Surcharges on distributable surplus of oil in case of increase in crude oil price;

+ Profit on oil and gas distributed to the host country;

+ CIT on income from transfer of right to participate in petroleum contracts;

+ Special taxes, surcharges and CIT on retained oil surplus of Vietsovpetro JV in block 09.1 that are declared and paid to state budget using convertible foreign currencies.

- Fees, charges and other amounts collected by diplomatic missions of the Socialist Republic of Vietnam.

Declared and paid to state budget using the foreign currencies prescribed in the documents on fees, charges and other amounts.

- Fees and charges that may be collected in foreign currencies by agencies and organizations in Vietnam:

Declared and paid to state budget using the foreign currencies prescribed in the documents on fees and charges.

- E-commerce, digital platform-based business and other services provided by overseas suppliers without permanent establishments in Vietnam:

Declared and paid to state budget using convertible foreign currencies.

2. Regulations on currencies in tax declaration and tax payment in Vietnam

According to Clauses 1, 2 and 3, Article 7 of the Law on Tax Administration 2019 is as follows:

- The currency for tax declaration and payment is the Vietnamese Dong, except for cases where tax declaration and payment in foreign convertible currencies are allowed.

- Taxpayers who do bookkeeping in foreign currencies in accordance with the Accounting Law must exchange such bookkeeping into the Vietnamese dong based on the exchange rates applicable when the transaction is conducted.

- For imported and exported goods, the currency for tax payment is the Vietnamese Dong, except for cases where tax declaration and payment in foreign convertible currencies are allowed. Exchange rates used for taxation shall follow provisions on customs.

3. Prohibited activities in tax administration in Vietnam

According to Article 6 of the Law on Tax Administration 2019, the prohibited activities in tax administration are as follows:

- Collusion, connection, cover-up between taxpayers and tax officials, tax authorities for price transfer and/or tax evasion.

- Inconvenience, burden to tax payers.

- Taking advantage to seize or put tax money to illegal use.

- Deliberate avoidance of declaration or inadequate, late, inaccurate declaration of tax liabilities.

- Obstructing operations of tax officials.

- Using tax identification numbers of other persons to conduct violations against the law or allowing other persons illegal use of one’s tax identification number.

- Selling goods and providing services without issuance of invoices as prescribed by law, using illegal invoices and using invoices illegally.

- Alteration, misuse, illegal access or destruction to taxpayer information system.

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