Decree 126/2020/ND-CP guiding the latest Law on Tax Administration and guiding documents in Vietnam

Decree 126/2020/ND-CP guiding the latest Law on Tax Administration in Vietnam

Decree 126/2020/ND-CP specifies the implementation of certain articles of the Law on Tax Administration applicable to the management of various taxes and other collections in the state budget, excluding provisions concerning tax management for businesses undergoing related party transactions, invoice application, documentation, administrative violations in taxation and invoicing, and administrative violations in the customs sector.

Below is a compilation of documents guiding Decree 126/2020/ND-CP:

- Circular 105/2020/TT-BTC guiding taxpayer registration promulgated by the Minister of Finance, effective until February 5, 2025.

- Circular 06/2021/TT-BTC guiding the Law on Tax Administration regarding the management of taxes on export and import goods promulgated by the Minister of Finance.

- Circular 40/2021/TT-BTC guiding value-added tax, personal income tax, and tax management for business households and individual businesses promulgated by the Minister of Finance.

- Circular 45/2021/TT-BTC guiding the application of Advance Pricing Agreement (APA) mechanism in tax management for businesses with related party transactions promulgated by the Minister of Finance.

- Circular 80/2021/TT-BTC guiding the Law on Tax Administration and Decree 126/2020/ND-CP on guiding the Law on Tax Administration promulgated by the Minister of Finance.

- Circular 100/2021/TT-BTC amending Circular 40/2021/TT-BTC guiding value-added tax, personal income tax, and tax management for business households and individual businesses promulgated by the Minister of Finance.

- Circular 86/2024/TT-BTC stipulating taxpayer registration promulgated by the Minister of Finance, effective from February 6, 2025.

What are principles of tax management in Vietnam?

1. All organizations, households, household businesses, and individuals are obliged to pay taxes as stipulated by the law.

2. Tax authorities, as well as other state agencies assigned to manage collections, shall carry out tax management according to this Law and other relevant legal provisions, ensuring openness, transparency, equality, and safeguarding the legal rights and interests of taxpayers.

Tax management officials are responsible for handling tax records within the scope of the taxpayer's provided documents, data, information from the competent state authorities related to the taxpayer, results of risk management application in tax management, ensuring compliance with duties and tasks, adhering to legal provisions on tax management and other related tax laws.

3. Agencies, organizations, and individuals are responsible for participating in tax management as prescribed by law.

4. Implement administrative procedure reforms and apply modern information technology in tax management; apply tax management principles according to international practices, including the principle that the nature of activities and transactions determines tax obligations, risk management principles in tax management, and other principles suitable to Vietnam's conditions.

5. Apply preferential measures when implementing tax procedures for imported and exported goods as prescribed by the law on customs and regulations of the Government of Vietnam.

What are prohibited acts in tax management in Vietnam?

1. Colluding, conspiring, shielding between taxpayers and tax management officials, tax authorities for transfer pricing, tax evasion.

2. Causing trouble, harassment to taxpayers.

3. Exploiting to misappropriate or illegitimately use tax money.

4. Intentionally not declaring or improperly, untimely, and inaccurately declaring the payable tax amount.

5. Obstructing tax management officials from performing their duties.

6. Using another taxpayer’s tax code to commit legal violations or allowing others to use one’s tax code contrary to law.

7. Selling goods, providing services without issuing invoices as prescribed by law, using illegal invoices and unlawfully using invoices.

8. Distorting, misusing purpose, unauthorized access, destroying taxpayer information systems.

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