Regulations on tax liability imposition in case of tax offences in Vietnam

Regulations on tax liability imposition in case of tax offences in Vietnam (Internet image)

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

1. Regulations on tax liability imposition in case of tax offences in Vietnam

Regulations on iax liability imposition in case of tax offences according to Article 50 of the Law on Tax Administration 2019 are as follows:

- Tax liability will be imposed if the taxpayer:

+ fails to apply for taxpayer registration; fails to declare tax; fails to provide supplementary tax documents at the request of the tax authority; fails to declare fully and/or accurately the tax calculation bases;

+ fails to record or fully and/or accurately record data on the accounting books;

+ fails to present the accounting books, invoices and necessary documents relevant to the determination of tax payable within a certain time limit;

+ fails to comply with the tax inspection or tax audit decision;

+ buys, sells, trades goods and record values thereof against their market prices;

+ buys or trades goods using illegal invoices; illegally uses invoices for real goods from which revenue has been declared for tax calculation as investigated by a competent authority;

+ is suspected of absconding or selling assets to evade tax;

+ makes false transactions to reduce tax liability; or

+ fails to fulfill the responsibility to declare and valuate related-party transactions; fails to provide information about enterprises having related-party transactions according to tax administration laws.

- Bases for tax liability imposition:

+ The database of the tax authorities and commercial database;

+ Comparison between the tax payable by providers of the same goods or services on the same scale in the same area (or in another area if such similar providers are not available in the same area).

+ Unexpired inspection results and documents;

+ The ratio of tax on revenue in the corresponding field according to tax laws.

- Separate elements relevant to determination of tax payable shall be imposed in the following cases:

+ Through inspection of the tax declaration dossier, the tax authority has reasonable grounds to believe that the taxpayer did not fully or accurately declare the elements serving as the basis for tax calculation and fails to provide supplementary documents as requested by the tax authority;

+ Through inspection of the accounting books and invoices relevant to tax calculation, the tax authority is able to prove that the taxpayer failed to accurately or truthfully record the tax calculation elements;

+ Selling prices of goods/services were in accurately recorded in order to reduce the taxable revenue; buying prices of raw materials, goods and services were inaccurately recorded in order to increase expense or deductible VAT and thus reduce the amount of tax payable;

+ The taxpayer failed to determine the elements or fails to calculate the tax payable after the elements are determined. separate elements or tax calculation bases.

- In cases other than those specified in Clause 3 of Article 50 of the Law on Tax Administration 201, a taxpayer shall have proportional tax imposed on their revenue if the tax authority finds that their accounting books, invoices and documents are inadequate or illegal, or tax is not accurately declared and their maximum revenue is equal to the maximum revenue of a microenterprise defined by regulations of law on assistance for small and medium enterprises.

2. Tax liability imposition rules in Vietnam

Tax liability imposition rules in Vietnam according to Article 49 of the Law on Tax Administration 2019 are as follows:

- Tax shall be imposed on the basis of tax administration rules, tax calculation methods and bases specified by tax laws and customs laws.

- Tax authorities shall impose tax payable, separate elements or tax calculation bases.

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