Regulations on the submission and acceptance of applications for tax exemption and reduction in Vietnam

Regulations on the submission and acceptance of applications for tax exemption and reduction in Vietnam (Internet image)

1. Regulations on the submission and acceptance of applications for tax exemption and reduction in Vietnam

Regulations on the submission and acceptance of applications for tax exemption and reduction in Vietnam according to Article 81 of the Tax Administration Law 2019 are as follows:

- In cases where taxpayers self-determine the amount of tax to be exempted or reduced, the submission and receipt of Applications for tax exemption and reductions shall be carried out simultaneously with the declaration, submission, and receipt of tax declaration dossiers as prescribed in Chapter IV of the Tax Administration Law 2019.

- In cases where the tax administration authority decides on tax exemption or reduction according to tax law provisions, the submission of Applications for tax exemption and reductions is regulated as follows:+ For export tax, import tax, and other taxes related to export and import goods, the dossier shall be submitted to the competent customs authority for resolution as prescribed by the Government of Vietnam;+ For other types of taxes, the dossier shall be submitted to the directly managing tax authority.

- Taxpayers shall submit Applications for tax exemption and reductions through the following methods:+ Direct submission at the tax administration authority;+ Sending dossiers via postal services;+ Electronic submission of dossiers through the tax administration authority's electronic transaction portal.

- The tax administration authority receiving the Applications for tax exemption and reductions shall notify about the receipt of Applications for tax exemption and reductions; in cases where the dossier is not legal, incomplete, or not in accordance with prescribed forms, within 03 working days from the date of receipt of the dossier, the tax administration authority must notify the taxpayer in writing.

2. Applications for tax exemption and reduction in Vietnam

The Applications for tax exemption and reduction as per Article 80 of the Tax Administration Law 2019 is as follows:

- Applications for tax exemption and reduction for cases where taxpayers self-determine the amount of tax to be exempted or reduced includes:+ Tax declaration form;+ Documents related to the determination of the amount of tax to be exempted or reduced.

- Applications for tax exemption and reduction for cases where the tax administration authority decides on tax exemption or reduction includes:+ Written request for tax exemption or reduction clearly stating the type of tax requested for exemption or reduction, reason for exemption or reduction, and the amount of tax requested for exemption or reduction;+ Documents related to the determination of the amount of tax requested for exemption or reduction.

- In cases of tax exemption as stipulated in point a, clause 2, Article 79 of the Tax Administration Law 2019, the tax authority shall base on the tax book to notify the list of households and individuals eligible for tax exemption. In cases of tax exemption as prescribed in point b, clause 2, Article 79 of the Tax Administration Law 2019, taxpayers shall self-determine the amount of tax to be exempted based on the personal income tax finalization declaration.

- The Minister of Finance shall detail the dossier for tax exemption and reduction as stipulated in Article 80 of the Tax Administration Law 2019; prescribe the cases where taxpayers self-determine the amount of tax to be exempted or reduced and the cases where the tax administration authority determines the amount of tax to be exempted or reduced.

3. Deadline for Processing Applications for tax exemption and reductions in Cases Where the Tax Administration Authority Decides on the Amount of Tax to be Exempted or Reduced in Vietnam

The deadline for processing Applications for tax exemption and reductions in cases where the tax administration authority decides on the amount of tax to be exempted or reduced as per Article 82 of the Tax Administration Law 2019 is as follows:

- Within 30 days from the date of receipt of a complete dossier, the tax administration authority shall decide on the tax exemption or reduction or notify the taxpayer in writing the reasons for ineligibility for tax exemption or reduction.

- In cases where a field inspection is required to have sufficient grounds for resolving the Applications for tax exemption and reduction, within 40 days from the date of receipt of the complete dossier, the tax administration authority shall issue a decision on tax exemption or reduction or notify the taxpayer in writing the reasons for ineligibility for tax exemption or reduction.

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