Vietnam: What is the tax authority of the receiving province?

Vietnam: What is the tax authority of the receiving province? (Internet image)

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

1. What is the tax authority of the receiving province?

According to Clause 6, Article 3 of Circular 80/2021/TT-BTC, tax authority of the receiving province is the tax authority that is located within the administrative division where the state budget revenue is received and specified by the taxpayer on the tax return but must not receive tax declaration dossiers from taxpayers as per regulations. A tax authority of the receiving province can be:

- The tax authority that is located in the administrative division where the taxpayer is headquartered but is not the supervisory tax authority of the taxpayer.

- The tax authority that is located in a province other than the province in which the taxpayer is headquartered but still receives the state budget revenues according to Clause 2 and Clause 4 Article 11 of Decree 126/2020/ND-CP, Articles 12, 13, 14, 15, 16, 17, 18 and 19 of Circular 80/2021/TT-BTC.

2. Responsibilities of tax authorities of the receiving provinces in Vietnam

According to Clause 2, Article 5 of Circular 80/2021/TT-BTC, tax authorities of the receiving provinces have the following responsibilities:

- Supervise taxpayers declaring distribution of tax obligations and paying tax in the receiving province; request taxpayers to provide information and documents relevant to the distributed tax obligations; inform the supervisory tax authority in case a taxpayer fails to comply or fully comply with regulations on tax obligation distribution.

- Implement certain measures for collection of tax debts, enforcement of tax debt payment in the receiving province and inform supervisory tax authorities (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of this Circular).

- Cooperate in processing applications for tax deferral, tax payment in instalments, chargeoff, tax cancellation in the province at the request of supervisory tax authorities (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of this Circular).

- Preside over or cooperate with supervisory tax authorities in offsetting overpaid tax in accordance with Article 25 and Article 26 of this Circular (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of this Circular).

- Cooperate in refunding overpaid tax to taxpayers at the request of supervisory tax authorities in accordance with Section 2 Chapter V of this Circular (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of this Circular).

- Cooperate in inspection of taxpayers at the request of supervisory tax authorities

3. Rules for tax administration in Vietnam

 Rules for tax administration according to Article 5 of the Law on Tax Administration 2019 are as follows:

- All organizations, households, household businesses, individuals shall pay their taxes in compliance with the law.

- Tax authorities and other State agencies tasked with revenue administration shall implement tax administration as prescribed in this Law and other relevant provisions, ensuring publicity, transparency, equality and ensuring legitimate rights and benefits of taxpayers.

- Agencies, organizations, individuals are responsible for participating in tax administration as prescribed by law.

- Implement reform of administrative procedures and application of modern information technology to tax administration; apply tax administration rules in accordance with international practice, including regulations of tax liabilities determined by nature of activities and transactions, regulations of risk management in tax administration and other regulations suitable with Vietnamese conditions.

- Take priority measures when carrying out tax-related procedures for imported and exported goods in compliance with provisions on customs and Governmental provisions.

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