What are the cases of taxes to be calculated and informed by tax authorities in Vietnam?

What are the cases of taxes to be calculated and informed by tax authorities in Vietnam? (Internet image)

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

1. What are the cases of taxes to be calculated and informed by tax authorities in Vietnam?

Cases of taxes to be calculated and informed by tax authorities in Vietnam according to Article 13 of Decree 126/2020/ND-CP are as follows:

- The following amounts will be calculated and informed by tax authorities according to information in the taxpayers' tax declaration dossiers:

+ Personal income tax on inheritance or gift (except real estate specified in Point a Clause 2 of Article 13 of Decree 126/2020/ND-CP).

+ Tax on non-agricultural land payable by households and individuals (unless a consolidated declaration is prepared by the taxpayer, in which case the increase in tax shall be determined and paid by the taxpayer).

+ Tax on agriculture land payable by households and individuals.

+ Taxes, fees, charges and other amounts by household businesses and individual businesses paying presumptive tax.

+ Land rents and water surface rents without a land lease decision or contract (except those incurred within economic zones or hi-tech zones).

+ Licensing fees payable by household businesses and individual businesses paying presumptive tax.

+ Registration fees (except those on real estate specified in Point a Clause 2 of Article 13 of Decree 126/2020/ND-CP).

+ Personal income tax on transfer of real estate; receipt of real estate as inheritance or gift (applicable in the cases specified in Point dd.2 and dd.3 Clause 7 Article 11 of Decree 126/2020/ND-CP).

- The following amounts will be calculated and informed by tax authorities according to information in the financial obligation documents transferred by other authorities:

+ Personal income tax on transfer of real estate; receipt of real estate as inheritance or gift (applicable in the cases specified in Point dd.1 Clause 7 Article 11 of Decree 126/2020/ND-CP) and real estate registration fee.

+ Land levy (except that incurred within economic zones or hi-tech zones).

+ Land rents and water surface rents (except those incurred within economic zones or hi-tech zones).

- The following amounts will be informed by tax authorities according to tax notices transferred by other authorities:

+ Fees for grant of the right to mineral extraction.

+ Fees for grant of right to water resource extraction.

+ Fees for grant of right to sea area usage.

- Deadlines for tax authorities to issue tax notices from the receipt of valid tax declaration dossiers:

+ In the cases specified in Points a, b, c Clause 1 of Article 13 of Decree 126/2020/ND-CP:

++ Within 05 working days from the day on which the dossier is directly submitted to the tax authority or transferred by the single-window authority for first declarations and additional declarations in chase of change to tax calculation basis. In case the taxpayer is changed but the previous taxpayer has fulfilled tax obligations of the year, the tax authority shall not issue any tax notice.

++ By the 30th of April for annual declarations (except consolidated declarations prescribed by Point b.5 Clause 3 Article 10 of Decree 126/2020/ND-CP).

++ In case the harvest time does not match the deadline for paying tax on agricultural land, the tax authority may delay issuing the tax notice for up to 60 days.

+ In case the tax declaration dossier is invalid, the tax authority shall inform the taxpayer in accordance with Clause 2 Article 48 of the Law on Tax Administration or cooperate with a competent authority in verifying information and issue a tax notice as per regulations.

+ Within the same working days or the next working days in the cases specified in Point g Clause 1 of Article 13 of Decree 126/2020/ND-CP.

- For household businesses and individual businesses specified in Point d and Point e Clause 1 of Article 13 of Decree 126/2020/ND-CP:

+ By the 20th of the month in which tax is incurred for new household businesses and individual businesses that are new or extracting resources.

+ By the 20th of January of the next years.

- Deadlines for tax authorities to issue and send tax notices to taxpayers in the cases specified in Point dd and Point h Clause 1 and Clause 2 of Article 13 of Decree 126/2020/ND-CP from the receipt of tax declaration dossiers submitted by taxpayers or documents determining land-related liabilities or transferred by other competent authorities:

+ Within 05 working days for documents determining land-related liabilities transferred by other competent authorities, except the case specified in Point b of this Clause; documents determining land rents and water surface rents payable; permission for land use period extension in case of delay in putting land into use and other cases prescribed by law.

+ Within 03 working days from the receipt of the documents determining the amounts that can be deducted from the land rents, water surface rents and land levy. The finance authority shall determine these deductible amounts and send these documents to the tax authority within 05 working days from the receipt of documents sent by the land registry office.

+ Within 03 working days from the receipt of the taxpayer’s tax declaration dossier, the tax authority shall complete and send Form No. 01/CCTT-TDMN in Appendix II hereof to the competent authority specified in Article 63 of Decree No. 43/2014/ND-CP. This document is the basis for issuance of the tax notice mentioned in Point a and Point b of this Clause.

+ By the 30th of April, tax authorities shall issue notices of land rents and water surface rents and send them to taxpayers who pay land rents and water surface rents annually. In case the land rent or water surface rent per m2 is adjusted, the tax authority shall re-determine the rent payable and send another notice to the taxpayer.

- Deadlines for tax authorities to issue and send tax notices to taxpayers in the cases specified in Clause 3 of Article 13 of Decree 126/2020/ND-CP from the receipt of decisions, notices, documents from other competent authorities:

+ Within 10 working days from the receipt of the valid decision, notice or document.

+ By the 30th of April, the tax authority shall issue the notice of the next years’ fees for extraction of minerals, water resources, sea area usage if the fees are paid annually.

- In case the document determining land-related liabilities, decision, notice or document sent by the other competent authority is invalid, the tax authority shall send a request for supplementation to the sending authority by the following deadlines:

+ Within 03 working days from the receipt of the document, the tax authority shall complete and send Form No. 01/CCTT-DDTCQ in Appendix II hereof to the sending authority.

+ Within 03 working days from the receipt of the tax authority’s request, the sending authority shall send the supplementary document to the tax authority.

- Tax authorities shall impose tax liability in the cases specified in Article 50 of the Law on Tax Administration and Article 14 of Decree 126/2020/ND-CP.

- Customs authorities shall calculate and notify tax on exports and imports in the following cases:

+ Tax liability shall be imposed by customs authorities in the cases specified in Article 52 of the Law on Tax Administration and Article 17 of Decree 126/2020/ND-CP.

+ A taxpayer’s business is shut down, not operating at the registered address, dissolved or bankrupt before fulfillment of tax obligations, in which case the tax authority shall calculate tax and send a tax notice to relevant organizations and individuals.

+ A competent authority requests the customs authority to determine tax on confiscated exports or imports.

+ Imports on which taxes are not paid during the import process, distrained and put up for auction by a competent authority, in which case the customs authority shall calculate tax and inform it to the authority collecting auction payments.

+ The taxpayer incurs administrative penalties for tax offences, in which case the fine varies according to the tax arrears or tax avoided.

+ The imports are exempt from tax or pledged by the declarant as collateral for loans; Collateral is liquidated to recover debts but the taxpayer has not prepared a new customs declaration, has not fully paid tax in accordance with customs laws, in which case the customs authority shall calculate the tax payable and inform it to the credit institution.

+ Customs fees; fees on goods, luggage, transiting vehicles.

- Responsibilities of taxpayers, tax authorities and other competent authorities

+ Taxpayers shall provide accurate and adequate information in the tax declaration dossier or financial obligation declaration and submit them to tax authorities or other competent authorities as prescribed by law; take responsibility for the information provided in these documents; fully and punctually provide supplementary information and documents as requested by tax authorities.

+ Responsibilities of tax authorities:

++ If tax is calculated and informed by the tax authority according to the taxpayer’s declaration, the tax authority shall verify the information provided by the taxpayer, calculate tax and send the tax notice to the taxpayer. If such information is inadequate or inaccurate, the tax authority shall reject the tax declaration dossier or send a request for supplementation (Form No. 01/TB-BSTT-NNT in Appendix II hereof) to the taxpayer or impose tax liability tax as prescribed by law.

++ If tax is calculated and informed by the tax authority according to information in the financial obligation documents sent by another authority, the tax authority shall verify such information, calculate tax and send the tax notice to the taxpayer.

++ If information in the documents sent by the other authority is inadequate or inaccurate, the tax authority shall, within 03 working days from the receipt of these documents, the tax authority shall send a written request for supplementation to the sending authority. After adequate information is received, the tax authority shall calculate tax and issue the tax notice by the deadlines specified in Decree 126/2020/ND-CP.

++ If information in the documents sent by another authority in one of the cases specified in Decree 126/2020/ND-CP is inadequate as the basis for the tax authority to issue the tax notice, the tax authority shall, within 03 working days from the receipt of the documents, send a written request for supplementation. After the information is adequately supplemented, the tax authority shall issue the tax notice in accordance with relevant Articles of ecree 126/2020/ND-CP.

++ In the cases specified in Points b, c, d, e and g Clause 10 of Article 13 of Decree 126/2020/ND-CP, the customs authority shall determine the tax on exports and imports according to tax administration data and relevant documents.

+ Responsibilities of other competent authorities:

++ Take responsibility for the adequacy and accuracy of information in the documents determining financial obligations;

++ Promptly transfer these documents to tax authorities;

++ Provide supplementary information as requested by tax authorities;

++ Promptly send documents revising or supplementing documents determining tax payable to tax authorities for revising issued tax notices;

++ Cooperate with tax authorities in developing an automated electronic information transmission system;

++ Tax councils of communes have the responsibilities specified in Article 28 of the Law on Tax Administration regarding determination of tax payable by household businesses and individual businesses;

++ The People’s Committees of communes or LUR registry offices shall verify declarations of tax on non-agricultural land within 03 working days from the receipt of documents from the taxpayer or tax authority.

+ Responsibilities of credit institutions:

In case imports are exempt from tax or pledged by the declarant as collateral for loans; collateral is liquidated to recover debts but the taxpayer has not prepared a new customs declaration and has not fully paid tax in accordance with customs laws, the credit institution shall provide information about the collateral for the customs authority for imposition of tax liability, which will be paid by the credit institution shall pay tax on behalf of the taxpayer.

- In case the tax authority does not calculate and inform the tax on revenues from land rents, water surface rents, land levy incurred within economic zones or hi-tech zones:

+ The collection management authority shall receive documents, determine the amount payable to state budget by the taxpayer, send a notice of the amount payable and deadline to the taxpayer and the tax authority of the area where this amount is incurred.

+ The tax authority shall receive documents from the collection management authority; urge the taxpayer to pay accordingly; calculate late payment interest and enforce payment of tax debt (if any) in accordance with the Law on Tax Administration; prepare a report on collected amounts.

+ The taxpayer shall make the payment adequately and punctually in accordance with the notice sent by the collecting authority. Otherwise, the taxpayer shall pay late payment interest in accordance with the Law on Tax Administration and implement tax enforcement decisions issued by the tax authority.

- The list of notices issued by tax authorities is provided in Appendix II of Decree 126/2020/ND-CP.

2. Duties of tax authorities in Vietnam

Duties of tax authorities in Vietnam according to Article 18 of the Law on Tax Administration 2019 are as follows:

- Organize collection of tax and other amounts payable to the state budget in accordance with tax regulations and other relevant provisions.

- Disseminate and provide guidelines on tax regulations; publish tax procedures on tax authorities’ premises and websites and via mass media.

- Provide explanation and information related to the determination of tax liabilities to taxpayers; take responsibility for publicly announcing tax rates of household and individual businesses in communes.

- Protect confidentiality of information of taxpayers, except for information provided to competent authorities or publicly announced as prescribed by law.

- Consider tax exemption; tax reduction; cancellation of tax debts, late payment interest, penalties; late payment interest and penalty exemption; late payment interest cancellation; extension of tax payment deadline;

tax payment by installments; tax debt freezing, tax cancellation; settlement of overly paid tax, late payment interest, penalties; tax refund as prescribed in the Law on Tax Administration 2019 and other relevant provisions.

- Confirm tax liability fulfillment of taxpayers upon request as prescribed by law.

- Settle complaints and denunciations related to the implementation of tax regulations as authorized.

- Provide tax-related records, conclusions and/or tax decisions after tax audits/inspections for taxpayers and provide explanation upon request.

- Compensate taxpayers in accordance with provisions on the State’s compensation responsibilities.

-. Carry out assessment to determine tax liabilities of taxpayers as requested by State authorities.

- Develop and organize the electronic information systems and apply information technology to e-transactions in taxation.

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