Luật
quản lý thuế (hiệu lực 01/01/2007) > Nghị
định 85/2007 hướng
dẫn một số điều Luật quản lý
thuế > Circular
85/2007 (E)
LAW ON
TAX MANAGEMENT
TABLE
OF CONTENTS
CHAPTER I....................................................................................................................................................................1
GENERAL PROVISIONS.............................................................................................................................................1
Article 1 Governing
scope..........................................................................................................................1
Article 2 Applicability...................................................................................................................................1
Article 3 Contents
of tax management.....................................................................................................2
Article 4 Principles
of tax management....................................................................................................2
Article 5 Interpretation
of terms..................................................................................................................2
Article 6 Taxpayers
shall have the following rights:................................................................................3
Article 7 Taxpayers
shall have the following obligations:.......................................................................3
Article 8 Tax
management bodies shall have the following responsibilities:......................................4
Article 9 Tax management
bodies shall have the following powers:....................................................5
Article 10 The
Ministry of Finance shall have the following responsibilities for tax
management:....5
Article
11 People’s
councils and people’s committees at all levels shall have the following
responsibilities for tax management:.........................................................................................5
Article 12 Tax
consultancy councils of communes, wards and townships............................................6
Article 13 Other
State bodies shall have the following responsibilities for tax management:.............6
Article
14 The
Vietnam Fatherland Front, socio-political-occupational organizations, social
organizations and political-occupational organizations shall have the following
responsibilities for tax management:.........................................................................................6
Article
15 Information
agencies and the press shall have the following responsibilities for tax
management:................................................................................................................................7
Article
16 Other
organizations and individuals shall have the following obligations in participating
in tax management:..........................................................................................................................7
Article 17 International
co-operation in tax management.........................................................................7
Article 18 Building
tax managerial manpower............................................................................................7
Article 19 Modernization
of tax management work...................................................................................8
Article 20 Organizations
engaged in business of services for performance of tax procedures..........8
CHAPTER II...................................................................................................................................................................9
TAX REGISTRATION...................................................................................................................................................9
Article 21 Entities
subject to tax registration [shall comprise:]................................................................9
Article 22 Time-limits
for tax registration..................................................................................................10
Article 23 Tax
registration files...................................................................................................................10
Article 24 Locations
for submitting tax registration files.........................................................................10
Article 25 Responsibilities
of tax bodies and tax officials to receive tax registration files.................10
Article 26 Issuance
of tax registration certificates...................................................................................11
Article 27 Change
of items in lodged tax registration files.....................................................................11
Article 28 Use of
tax codes.........................................................................................................................11
Article 29 Expiry
of tax codes.....................................................................................................................12
CHAPTER III................................................................................................................................................................12
TAX DECLARATION, AND TAX CALCULATION................................................................................................12
Article 30 Principles
of tax declaration and tax calculation....................................................................12
Article 31 Tax
declaration files...................................................................................................................12
Article 32 Deadline
and location for submitting tax declaration files....................................................13
Article 33 Extension
of time for submitting tax declaration files............................................................14
Article 34 Supplementary
tax declaration.................................................................................................14
Article
35 Responsibilities
of tax management bodies and tax management officials to receive tax
declaration files...........................................................................................................................15
CHAPTER III................................................................................................................................................................15
FIXING TAX AMOUNTS PAYABLE........................................................................................................................15
Article 36 Principles
of fixing tax amounts payable.................................................................................15
Article
37 Fixing
tax amounts payable by tax payers paying tax by the method of declaration, in
cases of breach of the law on tax............................................................................................15
Article
38 Determining
tax amounts payable by business family households and business individuals
paying tax by the method of tax on a fixed turnover..........................................16
Article 39 Fixing
duty amount payable on import or export goods........................................................17
Article 40 Responsibilities
of tax management bodies for fixing tax amounts payable.....................17
Article 41 Responsibilities
of taxpayers for paying amounts of tax as fixed........................................17
CHAPTER IV................................................................................................................................................................17
TAX PAYMENT...........................................................................................................................................................17
Article 42 Time-limits
for tax payment.......................................................................................................17
Article 43 Currency
for tax payment..........................................................................................................19
Article 44 Locations
for and forms of tax payment..................................................................................19
Article 45 Priority
order for payment of taxes and fines.........................................................................19
Article 46 Determining
the date on which tax was paid..........................................................................19
Article 47 Dealing
with excess amounts of tax paid................................................................................20
Article 48 Tax
payment pending resolution of complaint or court action.............................................20
Article 49 Extension
of time-limit for tax payment...................................................................................20
Article 50 Authority
to grant extension of time-limit for tax payment....................................................20
Article 51 Application
files for extension of time-limit for tax payment.................................................21
Article 52 Receipt
and processing of application files for extension of time-limit for tax payment...21
CHAPTER VI................................................................................................................................................................21
RESPONSIBILITIES TO COMPLETE TAX PAYMENT........................................................................................21
Article 53 Completion
of tax payment on exit from Vietnam..................................................................21
Article
54 Completion
of tax payment in cases of dissolution, bankruptcy and termination of operation......................................................................................................................................22
Article 55 Completion
of tax payment in case of enterprise reorganization........................................22
Article
56 Inheritance
of tax obligations from a deceased person, from a person who has lost civil
capacity or from a person who is declared missing as stipulated by civil law...................22
CHAPTER VII...............................................................................................................................................................23
TAX REFUND..............................................................................................................................................................23
Article 57 Cases
eligible for tax refund.....................................................................................................23
Article 58 Application
files for tax refund..................................................................................................23
Article
59 Responsibilities
of tax management bodies and tax officials to receive application files for tax
refund...............................................................................................................................23
Article 60 Responsibilities
of tax management bodies to resolve application files for tax refund....24
CHAPTER VIII..............................................................................................................................................................24
PROCEDURES FOR TAX EXEMPTION, FOR TAX REDUCTION, AND FOR................................................24
CANCELLATION OF OUTSTANDING TAXES AND FINES...............................................................................24
SECTION 1..............................................................................................................................................................24
PROCEDURES
FOR TAX EXEMPTION AND TAX REDUCTION.....................................................................................24
Article 61 Tax
exemption and tax reduction.............................................................................................24
Article 62 Application
files for tax exemption and tax reduction............................................................25
Article 63 Submission
and receipt of application files for tax exemption and tax reduction.............25
Article
64 Time-limits
for resolution of application files for tax exemption and tax reduction when
the tax management body issues a decision on amount of tax exempted or reduced....26
SECTION 2..............................................................................................................................................................26
CANCELLATION
OF OUTSTANDING TAXES AND
FINES.............................................................................................26
Article 65 Cases
eligible for cancellation of outstanding taxes and fines [shall comprise:]..............26
Article 66 Files
for cancellation of outstanding taxes and fines............................................................26
Article 67 Authority
to approve a cancellation of outstanding taxes and fines....................................26
Article
68 Responsibilities
to receive and resolve files for cancellation of outstanding taxes and fines..............................................................................................................................................26
CHAPTER IX................................................................................................................................................................27
INFORMATION ON TAX PAYERS..........................................................................................................................27
Article 69 Information
system on taxpayers.............................................................................................27
Article
70 Formulation,
collection, processing and managing the information system on taxpayers......................................................................................................................................................27
Article 71 Responsibilities
of tax payers to provide information............................................................27
Article
72 Responsibilities
of related organizations and individuals to provide information about taxpayers.....................................................................................................................................28
Article 73 Confidentiality
of information of taxpayers..............................................................................28
Article 74 Publication
of information about taxpayers who breach the law on tax.............................29
CHAPTER X.................................................................................................................................................................29
TAX CHECKS AND INSPECTIONS........................................................................................................................29
SECTION 1..............................................................................................................................................................29
GENERAL PROVISIONS
ON TAX CHECKS AND INSPECTIONS...................................................................................29
Article 75 Principles
of tax check and inspections..................................................................................29
Article 76 Processing
results of a tax check or inspection.....................................................................29
SECTION 2..............................................................................................................................................................30
TAX CHECKS.............................................................................................................................................................30
Article 77 Tax
checks conducted at headquarters of the tax management body...............................30
Article 78 Tax
checks conducted at head office of the tax payer..........................................................31
Article
79 Rights
and obligations of taxpayers during tax checks conducted at headquarters of the
taxpayer.......................................................................................................................................31
Article
80 Duties
and powers of head of tax management body in issuance of a decision on tax
check, and of tax management officials during a tax check.................................................32
SECTION 3..............................................................................................................................................................33
TAX INSPECTIONS......................................................................................................................................................33
Article 81 Cases
when tax inspections shall be conducted...................................................................33
Article 82 Decision
on tax inspection........................................................................................................33
Article 83 Limit
on duration of a tax inspection........................................................................................33
Article 84 Duties
and powers of person issuing decision on tax inspection........................................33
Article 85 Duties
and powers of head and members of tax inspection team......................................34
Article 86 Rights
and obligations of entities subject to a tax inspection...............................................35
Article 87 Conclusions
of a tax inspection................................................................................................36
SECTION 4..............................................................................................................................................................36
MEASURES APPLICABLE
DURING A TAX INSPECTION IN CASES
WITH SIGNS OF TAX EVASION
OR TAX FRAUD...36
Article
88 Application
of measures during a tax inspection in cases with signs of tax evasion or tax
fraud.............................................................................................................................................36
Article 89 Collection
of information about acts of tax evasion or tax fraud..........................................36
Article 90 Temporary
retention of data and exhibits relating to acts of tax evasion or tax fraud......37
Article
91 Search
of locations hiding documents and exhibits relevant to acts of tax evasion or
tax fraud.............................................................................................................................................38
CHAPTER XI................................................................................................................................................................38
COMPULSORY ENFORCEMENT OF ADMINISTRATIVE TAX DECISIONS..................................................38
Article 92 Cases
in which administrative tax decisions shall be compulsory enforced.....................38
Article 93 Methods
of compulsory enforcement of administrative tax decisions................................38
Article 94 Authority
to issue decision to compulsorily enforce an administrative tax decision.........39
Article 95 Decision
to compulsorily enforce an administrative tax decision........................................39
Article
96 Responsibilities
to organize implementation of decisions on compulsory enforcement of
administrative tax decisions......................................................................................................40
Article
97 Method
of compulsory enforcement being transfer of money from bank accounts of entity
subject to compulsory enforcement of administrative tax decisions........................40
Article 98 Method
of compulsory enforcement being deduction of a part of salary or revenue.......40
Article
99 Method
of compulsory enforcement being seizure of assets and auction of seized assets......................................................................................................................................................41
Article
100 Method
of compulsory enforcement being collection of money and assets owned by an
entity subject to compulsory enforcement but held by another organization or
individual......................................................................................................................................................42
Article
101 Method
of compulsory enforcement being suspension of customs procedures for import
goods............................................................................................................................................43
Article
102 Methods
of compulsory enforcement being withdrawal of tax code; suspension of use of
invoices; and withdrawal of business registration certificate, licence for
establishment and operation, or practising certificate....................................................................................43
CHAPTER XII...............................................................................................................................................................44
DEALING WITH BREACHES OF THE LAW ON TAX.........................................................................................44
Article 103 Conduct
of taxpayers which constitutes a breach of the law on tax...................................44
Article 104 Principles
of and procedures for dealing with breaches of the law on tax.........................44
Article 105 Penalties
for breaches of tax procedures...............................................................................44
Article 106 Penalties
applicable to late payment of tax............................................................................45
Article
107 Penalties
applicable to false declarations leading to a deficit in amount of tax payable
or an excess in amount of tax refunded......................................................................................46
Article 108 Penalties
applicable to acts of tax evasion or tax fraud........................................................46
Article 109 Authority
to penalize breaches of the law on tax...................................................................46
Article 110 Limitation
period for applying penalties for breach of the law on tax..................................47
Article 111 Exemption
from penalties for breach of the law on tax.........................................................47
Article 112 Dealing
with breaches of the law on tax by tax management bodies.................................47
Article 113 Dealing
with breaches of the law on tax by tax management officials...............................47
Article
114 Dealing
with breaches by commercial banks, credit institutions and guarantors of tax
payment.......................................................................................................................................48
Article 115 Dealing
with breaches of the law on tax by related organizations and individuals...........48
CHAPTER XIII..............................................................................................................................................................49
COMPLAINTS AND DENUNCIATIONS, INSTITUTION OF LEGAL
PROCEEDINGS...................................49
Article 116 Complaints
and denunciations.................................................................................................49
Article 117 Institution
of legal proceedings.................................................................................................49
Article
118 Responsibilities
and powers of tax management bodies for resolution of complaints and
denunciations about tax.............................................................................................................49
CHAPTER XIV.............................................................................................................................................................49
IMPLEMENTING PROVISIONS................................................................................................................................49
Article 119 Effectiveness...............................................................................................................................49
Article 120 Implementing
guidelines............................................................................................................50
NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAM
Independence -
Freedom - Happiness
No. 78-2006-QH11
LAW
ON
TAX
MANAGEMENT
National Assembly of the
Socialist Republic of
Vietnam
Legislature XI, 10th
Session
(from 17 October to
29 November 2006)
Pursuant to the 1992
Constitution of the Socialist Republic of Vietnam as amended by Resolution
51-2001-QH10 passed by Legislature X of the National Assembly at its 10th
Session on 25 December 2001;
This Law regulates tax
management.
CHAPTER
I
General
Provisions
Article 1 Governing scope
This Law regulates management
of all types of taxes and other revenue of the State Budget, the collection of
which is managed by tax management bodies in accordance with law.
Article 2 Applicability
1. Tax payers
(a) Organizations, family households and
individuals paying tax pursuant to the law on tax;
(b) Organizations, family households and
individuals paying other items of revenue of the State Budget (hereinafter all
referred to as taxes), the collection of which is managed by tax
management bodies in accordance with law;
(c) Organizations and individuals deducting
tax; and organizations and individuals conducting tax procedures on behalf of
taxpayers.
2. Tax management bodies
(a) Tax offices including the General
Department of Taxation, Departments of Taxation and taxation divisions;
(b) Customs offices comprising the General
Department of Customs, Departments of Customs and customs divisions.
3. Tax
management officials, being tax officials and customs officials.
4.
Other State bodies, and organizations and individuals involved in
implementation of the law on tax.
Article 3 Contents of tax management
1. Tax registration, tax
declaration, tax payment and fixing amounts of tax payable.
2. Conduct of procedures for
tax refund, tax exemption and tax reduction.
3. Cancellation of outstanding
tax payable and of fines.
4. Management of information
about taxpayers.
5. Tax checks and inspections.
6. Compulsory enforcement of
administrative decisions about tax.
7. Dealing with breaches of the
law on tax.
8. Resolution of complaints and
denunciations about tax.
Article 4 Principles of tax management
1. Taxes are major revenue of the State Budget.
Tax payment pursuant to law is an obligation and a right of all organizations
and individuals. Bodies, organizations and individuals shall be responsible to
participate in tax management.
2. Tax management shall be conducted in
accordance with this Law and other relevant laws.
3. Tax management must ensure publicity,
transparency and equality; and must guarantee the lawful rights and interests
of taxpayers.
Article 5 Interpretation of terms1
In this
Law, the following terms shall be construed as follows:
1. Completion
of tax obligations means payment of the full amount of tax payable plus any
fine for breach of the law on tax.
2. Compulsory
enforcement of an administrative tax decision means application of methods
stipulated in this Law and other relevant laws to compel a taxpayer to make
full payment to the State Budget of the amount of tax payable or any fine.
3. Main
address of a taxpayer means the place where the taxpayer conducts
some or all of its business activities and includes a head office, branch,
shop, manufacturing location, place where goods are stored, and place where
assets are used for production and business; and means the place of residence
or place where tax obligations arise in the case of a taxpayer without business
activities.
4. Representative
of a taxpayer means the legal representative or authorized representative
who represents the taxpayer in conducting a number of tax procedures.
1 Allens Arthur Robinson footnote: The order of
the definitions has been changed to English alphabetical order for easy
reference.
5. Tax
code means a row of numbers, letters or other characters which the tax
management body issues to a taxpayer for use for tax management purposes.
6. Tax
declaration means a document on the standard form stipulated by the
Ministry of Finance and used by taxpayers to declare information aimed at
determining the amount of tax payable. A customs declaration shall be
used to declare duty on import or export goods.
7. Tax
file means a file on tax registration, on tax declaration, on tax refund,
on tax exemption, on tax reduction, [or] on cancellation of tax and fines.
8. Tax
finalization declaration means a determination of the amount of tax payable
in the year of tax calculation or in the period from the beginning of the year
of tax calculation up to the date of termination of the operation giving rise
to tax obligations, or in the period from the commencement up to the date of
termination of the operation giving rise to tax obligations in accordance with
law.
9. Tax
period means a period of time for determining the amount of tax payable to
the State budget in accordance with the law on tax.
Article 6 Taxpayers shall have the following
rights:
1. To receive guidelines on tax payment; to be
provided with information and documents for performance of their obligations
and for exercise of their rights in relation to tax.
2. To request the tax management body to explain
calculating or fixing tax; to request a relevant body or organization to
inspect quantity, quality and types of import or export goods.
3. To have their information kept confidential
pursuant to law.
4. To enjoy tax incentives or tax refund in
accordance with the law on tax.
5. To enter into contracts with organizations
engaged in business of services for performance of their tax procedures.
6. To receive written conclusions on a tax check
or inspection by the tax management body; to request explanation of any
conclusion from a tax check or inspection; to reserve their opinions in records
of tax examinations or inspections.
7. To be compensated pursuant to law for any
loss caused by a tax management body or tax management official.
8. To request a tax management body to certify
performance of their tax obligations.
9. To lodge a complaint or initiate legal action
against any administrative decision or act relating to their lawful rights and
interests.
10. To denounce any beach of law committed by tax
officials and other organizations or individuals.
Article 7 Taxpayers shall have the following
obligations:
1. To conduct tax registration and to use a tax
code pursuant to law.
2. To make accurate, truthful and complete tax
declarations and submit a tax file on time; to be responsible before the law
for the accuracy, truthfulness and completeness of their tax file.
3. To pay amounts of tax in full, on time and at
the right place.
4. To abide by regulations on accounting,
statistics, and management and use of invoices and source documents pursuant to
law.
5. To
record exactly, truthfully and completely activities giving rise to tax
obligations, tax withholding, and transactions subject to declaration of
information on tax.
6. To produce and deliver pursuant to law,
invoices or source documents to buyers on the basis of the correct quantity,
type and value of the actual payment upon sale of goods or provision of
services.
7. To provide in a timely manner accurate and
complete information and documents relating to determination of tax
obligations, numbers and details of transactions on accounts opened at
commercial banks or other credit institutions; to explain tax calculation,
declaration or payment upon the request of a tax management body.
8. To abide by decisions, notices and requests
of tax management bodies and tax management officials pursuant to law.
9. To be responsible to perform tax obligations
stipulated by law in a case where their legal representative or authorized
representative improperly performs stipulated tax procedures on their
behalf.
Article 8 Tax management bodies shall have the
following responsibilities:
1. To organize tax collection pursuant to law.
2. To disseminate, to popularize and to provide
guidelines on the law on tax; to make public tax procedures.
3. To explain and provide taxpayers with
information relating to determination of tax obligations; to make public
amounts of tax payable by business family households and individuals within
their commune, ward or township.
4. To keep confidentiality of information of
taxpayers in accordance with this Law.
5. To make tax exemption, tax reduction,
cancellation of outstanding tax or fines, and tax refunds in accordance with
this Law and other laws on tax.
6. To certify, if so requested, the performance
of tax obligations by taxpayers pursuant to law.
7. To resolve complaints and denunciations
relating to the implementation of the law on tax, in accordance with their
powers.
8. To deliver conclusions and records of tax
checks or inspections to entities subject to such tax check or inspection if so
requested.
9. To compensate taxpayers for loss in
accordance with this Law.
10. To carry out inspection to determine an
amount of tax payable by a taxpayer upon the request of the competent State
body.
Article 9 Tax management bodies shall have the
following powers:
1. To request taxpayers to provide information
and documents relating to determination of a tax obligation or numbers and
details of transactions on bank accounts opened at commercial banks or other
credit institutions; and to explain tax calculation, declaration and payment.
2. To request the organizations and individuals
concerned to provide information and documents relating to determination of a
tax obligation and to co-ordinate with [another] tax management body in
implementing the law on tax.
3. To conduct tax checks and inspections.
4. To fix amounts of tax payable.
5. To carry out compulsory enforcement of
administrative tax decisions.
6. To penalize breaches of the law on tax within
their powers; to make public on the mass media cases of breaches of the law on
tax.
7. To take preventive measures and to ensure
that breaches of the law on tax are dealt with in accordance with law.
8. To authorize bodies, organizations and
individuals to collect some taxes for the State budget in accordance with
regulations of the Government.
Article 10 The Ministry of Finance
shall have the following responsibilities for tax management:
1. To undertake State management of taxation in
accordance with law.
2. To direct tax management in accordance with
law.
3. To direct formulation and implementation of
estimated collection of revenue of the State budget.
4. To check and inspect implementation of the
law on tax.
5. To deal with breaches and to resolve
complaints and denunciations, within its powers, relating to implementation of
the law on tax.
Article
11 People’s councils and people’s committees at all levels
shall have the following responsibilities for tax management:
1. People’s councils of all levels shall,
depending on their duties and powers, make decisions on the duty to collect
annual revenue of their budget and to supervise implementation of the law on
tax.
2. People’s committees of all levels shall,
depending on their duties and powers, be responsible to:
(a)
Direct relevant bodies in their locality to co-ordinate with tax management
bodies in formulating estimated collection of revenue of the State budget and
organize collection of revenue of the State budget in their locality;
(b) Check implementation of the law on tax;
(c) Deal with breaches and resolve, within their
powers, complaints and denunciations relating to implementation of the law on
tax.
Article
12 Tax consultancy councils of communes, wards and townships
1. The tax consultancy council of a commune,
ward or township shall be established under a decision of the chairman of the
people’s committee of the district, town or provincial city upon the proposal
of the director of the tax division responsible for tax management in such
commune, ward or township.
2. The tax consultancy council of a commune,
ward or township shall comprise:
(a)
Representatives of the people’s committee, the Fatherland Front and the police
authority of the commune, ward or township;
(b)
Representatives of business family households and individuals;
(c)
Representative(s) of the tax division in charge of such commune, ward or
township.
The chairman or deputy chairman of the
people's committee of a commune, ward or township shall be the chairman of the
tax consultancy council of such commune, ward or township.
3. The tax consultancy council of a commune,
ward or township shall have the duty to provide the tax body with its advice on
amounts of tax payable by business family households and individuals in their
locality, to ensure that [its advice] is lawful, democratic, public, fair and
reasonable. The advice shall be recorded in the minutes of meeting of the
council.
4. The Minister of Finance shall issue
regulations on operation of tax consultancy councils of communes, wards and
townships.
Article
13 Other State bodies shall have the following
responsibilities for tax management:
1. Other State bodies shall be responsible to
disseminate, popularize and educate
about the law on tax; to co-ordinate with tax management bodies in tax
management; and to create favorable conditions for taxpayers to perform their
tax obligations.
2. Investigative bodies, prosecutors and courts
shall, depending on their specific duties and powers, institute legal
proceedings, investigate, prosecute and hear in a timely and strict manner
crimes in breach of the law on tax, and shall notify to the tax management body
the progress and results of settlement of such cases.
Article
14 The Vietnam Fatherland Front,
socio-political-occupational organizations, social organizations and
political-occupational organizations shall have the following responsibilities
for tax management:
1. The Vietnam Fatherland Front and its member
organizations shall encourage the people and shall educate their own members to
strictly implement the law on tax; and to be critical of breaches of the law on
tax.
2. Socio-politico-occupational organizations,
social organizations and socio-occupational organizations shall co-ordinate
with tax management bodies in disseminating, popularizing and educating the law
on tax amongst their members.
3. The Vietnam Fatherland Front and its member
organizations, socio-political-occupational organizations, social organizations
and socio-occupational organizations shall co-ordinate with tax management
bodies in providing information relating to tax management.
Article
15 Information agencies and the press shall have the
following responsibilities for tax management:
1. To popularize and disseminate policies and
the law on tax.
2. To set a good example by being organizations
and individuals who properly observe the law on tax.
3. To report and be critical of breaches of the
law on tax.
Article
16 Other organizations and individuals shall have the
following obligations in participating in tax management:
1. To provide information relating to
determination of a tax obligation upon the request of a tax management body.
2. To co-ordinate in executing decisions dealing
with breaches of the law on tax.
3. To denounce breaches of the law on tax.
4. When purchasing goods or services, to request
the goods seller or service provider to issue a goods sale invoice or service
provision invoice or source document on the basis of the correct quality, type
and value of the actual payment made.
Article
17 International co-operation in tax management
Tax management bodies shall,
depending on their specific functions and the provisions of law and their
delegated powers, be responsible to:
1. Exercise the rights, perform the obligations
and ensure the interests of the Socialist Republic of Vietnam under
international agreements of which the Socialist Republic of Vietnam is a
member.
2. Negotiate, enter into, and organize the
implementation of international bilateral agreements with tax management bodies
of other countries.
3. Organize implementation, exchange of
information and professional co-operation with tax management bodies of other
countries and relevant international organizations.
Article
18 Building tax managerial manpower
1. Tax managerial manpower shall be built as an
incorrupt and strong force; shall be equipped with and able to master modern
techniques, and shall operate effectively and efficiently.
2. Criteria for tax managerial officials:
(a)
Being recruited, trained and employed pursuant to the law on State employees
and officials;
(b)
Having good political quality, performing their duties in accordance with law;
being honest, upright and disciplined; business and serving in a civilized,
courteous and diligent manner; and strictly complying with job assignment or
transfer decisions;
(c)
Having professional qualifications; and a profound and professional knowledge
ensuring successful performance of their duty of tax management.
3. Tax managerial officials shall be strictly
prohibited from harassing or causing trouble to taxpayers; colluding with,
taking bribes from or covering up tax evaders or criminals, or illegally using
or appropriating any amount of tax.
Article
19 Modernization of tax management work
1. Tax management shall be modernized in terms
of management methods, administrative procedures, organizational apparatus,
personnel, and wide application of information technology and modern techniques
on the basis of a database of accurate information on taxpayers in order to
control all entities subject to tax and the bases for tax calculation; shall
ensure prompt and accurate forecasts of revenue of the State budget; shall
promptly detect and deal with problems and breaches of the law on tax; and shall
improve the effectiveness and efficiency of tax management.
2. The State ensures investment in, and
encourages organizations and individuals to participate in development of
advanced technologies and technical facilities for application of methods of modern
tax management; encourages organizations and individuals to take part in
creating and conducting e-transactions and in tax e-management; and advances
development of payment services via the system of commercial banks and other
credit institutions in order to step by step limit payments made in cash of
taxpayers. The Government shall promulgate policies on modernization of tax
management.
Article
20 Organizations engaged in business of services for
performance of tax procedures
1. Organizations engaged in the business of
services for performance of tax procedures shall be deemed to be enterprises
engaged in conditional business services, and shall be established and operate
under the Law on Enterprises and shall carry out tax procedures pursuant
to their agreements with taxpayers.
2. Organizations engaged in the business of
services for performance of tax procedures shall have the following rights:
(a) To
conduct tax procedures pursuant to their contracts with taxpayers;
(b) To
exercise the rights of taxpayers in accordance with this Law and pursuant to
their contracts with taxpayers.
3. Organizations engaged in the business of
services for performance of tax procedures shall have the following
obligations:
(a) To
notify the tax management body directly responsible for management of taxpayers
of the service contract for performance of tax procedures;
(b) To
make tax declaration, payment and finalization, and to prepare application
files for tax exemption, reduction or refund in accordance with this Law and
other relevant laws;
(c) To
provide tax management bodies with documents and source documents to prove the
accuracy of tax declaration, payment or finalization or requests of taxpayers
for tax exemption, reduction or refund.
(d) To
be responsible before the law and to taxpayers pursuant to the agreed items of
the service contract for performance of tax procedures;
(dd)
Not to collude with any tax management official or taxpayer for the purpose of
tax evasion or fraud.
4. Conditions for practising of an organization
engaged in the business of services for performance of tax procedures shall
comprise:
(a) The
line of business of services for performance of tax procedures must be stated
in its business registration certificate;
(b)
There must be at least two employees possessing a services practising
certificate for performance of tax procedures.
Any
person who is issued with a services practising certificate for performance of
tax procedures must possess a college or higher degree in economics, finance,
accounting, audit or law; have worked for two years or more in such field; and
have full capacity for civil acts, have good ethics and qualities, be honest
and strictly abide by the law.
The
Ministry of Finance shall issue regulations on issuance and revocation of
services practising certificates for performance of tax procedures, and on
management of activities of organizations engaged in the business of services
for performance of tax procedures.
5. Customs agents shall, when carrying out tax
procedures for import goods or export goods, exercise the rights and perform
the obligations of organizations engaged in the business of services for
performance of tax procedures.
CHAPTER
II
Tax
Registration
Article
21 Entities subject to tax registration [shall comprise:]
1. Organizations, business
family households and individuals.
2. Individuals with income in
the category of taxable personal income.
3.
Organizations and individuals responsible to deduct and pay tax on behalf of
others.
4.
Other organizations and individuals as stipulated by law.
Article
22 Time-limits for tax registration
Entities subject to tax
registration shall conduct tax registration within a time-limit of ten (10)
business days from the date on which:
1. A business registration certificate, or
licence for establishment and operation, or investment certificate is issued;
2. Business operations are commenced in the case
of organizations which are not subject to business registration, or business
family households and individuals who are subject to business registration but
have not been issued with a business registration certificate;
3. The responsibility for withholding and paying
tax on behalf of other arises;
4. A personal income tax obligation arises;
5. A claim for tax refund is made.
Article
23 Tax registration files
1. The tax registration file applicable to
business organizations and individuals shall comprise:
(a)
Declaration form for tax registration;
(b)
Copy of the business registration certificate, or the licence for establishment
and operation, or the investment certificate.
2. The tax registration file applicable to
organizations and individuals not subject to business registration shall
comprise:
(a)
Declaration form for tax registration;
(b)
Copy of the establishment decision or the investment decision in the case of
organizations; or copy of people's identity card or passport in the case of
individuals.
Article
24 Locations for submitting tax registration files
1. A business organization or individual shall
conduct tax registration at the tax body of the locality in which the head
office of such organization or individual is located.
2. An organization or individual responsible to
deduct and pay tax on behalf of another shall conduct tax registration at the
tax body of the locality in which the head office of such organization or
individual is located.
3. An individual shall conduct tax registration
at the tax body of the locality in which his or her taxable income is generated
or in which his or her permanent or temporary residence is registered.
Article
25 Responsibilities of tax bodies and tax officials to
receive tax registration files
1. Where a tax registration file is submitted
directly to the tax body, a tax official shall receive and affix the seal for
receiving the file, and state the time of receipt of the file and the number of
documents included in the file.
2. Where a tax registration file is sent by
mail, a tax official shall affix the seal for recording the date of receipt of
the file and make an entry in the book of incoming official letters of the tax
body.
3. Where a tax registration file is submitted by
an e-transaction, the receipt, examination and acceptance of the tax
registration file by the tax body shall be conducted via the electronic data
processing system.
4. When any addition to a file is required, the
tax body shall give notice to the taxpayer on the date of receipt of the file
in the case of receipt of directly submitted files, or within three business
days in the case of receipt of files sent by mail or e-transaction.
Article
26 Issuance of tax registration certificates
1. The tax body shall issue a tax registration
certificate to the taxpayer within a time-limit of ten (10) business days from
the date of receipt of the valid tax registration file.
Where a
tax registration certificate is lost or damaged, the tax body shall re-issue [a
certificate] within five business days from the date of receipt of the request
of the taxpayer.
2. A tax registration certificate shall contain
the following information:
(a)
Name of the taxpayer;
(b) Tax
code;
(c)
Serial number and date (day, month, year) of the business registration
certificate, or the licence for establishment and operation, or the investment
certificate in the case of business organizations or individuals;
(d)
Serial number and date (day, month, year) of the establishment decision in the
case of non-business organizations, or of the people's identity card or
passport in the case of non-business individuals;
(dd)
Name of the tax body directly responsible for management;
(e)
Date of issuance of the tax registration certificate.
3. The lending, erasure, destruction or forgery
of a tax registration certificate shall be strictly prohibited.
Article
27 Change of items in lodged tax registration files
1. When there is any change in items in a lodged
tax registration file, the taxpayer shall notify it to the tax body within a
time-limit of ten (10) business days from the date of change in such items.
2. The Government shall issue detailed
regulations on tax registration in the case of changes in items in [lodged] tax
registration files.
Article
28 Use of tax codes
1. A taxpayer shall state its issued tax code on
invoices, source documents and documents when conducting business transactions;
when making tax declaration, tax payment, tax refund and other transactions in
relation to tax; and when opening a deposit account at commercial banks or
other credit institutions.
2. Tax management bodies and the State Treasury
shall use the tax code for tax management and collection of taxes payable to
the State budget.
Commercial banks and other credit institutions
shall state the tax code in the file for opening of an account of the taxpayer
and on source documents of transactions on such account.
3. A taxpayer shall be strictly prohibited from
using the tax code of another taxpayer.
Article
29 Expiry of tax codes
1. A tax code shall be terminated in the
following cases:
(a) The
business organization or individual terminates its, his or her operation;
(b) The
individual dies or [is declared] missing, or loses capacity for civil acts as
stipulated in law.
2. In the case of termination of a tax code, the
organization, individual or legal representative of the taxpayer shall give
notification to the tax body directly responsible for management for carrying
out procedures for termination of the tax code and making public the
termination of the tax code.
3. The tax body shall make public the
termination of a tax code. Such tax code
must not be used in economic transactions from the date on which the tax body
makes public the termination of the tax code.
CHAPTER
III
Tax
Declaration, and Tax Calculation
Article
30 Principles of tax declaration and tax calculation
1. Taxpayers shall fill in accurately, honestly
and completely all items of the tax declaration form stipulated by the Ministry
of Finance, and submit all types of source documents or documents stipulated
for a tax declaration file to the tax management body.
2. Taxpayers shall personally calculate the
amount of tax payable, unless the tax calculation is conducted by a tax
management body pursuant to the regulations of the Government.
Article
31 Tax declaration files
1. In the case of taxes which are declared and
paid on a monthly basis, the tax declaration file shall comprise:
(a)
Monthly tax declaration;
(b)
List of invoices for goods and services sold;
(c)
List of invoices for goods and services purchased;
(d)
Other documents relating to the amount of tax payable.
2. In the case of taxes subject to the annual
tax period, tax declaration files shall consist of:
(a)
Annual tax declaration files, comprising the annual tax declaration and other
documents relating to determination of an amount of tax payable;
(b)
Quarterly provisional tax declaration files, comprising the provisional tax
declarations and other documents relating to determination of the provisional
tax amounts;
(c)
Year-end tax finalization declaration documents, comprising the annual tax
finalization declaration, annual financial statements and other documents
relating to the tax finalization.
3. In the case of taxes which are declared and
paid upon each tax obligation arising, the tax declaration file shall comprise:
(a) Tax
declaration;
(b)
Invoices, contracts and other source documents pursuant to law relating to the
tax obligation.
4. In the case of import or export goods, the
customs file may be used as the tax declaration file.
5. In the case of termination of operation,
termination of a contract, or conversion of form of ownership of an enterprise
or re-organization of an enterprise, the tax declaration file shall comprise:
(a) Tax
finalization declaration;
(b)
Financial statements as at the date of termination of the operation or of the
contract, or conversion of the form of ownership of the enterprise or
re-organization of the enterprise;
(c)
Other documents relating to tax finalization.
6. The Government shall stipulate what taxes are
subject to monthly or annual declaration, quarterly provisional tax
declaration, declaration upon a tax obligation arising, or tax finalization
declaration, and the tax declaration files applicable to each specific case.
Article
32 Deadline and location for submitting tax declaration
files
1. In the case of taxes which are declared and
paid on a monthly basis, [the deadline or time-limit for submission of a tax
declaration file shall be] no later than the twentieth day of the month
following the month in which the tax obligation arose.
2. In the case of taxes subject to the annual
tax period:
(a) No
later than the thirtieth day of the first month of the calendar year or the
fiscal year in respect of annual tax declaration files;
(b) No
later than the thirtieth day of the quarter following the quarter in which the
tax obligation arose in respect of quarterly provisional tax declaration files;
(c) No
later than the ninetieth day from the end of the calendar year or the fiscal
year in respect of annual tax finalization files.
3. In the case of taxes which are declared and
paid upon each tax obligation arising, no later than the tenth day from the
date on which the tax obligation arose.
4. In the case of import or export goods, the
time-limit for submission of a tax declaration file shall be the time-limit for
submission of a customs declaration:
(a) In
the case of import goods, the tax declaration file shall be submitted before
the date on which goods arrive at a border gate or within a time-limit of
thirty (30) days from the date on which goods arrive at a border gate. Customs
declarations shall be valid for carrying out tax procedures for a period of
fifteen (15) days from the date of registration.
(b) In
the case of export goods, the tax declaration file shall be submitted no later
than eight hours before the means of transport leaves the country. Customs
declarations shall be valid for carrying
out tax procedures for fifteen (15) days from their date of registration.
(c) In
the case of dutiable accompanying luggage of persons on entry or exit, the
customs declaration shall be submitted when the means of transport arrives at
the border gate, or before the carrier terminates performance of the procedures
for embarkation of passengers onto means of transport on exit. Luggage sent
before or after the trip of persons on entry shall be subject to the provisions of paragraph (a) of this
clause.
5. No later than the forty fifth day after the
date of termination of the operation or of the contract, conversion of the form
of ownership of the enterprise or re-organization of the enterprise.
6. The Government shall specify locations for
submitting tax declaration files for each specific case.
Article
33 Extension of time for submitting tax declaration files
1. Taxpayers who are unable to submit their tax
declaration file on time due to a natural calamity, fire or contingent accident
shall be entitled to an extension of the period for submitting the tax
declaration file to be granted by the head of the tax body directly responsible
for management.
2. The extension shall not exceed thirty (30)
days in the case of submission of monthly or annual tax declaration files,
provisional tax declaration files or tax declaration files upon each tax
obligation arising; and sixty (60) days in the case of submission of tax
finalization declaration files, as from the deadline for submission of tax
declaration files.
3. Taxpayers shall send a request in writing for
extension of the time-limit for submitting a tax declaration file to the tax
body before expiration of the time-limit for submitting such file, specifying
the reasons for the request for extension with certification by the people’s
committee or the police authority of the commune, ward or township of the event
specified in clause 1 of this article having occurred.
4. Within five business days from the date of
receipt of a request in writing for extension of the time-limit for submitting
a tax declaration file, the tax body shall notify the taxpayer in writing of
whether or not [such request for] extension is accepted.
Article
34 Supplementary tax declaration
1. Before a tax body announces its decision on a
tax check or tax inspection at the head office of a taxpayer, if the taxpayer
detects that the submitted tax declaration file contains an error which causes
an effect on the amount of tax payable, such taxpayer may make an additional
declaration to the [submitted] tax declaration file.
2. In the case of import or export goods, an
additional declaration to a tax declaration file may be made in the following
cases:
(a) If
before the customs official carries out actual inspection of goods or makes a
decision on exemption from actual inspection of goods, the person making the
customs declaration detects an error in the submitted tax declaration file;
(b) The
taxpayer itself detects errors which affect the amount of tax payable within a
period of sixty (60) days from the date of registration of the customs
declaration but before the customs official carries out a tax check or tax inspection at the head
office of the taxpayer.
Article
35 Responsibilities of tax management bodies and tax
management officials to receive tax declaration files
1. Where a tax declaration file is submitted
directly to the tax body, a tax official shall receive and affix the seal for receiving
the file, and state the time of receipt of the file and the number of documents
included in the file.
Where a tax declaration file for import or
export goods is submitted directly to the customs office, a customs official
shall receive, check and register such tax declaration file; and if
registration of the file is refused, the customs official shall promptly notify
the taxpayer of the reasons.
2. Where a tax declaration file is sent by mail,
a tax official shall affix the seal for recording the date of receipt of the
file and make an entry in the book of incoming official letters of the tax
body.
3. Where a tax declaration file is submitted by
way of an e-transaction, the receipt, examination and acceptance of the tax
declaration file by the tax management body shall be conducted via the
electronic data processing system.
4. When a tax declaration file is not complete
as stipulated, within three business days from the date of receipt of the file,
the tax body shall give notification in writing to the taxpayer for
finalization of the file.
CHAPTER
III
Fixing
Tax Amounts Payable
Article
36 Principles of fixing tax amounts payable
1. Tax amounts payable shall be fixed in an
objective and just manner and in compliance with the law on tax.
2. Tax management bodies shall fix a tax amount
payable, or each factor relating to determination of a tax amount payable.
Article
37 Fixing tax amounts payable by tax payers paying tax by
the method of declaration, in cases of breach of the law on tax
1. A taxpayer paying tax by the method of
declaration shall be subject to a fixed tax amount payable in the following
cases:
(a)
Failing to conduct tax registration;
(b)
Failing to submit a tax declaration file; submitting a tax declaration file
more than ten (10) days after the deadline for submitting same or from the date
of expiration of the extended period for submitting same;
(c)
Failing to make a tax declaration, or failing to lodge additional documents for
the tax file upon request of the tax body, or making a tax declaration which is
inaccurate or untruthful or incomplete in terms of bases for tax calculation;
(d)
Failing to reflect or reflecting inadequately, untruthfully and inaccurately
figures in books of account for determining a tax obligation;
(dd)
Failing to produce, within the stipulated time-limit, books of account,
invoices, source documents and necessary documents relating to determination of
a tax amount payable;
(e)
Failing to carry out a purchase, sale, exchange, and cost accounting of a value
of goods or services in accordance with the common market value of the
transaction;
(g)
There are indications that the taxpayer hid or dispersed its, his or her assets
in order to shirk tax obligations.
2. Bases for fixing a tax amount payable shall
comprise:
(a)
Database of the tax body;
(b)
Comparison with the tax amount payable by business establishments conducting
business in the same goods, in the same line of business, [or] on the same
business scale;
(c)
Documents and results of a check or inspection which still have effect.
3. The duty amount payable on import or export
goods shall be fixed in accordance with article 39 of this Law.
Article
38 Determining tax amounts payable by business family
households and business individuals paying tax by the method of tax on a fixed
turnover
1. The tax body shall determine a tax amount
payable by the method of taxing on a fixed turnover (hereinafter referred to as
the fixed tax amount) for the following cases:
(a) A
business family household or individual fails to implement, or implements
incompletely, the regulations on accounting, invoices and source documents;
(b) A
business family household or individual fails to conduct business registration
or tax registration.
2. The tax body shall determine a fixed tax
amount payable on the basis of written declarations of the business family
household or individual, the database of the tax body and the opinion of the
tax consultancy council of the commune, ward or township.
3. The fixed tax amount payable shall be
calculated for the calendar year and shall be make public in the relevant
commune, ward or township. Where a line of business or business scale is
changed, the taxpayer shall make a declaration with the tax body in order to
adjust the fixed tax amount payable.
4. The Ministry of Finance shall issue specific
guidelines for determining fixed tax amounts payable by business family
households or individuals.
Article
39 Fixing duty amount payable on import or export goods
1. The customs office shall fix a duty amount
payable on import or export goods in the following cases:
(a) A
taxpayer uses unlawful documents to make a declaration of the bases for tax
calculation, to calculate and declare a tax amount payable; or fails to
declare, or declares incompletely and inaccurately, the bases for tax
calculation to serve tax calculation;
(b) A
taxpayer refuses to provide, delays or prolongs beyond the stipulated deadline
the provision of relevant documents to the customs office for accurate
calculation of a duty amount payable;
(c) The
customs office has sufficient evidence that the declared value is not the
actual value of the transaction;
(d) A
taxpayer is unable to personally calculate the duty amount payable.
2. The customs office shall fix a duty amount
payable on the basis of goods actually imported or exported; the bases for tax
calculation and method of calculating tax and other relevant documents and
information.
Article
40 Responsibilities of tax management bodies for fixing tax
amounts payable
1. The tax management body shall notify the
taxpayer in writing of the reasons for fixing a tax amount payable, the bases
for fixing the tax amount payable, the fixed tax amount payable, and the
time-limit for actually making the tax payment.
2. Where the tax amount as fixed by the tax
management body is larger than the tax amount payable, the tax management body
shall refund any excess of tax paid and pay compensation for any loss pursuant
to a decision of the competent State body on resolution of a complaint, or
pursuant to the judgment or decision of a court.
Article
41 Responsibilities of taxpayers for paying amounts of tax
as fixed
A taxpayer shall pay the amount
of tax as fixed pursuant to the notice of the tax management body. In a case of
disagreement about the amount of tax as fixed by the tax management body, the
taxpayer shall still pay such amount of tax, but shall be entitled to request
the tax management body to explain, or to lodge a complaint or initiate a court
action regarding such fixing of a tax amount payable.
CHAPTER
IV
Tax
Payment
Article
42 Time-limits for tax payment
1. Where a taxpayer calculates an amount of tax
payable, the deadline for tax payment shall be the last day of the time-limit
for submitting a tax declaration file.
2. Where the tax management body calculates or
fixes an amount of tax payable, the time-limit for tax payment shall be stated
in the notice sent by the tax management body.
3. The time-limit for duty payment on import or
export goods shall be as follows:
(a) In
the case of export goods, thirty (30) days from the date of registration of the
customs declaration;
(b) In
the case of import goods being consumer goods, the duty payment shall be made
in full before receipt of the goods; where there is a guarantee for the duty
amount payable, the time-limit for duty payment shall not exceed thirty (30)
days from the date of registration of the
customs declaration;
(c) In
the case of import goods being supplies and raw materials for production of
goods for export, two hundred and seventy five (275) days from the date of
registration of the customs declaration; in special cases, the time-limit for
duty payment may be longer than 275 days corresponding to the cycle of
production and stockpiling of supplies and raw materials pursuant to
regulations of the Government;
(d) In
the case of goods traded by way of temporary import for re-export or temporary
export for re-import, fifteen (15) days from expiration of the time-limit for
temporary import for re-export or for temporary export for re-import;
(dd) In
the case of other goods, thirty (30) days from the date of registration of the
customs declaration;
(e)
Where import or export goods are temporarily seized pending the customs office
or competent State body dealing with them, the time-limit for duty payment
specified in paragraphs (a) to (dd) of this clause shall be calculated from the
date of issuance of a decision dealing with [such goods].
4. A taxpayer must satisfy either of the
following two conditions in order to be entitled to the time-limit for duty
payment specified in clause 3 (c), (d) and (e) of this article:
(a)
Having conducted import or export activities for at least three hundred and
sixty five (365) days calculated up to the date of registration of the customs
declaration, and without having committed any trade fraud or tax evasion, or
owing overdue taxes or fines, and having strictly observed the regulations on
financial statements;
(b)
Having its duty payment obligation guaranteed by a credit institution or other
organization operating under the Law on Credit Institutions.
In the
case of failure to satisfy either of the above conditions, the taxpayer shall
make duty payment before receiving goods.
5. Where a credit institution or another
organization operating under the Law on Credit Institutions provides a
guarantee for the duty amount payable,
the time-limit for duty payment shall be subject to the term of the
guarantee but shall not exceed the time-limit for duty payment specified in
clauses 1, 2 and 3 of this article. Where the taxpayer fails to make duty
payment within the period of the guarantee or the time-limit for duty payment,
the guarantor organization shall be liable to pay the duty amount and any fine
for late payment on behalf of the taxpayer.
Article
43 Currency for tax payment
Currency for tax payment shall
be Vietnamese dong, except for tax payment in a foreign currency in accordance
with regulations of the Government.
Article
44 Locations for and forms of tax payment
1. Taxpayers shall make tax payment into the
State budget:
(a) At
the State Treasury;
(b) At
the tax management body which receives the tax declaration file;
(c) Via
an organization authorized by the tax management body to collect tax;
(d) Via
a commercial bank or other credit institution or service organization pursuant
to law.
2. The State Treasury shall be responsible to
arrange locations, facilities and State employees to collect tax to facilitate
taxpayers in making prompt tax payment into the State budget.
3. Any body or organization which receives or
withholds a tax amount shall issue a tax receipt to the taxpayer.
4. Organizations receiving a tax amount shall
transfer such amount into the State budget within eight business hours from the
time of collection of such tax amount from the taxpayer.
In the
case of collection of tax by cash in remote or distant areas, islands and areas
with difficult traveling conditions, the time-limit for transfer of collected
tax amounts into the State budget shall be as stipulated by the Ministry of
Finance.
Article
45 Priority order for payment of taxes and fines
Where a taxpayer concurrently
has a tax debt, tax arrears, an amount of tax payable and fines, the payment of
these amounts shall be made in the following order:
1. Tax debt.
2. Tax arrears.
3. Amount of tax payable.
4. Fine.
Article
46 Determining the date on which tax was paid
The date on which tax was paid
shall be determined as the date on which:
1. The State Treasury, a commercial bank,
another credit institution or service organization certified the receipt for
tax payment of the taxpayer, in the case of tax payment by telegraphic
transfer.
2. The State Treasury, a tax management body or
an organization authorized by the tax management body to collect tax issues a
tax receipt, in the case of tax payment by cash.
Article
47 Dealing with excess amounts of tax paid
1. Any amount of tax paid by a taxpayer in
excess of the tax amount payable for the type of tax shall be deducted from the
amount of tax payable on the next occasion, or shall be refunded to the
taxpayer.
2. Where the taxpayer requests a refund of
excess amount of tax paid, the tax management body shall issue a decision on
refund of the excess amount of tax paid within five business days from the date
of receipt of such request in writing.
Article
48 Tax payment pending resolution of complaint or court
action
1. Pending resolution of a complaint or court
action taken by a taxpayer about a tax amount calculated or fixed by the tax
management body, the taxpayer must still pay in full such amount of tax, unless
the competent State body makes a decision to temporarily suspend the decision
of the tax management body calculating or fixing tax.
2. Where the amount of tax paid is larger than
the amount of tax which is determined pursuant to the decision of the competent
body on resolution of a complaint or pursuant to the judgment or decision of
the court, the taxpayer shall be entitled to a refund of the excess amount of
tax paid and to payment of interest on
the excess amount of tax paid.
Article
49 Extension of time-limit for tax payment
1. The extension of a time-limit for tax payment
shall be considered on the basis of a request from a taxpayer in one of the
following cases:
(a)
[The taxpayer] suffers material loss directly affecting its production or
business as a result of a natural calamity, fire or sudden accident;
(b)
[The taxpayer] is unable to pay tax on time because of other exceptional
difficulties as stipulated in regulations of the Government.
2. A taxpayer entitled to an extension of the
time-limit for tax payment as stipulated in clause 1 of this article shall
enjoy an extension of the time-limit for payment of part or whole of the amount
of tax payable.
3. An extension of the time-limit for tax
payment shall not exceed two years from the date of expiry of the time-limit
for tax payment stipulated in article 42 of this Law.
The Government shall specify the extension of
a time-limit for tax payment on a case-by-case basis.
4. A taxpayer shall not be subject to any fines
for late payment on the outstanding amount of tax during the extension of the
time-limit for tax payment.
Article
50 Authority to grant extension of time-limit for tax
payment
The head of the tax management
body directly responsible for management shall, on the basis of the application
file for extension of the time-limit for tax payment, make a decision on an
amount of tax for which the time-limit for payment is extended and on the
extension of the time-limit for tax payment.
Article
51 Application files for extension of time-limit for tax
payment
1. A taxpayer entitled to an extension of the
time-limit for tax payment stipulated in article 49 of this Law shall prepare
and submit an application file for extension of time-limit for tax payment to
the tax management body directly responsible for management.
2. An application file for extension of
time-limit for tax payment shall comprise:
(a)
Written application for extension of time-limit for tax payment, specifying the
reason, the amount of tax payable and the time-limit for payment;
(b) Documents evidencing the reason for extension
of time-limit for tax payment;
(c)
Report on amount of tax payable and outstanding amount of tax.
Article
52 Receipt and processing of application files for extension
of time-limit for tax payment
1. Where an application file for extension of
time-limit for tax payment is submitted directly to the tax management body, a
tax management official shall receive and affix the seal for receiving the
file, and state the time of receipt of the file and the number of documents
included in the file.
2. Where an application file for extension of
time-limit for tax payment is sent by mail, a tax management official shall
affix the seal for recording the date of receipt of the file and make an entry
in the book of incoming official letters of the tax management body.
3. Where an application file for extension of
time-limit for tax payment is submitted by e-transaction, the receipt,
examination and acceptance of the application file for extension of time-limit
for tax payment by the tax management body shall be conducted via the
electronic data processing system.
4. The tax management body must, within ten (10)
business days from the date of receipt of the complete file, notify the
taxpayer in writing of permission granted to extend the time-limit for tax
payment.
When a
tax declaration file is incomplete, within three business days from the date of
receipt of the file, the tax management body shall give a notice in writing to
the taxpayer to finalize the file. The
taxpayer shall finalize the file within five business days from the date of
receipt of the notice to add to the file from the tax management body. If a
taxpayer fails to finalize the file as requested by the tax management body,
then the time-limit for tax payment shall not be extended in accordance with
this clause.
CHAPTER
VI
Responsibilities
to Complete Tax Payment
Article
53 Completion of tax payment on exit from Vietnam
Vietnamese who leave the
country for settlement abroad, and overseas Vietnamese and foreigners before
exit from Vietnam, shall perform their obligation to complete tax payment. The
immigration authority shall be responsible to stop the exit of any individual
who fails to perform his or her obligation to complete tax payment pursuant to
a notice from the tax management body.
Article
54 Completion of tax payment in cases of dissolution,
bankruptcy and termination of operation
1. The obligation of a dissolved enterprise to
complete tax payment shall be performed in accordance with the Law on
Enterprises.
2. The obligation of a bankrupt enterprise to
complete tax payment shall be performed in accordance with the order and
procedures stipulated in the Law on Bankruptcy.
3. Where an enterprise terminates is operation
but has not performed its obligation to complete tax payment, the owner of the
enterprise shall be responsible for payment any outstanding tax.
4. Where family households or individuals
terminate their, his or her business operation but have not performed the
obligation to complete tax payment, the owner of the family household or the
individual concerned shall be responsible for tax payment.
Article
55 Completion of tax payment in case of enterprise
reorganization
1. Any enterprise to be divided shall perform
its obligation to complete tax payment before division. Where an enterprise to
be divided fails to perform its obligation to complete tax payment, the new
enterprises which are established from the division shall be responsible to
perform the obligation to complete tax payment.
2. Any enterprise to be demerged, consolidated
or merged shall be responsible to perform its obligation to complete tax
payment before demerger, consolidation or merger; where it has not performed
the obligation to complete tax payment, the demerged enterprise and the new
enterprises established from the demerged, consolidated or merging enterprise
shall be responsible to perform the obligation to complete tax payment.
3. Any enterprise subject to conversion of
ownership shall be responsible to perform its obligation to complete tax
payment before conversion; where an enterprise to be converted has not
completed its obligation to complete tax payment, the new enterprise which is
established after the conversion shall be responsible to perform the obligation
to complete tax payment.
4. The reorganization of an enterprise shall not
change the time-limit for tax payment of the reorganized enterprise. Where the
reorganized enterprise or new enterprise which is established fails to make in
full tax payment within the stipulated time-limit for tax payment, it shall be
penalized in accordance with law.
Article
56 Inheritance of tax obligations from a deceased person,
from a person who has lost civil capacity or from a person who is declared
missing as stipulated by civil law
1. The tax obligation of a person who is deemed
deceased shall be completed by his or her heirs from the estate bequeathed by
the deceased person or from the share of the estate distributed to an heir at
the time of acceptance of an inheritance. Where there are no heirs or all heirs
at all levels disclaim the inheritance, the tax obligation of the deceased
person shall be completed in accordance with
civil law.
2. The tax obligation of a person who is
declared missing or who has lost the capacity for civil acts pursuant to law
shall be completed by the person managing the property of such person who is
missing or has who lost the capacity for civil acts and from the property of
such latter person.
3. When the competent State body revokes a
decision declaring a person deceased, missing or having lost the capacity for
civil acts, any outstanding amount of tax which was canceled in accordance with
article 65 of this Law shall be restored and no fine for late payment shall be
imposed for the period such person was deemed deceased, missing or having lost
the capacity for civil acts.
CHAPTER
VII
Tax
Refund
Article
57 Cases eligible for tax refund
Tax management bodies shall
make a tax refund in the following cases:
1. An organization or individual is eligible for
a refund of value added tax in accordance with the Law on Value Added Tax.
2. An organization or individual is eligible for
a refund of import or export duty in accordance with the Law on Export and
Import Duties.
3. An individual is eligible for a refund of
personal income tax in accordance with the law on personal income tax.
4. A business organization or individual is
eligible for a refund of special sales tax in accordance with the Law on
Special Sales Tax.
5. An organization or individual paid an amount
of another type of tax into the State budget in excess of the amount of tax
payable.
Article
58 Application files for tax refund
1. An application file for tax refund shall
comprise:
(a)
Application for tax refund;
(b)
Source documents for tax payment;
(c)
Other documents relating to the claim for tax refund.
2. The application file for tax refund shall be
submitted to the tax management body directly responsible for management or to
the customs office authorized to make the tax refund.
Article
59 Responsibilities of tax management bodies and tax
officials to receive application files for tax refund
1. Where an application file for tax refund is
submitted directly to the tax management body, a tax official shall receive and
affix the seal for receiving the file, and state the time of receipt of the
file and the number of documents included in the file.
2. Where an application file for tax refund is
sent by mail, a tax official shall affix the seal for recording the date of
receipt of the file and make an entry in the book of incoming official letters
of the tax management body.
3. Where an application file for tax refund is
submitted by way of an e-transaction, the receipt, examination and acceptance
of the application file for tax refund by the tax management body shall be
conducted via the electronic data processing system.
4. When an application file for tax refund is
incomplete, within three business days from the date of receipt of the file,
the tax management body shall give notice to the taxpayer to finalize the file.
Article
60 Responsibilities of tax management bodies to resolve
application files for tax refund
1. Application files for tax refund shall be
classified as follows:
(a)
Application files eligible for tax refund before check shall be the files of
taxpayers who have properly observed the law on tax and whose transactions were
paid for via a commercial bank or other credit institution.
The
Government shall issue specific regulations on classification of application
files eligible for tax refund before check.
(b)
Application files not covered by paragraph (a) of this clause shall be checked
before tax refund.
2. In the case of application files eligible for
tax refund before check, the tax management body shall, no later than fifteen
(15) days from the date of receipt of the complete application file for tax
refund, make a decision on tax refund or transfer the file to be checked before
tax refund or notify the reason for refusal to refund tax.
3. In the case of application files subject to
check before tax refund, the tax management body shall, no later than sixty
(60) days from the date of receipt of the complete application file for tax
refund, make a decision on tax refund or notify the reason for refusal to
refund tax.
4. Where the tax refund is not decided within
the time-limits stipulated in clauses 2 and 3 of this article due to the fault
of the tax management body, the tax management body shall, in addition to
paying the amount of tax refund, pay interest thereon pursuant to regulations
of the Government.
CHAPTER
VIII
Procedures
for Tax Exemption, for Tax Reduction, and for
Cancellation
of Outstanding Taxes and Fines
SECTION 1
Procedures
for Tax Exemption and Tax Reduction
Article
61 Tax exemption and tax reduction
Tax management bodies shall
grant tax exemption or tax reduction for the cases eligible for tax exemption
or tax reduction as stipulated in legal instruments on tax.
Article
62 Application files for tax exemption and tax reduction
1. Where taxpayers themselves determine an
amount of tax to be exempted or reduced, an application file for tax exemption
or reduction shall comprise:
(a) Tax
declaration;
(b)
Documents relating to determination of the amount of tax to be exempted or
reduced.
2. Where the tax management body makes a
decision on tax exemption or tax reduction, an application file for tax
exemption or tax reduction shall comprise:
(a)
Application for tax exemption or tax reduction, specifying the tax for which
exemption or reduction is requested; reasons for tax exemption or tax
reduction; and the amount of tax to be exempted or reduced;
(b)
Documents relating to determination of the amount of tax to be exempted or
reduced.
3. The Government shall specify cases in which
taxpayers shall themselves determine an amount of tax to be exempted or
reduced; and cases in which tax management bodies shall make a decision on tax
exemption or reduction.
Article
63 Submission and receipt of application files for tax
exemption and tax reduction
1. Where a taxpayer itself/himself/herself
determines the amount of tax to be exempted or reduced, the submission and
receipt of an application file for tax exemption or tax reduction shall be
conducted concurrently with the declaration, submission and receipt of the tax
declaration file stipulated in Chapter III of this Law.
2. Where tax management bodies make a decision
on tax exemption or reduction pursuant to law, the submission and receipt of an
application file for tax exemption or tax reduction shall be stipulated as
follows:
(a) In
the case of import or export duties and other taxes relating to import or
export goods, an application file shall be submitted to the customs office authorized
to deal with same;
(b) In
the case of other taxes, an application file shall be submitted to the tax body
directly responsible for management.
3. The receipt of application files for tax
exemption or tax reduction shall be regulated as follows:
(a)
Where an application file for tax exemption or tax reduction is submitted
directly to the tax management body, a tax official shall receive and affix the
seal for receiving the file, and state the time of receipt of the file and the
number of documents included in the file.
(b) Where an application file for tax exemption
or tax reduction is sent by mail, a tax official shall affix the seal for
recording the date of receipt of the file and make an entry in the book of
incoming official letters of the tax management body.
(c) Where an application file for tax exemption
or tax reduction is submitted by way of an e-transaction, the receipt,
examination and acceptance of the application file for tax refund by the tax
management body shall be conducted via the electronic data processing system.
(d) When an application file for tax exemption or
tax reduction is incomplete, within three business days from the date of
receipt of the file, the tax management body shall give notice to the taxpayer
to finalize the file.
Article
64 Time-limits for resolution of application files for tax
exemption and tax reduction when the tax management body issues a decision on
amount of tax exempted or reduced
1. The tax management body shall, within thirty
(30) days from the date of receipt of a complete file, make a decision on tax
exemption or tax reduction or notify the taxpayer of the reasons for refusal of
its, his or her application file for tax exemption or reduction.
2. When an actual check is required to obtain
sufficient grounds for dealing with an application file, the time-limit for
making a decision on tax exemption or reduction shall be sixty (60) days from
the date of receipt of the complete file.
SECTION 2
Cancellation
of Outstanding Taxes and Fines
Article
65 Cases eligible for cancellation of outstanding taxes and
fines [shall comprise:]
1. Enterprises which have been declared bankrupt
and made payments pursuant to the law on bankruptcy but there are no assets for
payment of taxes or fines.
2. Individuals who are deemed deceased, missing
or as having lost the capacity for civil acts pursuant to law and have no
assets for payment of outstanding taxes or fines.
Article
66 Files for cancellation of outstanding taxes and fines
The file for cancellation of an
outstanding tax or fine shall comprise:
1. Proposal for cancellation of an outstanding
tax or fine from the tax management body directly responsible for managing the
taxpayer subject to cancellation of the outstanding tax or fine.
2. Tax finalization declaration in the case of
enterprises declared bankrupt.
3. Documents relating to the proposal for
cancellation of an outstanding tax or fine.
Article
67 Authority to approve a cancellation of outstanding taxes
and fines
1. The Minister of Finance shall cancel
outstanding taxes or fines in the cases specified in article 65 of this Law.
2. The Minister of Finance shall report the
amount of taxes and fines cancelled on an annual basis to the National Assembly
when the Government submits finalization of the State Budget to the National
Assembly for approval.
Article
68 Responsibilities to receive and resolve files for
cancellation of outstanding taxes and fines
1. The tax management body directly responsible
for management shall prepare a file for cancellation of an outstanding tax or
fine and submit it to its superior tax management body.
2. When a file for cancellation of an
outstanding tax or fine is incomplete, within ten (10) business days from the
date of receipt of the file, the superior tax management body shall give notice
to the body which prepared the file to finalize the file.
3. The competent person shall, within a
time-limit of sixty (60) days from the date of receipt of the complete file for
cancellation of an outstanding tax or fine, make a decision on cancellation of
the outstanding tax or fine or provide notice that the case is ineligible for
cancellation of an outstanding tax or fine.
CHAPTER
IX
Information
on Tax Payers
Article
69 Information system on taxpayers
1. The system of information on taxpayers shall
consist of information and documents relating to tax obligations of taxpayers.
2. Information on taxpayers shall provide a
basis for tax management, appraisal of the degree of observance of law by
taxpayers, and prevention and detection of breaches of the law on tax.
3. Any act of falsifying, misusing, illegally
accessing or destroying the system of information on taxpayers shall be
strictly prohibited.
Article
70 Formulation, collection, processing and managing the
information system on taxpayers
1. Tax management bodies shall be responsible to
organize formulation, management and development of databases and technical
infrastructure of the information system on taxpayers; and shall organize entities
specialized in performing the duty of collation and processing of information,
management of databases and maintenance and operation of the information system
on taxpayers.
2. Tax management bodies shall take necessary
professional measures to collect and process information in accordance with the
objectives and requirements of each period.
3. Tax management bodies shall co-ordinate with
relevant bodies, organizations and individuals to exchange information and to
conduct online connection to the network.
4. The Ministry of Finance shall issue specific
regulations on formulation, collection, processing and management of the
information system on taxpayers.
Article
71 Responsibilities of tax payers to provide information
1. To provide complete information in tax files.
2. To provide information relating to
determination of tax obligations upon request of a tax management body.
3. To promptly provide complete, accurate and
truthful information to tax management bodies.
Article
72 Responsibilities of related organizations and individuals
to provide information about taxpayers
1. The following bodies shall be responsible to
provide information about taxpayers to tax management bodies:
(a)
Bodies issuing business registration certificates or licences for establishment
and operation shall be responsible to provide information on items of business
registration certificates, on licences for establishment and operation or on
certificates of changes in business registration of organizations and
individuals to tax management bodies within seven business days from the date
of issuance of such certificates, licences or certificates of changes; and
shall provide other information upon request from a tax management body.
(b) The
State Treasury shall be responsible to provide information to tax management
bodies on amounts of tax paid by, or refunded to taxpayers.
2. The following bodies shall be responsible to
provide information upon request from a tax management body:
(a)
Commercial banks and other credit institutions shall provide information about
items of transactions via bank accounts of taxpayers within ten (10) business
days from the date of receipt of a request from a tax management body for
provision of information;
(b)
State administrative bodies for housing and land shall provide information
about the current status of land use or housing ownership of any organization,
family household or individual;
(c)
Police authorities shall provide and exchange information relating to
prevention and fighting against tax-related crime; to provide information on
individuals on exit or entry and information on registration and management of
vehicles;
(d)
Bodies paying income shall provide information on payment of income and
withheld tax amounts of taxpayers upon request from a tax management body;
(dd)
Administrative bodies for trade shall provide information on policies on
control of Vietnamese or foreign import and export goods or goods in transit;
and information on market control.
3. Other State bodies, organizations and
individuals shall provide information relating to taxpayers upon request from a
tax management body.
4. Information shall be provided or exchanged in
either written or electronic form.
5. The Government shall issue detailed
regulations on provision and management of information about taxpayers.
Article
73 Confidentiality of information of taxpayers
1. Tax management bodies, tax management
officials, former tax management officials and organizations engaged in the
business of services for performance of tax procedures shall keep confidential
pursuant to law information of taxpayers, except in the cases stipulated in
clause 2 of this article.
2. Tax management bodies shall provide
information of taxpayers to the following bodies:
(a)
Investigating bodies, prosecutors and courts;
(b)
Inspectorates and the State Auditor;
(c)
Other State administrative bodies pursuant to law;
(d)
Foreign tax management bodies, in compliance with an international treaty on
taxation of which the Socialist Republic of Vietnam is a member.
Article
74 Publication of information about taxpayers who breach the
law on tax
Tax management bodies shall be
entitled to make public on the mass media information about breaches of the law
on tax committed by taxpayers in the following cases:
1. Tax evasion, tax fraud, or intentional delay
to pay tax.
2. Breaches of the law on tax affecting
interests and tax obligations of other organizations or individuals.
3. Failure to satisfy the request of a tax
management body made pursuant to law.
CHAPTER
X
Tax
Checks and Inspections
SECTION 1
General
Provisions on Tax Checks and Inspections
Article
75 Principles of tax check and inspections
1. Check and inspections shall be conducted on
the basis of analysis of information and data relating to taxpayers, assessment
of the observance of law by taxpayers, and verification and collection of proof
to identify any breach of the law on tax.
2. Check and inspections shall not obstruct
normal operation of bodies, organizations and individuals who are taxpayers.
3. Check and inspections shall comply with this
Law and other relevant laws.
Article
76 Processing results of a tax check or inspection
1. Based on the result of a tax check or tax
inspection, the head of a tax management body shall issue a decision dealing
with tax or penalizing an administrative breach within his or her powers, or
shall request the competent person to issue a decision on penalty for an
administrative breach in relation to taxation.
2. Where an act of tax evasion with indications
of a crime is detected via a tax check or tax inspection, the tax management body shall, within ten
(10) business days from the date of detection, transfer the file to the
competent body to investigate pursuant to the law on criminal proceedings. The
tax management body shall be responsible to co-ordinate with the investigating
body to investigate tax-related crimes pursuant to law.
SECTION 2
Tax
Checks
Article
77 Tax checks conducted at headquarters of the tax
management body
1. Tax checks at the headquarter of a tax
management body shall be conducted on a regular basis in respect of tax files,
in order to assess the completeness and accuracy of information and source
documents in tax files, and the observance of law on tax by taxpayers.
2. When checking a tax file, a tax management
official shall compare the items of the tax file with relevant information and
documents, provisions of the laws on tax, and where necessary, results of the
actual check of goods in the case of import or export goods.
3. Processing of results of a tax check shall be
regulated as follows:
(a)
Where a breach resulting in a shortfall of tax, tax evasion or tax fraud is
detected via a tax check during performance of customs procedures, the taxpayer
shall pay the shortfall of tax and shall be subject to a penalty in accordance
with this Law and other relevant laws.
(b)
Where a tax file contains any unclear item related to an amount of tax payable,
exempted, reduced or refunded, the tax management body shall notify and request
the taxpayer to make an explanatory statement or provide additional information
and documents. Where the taxpayer has made
an explanatory statement or provided additional information and documents
to prove that the declared amount of tax
is correct, the tax file shall be accepted. If the explanatory statement and
additional documents cannot produce sufficient grounds to prove that the
declared amount of tax is correct, the tax management body shall request the
taxpayer to make an additional declaration.
(c)
Where the taxpayer fails to make an explanatory statement or to provide
additional information or documents or to make an additional declaration for
the tax file within the time-limit notified by the tax management body or where
the explanatory statement or additional declaration is incorrect, the head of
the tax management body directly responsible for management shall fix an amount
of tax payable or issue a decision on a tax check to be conducted at the head
office of the taxpayer.
(d) In
the case of import or export goods for which customs clearance has been
performed, where the customs office detects that the duty file contains any
unclear item related to an amount of duty payable, exempted, reduced or
refunded, the customs office shall notify and request the taxpayer to make an
explanatory statement or provide additional information and documents. Where the taxpayer has made an explanatory
statement or provided additional information and documents to prove that the
declared amount of duty is correct, the tax file shall be accepted. If the
explanatory statement and additional documents cannot produce sufficient grounds
to prove that the declared amount of duty is correct, or an explanatory
statement cannot be provided within the time-limit, the head of the customs
office shall fix an amount of duty payable or issue a decision on a duty check
to be conducted at the head office of the taxpayer.
(dd)
The decision on tax check shall be sent to the taxpayer within a time-limit of
three business days from the date of signing. Where the taxpayer can prove that
the declared amount of tax is correct or the amount of tax payable was paid in
full within a time-limit of five business days from the date of receipt of the
decision on tax check, the tax management body shall revoke the decision on a
tax check.
Article
78 Tax checks conducted at head office of the tax payer
1. Tax checks at the head office of a taxpayer
[shall comprise]:
(a) The
cases specified in article 77.3(c) and (d) of this Law;
(b)
Cases of post-customs clearance check, including planned checks and random
checks, to assess the observance of the law on tax, and checks in the case
where import or export goods for which customs clearance has been performed
have signs of a breach of the law on tax.
If any
indication of tax evasion or tax fraud is detected during a post-customs
clearance check, the Director of the Department of Post-Customs Clearance
Inspection, of a Customs Department or of a division of post-customs clearance
inspection shall have the power to make a decision to take the measures
stipulated in Section 4 of this Chapter.
2. The order and procedures for tax checks shall
be regulated as follows:
(a)
Announcing the decision on tax check upon commencement of a tax check;
(b)
Comparing the declared items with accounting books, accounting vouchers,
financial statements, relevant documents and the actual status within the scope
and items of the decision on tax check;
(c) The
time-limit for a tax check shall not exceed five business days from the date of
announcement of the decision on the check; in the case of planned checks on
import or export goods, this time-limit shall not exceed fifteen (15) days;
(d)
When necessary, the decision on tax check shall be extended once; and the
extension shall not exceed the time-limit stipulated in paragraph (c) of this
clause;
(dd)
Making a record of the tax check within five business days from the date of
expiration of the time-limit for the check;
(e)
Dealing with the result of the check within powers or transferring same to the
competent authority to deal with.
Article
79 Rights and obligations of taxpayers during tax checks
conducted at headquarters of the taxpayer
1. A taxpayer shall have the following rights:
(a) To
refuse the check without a decision on tax check;
(b) To
refuse to provide information and documents which are irrelevant to the items
of the tax check; or documents being State secrets, unless otherwise stipulated
by law;
(c) To
receive the record of the tax check and to request an explanation of the
contents of the record;
(d) To
reserve his or her opinion in the record of tax check;
(dd) To
lodge a complaint, to take a court action and to claim compensation pursuant to
law for any loss;
(e) To
lodge a denunciation regarding any breach of law in the course of the tax
check.
2. A taxpayer shall have the following
obligations:
(a) To
comply with the decision of the tax management body on tax check;
(b) To
promptly provide complete and accurate information and documents relating to
the items of the check upon the request of the tax check team; and to be
responsible before the law for the accuracy and truthfulness of provided
information and documents;
(c) To
sign the record of tax check within five business days from the date of
completion of the check;
(d) To
comply with the decision dealing with the result of the tax check.
Article
80 Duties and powers of head of tax management body in issuance
of a decision on tax check, and of tax management officials during a tax check
1. The head of a tax management body which makes
a decision on a tax check shall have the following duties and powers:
(a) To
direct the check in accordance with the contents and time-limit stated in the
decision on tax check;
(b) To
take the measure of temporary detention of documents and exhibits relating to
any act of tax evasion or tax fraud stipulated in article 90 of this Law;
(c) To
extend the time-limit for a check where necessary;
(d) To
make a decision dealing with tax or a decision on penalty for an administrative
breach within his or her powers, or to propose the competent person make a
decision on penalty for an administrative breach;
(dd) To
resolve complaints and denunciations relating to an administrative act or a
decision of a tax management official.
2. During conduct of a tax check, a tax
management official shall have the following duties and powers:
(a) To
carry out the check in accordance with the contents and time-limit stated in
the decision on tax check;
(b) To
request the taxpayer to provide information and documents relevant to the
check;
(c) To
make a record of the tax check; to submit a report on the results of the check
to the person who made the decision on the check and to be responsible for the
accuracy, truthfulness and objectiveness of such record and report;
(d) To
penalize any administrative breach within his or her powers, or to propose that
the competent person make a decision dealing with the breach.
SECTION 3
Tax
Inspections
Article
81 Cases when tax inspections shall be conducted
1. In the case of enterprises with diversified
lines of business and a wide scope of business, periodical tax inspection shall
be conducted no more than once a year.
2. When there is an indication of a breach of
the law on tax.
3. For the purpose of resolving a complaint or
denunciation or upon the request of the head of a tax management body at any
level or of the Minister of Finance.
Article
82 Decision on tax inspection
1. Heads of tax management bodies at all levels
shall have the power to issue a decision on tax inspection.
2. A decision on tax inspection shall contain
the following items:
(a)
Legal ground(s) for tax inspection;
(b)
Object [of the inspection], items, scope and tasks of tax inspection;
(c)
Duration of tax inspection;
(d)
Head and other members of the tax inspection team.
3. The decision on tax inspection shall be sent
to the entity to be inspected within three business days from the date of
signing.
The
decision on tax inspection shall be announced within fifteen (15) days from the
date of its issuance.
Article
83 Limit on duration of a tax inspection
1. The limit on duration of a tax inspection
shall be thirty (30) days from the date of announcement of the decision on tax
inspection.
2. Where necessary, the person issuing the
decision on tax inspection shall grand an extension of the duration of the tax
inspection, but the extension shall not exceed thirty (30) days.
Article
84 Duties and powers of person issuing decision on tax
inspection
1. A person issuing a decision on tax inspection
shall have the following duties and powers:
(a) To
direct and check whether or not the tax inspection team conducts the tax
inspection in accordance with the contents and duration stated in the decision
on tax inspection;
(b) To
request the entity being inspected to provide information and documents, to
report in writing and explain matters relating to the items of the inspection;
to request bodies, organizations and individuals having information and
documents relating to the items of the inspection to provide such information
and documents;
(c) To
take the measures stipulated in articles 89, 90 and 91 of this Law;
(d) To
seek opinions of experts about matters relating to the contents of the tax
inspection;
(dd) To
temporarily suspend or propose the competent person suspend any act when he or
she considers such act causes serious loss to the interests of the State or to
the lawful rights and interests of any body, organization or individual;
(e) To
deal with breaches of the law on tax within his or her power, or propose the
competent person deal with them; to inspect and motivate execution of decisions
on penalty in relation to tax inspection;
(g) To
resolve complaints and denunciations relating to the responsibilities of the
head and other members of the tax inspection team;
(h) To
make conclusions on the contents of the tax inspection.
2. When performing the duties and exercising the
powers stipulated in clause 1 of this article, the person issuing the decision
on tax inspection shall be responsible before the law for his or her decision.
Article
85 Duties and powers of head and members of tax inspection
team
1. The head of a tax inspection team shall have
the following duties and powers:
(a) To
organize the tax inspection and direct members of the tax inspection team to
strictly conduct in terms of the contents, objective and duration stated in the
decision on tax inspection;
(b) To
request the entity being inspected to provide information and documents, to
report in writing and explain matters related to the contents of the tax
inspection; and where necessary, to conduct an inventory of assets of the
entity being inspected which are relevant to the tax inspection;
(c) To
take the measure stipulated in article 90 of this Law;
(d) To
prepare a record of tax inspection;
(dd) To
submit a report on results of the inspection to the person issuing the decision
on tax inspection and to be responsible for the accuracy, truthfulness and
objectiveness of such report;
(e) To
penalize administrative breaches within his or her powers, or propose the
competent person make a decision dealing with breaches.
2. A member of a tax inspection team shall have
the following duties and powers:
(a) To
perform the duties assigned by the head of the tax inspection team;
(b) To
make a proposal for dealing with matters relating to the contents of the tax
inspection;
(c) To
report the result of performance of the assigned tasks to the head of the tax
inspection team.
3. When performing duties and exercising powers
stipulated in this article, the head and members of a tax inspection team shall
be responsible before the law for their decisions and acts.
Article
86 Rights and obligations of entities subject to a tax
inspection
1. Entities subject to a tax inspection shall
have the following obligations:
(a) To
abide by the decision on tax inspection;
(b) To
promptly provide complete and accurate information and documents relating to
the contents of inspection upon the request of the tax management body or of
the head of the tax inspection team, and to be responsible before law for the
accuracy and truthfulness of the information and documents provided;
(c) To
comply with requests and abide by the conclusion of the tax inspection and the
decision on penalty of the tax management body, the head of the tax inspection
team and the competent State body;
(d) To
sign the record of inspection within five business days from the date of
completion of the tax inspection.
2. Entities subject to a tax inspection shall
have the following rights:
(a) To
explain matters related to the contents of the tax inspection;
(b) To
reserve their opinions in the record of the tax inspection;
(c) To
refuse to provide information and documents irrelevant to the items of the tax
inspection, or information and documents
being State secrets, unless otherwise stipulated by law;
(d) To
lodge a complain regarding a decision or act of the head or a member of the tax
inspection team with the person issuing the decision on tax inspection when
there are grounds to believe that such decision or act was contrary to law. Pending
resolution of such complaint, the complainant must still comply with such
decision;
(dd) To
request compensation pursuant to law for any loss;
(e) To
lodge a denunciation regarding any breach of law by the head of a tax
management body, or by the head or members of the tax inspection team.
Article
87 Conclusions of a tax inspection
1. No later than fifteen (15) days from the date
of receipt of a report on the result of a tax inspection, the person issuing
the decision on tax inspection shall make a written conclusion from the tax
inspection, such conclusion to contain the following:
(a)
Assessment of the observance of the law on tax by the entity inspected in terms
of the contents of the tax inspection;
(b)
Conclusion on the contents of the tax inspection;
(c)
Clear determination of the nature and seriousness of any offence, reasons for
it, and responsibilities of the body, organization or individual committing the
breach (if any);
(d) How
the administrative breach was dealt with within his or her powers, or what was
the proposal to the competent person to deal with the administrative offence.
2. During preparation of a written conclusion
from an inspection, the person issuing the decision on inspection shall be
entitled to request the head or any member of the inspection team to report, or
to request the entity inspected to explain and further clarify matters
necessary for preparation of the conclusion of the tax inspection.
SECTION 4
Measures
Applicable during a Tax Inspection in Cases with Signs of Tax Evasion or Tax
Fraud
Article
88 Application of measures during a tax inspection in cases
with signs of tax evasion or tax fraud
1. When a taxpayer shows an indication of tax
evasion or tax fraud involving another organization or individual.
2. When there are complex signs of tax evasion
or tax fraud.
Article
89 Collection of information about acts of tax evasion or
tax fraud
1. The head of a tax management body shall be
entitled to request any organization or individual possessing information on an
act of tax evasion or tax fraud to provide such information in writing or to
give a verbal answer.
2. In the case of requests for provision of
information in writing, upon receipt of the request from the head of a tax
management body, the organization or individual concerned shall be responsible
to provide information on the correct items by the deadline to the address as
requested and shall be responsible for the accuracy and truthfulness of the
such information. If the provision of information is impossible, a notice shall
be given in writing specifying the reasons.
3. In the case of requests for provision of
information by a verbal answer, upon receipt of the request from the head of a
tax management body, the person who is requested to provide information shall
be present at the time and location stated in the written request to provide
information on the requested items and shall be responsible for the accuracy
and truthfulness of such information. If he or she is unable to be present, a
notice shall be given in writing specifying the reasons.
During
collection of information provided by a verbal answer, a tax inspector shall
make a record of the meeting and shall be permitted to conduct publicly an
audio-visual recording.
Article
90 Temporary retention of data and exhibits relating to acts
of tax evasion or tax fraud
1. The head of a tax management body or of a tax
inspection team shall be entitled to make a decision on temporary retention of
documents and exhibits relating to an act of tax evasion or tax fraud.
2. Temporary retention of documents and exhibits
related to an act of tax evasion or tax fraud shall be taken when it is
necessary to verify a fact to provide the basis for making a decision
promptly dealing with or preventing an
act of tax evasion or tax fraud.
3. If, during tax inspection, the entity
inspected shows signs of dispersing or destroying documents or exhibits
relevant to an act of tax evasion or tax fraud, the tax inspector on duty shall
be entitled to temporarily retain such documents or exhibits. Within twenty
four (24) hours after such temporary retention, the tax inspector shall submit
a report to the head of the tax management body or of the tax inspection team
to make a decision on temporary retention of such documents or exhibits; and
within eight business hours upon receipt of the report, the competent person
shall consider and make a decision on temporary retention. Where the competent
person disagrees with the temporary retention, the tax inspector shall return
the documents or exhibits within eight business hours.
4. When temporarily retaining documents or
exhibits relevant to an act of tax evasion or tax fraud, the tax inspector
shall make a record of temporary retention specifying the name, number and
types of documents or exhibits temporarily retained, signed by the person
carrying out such temporary retention and by the person currently managing documents and exhibits relating to the
breach. The person issuing the decision on temporary retention shall be
responsible to keep the documents or exhibits temporarily retained and shall be
responsible before the law if such documents or exhibits are lost, sold,
exchanged or damaged.
Where documents or exhibits should be affixed
with a seal, the seal shall be affixed in the presence of the person having
such documents or exhibits. Where the person having such documents or exhibits
is absent, the seal shall be affixed in the presence of a representative of his
or her family or representative of the organization and a representative of the
local authority and a witness.
5. Exhibits being Vietnamese currency, foreign
currency, gold, silver, gems, precious metal and objects subject to special
management shall be preserved pursuant to law; in the case of exhibits being
perishable goods or articles, the person issuing the decision on temporary
retention shall make a record thereof and promptly arrange their sale to avoid
loss and damage. Proceeds from the sale shall be transferred into an escrow
account opened at the State Treasury in order to ensure collection of tax and
fines in full.
6. Within a time-limit of ten (10) business days
from the date of temporary retention, the person issuing the decision on
temporary retention shall deal with the temporarily retained documents or
exhibits by the measures stated in the decision on penalty or shall return them
to the relevant individual or organization in a case where the measure to
confiscate the documents or exhibits is not taken. The duration of temporary
retention of documents or exhibits may be extended in complex cases which
require verification but shall not exceed sixty (60) days from the date of
temporary retention of the documents or exhibits. The extension of the duration
of temporary retention of documents or exhibits shall be determined by the
competent person in accordance with clause 1 of this article.
7. The tax management body shall send a copy of
the decision on temporary retention, of the record of temporary retention and
of the decision dealing with documents or exhibits relevant to an act of tax
evasion or tax fraud to the organization or individual with the documents or
exhibits subject to temporary retention.
Article
91 Search of locations hiding documents and exhibits
relevant to acts of tax evasion or tax fraud
1. The head of a tax management body shall be entitled
to make a decision on search of a location hiding documents or exhibits
relevant to an act of tax evasion or tax fraud. Where the location hiding
documents or exhibits relevant to an act of tax evasion or tax fraud is a
residence, the written consent of the competent person stipulated by law shall
be required.
2. A search of a location shall be conducted
when there are grounds for believing that documents or exhibits relevant to an
act of tax evasion or tax fraud are hidden there.
3. A search of a location hiding documents or
exhibits shall be conducted in the presence of the owner of the searched
location and witnesses. When the owner of the searched location is absent and
the search cannot be delayed, the presence of a representative of the local
authority and two witnesses shall be required.
4. Any search of a location hiding documents or
exhibits relevant to an act of tax evasion or tax fraud at night, on holidays,
or when the owner of the searched location carries out a wedding or funeral
shall not be allowed, unless an illegal act is caught red-handed in which case
such reason for the search must be specified in the record.
5. All cases of search of a location hiding
documents or exhibits relevant to an act of tax evasion or tax fraud shall
require a decision in writing and a record. A copy of the decision and of the
record of search of a location hiding documents or exhibits shall be delivered
to the owner of the searched location.
CHAPTER
XI
Compulsory
Enforcement of Administrative Tax Decisions
Article
92 Cases in which administrative tax decisions shall be
compulsory enforced
1. Taxpayers owing a tax amount or fine for a
breach of the law on tax which is overdue more than ninety (90) days from the stipulated deadline
for payment of such tax or fine for the breach of the law on tax.
2. Taxpayers owing a tax amount or fine for a
breach of the law on tax upon expiry of the extension of the period for tax
payment.
3. Taxpayers owing a tax amount or fine who
commit an act of dispersing their assets or disappearing.
Article
93 Methods of compulsory enforcement of administrative tax
decisions
1. Methods of compulsory enforcement of an
administrative tax decision shall comprise:
(a)
Transferring money from account(s) of the entity subject to compulsory
enforcement of the administrative tax decision opened at the State Treasury, a
commercial bank or another credit institution; requesting freezing of an
account;
(b)
Deducting a part of salary or income;
(c)
Conducting a seizure of assets and an auction of seized assets pursuant to law
in order to collect in full the amount of tax or fine;
(d)
Collecting money or other assets of the entity subject to compulsory
enforcement of the administrative tax decision held by another organization or
individual;
(dd)
Suspending performance of customs procedures for import goods;
(e)
Revoking the tax code; suspending the use of invoices;
(g)
Revoking the business registration certificate, licence for establishment and
operation or practising license.
2. The methods of compulsory enforcement of an
administrative tax decision stipulated in clause 1 of this article shall no
longer be effective upon full payment of tax and fine into the State budget.
Article
94 Authority to issue decision to compulsorily enforce an
administrative tax decision
Heads of tax management bodies,
the Director of the Department of Anti-Smuggling Investigation or the Director
of the Department of Post-Customs Clearance Inspection shall have the power to
make a decision to compulsorily enforce an administrative tax decision in the
cases stipulated in sub-clauses (a) to (e) of article 93.1 of this Law.
Revocation of business
registration certificates, licences for establishment and operation or
practising certificates as stipulated in article 93.1(g) of this Law shall be
carried out in accordance with law.
Article
95 Decision to compulsorily enforce an administrative tax
decision
1. Compulsory enforcement of an administrative
tax decision shall only be carried out upon the decision of the competent
person stipulated in article 94 of this Law to compulsorily enforce the
administrative tax decision.
2. A decision to compulsorily enforce an
administrative tax decision shall contain the following items: date of issuance
of the decision; grounds for issuance of the decision; full name, position and
unit of the decision-making person; full name, place of residence and head
office of the entity subject to
compulsory enforcement of the administrative tax decision; reason(s) for
compulsory enforcement of the administrative tax decision; method of compulsory
enforcement; date and place of compulsory enforcement; the body presiding over
implementation of the decision to compulsorily enforce the administrative tax
decision; the bodies responsible for co-ordination; and signature of the
decision-making person and seal of the issuing body.
3. The decision to compulsorily enforce an
administrative tax decision shall be sent to the entity subject to compulsory
enforcement of the administrative tax decision and related organizations and
individuals at least five business days before the compulsory enforcement is
carried out; and the decision on compulsory enforcement shall be sent to the
immediately superior tax management body. In the case of compulsory enforcement
by the method stipulated in article 93.1(c) of this Law, the decision shall be
sent to the chairman of the people’s committee of the commune, ward or township
in which compulsory enforcement of the administrative tax decision is to be
carried out, before the decision is implemented.
Article
96 Responsibilities to organize implementation of decisions
on compulsory enforcement of administrative tax decisions
1. The person who issues a decision to
compulsorily enforce an administrative tax decision shall have the duty to
organize implementation of such former decision.
2. The people’s committee of a commune, ward or
township of the entity subject to compulsory enforcement of an administrative
tax decision shall direct responsible bodies to co-ordinate with the tax
management body to compulsorily enforce such decision.
3. People’s police forces shall be responsible
to ensure order and safety and to support the tax management body during
compulsory enforcement of an administrative tax decision upon the request of
the person who issued the decision to compulsorily enforce such decision.
Article
97 Method of compulsory enforcement being transfer of money
from bank accounts of entity subject to compulsory enforcement of
administrative tax decisions
1. The method of transferring money from a bank
account shall be applicable to entities subject to compulsory enforcement of an
administrative tax decision with deposits at the State Treasury, commercial
bank or other credit institution.
2. Upon receipt of the decision on compulsory
enforcement of an administrative tax decision, the State Treasury, commercial
bank or other credit institution shall transfer the mount of money stated in
the decision on compulsory enforcement of an administrative tax decision from
the bank account of the entity subject to such compulsory enforcement and into
the account of the State budget at the State Treasury, and at the same time
shall give notification in writing to the person who issued the decision on
compulsory enforcement of an administrative tax decision and to the entity
subject to compulsory enforcement.
3. A decision on compulsory enforcement of an
administrative tax decision by method of transferring money from a bank account
of the entity subject to such compulsory enforcement shall be effective within
a time-limit of thirty (30) days from the date of issuance of the
decision. Where the decision on
compulsory enforcement of an administrative tax decision expires but the State
Treasury, commercial bank or other credit institution has not transferred in
full money for the amount of tax pursuant to the such decision, it must give
notification in writing to the person who issued the decision on compulsory
enforcement of an administrative tax decision.
4. During the effective duration of a decision
on compulsory enforcement of an administrative tax decision, if there is any
balance in the bank account of the entity subject to compulsory enforcement of
an administrative tax decision but the State Treasury, commercial bank or other
credit institution fails to transfer money of the such entity into the State budget
pursuant to the decision on compulsory enforcement of an administrative tax
decision, it shall be subject to a penalty for an administrative breach in
accordance with the provisions of Chapter XII of this Law.
Article
98 Method of compulsory enforcement being deduction of a
part of salary or revenue
1. The method of deducting a part of salary or
income shall be applicable to taxpayers subject to compulsory enforcement of an
administrative tax decision who currently work as State employees, or on the
basis of a contract with a term of six months or more, or who are entitled to a
pension subsidy or a subsidy for loss of business capacity.
2. The rate of deduction from salary, pension
subsidy or subsidy for loss of business capacity in the case of an individual
shall be between 10% and 30% of total monthly salary or subsidy of such
individual; in the case of other income, the rate of deduction shall be subject
to actual income but shall not exceed 50% of total aggregate income.
3. A body or organization being the employer who
currently manages salary or income of the entity subject to compulsory
enforcement of an administrative tax decision shall have the following
responsibilities:
(a) To
deduct a part of salary or income of the entity subject to compulsory
enforcement and to transfer the deducted amount into the account of the State
budget at the State Treasury pursuant to the items of the decision on
compulsory enforcement of an administrative tax decision as from the latest
payment of salary or income up until deduction of the full amount of tax or
fine stated in such decision, and at the same time must give notification to
the person who issued the decision on compulsory enforcement and to the entity
subject to compulsory enforcement;
(b)
Where the labor contract of an entity subject to compulsory enforcement
terminates whilst [his or her salary or income] has not been deducted for the
full amount of tax or fine pursuant to the decision on compulsory enforcement,
the body or organization being his or her employer shall give notification to
the person who issued the decision on compulsory enforcement of an
administrative tax decision within five business days from the date of
termination of the labor contract.
(c) Any
body or organization being the employer who currently manages salary or income
of the entity subject to compulsory enforcement of an administrative tax
decision who intentionally fails to perform such decision shall be subject to a
penalty for an administrative breach in accordance with Chapter XII of this
Law.
Article
99 Method of compulsory enforcement being seizure of assets
and auction of seized assets
1. A tax management body which cannot apply the
methods of compulsorily enforcing an administrative tax decision stipulated in
article 93.1(a) and (b) of this Law or has applied such methods but has not
collected in full an amount of tax or fine, shall be entitled to apply the
method of seizing assets and conducting an auction of seized assets to collect
the outstanding amount of tax or fine for the State budget.
The
method of seizing assets shall not apply to any taxpaying individual undergoing
medical treatment.
2. The value of seized assets of the entity
subject to compulsory enforcement shall be equivalent to the amount of tax
stated in the decision on compulsory enforcement and expenses for compulsory
enforcement.
3. The following assets cannot be seized:
(a)
Medication, food and foodstuffs serving essential needs of an entity subject to
compulsory enforcement of an administrative tax decision and his or her family;
(b)
Business tools;
(c)
Residential housing and essential personal articles of an entity subject to
compulsory enforcement of an administrative tax decision and his or her family;
(d)
Worship articles; relics of deceased persons; medals or certificates of merit;
(dd)
Assets serving national defence and security.
4. Where an entity subject to compulsory
enforcement of an administrative tax decision fails to pay in full the
outstanding amount of tax or fine within thirty (30) days from the date of
seizure of assets, the tax management body shall be entitled to conduct an
auction of the seized assets in order to collect in full the outstanding amount
of tax or fine.
5. The Government shall stipulate the order and
procedures for compulsory enforcement of administrative tax decisions by the
method of seizure of assets and auction of seized assets.
Article
100 Method of compulsory enforcement being collection of
money and assets owned by an entity subject to compulsory enforcement but held
by another organization or individual
1. The method of compulsory enforcement being
collection of money and assets owned by an entity subject to compulsory
enforcement but held by another organization or individual (hereinafter
referred to as a third party) shall be applied when all of the following
conditions are satisfied:
(a) The
tax management body cannot apply the methods of compulsorily enforcing an
administrative tax decision stipulated in article 93.1(a), (b) and (c) of this
Law or has applied such methods but has not collected in full an amount of tax
or fine.
(b) The
tax management body has grounds for determining that the third party owes a
debt to or holds money or other assets of the entity subject to compulsory
enforcement.
2. Principles of collection of money or other assets
owned by an entity of compulsory enforcement but held by a third party shall be
stipulated as follows:
(a) The
third party who owes the debt due and payable to the entity subject to
compulsory enforcement or who holds money or other assets of the entity subject
to compulsory enforcement shall be liable to pay the outstanding amount of tax
or fine on behalf of the such entity.
(b)
Where money or other assets owned by an entity subject to compulsory
enforcement but held by a third party are the object of a security transaction
or are subject to a case of bankruptcy, the collection of such money or other
assets held by the third party shall be carried out pursuant to law.
(c) Any
amount of money paid by a third party on behalf of the entity subject to
compulsory enforcement into the State budget shall be considered the amount of
money paid for the entity subject to compulsory enforcement.
3. Responsibilities of a third party who owes a
debt to or holds money or other assets of an entity subject to compulsory
enforcement shall be stipulated as follows:
(a) To
provide the tax management body with information about the debt to or amount of
money or other assets of the entity subject to compulsory enforcement in its
possession, specifying the amount of money, due date of the debt, type,
quantity and current state of the assets;
(b)
Upon receipt of a request in writing from the tax management body, not to
return money or other assets to the entity subject to compulsory enforcement
until the money is paid into the State budget or the assets are transferred to
the tax management body in order to carry out procedures for an auction;
(c)
Where it is impossible to satisfy the request of the tax management body, to
send an explanatory statement in writing to the tax management body within five
business days from the date of receipt of the request in writing from the tax
management body;
(d) Any
organization or individual owing a debt to or holding money or other assets of
an entity subject to compulsory
enforcement of an administrative tax decision but failing to pay [on behalf of
the entity] the tax amount subject to compulsory enforcement within fifteen
(15) days from the date of receipt of the request from the tax management body
shall be deemed to owe tax to the State and shall be subject to the methods of
compulsory enforcement stipulated in article 93.1 of this Law.
Article
101 Method of compulsory enforcement being suspension of
customs procedures for import goods
1. The method of compulsory enforcement being
suspension of customs procedures for import goods shall be implemented when the
customs office cannot apply or has applied the methods stipulated in article
93.1(a), (c) and (d) of this Law but cannot collect in full the outstanding
amount of tax or fine.
2. The head of a customs office in charge of the
locality of the taxpayer with an overdue tax amount shall give notification no
later than five business days before applying the method of suspending customs
procedures for import goods.
Article
102 Methods of compulsory enforcement being withdrawal of tax
code; suspension of use of invoices; and withdrawal of business registration
certificate, licence for establishment and operation, or practising certificate
1. The methods of compulsory enforcement
stipulated in this article shall be carried out when the tax management body
has applied the methods of compulsory enforcement stipulated in article 93.1(a)
to (dd) of this Law, but cannot collect in full the outstanding amount of tax
or fine.
2. The head of a tax management body shall have
the following responsibilities:
(a) To
give notification to the entity subject to compulsory enforcement within three
business days before revoking its tax code or suspending the use of invoices;
(b) To
request in writing the competent State administrative body to revoke the
business registration certificate, licence for establishment and operation or
practising license.
3. When carrying out the enforcement measure
stipulated in this article, the competent State administrative body shall
provide pubic notification on the mass media.
CHAPTER
XII
Dealing
with Breaches of the Law on Tax
Article
103 Conduct of taxpayers which constitutes a breach of the
law on tax
1.
Breach of tax procedures.
2. Late
payment of tax.
3. False declaration resulting in a reduction of
the amount of tax payable or an increase in refundable amount of tax.
4. Tax evasion or tax fraud.
Article
104 Principles of and procedures for dealing with breaches of
the law on tax
1. All detected breaches of the law on tax shall
be dealt with justly, thoroughly and promptly. All consequences caused by a
breach of the law on tax shall be rectified in accordance with law.
2. Any organization or individual shall only be
subject to an administrative penalty in relation to tax when it, he or she
commits a breach of the law on tax.
3. A breach of the law on tax shall be dealt
with by the competent person.
4. A breach of the law on tax shall only be
penalized once.
Where a number of persons jointly commit a
breach of the law on tax, each offender shall be penalized.
A person who commits several breaches of the
law on tax shall be penalized for each breach.
5. Penalties for breaches of the law on tax
shall be based on the nature and seriousness of the offence, and any
attenuating or aggravating circumstances, in order to issue an appropriate
decision on the form of penalty.
6. The order and procedures for penalties for
breaches of the law on tax shall be carried out in accordance with regulations
of the Government.
7. Where a breach of the law on tax is serious
enough to warrant prosecution for criminal liability, the criminal law and the
law on criminal proceedings shall apply.
Article
105 Penalties for breaches of tax procedures
1. Conduct in breach of tax procedures shall
comprise:
(a)
Submitting a tax registration file after the deadline for submission of tax
registration files;
(b)
Submitting a tax declaration file within ninety (90) days after the deadlines
for submission stipulated in articles 32.1, 32.2, 32.3 and 32.5 of this Law or
after expiry of the extended time-limit for submission as stipulated in article
33 of this Law;
(c)
Submitting a tax declaration file within the period from the deadline for
submission of customs declarations to the date before the date of disposal of
unclaimed goods pursuant to the Law on
Customs in the case stipulated in article 32.4(a) of this Law;
(d)
Failing to declare all of the items of a tax file, unless the taxpayer makes an
additional declaration within the stipulated period;
(dd)
Committing a breach of the regulations on provision of information relevant to
determination of a tax obligation;
(e)
Committing a breach of the regulations on observance of a decision on tax check
or tax inspection or on compulsory enforcement of an administrative tax
decision.
2. A breach of tax procedures shall not be dealt
with where the taxpayer is entitled to an extension of the time-limit for
submission of tax declaration files or of the period for tax payment.
3. The Government shall issue detailed
regulations on penalties for each act in breach of tax procedures.
Article
106 Penalties applicable to late payment of tax
1. Any taxpayer making a late payment of tax in
comparison with the stipulated period or extended period for tax payment, or
the deadline stated in a notice or decision of the tax management body on
penalty, shall be liable to pay in full the amount of tax payable plus a fine
of 0.05% of the amount of tax for each day of late payment.
2. Any taxpayer conducting a false declaration
resulting in a reduction of the amount of tax payable, or failing to conduct a
tax declaration but voluntarily rectifying consequences by way of paying in
full the amount of tax payable before the competent body detects the breach,
shall be subject to a penalty for late payment of tax in accordance with this
article but shall not be subject to a penalty for a breach of tax procedures,
shortfall of tax or tax evasion.
In the
case of import or export goods, a taxpayer detecting errors which affect the
amount of duty payable and paying on its own initiative the shortfall of duty
to the State budget within sixty (60) days from the date of registration of a
customs declaration but before the customs office carries out a check or
inspection, shall be subject to a penalty for late payment of tax in accordance
with this article but shall not be subject to a penalty for a breach of tax
procedures, shortfall of tax or tax evasion.
3. A taxpayer shall personally determine the
fine for late payment on the basis of the amount of tax paid late, the number
of days of late payment and the rate stipulated in clause 1 of this article.
Where a
taxpayer fails to personally determine or determines falsely an amount of fine
for late payment, the tax management body shall determine an amount of fine for
late payment and notify it to the taxpayer.
4. Where a taxpayer fails to pay the amount of
tax and a fine for late payment within thirty (30) days after expiry of the
time-limit for tax payment, the tax management body shall notify the taxpayer
of the outstanding amount of tax and the fine for late payment.
Article
107 Penalties applicable to false declarations leading to a
deficit in amount of tax payable or an excess in amount of tax refunded
Any taxpayer who has reflected
fully and truthfully economic activities giving rise to tax obligations in the
accounting books, invoices and source documents but has made a false
declaration resulting in a reduction of the amount of tax payable or an
increase in the amount of tax refundable, or has made a false declaration not
covered by clauses 6 and 7 of article 108 of this Law resulting in a reduction
of the amount of tax payable or an increase in the amount of tax refundable,
must pay in full the shortfall or return the excess amount of tax and shall be
subject to a fine of 10% on the shortfall of tax or excess amount of tax
refunded plus a fine for late payment on the shortfall of tax or excess amount
of tax refunded.
Article
108 Penalties applicable to acts of tax evasion or tax fraud
Any taxpayer committing any of
the following acts of tax evasion or tax fraud shall pay in full the amount of
tax payable pursuant to the regulations and shall be fined an amount of up to
three times the amount of the tax evaded:
1. Failing to submit a tax registration file;
failing to submit a tax declaration file; failing to submit a tax declaration
file within ninety (90) days after the deadline for submission stipulated in
clauses 1, 2, 3 and 5 of article 32 of this Law or from the expiry date of the
extended time-limit for submission stipulated in article 33 of this Law.
2. Failing to record revenue relating to
determination of an amount of tax payable in accounting books.
3. Failing to issue an invoice upon selling
goods or services, or recording a value lower than the actually paid value of
goods or services sold on a sale invoice.
4. Using unlawful invoices or source documents
for cost accounting of input raw materials or goods in activities giving rise
tax obligations, resulting in a reduction of the amount of tax payable or an
increase in the amount of tax creditable or refundable..
5. Using unlawful source documents or other
documents to determine falsely an amount of tax
payable or refundable.
6. Conducting an incorrect declaration of actual
import or export goods but failing to make an additional declaration to the tax
declaration file within sixty (60) days from the date of registration of
the customs declaration.
7. Intentionally failing to conduct a
declaration or conducting a false declaration of duty payable on import or
export goods.
8. Colluding with a goods consigner to evade
duty payable on import goods.
9. Using duty-free goods for an improper purpose
without declaration of duty.
Article
109 Authority to penalize breaches of the law on tax
1. In the case of breaches specified in article
103.1 of this Law, the authority to penalize [such breaches] shall be subject
to this Law and the law on penalties for administrative offences.
2. In the case of breaches specified in clauses
2, 3 and 4 of article 103 of this Law, the head of a tax management body, the
Director of the Department of Anti-Smuggling Investigation and the Director of
the Department of Post-Customs Clearance Inspection under the General
Department of Customs shall have authority to issue a decision penalizing a
breach of the law on tax.
Article
110 Limitation period for applying penalties for breach of
the law on tax
1. In the case of a breach of tax procedures,
the limitation period for applying penalties shall be two years from the date
on which the breach was committed.
2. In the case of acts of tax evasion or tax
fraud not serious enough to warrant prosecution for criminal liability, or late
tax payment or declaration of incomplete tax obligation, the limitation period
for applying penalties shall be five years from the date on which the breach
was committed.
3. Upon expiration of the limitation period for
applying penalties for a breach of the law on tax, a taxpayer shall not be
penalized but must still pay in full the shortfall of tax, or evaded or
defrauded amount of tax into the State budget.
Article
111 Exemption from penalties for breach of the law on tax
1. A person subject to a penalty for a breach of
the law on tax shall be entitled to request exemption from penalties for a
breach of the law on tax in a case where he or she suffers loss from a natural
calamity, fire, unexpected accident or other event of force majeure.
2. Offenders who have implemented a decision on
a penalty for a breach of the law on tax issued by a tax management body or
competent State body shall not be exempted from penalties for a breach of the
law on tax.
3. The
Government shall regulate powers and procedures for exemption from penalties.
Article
112 Dealing with breaches of the law on tax by tax management
bodies
1. Any tax management body improperly
implementing this Law and causing loss to a taxpayer shall compensate such
taxpayer for the loss pursuant to law.
2. Where a tax management body is at fault in
fixing or refunding tax, such tax management body shall compensate the taxpayer
for any loss pursuant to this Law and other relevant laws.
Article
113 Dealing with breaches of the law on tax by tax management
officials
1. Any tax management official who causes
trouble or difficulties to a taxpayer affecting the lawful rights and benefits
of the taxpayer shall, depending on the nature and seriousness of the breach,
be subject to disciplinary action or prosecution for criminal liability, and
shall compensate the taxpayer for any loss pursuant to law.
2. Any tax management official who is
irresponsible or fails to deal with [an issue] in accordance with the law on
tax shall, depending on the nature and seriousness of the breach, be subject to
disciplinary action or prosecution for criminal liability, and shall compensate
the taxpayer for any loss pursuant to law.
3. Any tax management official who takes advance
of his or her position or powers to collude or cover up a taxpayer or an
organization engaged in the business of services for performance of tax
procedures shall, depending on the nature and seriousness of the breach, be
subject to disciplinary action or prosecution for criminal liability pursuant
to law.
4. Any tax management official who takes advance
of his or her position or powers to illegally use or misappropriate an amount
of tax or fine for a breach of the law on tax shall, depending on the nature
and seriousness of the breach, be subject to disciplinary action or prosecution
for criminal liability, and shall compensate the State for the whole of the
illegally used or misappropriated tax or fine
pursuant to law.
Article
114 Dealing with breaches by commercial banks, credit
institutions and guarantors of tax payment
1. Any commercial bank or other credit
institution which fails to perform the responsibility to transfer an amount of
tax or fine for a breach of the law on tax payable by a taxpayer from a bank
account of the taxpayer to the account of the State budget upon the request of
a tax management body, shall be dealt with as follows on a case-by-case basis:
(a) The
commercial bank or other credit institution shall not be penalized in a case
where there is no balance in the deposit account of the taxpayer at that time
or if the whole of the balance of the account of the taxpayer was transferred
to the account of the State budget but such [transferred] money was insufficient
to cover the amount of the tax of fine payable by the taxpayer for a breach of
the law on tax.
(b) The
commercial bank or other credit institution shall be penalized for a breach if
the balance in the bank account of the taxpayer at that time was sufficient or
excessive to cover the amount of tax or fine payable by the taxpayer for a
breach of the law on tax, but the commercial bank or credit institution failed
to transfer the whole or part of the balance corresponding to the amount of
money payable by the taxpayer, and shall be fined an amount corresponding to
the amount of money not transferred to the account of the State budget.
2. Any guarantor for performance of a tax
obligation shall be liable to pay the amount of tax or fine for the guaranteed
taxpayer in a case where such taxpayer failed to make tax payment into the
account of the State budget or committed a breach of the law on tax.
Article
115 Dealing with breaches of the law on tax by related
organizations and individuals
1. Any related organization or individual
colluding with or covering up a taxpayer for tax evasion or tax fraud or
failing to implement a decision on compulsory enforcement of an administrative
tax decision shall, depending on the nature and seriousness of the breach, be
dealt with administratively or shall be subject to prosecution for criminal
liability pursuant to law.
2. Any related organization or individual
failing to perform its, his or her responsibilities in accordance with this Law
shall, depending on the nature and seriousness of the breach, be dealt with
administratively or shall be subject to prosecution for criminal liability
pursuant to law.
CHAPTER
XIII
Complaints
and Denunciations, Institution of Legal Proceedings
Article
116 Complaints and denunciations
1. Any taxpayer, organization or individual
shall be entitled to lodge a complaint with the tax management body or the
competent State body for reconsideration of a decision of a tax management body
or of an administrative act of a tax management official when there are grounds
for believing such decision or act was contrary to law or infringed upon its,
his or her lawful rights and interests.
2. Any citizen shall be entitled to lodge a
denunciation regarding a breach of the law on tax committed by a taxpayer, a
tax management official or any other organization or individual.
3. Powers, procedures and time-limits for
resolution of complaints or denunciations shall be subject to the law on
complaints and denunciations.
Article
117 Institution of legal proceedings
The institution of a legal
proceeding against a decision of a tax management body or a tax management
official shall be subject to the law on procedures for resolution of
administrative cases.
Article
118 Responsibilities and powers of tax management bodies for
resolution of complaints and denunciations about tax
1. Upon receipt of a complaint regarding
implementation of the law on tax, the tax management body shall consider and
resolve it within the time-limit stipulated by the law on complaints and
denunciations.
2. Any tax management body which receives a
complaint regarding implementation of the law on tax shall be entitled to
request the complainant to provide files and documents relating to the
complaint; and shall be entitled to refuse to consider and resolve the
complaint if the complainant refuses to provide files and documents.
3. The tax management body shall refund any
incorrectly collected amount of tax or fine to the taxpayer or a third party
within fifteen (15) days from the date of receipt of the decision on resolution
from the superior tax management body or the competent authority pursuant to
law.
CHAPTER
XIV
Implementing
Provisions
Article
119 Effectiveness
1. This
Law shall be of full force and effect as from 1 July 2007.
2. All provisions
on tax management in laws and ordinances on tax and in the Law on Customs
which are now regulated in this Law are hereby repealed.
Article
120 Implementing guidelines
The Government shall issue
detailed regulations and guidelines on articles 9, 19, 27, 30, 31, 32, 42, 43,
49, 60, 62, 72, 76, 89, 90, 91, 99, 104, 105 and 111 of this Law and on other
items necessary for tax management in order to implement this Law.
This Law was passed by
Legislature XI of the National Assembly of the Socialist Republic of Vietnam at
its 10th Session on 29 November 2006.
Chairman of the National Assembly
NGUYEN PHU TRONG