Tax administration is a management content with an adjustable scope covering all the administration of taxes and other revenues belonging to the state budget.
Enterprises are the main tax payers of a country, so it is necessary to understand the regulations on tax administration, which makes sense for the director / legal representative of the business in the organize tax compliance and use tax tools to maximize the benefits of your business.
What is tax administration? #
The tax administration law is the basic foundation for the application of tax calculation in all other tax laws, so mastering these definitions is very helpful in understanding the Vietnamese tax system.
To understand tax administration law, it is necessary to first understand the definitions of words (Terms) in tax administration. These are also important definitions of tax in Vietnam.
Tax is a compulsory payment to the state budget by organizations, households, business households and individuals in accordance with the tax laws.
Taxpayers' headquarters is the place where a taxpayer conducts a part or all of the business, including head office, branch, shop, place of manufacture, place of storing goods, place of property for production or business. ; place of residence or place where the tax liability arises.
Tax code is a series of 10-digit or 13-digit numbers and other characters issued by tax authorities to taxpayers for use in tax administration.
Tax period is the period of time to determine the tax amount payable to the state budget according to the provisions of tax law.
Tax return is a document under the form specified by the Minister of Finance and used by taxpayers to declare information to determine payable tax amounts.
Customs declaration means a document made according to a form set by the Finance Minister and used as a tax return for imported or exported goods.
taxes profile is a dossier of tax registration, tax declaration, tax refund, tax exemption, tax reduction, late payment interest exemption, no late payment interest, extension of tax payment, installment payment of tax debts, no tax collection; customs records; tax debt freezing records; dossiers for tax debt cancellation, late payment interest, and fines
Declaration of tax finalization means the determination of the payable tax amount of the tax year or the period from the beginning of the tax year to the termination of activities that incur a tax obligation or the time from the time of arising to the termination of activities that incur a tax obligation. according to regulations of the Law.
Tax year is determined according to the calendar year from January 01 to December 01; In case the fiscal year is different from the calendar year, the tax year is the same as the fiscal year.
Complete tax payment obligations means the full payment of payable tax amounts, late payment interest amounts, fines for tax law violation and other state budget revenues.
Coercive execution of administrative decisions on tax administration means the application of measures in accordance with this Law and other relevant laws forcing taxpayers to fulfill their tax liability.
Tax risks The risk of taxpayer non-compliance leading to loss of state budget revenue.
Risk management in tax administration is the systematic application of the provisions of law and professional processes to identify, evaluate and classify risks that can negatively impact the efficiency and effectiveness of tax administration as a basis for Tax authorities allocate resources reasonably and apply effective management practices.
Tax debt owed Tax and other state budget revenues managed by tax administration agencies but taxpayers have not yet paid to the state budget at the end of the prescribed payment time limit.
Taxpayer Information Taxpayer is information about the taxpayer and information related to the taxpayer's tax liability provided by the taxpayer, collected by the tax authority during tax administration.
Tax management information system includes statistical information system, tax accounting and other information serving tax administration.
The parties have links are parties directly or indirectly involved in the management, control, and capital contribution to an enterprise; the parties are jointly controlled, directly or indirectly controlled by an organization or individual; all parties have the same organization or individual contributing capital; businesses are run and controlled by individuals who have close relationships in the same family.
Related transactions is a transaction between related parties.
Independent trading is a transaction between parties without affiliation.
Independent transaction principle is the principle applied in declaring and determining the taxable price applicable to the taxpayer having an associated transaction in order to reflect the transaction conditions in the associated transaction equivalent to that in the independent transaction.
The operational and transactional nature principle determines the tax liability is the principle applied in tax administration to analyze transactions, production and business activities of taxpayers to determine tax obligations corresponding to the value created from the nature of transactions and activities. export and trade that.
The supreme parent company of the corporation Be a legal entity with direct or indirect equity in other legal entities of a multinational corporation, not owned by any other entity and the consolidated financial statements of the supreme parent company A group's financial statements are not consolidated into any of the financial statements of another legal entity globally.
Case of force majeure include:
- a) The taxpayer suffers material damage due to a natural disaster, catastrophe, epidemic, fire, or accident;
- b) Other force majeure events as prescribed by the Government.
Advance agreement on method of tax calculation price determination means a written agreement between a tax authority and a taxpayer or between a tax authority and a taxpayer and a foreign tax authority, territories in which Vietnam has signed an agreement to avoid double taxation and prevent evasion. tax contraband income tax for a certain period of time, specifying tax bases, methods of determining taxable prices or taxable prices according to market prices. Advance agreement on the method of tax calculation price determination is made before taxpayers submit tax declaration dossiers.
What does the Law on Tax Administration manage? #
The Law on Tax Administration manages 11 contents covering all activities related to tax administration of the state to taxpayers.
The 11 tax administration contents of the Law on Tax Administration are as follows:
1. Tax registration, tax declaration, tax payment and tax assessment.
2. Tax refund, tax exemption, tax reduction, no tax collection.
3. Payment of tax debt; write off tax arrears, late payment interest, and fines; exemption of late payment interest, fines; no late payment fee is charged; tax payment extension; pay tax debt in installments.
4. Taxpayer information management.
5. Managing invoices and documents.
6. Examining tax, inspecting taxes and taking measures to prevent, combat and prevent tax law violations.
7. Coercive execution of administrative decisions on tax administration.
8. To sanction administrative violations of tax administration.
9. Settlement of tax complaints and denunciations.
10. International cooperation on tax.
11. Propagating and assisting taxpayers.
Legal document system Tax administration #
| Documentation system for tax administration | Effective date | Expiration date |
|---|---|---|
| Tax administration law 2016 | 01/07/2007 | 01/07/2020 |
| Document on consolidation of the Law on Tax administration 2006 - 2013 - 2014 - 2016 | According to statute of limitations merged documents | |
| Tax administration law 2019 | 01/07/2020 | |
| Decree 126/2020 / ND-CP guiding the Law on Tax Administration 2019 | 05/12/2020 | |
| Official Letter 5189 / TCT-CS introduces new contents of Decree 126/2020 / ND-CP guiding the Law on Tax Administration | ||
| Circular 105/2020 / TT-BTC guiding tax registration (Law on tax administration) | 17/01/2021 |
Tax management obligations that businesses need to perform #
1. To make tax registration and use tax identification numbers according to law provisions.
2. To accurately, truthfully, fully declare tax and submit tax dossiers on time; take responsibility before law for the accuracy, truthfulness and completeness of tax records.
3. Pay the tax, late payment interest, and fines fully, on time and at the right place.
4. To comply with the regime of accounting, statistics and management and use of invoices and vouchers according to law provisions.
5. To accurately, honestly and fully record activities arising from tax obligations, tax withholding and transactions that must declare tax information.
6. Make and deliver invoices and vouchers to the buyer in accordance with the quantity, type and value actually paid when selling goods or providing services in accordance with the provisions of law.
7. To accurately, fully and promptly provide information and documents related to the determination of tax obligations, including information on investment value; number and transaction content of the account opened at a commercial bank, other credit institution; explain the tax calculation, tax declaration and tax payment at the request of tax administration agencies.
8. To abide by decisions, notices and requests of tax administration agencies and tax administration officers according to law provisions.
9. To be responsible for the fulfillment of tax obligations in accordance with law in case the at-law or authorized representative on behalf of the taxpayer conducts tax procedures in contravention of regulations.
10. Taxpayers conducting business activities in geographical areas with information technology infrastructure must declare, pay taxes and transact with tax authorities via electronic means according to regulations. under the law.
11. Based on the actual situation and information technology equipment conditions, the Government shall detail taxpayers not required to submit vouchers in tax declaration and payment dossiers, tax refund dossiers and dossiers. Other taxes that state administration already has.
12. Construction, management and operation of technical infrastructure to ensure the implementation of electronic transactions with tax administration agencies, and application of information connection related to the performance of tax obligations with agencies. Tax Administration.
13. Taxpayers having associated transactions are obliged to prepare, store, declare and provide information on taxpayers and taxpayers' affiliates, including information about the parties. Affiliate resides in countries and territories outside of Vietnam in accordance with the Government's regulations.
