Law on tax administration 2019 (effective from July 01, 07)

Law on Tax Administration No. 38/2019 / QH14, dated June 13, 06, published on Official Gazette on July 2019, 18, effective from July 07, 2019

Particularly, the regulations on electronic invoices and documents come into force from July 01, 7.

The fundamental contents of tax administration law that businesses need to consider

Article 1. Scope

This Law provides for the administration of taxes and other revenues belonging to the state budget.

Article 2. Subject of application

1. Taxpayers include:

a) Organizations, households, business households and individuals that pay tax in accordance with the tax law;

b) Organizations, households, business households and individuals pay other revenues belonging to the State budget;

c) Organization and individual with tax deduction.

2. Tax administration agencies include:

a) Tax authorities include the General Department of Taxation, Department of Taxation, Sub-department of Taxation, Sub-department of Taxation;

b) Customs authorities include the General Department of Customs, the Customs Department, the Post-Customs Clearance Inspection Department, and Sub-department of Customs.

3. Tax administration officers include tax officers and customs officers.

4. Other relevant state agencies, organizations and individuals.

Article 3. Explain words

In this Law, the terms below are construed as follows:

1. Tax is a compulsory payment to the State budget by organizations, households, business households and individuals according to the provisions of tax laws.

Other revenues belonging to the State budget collected by tax administration agencies include:

a) Fees and charges in accordance with the Law on Fees and Charges;

b) Land use levy paid to the State budget;

c) Land rents and water surface rents;

d) Charges for granting mineral mining rights;

dd) Charge for granting water right;

e) Payment to the State budget from the sale of assets on land, the transfer of land use rights in accordance with the Law on Public Property Management and Use;

g) Proceeds from sanctioning of administrative violations in accordance with the law on sanctioning of administrative violations in the tax and customs domain;

h) Late payment interest and other revenues as prescribed by law.

3. Other revenues belonging to the State budget not managed by tax administration agencies include:

a) Money for use of sea area for dumping in accordance with regulations of law on resources and environment of sea and islands;

b) Money for protection and development of paddy land according to the provisions of land law;

c) Proceeds from sanctioning of administrative violations in accordance with the law on sanctioning of administrative violations, except for the taxation and customs sectors;

d) Remittances to the state budget in accordance with the law on management and use of public assets from the management, use and exploitation of public assets for the purpose of trading, leasing, joint ventures or association. , after performing tax, fee and fee obligations;

dd) Collection of aid;

e) Other revenues as prescribed by law.

4. Head office of taxpayer is the place where the taxpayer conducts part or all of the business, including head office, branch, shop, place of manufacture, place of storing goods, place of storing products used for production and business; place of residence or place where the tax liability arises.

5. Tax identification number is a series of 10-digit or 13-digit numbers and other characters issued by tax offices to taxpayers for use in tax administration.

6. A tax period is a period of time to determine the amount of tax payable to the State budget according to the provisions of tax law.

7. Tax return means a document made according to a form set by the Finance Minister and used by taxpayers to declare information for determining payable tax amounts.

8. Customs declaration means a document made according to a form set by the Finance Minister and used as a tax return for import or export goods.

9. Tax dossiers are dossiers of tax registration, tax declaration, tax refund, tax exemption, tax reduction, late payment interest exemption, not calculation of late payment interest, extension of tax payment, installment payment of tax debts, and no tax collection; customs records; tax debt freezing records; records for deletion of tax debts, late payment interest, and fines.

10. Tax finalization declaration means the determination of the payable tax amount in a tax year or the period from the beginning of the tax year to the termination of the operation, or the time from the time it arises to the time it terminates. arising tax obligations according to the provisions of law.

11. The taxable 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 shall apply according to the fiscal year.

12. Completion of tax obligation means the full payment of payable tax amounts, late payment interest amounts, fines for tax law violations and other state budget revenues.

13. Coercive enforcement 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.

14. Tax risk is the risk of taxpayer's non-compliance leading to loss of state budget revenue.

15. Risk management in tax administration is the systematic application of laws and professional processes to identify, evaluate and classify risks that can negatively impact efficiency, Effective tax administration serves as a basis for tax authorities to appropriately allocate resources and apply effective management measures.

16. Advance agreement on the method of tax calculation price determination means a written agreement between a tax agency and a taxpayer or between a tax agency and a taxpayer and a foreign tax agency or territory in which Vietnam has sign a double tax avoidance agreement and prevent tax evasion for a certain period of time, specifying tax bases, methods of determining taxable prices or taxable prices at market prices. Advance agreement on the method of tax calculation price determination is made before taxpayers submit tax declaration dossiers.

17. Tax debt is tax and other state budget revenues collected by tax administration agencies but taxpayers have not yet paid to the state budget at the end of the prescribed payment time limit.

18. Commercial database means a system of financial information and enterprise data that is organized, arranged and updated, provided by business organizations to tax administration agencies in accordance with law. .

19. Taxpayer Information means information about taxpayers and information related to taxpayers' tax obligations provided by taxpayers, collected by tax administration agencies during tax administration.

20. Tax management information systems include statistical information systems, tax accounting and other information serving tax administration.

21. Associated parties are parties that directly or indirectly participate in the management, control and capital contribution of an enterprise; The parties are jointly controlled, directly or indirectly controlled by an organization or individual; all parties have an organization or individual contributing capital; businesses are run and controlled by individuals with close relationships in the same family.

22. Associated transaction means a transaction between related parties.

23. Independent transaction is a transaction between parties that does not have an associate relationship.

24. The independent transaction principle is the principle applied in declaring and determining taxable prices for taxpayers having associated transactions in order to reflect the transaction conditions in the associated transaction. conditions in uncontrolled transactions.

25. Nature principle of operation and transaction for determining tax obligations 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 transactional nature, production and business activities.

26. The supreme parent corporation of a corporation is an entity with direct or indirect equity capital in other entities of a multinational corporation, not owned by any other entity, and reporting Consolidated finances of a corporation's supreme parent company are not consolidated into any of the financial statements of any other entity globally.

27. Force majeure cases 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.

Article 4. Content of tax administration

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.

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