Updates on the new points of the amended Tax Administration Law 2019

Article 85 regulations regarding thosethe case Xoa in debt taxes, late payment penalties, fines as follows:

• Businesses and cooperatives are declare bankruptcy They have made payments as required by bankruptcy law but no longer have assets to pay taxes, late payment penalties, and fines.
• An individual who has died or been declared dead by a court dead, Loss of civil capacity without assetsThis includes inherited assets used to pay outstanding taxes, late payment penalties, and fines.
• Tax debts, late payment penalties, and fines of taxpayers not falling under the cases specified in Clauses 1 and 2 of this Article, for which the tax authorities have applied coercive measures as prescribed in Point g, Clause 1, Article 125 of this Law, and these tax debts, late payment penalties, and fines have been... More than 10 years have passed since the tax payment deadline, but there is no possibility of recovery..
• Taxpayers include individuals, self-employed individuals, household heads, business owners, private enterprise owners, and single-member limited liability companies. debt has been forgiven Before resuming production, business, or establishing a new production or business facility, the tax, late payment penalties, and fines stipulated in this clause must be repaid to the State, including the tax, late payment penalties, and fines that have been waived.
• Taxes, late payment penalties, and fines for these cases. affected by natural disasters, catastrophes, and epidemics. Those with a wide scope who have been considered for exemption from late payment penalties under Clause 8, Article 59 of this Law and have been granted an extension for tax payment under Point a, Clause 1, Article 62 of this Law, but still suffer losses, are unable to recover production and business, and are unable to pay taxes, late payment penalties, and fines.

Note: Transitional provisions regarding tax-exempt items (Article 152)

• For tax exemptions, reductions, non-collection, and debt write-offs arising before July 1, 2020, the provisions of the Law on Tax Administration No. 78/2006/QH11, as amended and supplemented by Law No. 21/2012/QH13, Law No. 71/2014/QH13, and Law No. 106/2016/QH13, shall continue to apply.
• For tax arrears outstanding as of June 30, 2020, the provisions of the 2019 amended Law on Tax Administration shall apply, except for the cases mentioned above.

2. New Regulations on Taxpayer Rights

The rights of taxpayers are clearly stipulated in Article 16 of the 2019 Tax Administration Law as follows:

Article 16. Rights of taxpayers

1. Receive support and guidance in filing taxes; be provided with information and documents to fulfill tax obligations and rights.
2. Receive documents related to tax obligations from relevant authorities during inspections, examinations, and audits.
3. Request the tax authorities to explain the tax calculation and assessment; request an inspection of the quantity, quality, and type of exported and imported goods.
4. Information shall be kept confidential, except for information that must be provided to competent state agencies or publicly available tax information as prescribed by law.
5. Enjoy tax incentives and refunds as prescribed by tax laws; be informed of the deadline for processing tax refunds, the amount of tax that will not be refunded, and the legal basis for that amount.
6. Sign a contract with a business organization providing tax clearance services or a customs brokerage agency to perform tax agency and customs clearance agency services.
7. Taxpayers have the right to receive tax assessment decisions, tax audit reports, and tax inspection reports; to request explanations of the content of tax assessment decisions; to reserve their opinions in tax audit and inspection reports; and to receive written conclusions of tax audits and inspections, and tax assessment decisions following audits and inspections by tax authorities.
8. They are entitled to compensation for damages caused by tax authorities or tax officials in accordance with the law.
9. Request the tax authorities to confirm that you have fulfilled your tax obligations.
10. To file complaints or lawsuits against administrative decisions and actions related to one's legitimate rights and interests.
11. No administrative penalties for tax violations, and no late payment interest will be charged, in cases where the taxpayer acts in accordance with written guidance and decisions of the tax authorities or other competent state agencies regarding the determination of the taxpayer's tax obligations.
12. Report violations of the law by tax officials and other organizations and individuals in accordance with the law on reporting violations.
13. They are entitled to search, view, and print all electronic documents they have submitted to the tax authority's electronic portal in accordance with this Law and the law on electronic transactions.
14. Electronic documents may be used in transactions with tax authorities and related agencies and organizations.

3. Regulations on determining the taxable price and principles for tax declaration for related-party transactions.

Article 42 stipulates the principles for tax declaration and tax calculation for related-party transactions as follows:

• The declaration and determination of transfer pricing shall be based on the principle of analysis and comparison with independent transactions and the principle that the nature of the activity and transaction determines the tax liability, in order to determine the tax liability payable as if the transaction were between independent parties;
• The transfer pricing is adjusted according to the independent transaction for the purpose of declaring and determining the amount of tax payable, based on the principle of not reducing taxable income;
• Small-scale taxpayers with low tax risk are exempt from the provisions of points a and b of this clause and are subject to a simplified mechanism for declaring and determining transfer pricing.

4. Deadline for filing tax returns

Article 44 stipulates the deadline for submitting tax returns as follows:

Types of taxes that can be filed monthly or quarterly:

• No later than the 20th day of the month following the month in which the tax liability arises, for cases where tax declarations and payments are made monthly;
• The deadline is no later than the last day of the first month of the quarter following the quarter in which the tax liability arises, for cases where tax returns are filed and paid quarterly.

Types of taxes with an annual tax period:

• The deadline for annual tax settlement returns is no later than the last day of the third month from the end of the calendar year or fiscal year; the deadline for annual tax declaration returns is no later than the last day of the first month of the calendar year or fiscal year.
• The deadline for submitting personal income tax returns for individuals who directly file their tax returns is the last day of the fourth month from the end of the calendar year.
• The deadline for submitting lump-sum tax returns for household businesses and individual business owners paying taxes using the lump-sum method is December 15th of the preceding year; in the case of newly established household businesses or individual business owners, the deadline for submitting lump-sum tax returns is 10 days from the date of commencement of business.

Types of taxes that are declared and paid each time a tax liability arises: No later than the 10th day from the date the tax liability arises.

In the case of business cessation, contract termination, or business reorganization: No later than 45 days from the date the event occurred.

5. Effective Date

Law on Tax Administration (amended) 2019 Effective from July 1, 2020. Except where the provisions on electronic invoices and documents of this Law come into effect from July 1, 2022; agencies, organizations, and individuals are encouraged to apply the provisions on electronic invoices and documents of this Law before July 1, 2022.