Circular 80/2021/TT-BTC provides guidance on tax management from January 1, 2022.

CIRCULARS

GUIDELINES FOR IMPLEMENTING CERTAIN ARTICLES OF THE LAW ON TAX ADMINISTRATION AND GOVERNMENT DECREE NO. 126/2020/ND-CP DATED OCTOBER 19, 2020 DETAILING CERTAIN ARTICLES OF THE LAW ON TAX ADMINISTRATION

Based on the Law on Tax Administration dated June 13, 2019;

Based on the Law on State Budget dated June 25, 2015;

Based on the Laws, Ordinances, and Decrees on taxes, fees, charges, and other revenues belonging to the state budget;

Based on Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing the implementation of a number of articles of the Law on Tax Administration;

Based on Government Decree No. 87/2017/ND-CP dated July 26, 2017, which stipulates the functions, tasks, powers, and organizational structure of the Ministry of Finance;

As requested by the Director General of the General Department of Taxation;

The Minister of Finance issued a Circular guiding the implementation of a number of articles of the Law on Tax Administration and Government Decree No. 126/2020/ND-CP dated October 19, 2020.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides guidance on state budget revenues managed by tax authorities as stipulated in Articles 7, 28, 42, 59, 60, 64, 72, 73, 76, 80, 86, 96, 107, and 124 of the Law on Tax Administration dated June 13, 2019, and Articles 30 and 39 of Government Decree No. 126/2020/ND-CP dated October 19, 2020, detailing the implementation of a number of articles of the Law on Tax Administration (Decree No. 126/2020/ND-CP), regarding the currency for tax declaration and payment in foreign currency and exchange rates; and the duties, powers, and responsibilities of the tax advisory council at the commune, ward, and town levels. Tax declaration, tax calculation, allocation of tax obligations, tax declaration forms; handling of late tax payments; handling of overpaid taxes, late payment penalties, and fines; procedures for installment tax payments, tax payment extension applications; procedures for tax refunds, classification of tax refund applications, acceptance of tax refund applications; tax exemption and reduction applications; applications for tax debt cancellation, late payment penalties, and fines; building, collecting, processing, and managing taxpayer information; procedures for tax audit applications; tax management for e-commerce, digital platform-based businesses, and other services provided by foreign suppliers without a permanent establishment in Vietnam; authorized collection fees.

Article 2. Subject of application

The subjects to which this Circular applies include: taxpayers; tax authorities; tax officials; and other relevant state agencies, organizations, and individuals as stipulated in Article 2 of the Law on Tax Administration.

Article 3. Explain words

In addition to the terms already stipulated in the Law on Tax Administration and Decree No. 126/2020/ND-CP, some terms in this Circular are understood as follows:

1. "E-commerce activities" refers to conducting part or all of a commercial activity using electronic means connected to the Internet, mobile telecommunications networks, or other open networks as stipulated in Government Decree No. 52/2013/ND-CP dated May 16, 2013.

2. "Digital-based business activities" refer to business activities conducted by business entities through intermediary digital systems to connect with customers, with all connection activities taking place in a digital environment.

3. "Province" refers to an administrative area at the provincial level, or a city directly under the central government.

4. "Allocating tax obligations" refers to the process by which taxpayers declare taxes at the tax authority directly managing them or the tax authority managing state budget revenue, and determine the amount of tax payable for each province that receives state budget revenue (the allocated area) according to the provisions of the law.

5. “Directly managing tax authorities” include:

a) The tax authority that manages the geographical area where the taxpayer's head office is located, except as provided in point c of this clause;

b) The tax authority managing the area where the taxpayer has a subsidiary unit located in a different province from where the taxpayer's head office is located, but the subsidiary unit directly files tax returns with the tax authority in that area;

c) The Department of Large Enterprise Taxation under the General Department of Taxation was established in accordance with Decision No. 15/2021/QD-TTg dated March 30, 2021, of the Prime Minister;

d) For individuals with income from salaries and wages, the tax authority directly managing them is the tax authority that issues the tax identification number, and this number may be changed according to the tax authority that performs the tax settlement for the individual as prescribed;

d) For individuals receiving inheritances or gifts in the form of securities or capital contributions in economic organizations or business establishments in Vietnam, who are subject to direct tax declaration with the tax authorities, the tax authority directly managing them is the tax authority managing the issuing entity; in cases where multiple tax authorities manage multiple issuing entities, the tax authority directly managing them is the tax authority where the individual receiving the inheritance or gift resides.

The directly managing tax authority may be indicated on the Tax Registration Certificate, Tax Identification Number Notice, Tax Authority Management Notice, or Tax Authority Assignment Notice when issuing enterprise codes, cooperative codes, tax identification numbers, or when changing registration information, or when reassigning the managing tax authority in accordance with the law.

6. "Tax authority managing the allocated area" refers to the tax authority located in the area that receives state budget revenue as determined by the taxpayer on the tax return, but is not authorized to accept the taxpayer's tax return documents as prescribed. The tax authority managing the allocated area includes:

a) The tax authority in the locality where the taxpayer's head office is located, but which does not directly manage the taxpayer;

b) Tax authorities in provinces other than where the taxpayer's head office is located, which are entitled to receive state budget revenue as stipulated in Clauses 2 and 4 of Article 11 of Decree No. 126/2020/ND-CP and Articles 12, 13, 14, 15, 16, 17, 18, and 19 of this Circular.

7. "The tax authority managing state budget revenue" refers to the tax authority that manages the geographical area where taxpayers have tax declaration, tax payment, tax refund, tax exemption, tax reduction, and other tax-related procedures as stipulated in the Law on Tax Administration and its implementing guidelines, or as assigned by competent authorities; but it is not the tax authority that directly manages the taxpayer.

8. "Subsidiary units" include branches and representative offices.

9. “Business location” is the place where the taxpayer conducts production and business activities (excluding the location of the head office and subsidiary units).

10. “Tax Office” includes the Tax Office and the Regional Tax Office.

11. “Material damage” refers to losses to the taxpayer's assets that can be quantified in monetary terms, such as: machinery, equipment, vehicles, materials, goods, factories, offices, money, and valuable documents equivalent to money.

Article 4. Currency for tax declaration and payment in freely convertible foreign currency and actual exchange rate.

1. Cases where tax declarations and payments are made in freely convertible foreign currency include:

a) Oil and gas exploration, prospecting, and exploitation activities (excluding crude oil, condensate, and natural gas sold in the Vietnamese market or as otherwise stipulated by the Government) include: resource tax, corporate income tax; surcharge on the share of oil profits when crude oil prices fluctuate upwards; host country's share of oil and gas profits; signature commission; commission for commercial oil and gas discovery; production commission; fees for reading and using oil and gas documents; compensation for failure to fulfill minimum commitments; corporate income tax on income from the transfer of participation rights in oil and gas contracts; special tax, surcharges, and corporate income tax on the remaining oil reserves of the Vietsovpetro Joint Venture's oil and gas activities in Block 09.1, declared and paid into the state budget in freely convertible foreign currency used in payment transactions.

b) Fees, charges, and other revenues collected by the representative agencies of the Socialist Republic of Vietnam abroad:

Declaration and payment into the state budget must be made in the freely convertible foreign currency specified in the regulations on fees, charges, and other revenues.

c) Fees and charges collected in foreign currency by agencies and organizations in Vietnam that are permitted to do so:

Declaration and payment into the state budget must be made in the freely convertible foreign currency specified in the regulations on fee and charge rates.

d) E-commerce business activities, digital platform-based business activities, and other services provided by foreign suppliers without a permanent establishment in Vietnam:

Declare and pay into the state budget using freely convertible foreign currency.

2. The actual exchange rate is determined in accordance with accounting regulations.

Article 5. Tax management responsibilities of the tax authority directly managing the tax, the tax authority managing the allocated area, and the tax authority managing state budget revenue.

1. For the tax authority with direct management

The tax authority directly responsible for managing taxpayers is responsible for fully implementing the tax management regulations of the Law on Tax Administration and its implementing guidelines (except for the provisions in Clause 3 of this Article), specifically:

a) Receiving tax returns, extending deadlines for filing tax returns, and imposing penalties for violations of tax laws related to tax return filing by taxpayers.

b) Calculate late payment penalties and adjust late payment penalties for taxpayers.

c) Guiding and urging taxpayers to declare taxes and pay money into the state budget.

d) Implement measures to urge and enforce tax debt collection.

d) Receiving and processing applications for tax payment extensions, installment payments, debt restructuring, tax debt write-offs, waivers of late payment penalties, and exemption from late payment penalties.

e) Receiving and processing written requests from taxpayers regarding the handling of overpaid amounts in accordance with the provisions of this Circular.

g) Receiving and processing tax refund applications from taxpayers in accordance with the provisions of Chapter V of this Circular.

h) Receiving and processing tax exemption and reduction applications from taxpayers in accordance with the provisions of Chapter VI of this Circular.

i) Conduct inspections and audits of taxpayers and impose penalties for violations of the law discovered through inspections and audits (if any).

k) In cases where the taxpayer falls within the scope of tax liability allocation, the directly managing tax authority shall perform the following additional tasks:

k.1) Identify taxpayers within the scope of tax liability allocation as stipulated in Article 17 of this Circular, in order to guide and urge taxpayers to determine the amount of tax payable for each allocated area and submit the Tax Payable Allocation Table along with the tax return to the directly managing tax authority; and implement penalties for violations of tax laws related to the submission of tax returns by taxpayers.

k.2) Calculate late payment penalties and adjust late payment penalties for the entire amount of tax payable by the taxpayer (including the amount of tax payable in the allocated area).

k.3) Guiding and urging taxpayers to pay money into the state budget of the allocated area.

k.4) To take the lead in implementing measures to urge and enforce tax debt collection for the taxes due in the allocated area; and at the same time, to notify and coordinate with the tax authority managing the allocated area as stipulated in point b, clause 6, Article 3 of this Circular.

k.5) To preside over the receipt of applications for tax payment extensions, installment payments, debt restructuring, and tax debt cancellation for the allocated area; and at the same time, to notify the tax authority managing the allocated area as stipulated in point b, clause 6, Article 3 of this Circular, and to coordinate accordingly.

k.6) To preside over the receipt and processing of applications for exemption from late payment penalties or waiver of late payment penalties for outstanding tax debts in the allocated area.

k.7) Preside over receiving written requests for processing overpaid tax amounts in the allocated area and coordinate with the tax authority managing the allocated area as stipulated in point b, clause 6, Article 3 of this Circular to process them in accordance with the provisions of this Circular.

k.8) Preside over the receipt and processing of tax refund applications for overpaid allocated taxes from taxpayers and coordinate with the tax authority managing the allocated area as stipulated in point b, clause 6, Article 3 of this Circular to process them in accordance with the provisions of Section 2, Chapter V of this Circular.

k.9) To preside over the receipt and processing of tax exemption and reduction applications from taxpayers in the allocated area and to coordinate with the tax authority managing the allocated area as prescribed in point b, clause 6, Article 3 of this Circular to process them in accordance with the provisions of Chapter VI of this Circular.

k.10) Preside over and coordinate with the tax authority managing the allocated area to conduct inspections and audits of all production and business activities of taxpayers and impose penalties for violations of the law discovered through inspections and audits (if any), including determining the amount of tax payable for the allocated area.

k.11) Compile data and report to the People's Council and People's Committee on the results of state budget revenue collection as prescribed for all payments into the state budget and refunds to taxpayers in the area, including revenue under the responsibility of other directly managing tax authorities but where the taxpayer's head office is located in the area.

2. For the tax authority managing the allocated area:

a) Monitor and supervise taxpayers in declaring and allocating tax amounts payable and paying taxes into the state budget in the allocated area; request taxpayers to provide information and documents related to the allocated revenue; notify the directly managing tax authority when taxpayers fail to comply or comply incorrectly with regulations on tax obligation allocation.

b) Implement measures to urge and enforce tax debt collection for taxes due in the allocated area and notify the directly managing tax authority (except for the tax authority managing the allocated area as stipulated in point a, clause 6, Article 3 of this Circular).

c) Coordinate the processing of applications for tax payment extensions, installment payments, debt restructuring, and tax debt write-offs in provinces receiving allocated revenue sources, as requested by the directly managing tax authority (excluding the tax authority managing the area receiving allocation as stipulated in point a, clause 6, Article 3 of this Circular).

d) Preside over or coordinate with the directly managing tax authority to process the offsetting of overpaid allocated tax amounts of taxpayers in accordance with the provisions of this Circular (except for the tax authority managing the area receiving the allocation as stipulated in point a, clause 6, Article 3 of this Circular).

d) Coordinate the resolution of refunds for overpaid allocated taxes to taxpayers as requested by the directly managing tax authority in accordance with the provisions of Section 2, Chapter V of this Circular (except for the tax authority managing the area receiving the allocation as stipulated in point a, clause 6, Article 3 of this Circular).

e) Coordinate the implementation of inspections and audits of taxpayers at the request of the directly managing tax authority.

3. For tax authorities responsible for managing state budget revenue:

The tax authority responsible for managing state budget revenue has the responsibility to fully implement the regulations on tax management for the assigned revenue within its jurisdiction as stipulated in the Law on Tax Administration and its implementing guidelines, specifically:

a) Receiving tax returns, extending deadlines for submitting tax returns, and imposing penalties for violations of tax laws related to the submission of tax returns by taxpayers for the revenue under its management.

b) Calculating and adjusting late payment penalties for taxpayers with respect to revenue under their management. In cases stipulated in points b and c of Clause 2, Article 13 of this Circular, late payment penalties shall be calculated and adjusted at the directly managing tax authority.

c) Guiding and urging taxpayers to pay into the state budget the revenue under their management.

d) Implement measures to urge payment of tax debts and enforce tax debt collection for the revenue under their management.

d) Receiving and processing applications for exemption from late payment penalties, waiver of late payment penalties, and extension of tax payment deadlines for revenue under their management as stipulated in Clause 0, Article 24 of this Circular.

e) Receiving and processing written requests from taxpayers regarding the handling of overpaid amounts for revenue under their management as stipulated in Articles 0 and 0 of this Circular.

g) Receiving and processing value-added tax refund applications for investment projects under its management as stipulated in Section 1, Chapter V of this Circular.

h) Receiving and processing applications for refunds of overpaid taxes for revenue under its management as stipulated in Section 2, Chapter V of this Circular.

i) Receiving and processing applications for tax exemption and reduction from taxpayers for revenue under its management as stipulated in Chapter VI of this Circular.

k) Conduct inspections and audits of taxpayers with assigned revenue sources and impose penalties for violations of the law discovered through inspections and audits (if any).

l) In cases where the taxpayer falls within the scope of tax liability allocation for revenue specified in point d, clause 1, and point d, clause 1, Article 17 of this Circular, the tax authority managing state budget revenue shall perform additional tasks as a tax authority directly managing taxpayers with allocated revenue as prescribed in point k, clause 1 of this Article.

Chapter II

TAX ADVISORY COUNCIL OF COMMUNES, WARDS, AND TOWNS

Article 6. Composition of the Tax Advisory Council of communes, wards, and towns.

1. The composition of the Tax Advisory Council includes:

a) The Chairman or Vice-Chairman of the People's Committee at the commune, ward, or town level – Chairman of the Council;

b) Team Leader or Deputy Team Leader of the inter-communal, ward, or town tax team or equivalent – ​​Permanent member;

c) A public official in charge of finance at the People's Committee of the commune, ward, or town – Member;

d) Chairperson of the Fatherland Front Committee of the commune, ward, or town – Member;

d) Head of the Commune, Ward, or Town Police – Member;

e) Head of neighborhood group or equivalent level – Member;

g) Head of Market Management Board – Member;

h) Representatives of household businesses and individual business owners in the area – Members.

In cases where a district-level administrative area does not have commune-level administrative units, the Chairman of the District People's Committee shall decide on the establishment of a Tax Advisory Council with members similar to those stipulated in this clause.

2. Representatives of household businesses and individual business owners participating in the Tax Advisory Council must meet the following conditions:

a) Strictly comply with the State's laws on production and business and tax laws;

b) Must have a minimum business history of 03 years prior to joining the Tax Advisory Council. If there are no businesses or individuals operating for at least 03 years in the area, the business with the longest operating history will be selected. Priority will be given to representatives who are group leaders, deputy group leaders, or heads or deputy heads of production and business sectors in the commune, ward, town, or market/commercial center.

3. The maximum number of business households and individual business owners participating in the Tax Advisory Council shall not exceed 05 people. The Chairman of the People's Committee of the district or county shall decide on the number of business households and individual business owners participating in the Tax Advisory Council based on the number and scale of business of the business households and individual business owners in the area.

Article 7. Establishment of the Tax Advisory Council

1. The Chairman of the People's Committee at the district level, based on the number and scale of business operations and the number of individual business owners in the district, shall decide to establish a tax advisory council at the commune, ward, or town level upon the proposal of the Head of the District Tax Office.

2. The tax advisory council shall be established and operate for a maximum period of no more than 05 years.

3. The Tax Advisory Council may be re-established or have its members supplemented or replaced in certain specific cases as follows:

a) Re-establish the Tax Advisory Council when the current Tax Advisory Council's term expires as stipulated in Clause 2 of this Article.

b) To add or replace members of the Tax Advisory Council in the following cases:

b.1) Members who no longer meet the composition requirements specified in Clauses 1 and 2 of Article 6 of this Circular;

b.2) Add more business households and individual business owners to match the number of active business households and individual business owners, or replace business households and individual business owners who have ceased operations in the commune, ward, or town;

b.3) Other changes related to the composition of the Tax Advisory Council proposed by the Head of the Tax Department.

4. Procedures for establishing a Tax Advisory Council

a) The Fatherland Front of the commune, ward, or town proposes, introduces, and submits a list of business households and individual business owners to participate in the Tax Advisory Council to the Tax Department. The Tax Department is responsible for providing information on business households and individual business owners according to the list for the Fatherland Front of the commune, ward, or town to select.

b) The Head of the Tax Department shall, based on the composition and list of participants in the Tax Advisory Council, propose to the Chairman of the People's Committee of the district or county to issue a decision to establish the Tax Advisory Council in accordance with the provisions of this Article (according to mẫu số 07-1/HĐTV issued with Appendix I of this Circular).

Article 8. Principles and working procedures of the Tax Advisory Council

1. The Chairman and members of the Tax Advisory Council operate on a part-time basis. The Tax Advisory Council is under the direct supervision of the Chairman of the Tax Advisory Council regarding the matters stipulated in this Circular.

2. The Tax Advisory Council convenes meetings to gather opinions from its members on advisory matters as convened by the Chairman of the Tax Advisory Council. Meetings of the Tax Advisory Council are conducted when the Chairman presides and at least two-thirds of the total number of members (including the Chairman) are present. The Tax Advisory Council may also gather opinions from its members on advisory matters through electronic means. If the members' opinions are not unanimous, a vote must be taken to decide by majority; if the vote is tied, the decision will be based on the opinion of the Chairman of the Tax Advisory Council, which will serve as the basis for preparing the minutes of the Tax Advisory Council meeting.

3. Meetings of the Tax Advisory Council must be recorded in minutes using Form No. 07-2/HĐTV issued with Appendix I of this Circular. The meeting minutes must be signed by all members of the Tax Advisory Council present at the meeting. In cases where opinions are solicited electronically, the permanent member of the council shall summarize the opinions and record them in the minutes as if it were a face-to-face meeting.

Article 9. Working relationship between the Tax Advisory Council and the tax authorities

1. Working relationships in obtaining advice

a) The Tax Department shall prepare complete dossiers and documents when seeking advice and requesting cooperation, and send them to the Advisory Council at least 05 working days before the deadline for requesting the Tax Advisory Council to send the results of the advice and feedback on cooperation. The dossiers that the Tax Department sends to the Advisory Council for advice and cooperation include:

a.1) The advisory dossier regarding the projected revenue and stable lump-sum tax rate at the beginning of the year for household businesses and individual business owners paying taxes using the lump-sum method includes:

a.1.1) A list of projected revenue and tax rates for household businesses and individual businesses, using form No. 07-3/HĐTV issued with Appendix I of this Circular;

a.1.2) New regulations and guidelines related to the content of the consultation (if any).

a.2) The advisory dossier on revenue and adjusted lump-sum tax rates for household businesses and individual businesses with changes in business operations during the tax year includes:

a.2.1) List of business households and individual business owners adjusting information and tax amounts according to mẫu số 07-4/HĐTV issued with Appendix I of this Circular;

a.2.2) New regulations and guidelines related to the content of the consultation (if any).

a.3) Consulting documents on the plan for monitoring and managing the activities of household businesses and individual business owners paying taxes using the lump-sum method in the area, including:

a.3.1) Plan for implementing the work of monitoring and managing the activities of household businesses and individual business owners paying taxes using the lump-sum method in the locality, according to each content and topic, meeting the requirements of management work in each specific field and stage as directed by the Tax Department and the provisions of the law;

a.3.2) Directives from the Tax Department and guidance documents related to the proposed collaboration.

b) The Chairman of the Tax Advisory Council shall submit the consultation results and collaborative feedback to the Tax Department within the requested deadline. The consultation results and collaborative feedback dossier submitted to the Tax Department shall include:

b.1) Notification of consultation results regarding cases where the Tax Advisory Council recommends adjusting the revenue and tax rates of household businesses and individual businesses compared to the projected results of the Tax Department, using mẫu số 07-5/HĐTV and 07-6/HĐTV issued with Appendix I of this Circular. In cases where the application for consultation and coordination on the plan for monitoring and managing the activities of household businesses and individual businesses paying taxes under the lump-sum method in the area is submitted, the notifications using mẫu số 07-5/HĐTV and 07-6/HĐTV issued with Appendix I of this Circular shall not be included;

b.2) Minutes of the Tax Advisory Council meeting prepared according to mẫu số 07-2/HĐTV issued with Appendix I of this Circular.

2. Working relationships in processing consultation results

In cases where the results of tax assessment, tax calculation, and tax adjustment for household businesses and individual businesses differ from the advice of the Tax Advisory Council, the Tax Sub-Department is responsible for notifying the Tax Advisory Council in writing using form No. 07-7/HĐTV issued with Appendix I of this Circular, at the same time as publicly posting the official data on the results of tax assessment, tax calculation, and tax adjustment for household businesses and individual businesses.

3. Working relationships in providing information and documents.

The Tax Department is responsible for providing and directing the inter-commune/ward/township tax teams to provide information and documents to the Tax Advisory Council within the scope of the Tax Advisory Council's authority as stipulated in this Circular.

Article 10. Powers of the Tax Advisory Council

1. To participate in training sessions, receive information and materials on current tax policies and tax management related to tax management for household businesses and individual businesses;

2. Request the Tax Department to provide information on the tax collection management situation for household businesses and individual business owners paying taxes using the lump-sum method in the area.

Article 11. Responsibilities of the Tax Advisory Council

1. Responsibilities for tax advice and tax administration

a) Providing advice on the projected revenue and stable lump-sum tax amount at the beginning of the year for household businesses and individual business owners paying taxes using the lump-sum method, including household businesses and individual business owners whose revenue falls under the category of not being subject to value-added tax and not being subject to personal income tax;

b) Providing advice on tax adjustments for household businesses and individual business owners paying taxes under the lump-sum method when there are changes in production and business activities such as: changes in scale or location; changes in business lines; cessation or temporary suspension of business operations during the tax year;

c) Coordinate with the Tax Department to supervise and manage the activities of household businesses and individual business owners paying taxes using the lump-sum method in the area.

2. Responsibilities of the Chairman of the Tax Advisory Council

a) Deciding on the program and work plan of the Tax Advisory Council;

b) Inviting delegates, convening members, and presiding over meetings of the Tax Advisory Council;

c) Assigning members of the Tax Advisory Council to monitor specific tasks;

d) To make decisions and assume overall responsibility for the activities of the Tax Advisory Council and its members in carrying out their duties as prescribed;

d) Submit a written report to the Chairman of the District People's Committee and the Head of the District Tax Office in case an individual or other members are unable to continue participating in the Tax Advisory Council;

e) Signing documents and transaction papers on behalf of the Tax Advisory Council.

3. Responsibilities of members of the Tax Advisory Council

a) General responsibilities of the members of the Tax Advisory Council

a.1) To carry out tasks as assigned by the Chairman of the Tax Advisory Council and to be accountable to the Chairman of the Tax Advisory Council for the results of the assigned work;

a.2) Arrange for full participation in all activities of the Tax Advisory Council;

a.3) Present your opinion at a meeting or in writing;

a.4) Submit a written report to the Chairman of the Tax Advisory Council in case of inability to continue participating in the Tax Advisory Council.

b) Responsibilities of the Permanent Member of the Tax Advisory Council

b.1) Propose the development of a program and work plan for the Tax Advisory Council and the expected assignment of tasks to its members for the Chairman of the Tax Advisory Council to review and decide upon;

b.2) Prepare documents, take minutes of meetings, and summarize the opinions of the members of the Tax Advisory Council;

b.3) Report to the Chairman of the Tax Advisory Council and the Head of the Tax Department in case of changes or additions to the members of the Tax Advisory Council.

4. The tax advisory council is responsible for submitting the tax advisory results to the district-level People's Committee and the commune-level People's Committee at the same time as submitting the advisory results to the District Tax Office.

Chapter III

TAX FILING, TAX CALCULATION, AND TAX OBLIGATION ALLOCATION

Article 12. Allocation of tax obligations for centrally-accounted taxpayers with subsidiary units or business locations in provinces other than their head office.

1. Taxpayers operating in multiple provinces other than their head office, as stipulated in Clauses 2 and 4 of Article 11 of Decree No. 126/2020/ND-CP, shall conduct centralized accounting at their head office. They shall declare, calculate, and submit tax returns to the tax authority directly managing them and allocate the tax payable to each province where they conduct business.

2. The allocation cases, allocation methods, tax declaration, tax calculation, and tax settlement for the allocated tax shall be implemented in accordance with the provisions of Articles 13, 14, 15, 16, 17, 18, and 19 of this Circular.

3. Taxpayers are responsible for declaring and allocating tax obligations fully, accurately, and promptly in accordance with regulations. The allocation of tax payable to provinces receiving state budget revenue must ensure that it does not exceed the amount of tax payable as stated in the taxpayer's tax return. If the taxpayer does not incur any tax payable, they are not required to determine the amount of tax payable to the provinces receiving state budget revenue. The provisions of points b and c of Clause 2, Article 13 and point b of Clause 2, Article 17 of this Circular do not apply to the allocation principle under this clause.

4. Taxpayers shall prepare payment documents and deposit the tax due into the state budget according to regulations, based on the amount of tax payable for each province receiving the allocated revenue. The State Treasury receiving the tax payment documents shall record the revenue for each locality receiving the allocated revenue.

5. If, during an inspection or audit, it is discovered that the taxpayer has declared or allocated funds incorrectly, the directly managing tax authority shall re-determine the amount to be allocated to the provinces entitled to the allocated revenue.

6. In cases where value-added tax, corporate income tax, and resource tax of a hydropower plant are allocated to different provinces, the local Tax Department where the hydropower plant's operating office is located shall, based on the provisions of Articles 13, 15, and 17 of this Circular, be responsible for coordinating with the hydropower plant project investor and the local Tax Departments where the hydropower plant and reservoir are located to agree on the allocation ratio of tax obligations for each tax category to each province receiving the revenue. If there is disagreement on the allocation ratio of tax obligations to each province between the Tax Departments and the taxpayer, the local Tax Department where the hydropower plant's operating office is located shall report to the Ministry of Finance (General Department of Taxation) for guidance.

Article 13. Tax declaration, tax calculation, allocation and payment of value-added tax

1. Cases to be allocated:

a) Operating a computerized lottery business;

b) Real estate transfer activities, except as stipulated in point b, clause 1, Article 11 of Decree No. 126/2020/ND-CP;

c) Construction activities in accordance with the law on the national economic sector classification system and the provisions of specialized laws;

d) The subsidiary unit or business location is a production facility (including processing and assembly facilities), except as stipulated in point c, clause 1, Article 11 of Decree No. 126/2020/ND-CP;

d) The hydroelectric power plant is located across multiple provinces.

2. Allocation method:

a) Allocation of value-added tax payable for computerized lottery business activities

The amount of value-added tax payable for each province where there is a computerized lottery business is equal to (=) the amount of value-added tax payable of the computerized lottery business multiplied (x) by the percentage (%) of actual ticket sales revenue from the computerized lottery business in each province on the total actual ticket sales revenue of the taxpayer.

The actual revenue from ticket sales from the computerized lottery business is determined as follows:

In the case of distributing computerized lottery tickets through terminals: Revenue from computerized lottery business activities generated from terminals registered to sell computerized lottery tickets within the administrative boundaries of each province, according to the lottery agency contract signed with the computerized lottery company, or from stores and sales points established by the taxpayer in the area.

In the case of distributing lottery tickets via telephone and the internet: Revenue is determined in each province where customers register to participate in the draw when opening a lottery account, in accordance with the law on the business of computerized lottery.

b) Allocation of value-added tax payable on real estate transfer activities:

The amount of value-added tax payable for each province on real estate transfer activities is equal to (=) the revenue excluding value-added tax on real estate transfer activities in each province multiplied (x) by 1%.

c) Allocation of value-added tax payable for construction activities:

The amount of value-added tax payable for each province for construction activities is equal to (=) the revenue excluding value-added tax for construction activities in each province multiplied (x) by 1%.

Revenue excluding value-added tax is determined according to the contract for construction projects and project components. If a construction project or project component involves multiple provinces and the revenue of the project in each province cannot be determined, after determining the 1% rate on the revenue of the construction project or project component, the taxpayer shall base the value-added tax payable to each province on the percentage (%) of the investment value of the project in each province relative to the total investment value.

d) Allocate the value-added tax payable to the province where the subsidiary or business location is the production facility:

d.1) The amount of value-added tax payable to the province where the production facility is located is equal to (=) revenue at the price excluding value-added tax multiplied (x) by 2% (for goods subject to a value-added tax rate of 10%) or 1% (for goods subject to a value-added tax rate of 5%), provided that the total amount of value-added tax payable to the provinces where the production facility is located does not exceed the amount of value-added tax payable by the taxpayer at the head office. In cases where the production facility transfers finished or semi-finished products to another internal unit for resale, the revenue from the produced products is determined based on the production cost of the products.

d.2) In cases where the taxpayer calculates and declares the VAT payable according to the percentage stipulated in point d.1 of this section, and the total VAT payable to the provinces where the production facilities are located is greater than the total VAT payable by the taxpayer at the head office, the taxpayer shall allocate the VAT payable to the provinces where the production facilities are located according to the following formula: The VAT payable to each province where the production facilities are located equals (=) the VAT payable by the taxpayer at the head office multiplied (x) by the percentage (%) of revenue at the price excluding VAT of the products produced in each province divided by the total revenue at the price excluding VAT of the products produced by the taxpayer.

d.3) The revenue used to determine the allocation ratio as stipulated in points d.1 and d.2 of this section is the actual revenue generated during the tax period. If the supplementary declaration changes the actual revenue generated, the taxpayer must determine and reallocate the tax payable for each tax period with the erroneous supplementary declaration to determine the difference in unallocated or over-allocated value-added tax for each locality.

d) Allocate the value-added tax payable to each province where the hydropower plant is located across multiple provinces:

The amount of value-added tax payable in each province where the hydropower plant is located is equal to (=) the amount of value-added tax payable of the hydropower plant multiplied (x) by the percentage (%) of the investment value of the portion of the hydropower plant located within the administrative boundaries of each province on the total investment value of the hydropower plant.

3. Filing and paying taxes:

a) For computerized lottery business operations:

Taxpayers shall file centralized value-added tax returns for nationwide computerized lottery business activities and submit tax returns using form No. 01/GTGT, and the appendix of the allocation table of value-added tax payable to localities receiving revenue from computerized lottery business activities using form No. 01-3/GTGT ​​issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to each province where computerized lottery business activities are conducted as prescribed in Clause 40 of this Circular.

b) Regarding real estate transfer activities:

b.1) The taxpayer shall declare value-added tax and submit the value-added tax declaration form to the tax authority in the province where the transferred real estate is located, using form No. 05/GTGT ​​issued with Appendix II of this Circular; and pay the declared tax into the state budget in the province where the transferred real estate is located.

b.2) Taxpayers must consolidate the revenue excluding value-added tax (VAT) from real estate transfer activities into their tax return at the head office to determine the amount of VAT payable for all business activities at the head office. The VAT already paid in the province where the transferred real estate is located will be offset against the VAT payable at the head office.

c) For construction activities:

c.1) If the taxpayer is a construction contractor who signs a contract directly with the investor to construct a construction project in a province other than the taxpayer's head office, including construction projects or project components involving multiple provinces, the taxpayer shall declare value-added tax for those projects or project components to the tax authority where the construction project is located using Form No. 05/GTGT ​​issued with Appendix II of this Circular; and pay the declared tax into the state budget in the province where the construction project is located. If the State Treasury has already deducted the tax as stipulated in Clause 5 of this Article, the taxpayer is not required to pay the corresponding amount of tax deducted by the State Treasury into the state budget.

c.2) Taxpayers must consolidate revenue excluding value-added tax (VAT) from construction activities into their tax return at the head office to determine the amount of VAT payable for all business activities at the head office. The VAT already paid in the province where the construction project is located will be offset against the VAT payable at the head office.

d) For subsidiary units, the business location is the production facility:

Taxpayers shall file value-added tax returns centrally for the production and business activities of their subsidiary units, where the business location is the production facility, and submit tax returns using form No. 01/GTGT, appendix of the value-added tax allocation table payable to the locality where the revenue is received (excluding hydropower production and electronic lottery business activities) using form No. 01-6/GTGT ​​issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to each province where the production facility is located as prescribed in Clause 40 of this Circular.

d) For hydropower plants located across multiple provinces:

Taxpayers shall declare the value-added tax (VAT) generated by the hydropower plant and submit the tax return using form No. 01/GTGT, and the appendix of the allocation table of VAT payable to localities receiving revenue from hydropower production activities using form No. 01-2/GTGT ​​issued with Appendix II of this Circular to the tax authority where the hydropower plant's operating office is located; and pay the allocated tax amount to each province where the hydropower plant is located as prescribed in Clause 40 of this Circular.

4. For directly affiliated units selling goods, using invoices registered by the affiliated unit or by the taxpayer registered with the tax authority managing the affiliated unit, and fully tracking and accounting for output and input value-added tax, the affiliated unit shall declare and pay value-added tax to the tax authority directly managing the affiliated unit.

5. The State Treasury shall deduct value-added tax from contractors when processing payments of state budget capital investment for basic construction projects to investors as follows:

a) The State Treasury where the investor opens a transaction account shall deduct value-added tax and remit it to the state budget at a rate of 1% of the revenue excluding value-added tax for the completed volume of basic construction works and project components, except for the cases specified in point b of this clause.

b) The State Treasury does not deduct value-added tax in the following cases:

b.1) The investor shall carry out the procedures for advancing capital investment for basic construction in accordance with regulations.

b.2) Capital investment payments for project management activities: payments for project management work directly performed by the investor; expenses of the project management board, land clearance expenses, and expenses for projects undertaken by the people themselves.

b.3) Construction investment costs of projects and works funded by the commune budget with a total investment of less than 01 billion VND.

b.4) Cases where taxpayers can prove they have paid all taxes to the state budget.

c) When making payments at the State Treasury, the investor is responsible for preparing payment documents according to the mẫu prescribed in Government Decree No. 11/2020/ND-CP dated January 20, 2020, and submitting them to the State Treasury for value-added tax (VAT) deduction. The VAT amount deducted by the State Treasury on the payment document will be deducted from the VAT payable by the contractor. The investor is responsible for providing payment documents to contractors whose VAT has been deducted by the State Treasury.

d) The accounting of state budget revenue for value-added tax that has been deducted by the State Treasury shall be based on the principle that for basic construction projects originating in a particular province, the value-added tax deducted by the State Treasury shall be accounted for as revenue in the budget of that province.

In cases where a construction project spans multiple provinces, the investor is responsible for determining the revenue before value-added tax (VAT) for each province and for preparing payment documents according to the mẫu prescribed in Government Decree No. 11/2020/ND-CP dated January 20, 2020, and submitting them to the State Treasury for VAT deduction and budget accounting for each province. If a construction project or project component spans multiple provinces and the revenue in each province cannot be determined, after determining the 1% rate on the revenue before VAT of the construction project or project component, the VAT payable to each province will be determined based on the percentage (%) of the investment value of the project in each province relative to the total investment value. In cases where the project is within the same province (including inter-district projects, projects in a district different from where the contractor is headquartered), the local Tax Department, in coordination with the Department of Finance, will advise the Provincial People's Council and the Provincial People's Committee on the allocation and accounting of state budget revenue according to the district.

d) The State Treasury shall record the state budget revenue from the deducted value-added tax, compile all information from the collection documents into the State Budget Payment Document List, and forward it to the tax authority as prescribed.

Article 14. Declaration, calculation, allocation and payment of excise tax

1. Cases to be allocated:

Computerized lottery business operations.

2. Allocation method:

The amount of excise tax payable for each province where there is computerized lottery business is equal to (=) the amount of excise tax payable of computerized lottery business multiplied (x) by the percentage (%) of actual ticket sales revenue from computerized lottery business in each province on the actual ticket sales revenue of the taxpayer.

The actual revenue from ticket sales for computerized lottery business operations is determined according to the provisions of point a, clause 2, Article 13 of this Circular.

3. Filing and paying taxes:

Taxpayers shall declare the total excise tax for all nationwide computerized lottery business activities and submit the tax declaration form No. 01/TTĐB, the appendix table determining the deductible excise tax on purchased raw materials and imported goods (if any) according to form No. 01-2/TTĐB, and the appendix table allocating the excise tax payable to localities receiving revenue from computerized lottery business activities according to form No. 01-3/TTĐB issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to the province where the computerized lottery business activities are conducted as prescribed in Clause 4, Article 12 of this Circular.

Article 15. Declaration, calculation, allocation and payment of resource tax

1. Cases to be allocated:

Hydroelectric power generation involves the construction of reservoirs located across multiple provinces.

2. Allocation method:

a) Basis for allocating the amount of resource tax payable to each province:

a.1) The area of ​​the hydroelectric reservoir is t, the area of ​​the hydroelectric reservoir in province G is t.1, and the area of ​​the hydroelectric reservoir in province H is t.2.

The percentage (%) of lake area in province G is T.1 = t.1/tx 100.

The percentage of lake area in Province H is T.2 = t.2/tx 100.

a.2) The compensation cost for land clearance and resettlement is k; the compensation cost for land clearance and resettlement in province G is k.1; the compensation cost for land clearance and resettlement in province H is k.2.

The percentage (%) of compensation for land clearance and resettlement in Province G is K.1 = k.1/kx 100.

The percentage (%) of compensation for land clearance and resettlement in Province H is K.2 = k.2/kx 100.

a.3) The number of households to be relocated is s, the number of households to be relocated in province G is s.1, and the number of households to be relocated in province H is s.2.

The percentage of households that need to be relocated in Province G is S.1 = s.1/sx 100.

The percentage of households that need to be relocated in Province H is S.2 = s.2/sx 100.

a.4) The compensation value for material damage in the reservoir area is v, the compensation value for material damage in the reservoir area in Province G is v.1, and the compensation value for material damage in the reservoir area in Province H is v.2.

The percentage (%) of compensation for material damage in the reservoir area of ​​Province G is V.1 = v.1/vx 100.

The percentage (%) of compensation for material damage in the reservoir area of ​​Province H is V.2 = v.2/vx 100.

b) Calculation formula:

Resource tax payable by Province G	=	T.1 + K.1 + S.1 + V.1	x Amount of resource tax payable
		4

Resource tax payable by Province H	=	T.2 + K.2 + S.2 + V.2	x Amount of resource tax payable
		4

3. Declaring and paying resource tax:

Taxpayers with hydropower plants shall declare and submit resource tax declarations using form No. 01/TAIN and resource tax settlement documents using form No. 02/TAIN to the tax authority managing state budget revenue where water resource exploitation activities take place. If the hydropower plant's reservoir is located across multiple provinces, the resource tax declaration form No. 01/TAIN, the resource tax settlement documents using form No. 02/TAIN, and the appendix to the allocation table of resource tax payable to localities receiving revenue from hydropower production activities (form No. 01-1/TAIN issued with Appendix II of this Circular) shall be submitted to the tax authority where the hydropower plant's operating office is located; the allocated tax amount for the province where the reservoir is located shall be paid as stipulated in Clause 4, Article 12 of this Circular.

Article 16. Declaration, calculation, allocation and payment of environmental protection tax.

1. Cases to be allocated:

a) Petroleum products in the cases stipulated in point a.2, clause 4, Article 11 of Decree No. 126/2020/ND-CP;

b) Coal mined and consumed domestically in the case stipulated in point b, clause 4, Article 11 of Decree No. 126/2020/ND-CP.

2. Allocation method:

a) Allocation of environmental protection tax payable on gasoline and diesel:

The amount of environmental protection tax payable for each province where a subsidiary unit is located is equal to (=) the total amount of environmental protection tax payable allocated to each province for petroleum products.

The amount of environmental protection tax payable allocated to each province for each petroleum product = the amount of environmental protection tax payable for each petroleum product on the tax declaration form multiplied by (x) the percentage (%) of the output of each petroleum product sold by the subsidiary unit that is subject to declaration and calculation of environmental protection tax on the total output of each petroleum product sold that is subject to declaration and calculation of environmental protection tax of the taxpayer.

b) Allocation of environmental protection tax payable on coal mined and consumed domestically:

The amount of environmental protection tax payable to each province where a coal mining company is headquartered is determined by the following formula:

Percentage (%) of coal consumed domestically during the period	=	Domestic coal consumption during the period
		Total coal consumption during the period

The amount of environmental protection tax payable to the province where coal is mined during the period.

=

Percentage (%) of coal production consumed domestically during the period

x

Coal volume purchased from units in the province where coal is mined during the period.

x

Absolute tax rate per ton of coal consumed

3. Filing and paying taxes:

a) For gasoline and diesel fuel:

If a subsidiary of a primary distributor or a subsidiary of a primary distributor conducts business in a province different from where the primary distributor or its subsidiary is headquartered, and does not maintain separate accounting records for environmental protection tax declaration, the primary distributor or its subsidiary shall declare and submit the environmental protection tax return using form No. 01/TBVMT, and the appendix of the allocation table of environmental protection tax payable to localities receiving revenue from petroleum products using form No. 01-2/TBVMT issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to the province where the subsidiary is headquartered as stipulated in Clause 4, Article 12 of this Circular.

b) For coal mined and consumed domestically:

Businesses engaged in domestic coal mining and consumption through management and delegation to subsidiaries or affiliated units for mining, processing, and consumption shall have the unit responsible for coal consumption declare the entire environmental protection tax arising from the mined coal and submit the tax declaration form No. 01/TBVMT, the appendix table determining the amount of environmental protection tax payable to the localities entitled to revenue from coal as per form No. 01-1/TBVMT issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to the province where the coal mining company is headquartered as stipulated in Clause 4, Article 12 of this Circular.

Article 17. Tax declaration, tax calculation, tax settlement, allocation and payment of corporate income tax.

1. Cases to be allocated:

a) Operating a computerized lottery business;

b) Real estate transfer activities;

c) The subsidiary unit or business location is a production facility;

d) The hydroelectric power plant is located across multiple provinces.

2. Allocation method:

a) Allocation of corporate income tax payable for computerized lottery business activities:

The amount of corporate income tax payable for each province where the computerized lottery business operates is equal to (=) the amount of corporate income tax payable from the computerized lottery business multiplied (x) by the percentage (%) of actual ticket sales revenue from the computerized lottery business in each province on the total actual ticket sales revenue of the taxpayer.

The actual revenue from ticket sales for computerized lottery business operations is determined according to the provisions of point a, clause 2, Article 13 of this Circular.

b) Allocation of corporate income tax payable on real estate transfer activities:

The amount of corporate income tax payable for each province where real estate transfer activities take place, provisionally paid quarterly and finalized, is equal to (=) the taxable revenue of real estate transfer activities in each province multiplied (x) by 1%.

c) Allocation of corporate income tax payable for taxpayers with subsidiaries or business locations that are production facilities:

The amount of corporate income tax payable in each province where the production facility is located is equal to (=) the amount of corporate income tax payable on the production and business activities multiplied (x) by the percentage (%) of the costs of each production facility on the total costs of the taxpayer (excluding costs of activities enjoying corporate income tax incentives). The costs used to determine the allocation rate are the actual costs incurred during the tax period.

The corporate income tax payable for production and business activities does not include the corporate income tax payable for activities enjoying corporate income tax incentives. The corporate income tax payable for activities enjoying incentives is determined based on the production and business results of the incentive-enhancing activity and the level of incentive enjoyed.

d) Allocation of corporate income tax payable for hydropower plants located across multiple provinces:

The corporate income tax payable by a hydropower plant is equal to (=) the corporate income tax payable for production and business activities multiplied (x) by the percentage (%) of each hydropower plant's costs on the taxpayer's total costs (excluding costs of activities enjoying corporate income tax incentives). The costs used to determine the allocation ratio are the actual costs incurred during the tax period. The corporate income tax payable for production and business activities does not include the corporate income tax payable for activities enjoying corporate income tax incentives.

After determining the corporate income tax payable by the hydropower plant, the corporate income tax payable for each province is equal to (=) the corporate income tax payable of the hydropower plant multiplied (x) by the percentage (%) of the investment value of the hydropower plant located within the administrative boundaries of each province over the total investment value of the hydropower plant.

3. Tax declaration, tax settlement, and tax payment:

a) For computerized lottery business operations:

a.1) Filing and making quarterly tax payments:

Taxpayers are not required to file quarterly tax returns but must determine the quarterly provisional tax payments as stipulated in point b, clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay corporate income tax into the state budget for each province where the electronic lottery business operates.

a.2) Tax settlement:

Taxpayers shall declare corporate income tax for all electronic lottery business activities using form No. 03/TNDN, and submit the appendix of the allocation table of corporate income tax payable to localities receiving revenue from electronic lottery business activities using form No. 03-8C/TNDN issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to each province where electronic lottery business activities are conducted as prescribed in Clause 4, Article 12 of this Circular.

If the quarterly provisional tax payments are less than the tax payable allocated to each province according to the final tax settlement, the taxpayer must pay the remaining tax to each province. If the quarterly provisional tax payments are greater than the tax payable allocated to each province, it is considered an overpayment and is handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

b) Regarding real estate transfer activities:

b.1) Filing and making quarterly tax payments:

Taxpayers are not required to file quarterly tax returns but must determine the quarterly provisional tax payments as stipulated in point b, clause 2 of this Article in order to pay corporate income tax into the state budget for each province where the real estate transfer activity takes place.

b.2) Tax settlement:

Taxpayers shall declare corporate income tax for all real estate transfer activities using form No. 03/TNDN, determine the amount of corporate income tax payable for each province as prescribed in point b, clause 2 of this Article in the appendix of the table allocating the amount of corporate income tax payable to localities receiving revenue from real estate transfer activities using form No. 03-8A/TNDN issued with Appendix II of this Circular to the directly managing tax authority; and pay the money into the state budget for each province where the real estate transfer activity takes place as prescribed in clause 4, Article 12 of this Circular.

The amount of tax provisionally paid during the year in the provinces (excluding the amount of tax provisionally paid on revenue from infrastructure investment projects, houses for transfer or lease-purchase, and advance payments from customers according to progress, which have not yet been included in the taxable revenue for corporate income tax purposes in the year) shall be deducted from the corporate income tax payable from real estate transfer activities in each province on form 03-8A/TNDN issued with Appendix II of this Circular. If the amount is not fully deducted, it shall be further deducted from the corporate income tax payable from real estate transfer activities as settled at the head office on form 03/TNDN issued with Appendix II of this Circular.

If the quarterly provisional tax payments are less than the tax payable as stated in the final tax return at the head office (Form 03/TNDN issued with Appendix II of this Circular), the taxpayer must pay the remaining tax to the local authority where the head office is located. If the quarterly provisional tax payments are greater than the tax payable as stated in the final tax return, it is considered an overpayment and is handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

c) For subsidiary units, the business location is the production facility:

c.1) Filing and making quarterly tax payments:

Taxpayers are not required to file quarterly tax returns but must determine the quarterly provisional tax payments as stipulated in point b, clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay corporate income tax in each province where the production facility is located, including where the unit enjoys corporate income tax incentives.

c.2) Tax settlement:

Taxpayers shall declare corporate income tax for all production and business activities using form No. 03/TNDN, and submit the appendix of the allocation table of corporate income tax payable to the localities where revenue is received for the production facility using form No. 03-8/TNDN issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated tax amount to each province where the production facility is located as prescribed in Clause 4, Article 12 of this Circular.

For activities eligible for corporate income tax incentives, taxpayers shall declare their tax return using Form No. 03/TNDN issued with Appendix II of this Circular at the directly managing tax authority, determine the amount of corporate income tax payable for the incentive-eligible activities using Forms No. 03-3A/TNDN, 03-3B/TNDN, 03-3C/TNDN, and 03-3D/TNDN issued with Appendix II of this Circular, and submit it to the tax authority in the province where the incentive-eligible unit is located and to the directly managing tax authority.

If the quarterly provisional tax payments are less than the tax payable allocated to each province according to the tax settlement, the taxpayer must pay the remaining tax to each province. If the quarterly provisional tax payments are greater than the tax allocated to each province, it is considered an overpayment and is handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

d) For hydroelectric power plants located across multiple provinces:

d.1) Filing and making quarterly tax payments:

Taxpayers are not required to file quarterly tax returns, but must determine the amount of tax payable quarterly in accordance with point b, clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay corporate income tax into the state budget for each province where the hydropower plant is located.

d.2) Tax settlement:

Taxpayers shall declare corporate income tax for all production and business activities using form No. 03/TNDN, and submit the appendix of the allocation table of corporate income tax payable to localities receiving revenue from hydropower production activities using form No. 03-8/TNDN and form No. 03-8B/TNDN issued with Appendix II of this Circular to the directly managing tax authority; and pay the allocated amount to each province where the hydropower plant is located as prescribed in Clause 4, Article 12 of this Circular.

If the quarterly provisional tax payments are less than the tax payable allocated to each province according to the tax settlement, the taxpayer must pay the remaining tax to each province. If the quarterly provisional tax payments are greater than the tax allocated to each province, it is considered an overpayment and is handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

4. For economic groups and corporations with member units, if the revenue, expenses, and taxable income have been accounted for, the member unit must declare and pay corporate income tax to the tax authority directly managing the member unit.

5. In cases where a subsidiary unit has business activities different from the general business activities of the group or corporation, and separately accounts for income from those other business activities, the subsidiary unit shall declare corporate income tax to the tax authority directly managing the subsidiary unit.

Article 18. Tax declaration, tax calculation, tax allocation, tax settlement, and payment of remaining after-tax profits after the allocation of funds.

1. Cases to be allocated:

Computerized lottery business operations.

2. Allocation method:

The remaining after-tax profit after deducting funds payable to each province where the computerized lottery business operates is equal to (=) the remaining after-tax profit after deducting funds payable from the computerized lottery business multiplied (x) by the percentage of actual ticket sales revenue from the computerized lottery business in each province on the total actual ticket sales revenue of the taxpayer.

The actual revenue from ticket sales for computerized lottery business operations is determined according to the provisions of point a, clause 2, Article 13 of this Circular.

3. Declaration and submission:

a) Quarterly declaration and provisional payment:

Taxpayers are not required to file quarterly tax returns but must determine the quarterly provisional tax payment amount as stipulated in point c, clause 6, Article 8 of Decree No. 126/2020/ND-CP to pay the remaining after-tax profit after deducting funds from the electronic lottery business in each province where the electronic lottery business operates.

b) Tax settlement:

Taxpayers declare the remaining after-tax profit after deducting funds from nationwide computerized lottery business operations and submit the declaration form No. 01/QT-LNCL, along with the appendix of the allocation table of remaining profits payable to localities receiving revenue from computerized lottery business operations, as per form No. 01-1/QT-LNCL issued with Appendix II of this Circular, to the directly managing tax authority; and pay the allocated amount to each province where computerized lottery business operations are conducted as stipulated in Clause 4, Article 12 of this Circular.

If the quarterly provisional tax payments are less than the amount due allocated to each province according to the tax settlement, the taxpayer must pay the remaining amount to each province. If the quarterly provisional tax payments are greater than the amount allocated to each province, it is considered an overpayment and is handled according to the provisions of Article 60 of the Law on Tax Administration and Article 25 of this Circular.

Article 19. Declaration, calculation, and allocation of personal income tax.

1. Allocation case:

a) Deduct personal income tax on income from salaries and wages paid at the head office to employees working at subsidiary units or business locations in other provinces.

b) Deducting personal income tax from winnings of the computerized lottery for individuals.

2. Allocation method:

a) Allocation of personal income tax on income from salaries and wages:

Taxpayers individually determine the amount of personal income tax to be allocated to income from salaries and wages of individuals working in each province based on the actual tax withheld from each individual. In cases where employees are transferred, rotated, or seconded, the personal income tax withheld is calculated for the province where the employee is currently working, based on the time the income is paid.

b) Allocation of personal income tax on winnings from computerized lottery prizes:

Taxpayers separately determine the amount of personal income tax payable on winnings from computerized lottery prizes in each province where the individual registered to participate in the draw (for distribution methods via telephone or internet) and where the computerized lottery ticket was issued (for distribution methods via terminal devices) based on the actual tax withheld from each individual.

3. Filing and paying taxes:

a) Personal income tax on income from salaries and wages:

a.1) Taxpayers paying salaries and wages to employees working at subsidiary units or business locations in provinces other than their head office shall deduct personal income tax on income from salaries and wages in accordance with regulations and submit tax declaration forms No. 05/KK-TNCN, and the appendix table determining the amount of personal income tax payable to the localities receiving revenue sources in accordance with form No. 05-1/PBT-KK-TNCN issued with Appendix II of this Circular to the directly managing tax authority; and pay the personal income tax on income from salaries and wages into the state budget for each province where the employee works as prescribed in Clause 4, Article 12 of this Circular. The amount of personal income tax determined for each province shall be calculated monthly or quarterly corresponding to the personal income tax declaration period and shall not be recalculated during the personal income tax final settlement.

a.2) Individuals with income from salaries and wages who are subject to direct tax declaration with the tax authorities include: resident individuals with income from salaries and wages paid from abroad; non-resident individuals with income from salaries and wages arising in Vietnam but paid from abroad; individuals with income from salaries and wages paid by international organizations, embassies, and consulates in Vietnam but for which tax has not been withheld; and individuals receiving bonus shares from the paying entity.

b) Personal income tax on income from winnings of computerized lottery prizes:

Taxpayers that are organizations paying income and withholding personal income tax on income from lottery winnings of individuals must declare personal income tax according to regulations, submit tax declaration forms according to mẫu số 06/TNCN, and the appendix table determining the amount of personal income tax payable to localities receiving revenue according to mẫu số 05-1/PBT-KK-TNCN issued with Appendix II of this Circular to the directly managing tax authority; and pay the personal income tax on winnings into the state budget for each province where the individual registered to participate in the lottery for distribution methods via telephone or internet and where the lottery ticket was issued for distribution methods via terminal devices as prescribed in Clause 4, Article 12 of this Circular.

Article 20. Forms of tax declarations, appendices to tax declarations, and related documents in tax declaration files.

Tax return form; tax return appendix; supplementary declaration explanation; dependent registration form; power of attorney for personal income tax settlement; commitment letter; report on projected oil and gas production and provisional tax payment rate; determination of the additional monthly tax payable compared to the quarterly declared amount; request for change of tax period from monthly to quarterly for each type of tax and other revenue of the state budget, to be made according to the form issued in Appendix II of this Circular.

Chapter IV

HANDLING TAXES, LATE PAYMENTS, AND FINES

Article 21. Handling of late payment of taxes

1. Determine the late payment penalty.

The determination of the late payment penalty is based on the amount of tax overdue, the number of days of delay, and the late payment penalty rate stipulated in Article 59 of the Law on Tax Administration. The period for calculating the late payment penalty is continuous from the day following the date the late payment penalty arises until the day immediately preceding the date the taxpayer pays the outstanding tax into the state budget.

2. Notification regarding late payment penalties

Monthly, the tax authority notifies taxpayers with overdue tax amounts along with a notice of tax arrears (according to form No. 01/TTN issued with Appendix I of this Circular) regarding the amount of overdue tax that has been overdue for 30 days or more. For non-agricultural land use tax, the tax authority notifies individual and household taxpayers of the amount of tax arrears and overdue tax amounts through authorized collection organizations.

To resolve administrative procedures for taxpayers or at the request of competent state agencies, the tax authority determines and notifies the amount of tax owed up to the time the tax authority issues the notice (according to form No. 02/TTN issued with Appendix I of this Circular).

3. Adjustment to reduce late payment penalties.

a) In cases where a taxpayer submits an amended tax return that reduces their tax liability, the taxpayer shall determine the adjusted amount of late payment penalties on the amended return. The tax authority shall use the taxpayer's tax liability management information to determine the adjusted amount of late payment penalties and notify the taxpayer using Form No. 03/TTN issued with Appendix I of this Circular.

b) In cases where the tax authority or competent state agency, through inspection or audit, discovers a reduction in the amount of tax payable, or the tax authority or competent state agency issues a decision or notice reducing the amount of tax payable, the tax authority shall adjust the calculated late payment penalty accordingly to the reduced tax difference and notify the taxpayer using Form No. 03/TTN issued with Appendix I of this Circular.

Article 22. Procedures, documents, and formalities for exemption from late payment penalties.

1. The period during which late payment penalties are not charged in the case stipulated in point a, clause 5, Article 59 of the Law on Tax Administration is calculated from the date the state budget-using unit is obligated to pay the taxpayer but has not yet paid, to the date the state budget-using unit actually pays the taxpayer.

2. The procedures and documents for requesting exemption from late payment penalties in the cases stipulated in point a, clause 5, Article 59 of the Law on Tax Administration are as follows:

a) Sequence and procedures

a.1) The taxpayer prepares a request for exemption from late payment penalties and submits it to the tax authority directly managing their tax affairs or the tax authority managing state budget revenue.

a.2) In cases where the application for exemption from late payment penalties is incomplete according to regulations, within 03 working days from the date of receipt of the application, the tax authority must notify the taxpayer in writing using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, requesting the taxpayer to provide explanations or supplement the application.

If the application for exemption from late payment penalties is complete, within 10 working days from the date of receipt of the application, the tax authority shall issue a Notice of Non-Approval for Exemption from Late Payment Penalties (Form No. 04/KTCN issued with Appendix I of this Circular) for cases not eligible for exemption from late payment penalties, or a Notice of Approval for Exemption from Late Payment Penalties (Form No. 05/KTCN issued with Appendix I of this Circular) for cases eligible for exemption from late payment penalties.

b) Applications for exemption from late payment penalties

b.1) A written request for exemption from late payment penalties, using form No. 01/KTCN issued with Appendix I of this Circular;

b.2) A document confirming from the state budget-using unit that the taxpayer has not yet been paid, using form No. 02/KTCN issued with Appendix I of this Circular (original or certified copy);

b.3) Contract for the supply of goods and services signed with the investor (original or certified copy by the taxpayer).

3. Responsibilities of taxpayers and relevant agencies

a) Taxpayers are responsible for paying outstanding tax debts to the state budget no later than the working day immediately following the date the state budget-using unit makes the payment to the taxpayer, and for notifying the tax authority using form No. 03/KTCN issued with Appendix I of this Circular.

b) The entity using state budget funds is responsible for confirming the payment status for taxpayers and is legally accountable for this confirmation.

c) The tax authorities monitor the fulfillment of tax obligations by taxpayers.

d) The State Treasury is responsible for coordinating with the tax authorities in providing information on the payment status of state budget funds.

Article 23. Procedures, documents, and formalities for exemption from late payment penalties.

1. The procedure for processing applications for exemption from late payment penalties in cases stipulated in Clause 8, Article 59 of the Law on Tax Administration is as follows:

a) The taxpayer prepares an application for exemption from late payment penalties and submits it to the tax authority directly managing their tax affairs or the tax authority managing state budget revenue.

b) If the application for exemption from late payment penalties is incomplete according to regulations, within 03 working days from the date of receipt of the application, the tax authority must notify the taxpayer in writing using form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/NĐ-CP, requesting the taxpayer to provide explanations or supplement the application.

If the application for exemption from late payment penalties is complete according to regulations, within 10 working days from the date of receipt of the application, the tax authority shall issue a Notice of Non-Approval of Late Payment Penalty Exemption (Form No. 03/MTCN issued with Appendix I of this Circular) for cases not eligible for late payment penalty exemption or a Decision on Late Payment Penalty Exemption (Form No. 02/MTCN issued with Appendix I of this Circular) for cases eligible for late payment penalty exemption.

2. Documents for exemption from late payment penalties

a) In cases caused by natural disasters, catastrophes, epidemics, fires, or unexpected accidents, the dossier includes:

a.1) The taxpayer's request for exemption from late payment penalties, using form No. 01/MTCN issued with Appendix I of this Circular;

a.2) Documents confirming the time and location of natural disasters, calamities, epidemics, fires, or unexpected accidents issued by competent authorities (original or certified copy provided by the taxpayer);

a.3) Document determining the value of material damage issued by a financial agency or independent appraisal agency (original or certified copy);

a.4) Document (original or certified copy from the taxpayer) specifying the responsibility of the organization or individual to compensate for damages (if any);

a.5) Documents (originals or certified copies by the taxpayer) related to compensation for damages (if any).

b) In other cases of force majeure as stipulated in Clause 1, Article 3 of Decree No. 126/2020/ND-CP, the dossier includes:

b.1) The taxpayer's request for exemption from late payment penalties, using form No. 01/MTCN issued with Appendix I of this Circular;

b.2) A document from a financial authority or independent appraisal agency determining the extent and value of material damage in cases where the taxpayer has to cease or suspend production or business operations due to war, riots, or strikes (original or certified copy from the taxpayer);

b.3) Documents proving that the risk is not due to the subjective cause or responsibility of the taxpayer, and that the taxpayer lacks the financial capacity to pay the state budget in cases where the taxpayer encounters risks not due to the subjective cause or responsibility of the taxpayer (original or certified copy from the taxpayer);

b.4) Documents (originals or certified copies by the taxpayer) related to compensation for damages from the insurance company (if any).

3. Determine the amount of late payment penalty that is waived.

a) For taxpayers affected by natural disasters, calamities, epidemics, fires, or unexpected accidents as stipulated in point a, clause 27, Article 3 of the Law on Tax Administration: the amount of late payment penalty waived is the outstanding amount at the time of the natural disaster, calamity, epidemic, fire, or unexpected accident, and shall not exceed the value of material damage after deducting any compensation or insurance benefits as prescribed (if any).

b) For taxpayers experiencing other force majeure events as stipulated in Clause 1, Article 3 of Decree No. 126/2020/ND-CP: the amount of late payment penalty waived is the outstanding late payment penalty at the time of the other force majeure event and shall not exceed the value of material damage after deducting any compensation or insurance benefits as prescribed (if any).

4. Authority to issue decisions on waiving late payment penalties

The head of the tax authority directly managing or the tax authority managing state budget revenue shall issue a Decision to waive late payment penalties according to mẫu số 04/MTCN (Form No. 04/MTCN) issued with Appendix I of this Circular.

Article 24. Procedures, formalities and documents for tax payment extension

1. Procedures for processing applications for tax payment extension in cases stipulated in Article 62 of the Law on Tax Administration.

a) Taxpayers prepare an application for an extension of tax payment and submit it to the tax authority directly managing their tax affairs or the tax authority managing state budget revenue.

b) In cases where the application for tax payment extension is incomplete according to regulations, or if there are signs of irregularities regarding the value of material damage determined by the taxpayer themselves, or other errors, within 03 working days from the date of receiving the application, the tax authority must notify the taxpayer in writing using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, requesting the taxpayer to provide explanations or supplement the application.

If the application for tax payment extension is complete, within 10 working days from the date of receipt of the application, the tax authority shall issue a Notice of Non-Approval of Tax Payment Extension (Form No. 03/GHAN issued with Appendix I of this Circular) for cases not eligible for tax payment extension, or a Decision on Tax Payment Extension (Form No. 02/GHAN issued with Appendix I of this Circular) for cases eligible for tax payment extension.

2. Documents for extending the tax payment deadline

a) In the case of natural disasters, catastrophes, epidemics, fires, or unexpected accidents as stipulated in point a, clause 27, Article 3 of the Law on Tax Administration, the dossier includes:

a.1) The taxpayer's request for extension of tax payment deadline, using form No. 01/GHAN issued with Appendix I of this Circular;

a.2) Documents confirming the time and location of natural disasters, calamities, epidemics, fires, or unexpected accidents issued by competent authorities (original or certified copy provided by the taxpayer);

a.3) A document determining the value of material damage, prepared by the taxpayer or their legal representative, who is responsible for the accuracy of the data;

a.4) Document (original or certified copy from the taxpayer) specifying the responsibility of the organization or individual to compensate for damages (if any);

a.5) Documents (originals or certified copies by the taxpayer) related to compensation for damages (if any).

b) For other force majeure cases as stipulated in Clause 1, Article 3 of Decree No. 126/2020/ND-CP, the dossier includes:

b.1) The taxpayer's request for extension of tax payment deadline, using form No. 01/GHAN issued with Appendix I of this Circular;

b.2) A document determining the value of material damage, prepared by the taxpayer or their legal representative, who is responsible for the accuracy of the data;

b.3) Documents confirming the time and place of the force majeure event issued by a competent authority; documents proving that the taxpayer had to cease or suspend production and business activities due to war, riots, or strikes (original or certified copy from the taxpayer);

b.4) Documents proving that the risk encountered was not due to the subjective cause or responsibility of the taxpayer, and that the taxpayer is unable to financially repay the state budget in cases where the damage is due to a risk not due to the subjective cause or responsibility of the taxpayer (original or certified copy from the taxpayer);

b.5) Documents (originals or certified copies by the taxpayer) related to compensation for damages from the insurance company (if any).

c) For cases of relocating production and business facilities as stipulated in point b, clause 1, Article 62 of the Law on Tax Administration. The dossier includes:

c.1) The taxpayer's request for extension of tax payment deadline, using form No. 01/GHAN issued with Appendix I of this Circular;

c.2) Decision of the competent state agency on the relocation of the production and business facility for the taxpayer (original or certified copy by the taxpayer);

c.3) A relocation plan or scheme clearly outlining the taxpayer's relocation plan and timeline (original or certified copy provided by the taxpayer).

3. Determine the amount of tax for which the payment deadline has been extended.

a) For taxpayers affected by natural disasters, calamities, epidemics, fires, or unexpected accidents as stipulated in point a, clause 27, Article 3 of the Law on Tax Administration: The amount of tax eligible for extension is the amount of tax owed up to the time the taxpayer is affected by the natural disaster, calamity, epidemic, fire, or unexpected accident, but not exceeding the value of material damage after deducting any compensation or insurance benefits as prescribed (if any).

b) For taxpayers facing other force majeure events as stipulated in Clause 1, Article 3 of Decree No. 126/2020/ND-CP: The amount of tax for which payment is extended is the amount of tax owed up to the time the taxpayer faces other force majeure events, but not exceeding the value of material damage after deducting any compensation or insurance benefits as prescribed (if any).

c) For cases of relocating production and business facilities as stipulated in point b, clause 1, Article 62 of the Law on Tax Administration: The amount of tax to be extended is the amount of tax owed up to the time the taxpayer begins to cease production and business activities to carry out the relocation, but not exceeding the relocation costs and damages caused by the relocation after deducting any support or compensation for damages as prescribed. Relocation costs do not include the cost of constructing a new production and business facility. If the competent authority discovers that the taxpayer has not relocated, the taxpayer must pay the extended tax amount and late payment interest calculated on the extended tax amount.

Article 25. Handling of overpaid taxes, late payment penalties, and fines.

1. Taxpayers who have overpaid taxes, overpaid late payment penalties, or overpaid fines (hereinafter referred to as overpayments) as stipulated in Clause 1, Article 60 of the Law on Tax Administration shall be entitled to offsetting or refunding these amounts as follows:

a) Offsetting overpayments against outstanding tax, late payment penalties, and fines (hereinafter referred to as the debt) or deducting them from the tax, late payment penalties, and fines payable in the next payment (hereinafter referred to as the accrued income) in the following cases:

a.1) Offset the overpayment with the taxpayer's debt that has the same economic content (sub-item) and the same tax collection area.

a.2) Offset the overpayment with revenue generated by the taxpayer under the same economic category (sub-item) and within the same tax collection area.

a.3) If an organization paying income has an overpayment of personal income tax, it shall offset the amount as stipulated in points a.1 and a.2 of this section. The overpayment of personal income tax upon final settlement shall be determined by (=) the overpayment of tax by the individual authorizing the final settlement minus (-) the remaining tax payable by the individual authorizing the final settlement; the organization paying income is responsible for reimbursing the individual authorizing the final settlement the overpayment of personal income tax when the organization paying the income settles the personal income tax.

a.4) Offsetting with debts or revenues arising from the same economic content (sub-item) and the same tax collection area of ​​another taxpayer when the taxpayer no longer has any outstanding debt.

a.5) In cases where taxpayers have overpaid tax in foreign currency, as stipulated in Article 4 of this Circular, when offsetting, the amount must be converted to Vietnamese Dong at the daily selling rate of the Vietnam Foreign Trade Joint Stock Commercial Bank at the time of determining the overpaid tax for offsetting.

b) Refunds, refunds combined with offsetting budget revenue

If a taxpayer has an overpayment after offsetting as guided in point a of this section, and still has an overpayment or no outstanding debt, the taxpayer may submit an application for a refund or refund combined with offsetting of state budget revenue as prescribed in Article 42 of this Circular. The taxpayer is entitled to a refund of the overpayment when the taxpayer has no outstanding debt.

c) The time of determining the overpayment for offsetting or refunding the overpayment:

c.1) In cases where the taxpayer calculates, declares, and pays taxes themselves based on the declared amount, the time of determining the overpayment is the date the taxpayer has paid the money into the state budget; in cases where the taxpayer pays before submitting the tax return, the time of determining the overpayment is the date the taxpayer submits the tax return, and if there is a supplementary tax return, the time of determining the overpayment is the date the taxpayer submits the supplementary tax return.

c.2) In cases where the taxpayer determines their tax liability based on the tax payment notice issued by the tax authority or competent state agency, the time of determining the overpayment is the date the taxpayer has paid the money into the state budget; in cases where the taxpayer pays before the notice date, the time of determining the overpayment is the date of issuance of the tax payment notice by the tax authority or competent state agency. If there is a notice of adjustment or supplementation, the time of determining the overpayment is the date of issuance of the adjusted or supplementary notice.

c.3) In cases where the taxpayer pays according to a Decision of the tax authority, or a Decision or Document of a competent state agency, the time of determining the overpayment is the date the taxpayer paid the money into the state budget; in cases where the taxpayer paid before the date of the Decision or Document, the time of determining the overpayment is the date of issuance of the Decision or Document. If there are multiple Decisions or Documents, the time of determining the overpayment is based on the last Decision or Document.

c.4) In cases where the taxpayer has already paid the money into the state budget but subsequently acts in accordance with a judgment or decision of the Court, the date of determining the overpayment is the date the judgment or decision takes effect.

2. Procedures for offsetting overpaid taxes, late payment penalties, and fines.

a) Taxpayers who have overpayments offset against debts and revenues arising as stipulated in points a.1, a.2, and a.3 of Clause 1 of this Article are not required to submit a request for offsetting the overpayment to the tax authority. The tax authority shall automatically perform the offsetting on the tax management system in accordance with the regulations on tax accounting for the cases stipulated in points a.1 and a.2 of Clause 1 of this Article and provide information to the taxpayer as prescribed in this Circular.

b) Taxpayers with overpayments that can be offset against debts and revenues arising as stipulated in point a.4, clause 1 of this Article shall submit a request for offsetting the overpayment, including: a written request for processing the overpaid tax, late payment interest, and penalties according to mẫu số 01/DNXLNT issued with Appendix I of this Circular and relevant documents (if any) to the tax authority competent to process the overpayment as stipulated in clause 3 of this Article.

c) The tax authority shall receive and process applications for offsetting overpayments from taxpayers in accordance with Clause 3 of this Article. Within 05 working days from the date of receiving a complete application for offsetting overpayments from the taxpayer, the tax authority shall compare the overpayment, outstanding debt, and revenue arising from the taxpayer's application with the data on the tax management system:

c.1) In cases where the overpayment, debt, or revenue arising from the taxpayer's request matches the data in the tax management system, the tax authority shall offset the overpayment against the debt or revenue arising as requested by the taxpayer and notify the taxpayer with the overpayment requesting the offsetting and the taxpayer with the debt or revenue arising to be offset, using Form No. 01/TB-XLBT issued with Appendix I of this Circular.

c.2) In cases where the overpayment, debt, or revenue arising from the taxpayer's request does not fall under the cases for offsetting overpayments as stipulated in Clause 1 of this Article, the tax authority shall issue a Notice using Form No. 01/TB-XLBT attached to Appendix I of this Circular, clearly stating the reason for not offsetting the overpayment, and send it to the taxpayer.

If the taxpayer's request does not match the data in the tax management system, the tax authority will issue a Notice requesting explanation and additional information/documents using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/ND-CP to the taxpayer for explanation and additional information. The time for the taxpayer to provide explanation and additional information is not included in the processing time of the tax authority's request for offsetting the overpayment. After receiving the explanation and additional information from the taxpayer, if the overpayment, debt, or revenue arising from the taxpayer's request matches the data in the tax management system, offsetting will be carried out as stipulated in point c.1 of this section.

If the taxpayer fails to provide explanations or supplementary information within the deadline specified in the tax authority's notice, or if the taxpayer provides explanations or supplementary information but the overpayment, debt, or revenue arising from the taxpayer's request does not match the data in the tax management system, the tax authority shall issue a Notice using Form No. 01/TB-XLBT attached to Appendix I of this Circular, clearly stating the reasons for not offsetting the overpayment, and send it to the taxpayer.

3. Authority of the tax authority to handle offsetting of overpaid amounts.

a) The tax authority directly responsible for implementation:

a.1) Offsetting overpayments against debts and revenues arising from taxpayers in the cases specified in points a.1 and a.2 of Clause 1 of this Article, which are directly managed by the tax authority, within the tax management system.

a.2) Receiving and processing requests for handling overpayments from taxpayers falling under the cases specified in point a.4, clause 1 of this Article, by the tax authority directly managing tax collection or by the tax authority managing the area assigned to manage tax collection as prescribed in point b, clause 6, Article 3 of this Circular.

b) The tax authority responsible for managing state budget revenue shall perform the following:

b.1) Offsetting on the tax management system the overpayment of taxpayers managed by the tax authority in the cases specified in points a.1 and a.2 of Clause 1 of this Article.

b.2) Receiving and processing written requests for handling overpayments from taxpayers falling under the cases specified in point a.4, clause 1 of this Article, managed by the tax authority.

c) The tax authority managing the area receiving the allocation as stipulated in point b, clause 6, Article 3 of this Circular shall implement the following:

c.1) Offsetting overpayments against debts and revenues arising from taxpayers in the cases specified in points a.1 and a.2 of Clause 1 of this Article, managed by the tax authority, within the tax management system for allocated revenues.

c.2) Coordinate with the directly managing tax authority to offset overpayments against debts and revenues arising from revenue collection managed by the revenue recipient as guided in point a.4, clause 1 of this Article.

Article 26. Handling of non-refundable overpaid taxes, late payment penalties, and fines.

Taxpayers who have overpaid taxes, overpaid late payment penalties, or overpaid fines (hereinafter referred to as overpayments) that are non-refundable, and whose overpayments are settled by the tax authority in the accounting records and on the tax management application system to process the non-refundable overpayments of taxes, late payment penalties, and fines as prescribed in Clause 3, Article 60 of the Law on Tax Administration, shall be handled as follows:

1. For taxpayers with overpayments as stipulated in point a, clause 3, Article 60 of the Law on Tax Administration:

a) The taxpayer shall submit a written refusal to accept the refund of the overpaid amount using form No. 01/ĐNKHT issued together with Appendix I of this Circular.

b) The tax authority, as stipulated in Clause 4 of this Article, shall receive and process the taxpayer's documents within 05 working days from the date of receipt as follows:

b.1) If the request from the taxpayer matches the request, the tax authority shall issue a Decision not to refund the overpayment using form No. 01/QD-KHTNT attached to Appendix I of this Circular to settle the overpayment in the accounting records and send it to the taxpayer.

b.2) If the information does not match the taxpayer's request, the tax authority shall issue a Notice requesting explanation and additional information/documents using form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/NĐ-CP, and send it to the taxpayer for explanation and additional information.

The time allocated for taxpayers to provide explanations and supplementary information is not included in the processing time for the refusal to refund the overpaid amount. After receiving the taxpayer's explanations and supplementary information, if the information matches the data in the tax management application system, the tax authority will issue a Decision not to refund the overpaid amount. If the taxpayer fails to provide explanations or supplementary information within the deadline specified by the tax authority, the tax authority will issue a Notice stating that the overpaid amount is ineligible for final settlement, using form No. 02/TB-KHTNT attached to Appendix I of this Circular, and the reasons for not settling the overpaid amount as requested by the taxpayer.

2. For taxpayers who are not operating at their registered address and have overpaid taxes as stipulated in point b, clause 3 and clause 4 of Article 60 of the Law on Tax Administration, the following procedures shall apply:

a) After 180 days from the date the tax authority issues a notice that the taxpayer is not operating at the registered address as prescribed by the law on tax registration, the directly managing tax authority shall announce the overpayment of the taxpayer using form No. 01/DSKNT issued with Appendix I of this Circular on the tax authority's website and in the mass media after the tax authority has offset the overpayment against the taxpayer's outstanding debt nationwide.

b) Before issuing the Notice of Overpayment as stipulated in point a of this clause, the directly managing tax authority is responsible for coordinating with the tax authority managing state budget revenue or the tax authority managing the allocated area to determine the overpayment and outstanding debt of taxpayers nationwide after the tax management application system has offset the amount as stipulated in point a.1, clause 10 of this Circular and prepare a Decision on Refund and Offset of State Budget Revenue according to mẫu số 02/QĐHT issued with Appendix I of this Circular (the refund amount equals the amount of debt offset, with no remaining amount to be refunded after offsetting). The tax authority shall prepare and send the Order for Refund and Offset of State Budget Revenue to the State Treasury as stipulated in Article 47 of this Circular.

c) After one year from the date of notification regarding the overpayment of a taxpayer not operating at the registered address on the tax authority's website and in the mass media as prescribed in point a) of this clause, if the tax authority does not receive a written response requesting a refund of the overpayment from the taxpayer, the directly managing tax authority shall issue a Decision not to refund the overpayment due to the taxpayer not operating at the registered address, using form No. 01/QD-KHTNT issued with Appendix I of this Circular, and settle the non-refundable overpayment of the taxpayer in the accounting books.

d) Within 03 working days from the date of settling the non-refundable overpayment of the taxpayer in the accounting records, the directly managing tax authority shall publicly announce the Decision on non-refundable overpayment due to the taxpayer not operating at the registered address on the tax authority's website.

3. For taxpayers with overpayments exceeding 10 years from the date of payment into the state budget, and who have not offset their tax obligations and have not received a refund as stipulated in point c, clause 3, Article 60 of the Law on Tax Administration:

a) Periodically, after March 31st of each year, the tax authority as stipulated in Clause 4 of this Article shall review and compile a list of overpaid taxes exceeding 10 years from the date of payment into the state budget that the taxpayer has not offset against tax obligations and has not claimed a refund, based on tax management data using Form No. 01/DSKNT issued with Appendix I of this Circular.

b) The directly managing tax authority shall send a Notice of Overpayment Exceeding the 10-Year Deadline, using Form No. 02/TB-KHTNT issued with Appendix I of this Circular, to the taxpayer. For overpayments by taxpayers who are not operating at their registered address or whose tax identification number has expired, the tax authority shall publicly announce the Notice on its website.

c) If, within 15 working days from the date the tax authority sends the Notice to the taxpayer or publishes it on the tax authority's website, the tax authority does not receive a response from the taxpayer, the tax authority shall issue a Decision not to refund the overpayment due to the taxpayer's overpayment exceeding 10 years, using form No. 01/QD-KHTNT issued with Appendix I of this Circular, and settle the taxpayer's overpayment in the accounting records.

d) Within 03 working days from the date of settling the overpayment in the accounting records, the tax authority shall publicly announce the Decision not to refund the overpayment due to the taxpayer's overpayment exceeding 10 years on the tax authority's website.

4. Authority to receive, process, and issue decisions on non-refundable overpayments.

a) Directly managed tax authority:

a.1) Receiving and processing documents refusing to refund overpaid amounts from taxpayers and issuing decisions not to refund overpaid amounts for amounts collected by the tax authority or by the tax authority managing the area allocated for collection management as stipulated in point b, clause 6, Article 3 of this Circular.

a.2) Processing and issuing decisions to not refund overpayments due to taxpayers not operating at their registered address under the direct management of the tax authority.

a.3) Processing and issuing decisions to not refund overpayments due to taxpayers having overpaid for more than 10 years, for overpayments collected by the tax authority or allocated by the tax authority managing the area as stipulated in point b, clause 6, Article 3 of this Circular.

b) The tax authority manages the collection of state budget revenue:

b.1) Receiving and processing documents refusing to refund overpaid amounts from taxpayers and issuing decisions not to refund overpaid amounts collected by the tax authority.

b.2) Coordinate the review of overpayments and outstanding debts before the directly managing tax authority issues a decision not to refund the overpayment due to the taxpayer not operating at the registered address, and carry out offsetting and settlement of the overpayments by the collecting authority according to the issued decision.

b.3) Processing and issuing decisions to not refund overpayments due to taxpayers having overpaid amounts exceeding 10 years for amounts collected by the tax authority.

c) The tax authority managing the area receives the allocation as stipulated in point b, clause 6, Article 3 of this Circular:

Coordinate the review of overpayments and outstanding debts managed by the tax authority before the directly managing tax authority issues a Decision not to refund the overpayments as stipulated in Clauses 1, 2, and 3 of this Article, and carry out offsetting and settlement of overpayments collected by the managing tax authority according to the issued decision.

Chapter V

TAX REFUND PROCEDURE

Section 1. TAX REFUNDS AS PROVIDED BY TAX LAW

Article 27. Responsibilities of tax authorities in processing tax refund applications

1. Cases of tax refund according to tax law regulations:

a) Value-added tax refund in accordance with the value-added tax law.

b) Refund of excise tax in accordance with the excise tax law for biofuels.

c) Tax refunds under Double Taxation Avoidance Agreements and other international treaties to which the Socialist Republic of Vietnam is a party.

2. Responsibility for receiving and processing tax refund applications in accordance with tax laws.

a) The Tax Department is responsible for receiving and processing tax refund applications as stipulated in Clause 1 of this Article (except for cases specified in points b and c of this Clause) for taxpayers directly managed by the Tax Department and taxpayers directly managed by the District Tax Office.

Specifically for the Tax Departments of Hanoi, Ho Chi Minh City, Binh Duong, and Dong Nai, the Director of the Tax Department may assign the Sub-Department to receive value-added tax refund applications from taxpayers under the Sub-Department's direct management and process these applications, including: classifying refund applications as subject to pre-refund or pre-refund inspection; determining the amount of tax to be refunded; determining the amount of tax debt, penalties, and late payment interest to be offset against the refunded amount; drafting a Decision on tax refund or a Decision on tax refund combined with offsetting against state budget revenue or a Notice of non-refund (if any); after which the Sub-Department transfers the entire file to the Tax Department to continue processing the tax refund in accordance with the regulations in this Circular.

b) The Tax Department where the taxpayer declares value-added tax for the investment project as stipulated in point a, clause 1, Article 11 of Decree No. 126/2020/ND-CP is responsible for receiving and processing tax refund applications for the taxpayer's investment project.

c) The tax authority directly responsible for management shall receive and process applications for refund of uncredited input value-added tax when there is a change of ownership, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations.

Article 28. Documents required for requesting value-added tax refund.

The application dossier for value-added tax refund as prescribed by the law on value-added tax (except for value-added tax refunds under international agreements; refunds of uncredited input value-added tax when changing ownership, converting businesses, merging, consolidating, dividing, separating, dissolving, going bankrupt, or ceasing operations, as prescribed in Articles 30 and 31 of this Circular) includes:

1. Request for refund of state budget revenue using form No. 01/HT issued together with Appendix I of this Circular.

2. The relevant documents for tax refund cases are as follows:

a) Cases of tax refund for investment projects:

a.1) A copy of the Investment Registration Certificate or Investment Certificate or Investment License in cases where the procedure for issuing an investment registration certificate is required;

a.2) For projects involving construction: A copy of the Certificate of Land Use Rights or the decision on land allocation or the land lease contract issued by the competent authority; and the construction permit;

a.3) Copy of the Charter Capital Contribution Certificate;

a.4) Copies of the Business License for conditional investment and business sectors; Certificate of eligibility to conduct business in conditional investment and business sectors; Documents from competent state agencies permitting investment and business in conditional investment and business sectors as prescribed in point c, clause 2, Article 10 of Government Decree No. 209/2013/ND-CP dated December 18, 2013 (amended and supplemented by Clause 6, Article 1 of Government Decree No. 100/2016/ND-CP dated July 1, 2016);

a.5) List of invoices and supporting documents for purchased goods and services according to mẫu số 01-1/HT issued with Appendix I of this Circular, except in cases where the taxpayer has already sent electronic invoices to the tax authority;

a.6) Decision to establish the Project Management Board, Decision to assign the management of the investment project by the investment project owner, Regulations on the organization and operation of the branch or the Investment Project Management Board (if the branch or Project Management Board handles tax refunds).

b) Cases of tax refund for exported goods and services:

b.1) List of invoices and supporting documents for purchased goods and services according to mẫu số 01-1/HT issued with Appendix I of this Circular, except in cases where the taxpayer has already sent electronic invoices to the tax authority;

b.2) List of customs declarations that have been cleared according to mẫu số 01-2/HT issued with Appendix I of this Circular for exported goods that have been cleared in accordance with customs law.

c) In the case of tax refunds for programs and projects using non-refundable official development assistance (ODA) funds:

c.1) In the case of non-refundable ODA funds directly managed and implemented by the program/project owner:

c.1.1) Copies of international treaties or agreements on non-refundable ODA funds or exchange documents on commitments and receipts of non-refundable ODA funds; copies of Decisions approving Project Documents, Non-Project Documents or Investment Decisions for programs and Project Documents or Feasibility Study Reports approved in accordance with points a and b, Clause 2, Article 80 of Government Decree No. 56/2020/ND-CP dated May 25, 2020.

c.1.2) Application for confirmation of eligible operating expenses using operating funds and application for payment of investment funds using investment funds, submitted by the project owner, as stipulated in point c, clause 2, Article 80 of Government Decree No. 56/2020/ND-CP dated May 25, 2020, and point a, clause 10, Article 10 of Government Decree No. 11/2020/ND-CP dated January 20, 2020.

c.1.3) List of invoices and supporting documents for purchased goods and services according to mẫu số 01-1/HT issued with Appendix I of this Circular.

c.1.4) A copy of the confirmation document from the managing agency of the ODA program/project to the program/project owner stating that the ODA program/project is a non-refundable ODA eligible for value-added tax refund and that the state budget does not provide counterpart funding to pay value-added tax.

c.1.5) In cases where the program/project owner assigns part or all of the program/project to another unit or organization for management and implementation in accordance with the law on the management and use of non-refundable ODA funds, but this content is not mentioned in the documents specified in points c.1.1 and c.1.4 of this clause, in addition to the documents specified in points c.1.1, c.1.2, c.1.3, and c.1.4 of this clause, a copy of the document from the program/project owner assigning the management and implementation of the non-refundable ODA program/project to the unit or organization requesting the tax refund must also be included.

c.1.6) In cases where the main contractor prepares the tax refund application, in addition to the documents specified in points c.1.1, c.1.2, c.1.3, and c.1.4 of this section, a copy of the contract signed between the project owner and the main contractor showing the payment price based on the bidding results excluding value-added tax must also be included.

Taxpayers are only required to submit the documents specified in points c.1.1, c.1.4, c.1.5, and c.1.6 of this section for their first tax refund application or when there are changes or additions.

c.2) In the case of non-refundable ODA funds directly managed and implemented by the donor:

c.2.1) Documents as prescribed in points c.1.1 and c.1.3 of this section;

c.2.2) In cases where the Donor designates a representative office of the Donor or an organization to manage and implement the program or project (except as stipulated in point c.2.3 of this section), but this information is not included in the documents specified in point c.1.1 of this section, the following additional documents must be provided:

c.2.2.1) A copy of the document assigning the management and implementation of the non-refundable ODA program or project from the donor to the donor's representative office or an organization designated by the donor;

c.2.2.2) A copy of the document from the competent authority regarding the establishment of the donor's representative office or the organization designated by the donor.

c.2.3) In cases where the main contractor prepares the tax refund application, in addition to the documents specified in point c.2.1 of this section, a copy of the contract signed between the donor and the main contractor, or a contract summary certified by the donor, must also be included, containing the following information: contract number, contract signing date, contract term, scope of work, contract value, payment method, and payment price based on the bidding results excluding value-added tax.

Taxpayers are only required to submit the documents specified in points c.1.1, c.2.2, and c.2.3 of this section for their first tax refund application or when there are changes or additions.

d) Cases of tax refund for goods and services purchased domestically using non-refundable aid funds that are not considered official development assistance:

d.1) Copies of the Decision approving the program, project, and non-project aid documents, and program, project, and non-project documents as stipulated in point a, clause 2, Article 24 of Government Decree No. 80/2020/ND-CP dated July 8, 2020;

d.2) Application for confirmation of eligible operating expenses for operating expenses and application for payment of investment capital for investment expenses of the project owner (in case of receiving non-refundable aid from state budget revenue sources) as prescribed in point b, clause 2, Article 24 of Government Decree No. 80/2020/ND-CP dated July 8, 2020 and point a, clause 10, Article 10 of Government Decree No. 11/2020/ND-CP dated January 20, 2020.

d.3) List of invoices and supporting documents for purchased goods and services according to mẫu số 01-1/HT issued with Appendix I of this Circular.

Taxpayers are only required to submit the documents specified in point d.1 of this section for their first tax refund application or when there are changes or additions.

d) Cases of tax refund for goods and services purchased domestically using international emergency aid funds for disaster relief and recovery in Vietnam:

d.1) A copy of the Decision on receiving emergency aid for relief (in the case of emergency international aid for relief) or the Decision on the policy of receiving emergency international aid to mitigate the consequences of natural disasters and the document on emergency international aid to mitigate the consequences of natural disasters (in the case of emergency international aid to mitigate the consequences of natural disasters) as prescribed in Clauses 6, 7, and 8 of Article 3 of Government Decree No. 50/2020/ND-CP dated April 20, 2020.

(d.2) List of invoices and supporting documents for purchased goods and services according to mẫu số 01-1/HT issued with Appendix I of this Circular.

Taxpayers are only required to submit the documents specified in point d.1 of this section for their first tax refund application or when there are changes or additions.

e) Cases of refund of preferential tax treatment for diplomatic exemptions:

e.1) A statement of value-added tax on goods and services purchased for diplomatic missions, using form No. 01-3a/HT issued with Appendix I of this Circular, with confirmation from the State Protocol Department under the Ministry of Foreign Affairs that the input costs are eligible for diplomatic exemption to be refunded.

e.2) List of diplomatic officials eligible for value-added tax refund according to mẫu số 01-3b/HT issued with Appendix I of this Circular.

g) Tax refund for commercial banks acting as VAT refund agents for departing passengers:

The list of documents for value-added tax refund for foreigners departing the country is in accordance with mẫu số 01-4/HT (form number 01-4/HT) issued with Appendix I of this Circular.

h) In the case of value-added tax refund based on a decision of a competent authority in accordance with the law: Decision of the competent authority.

Article 29. Documents required for requesting a refund of excise tax on biofuels.

1. Request for refund of state budget revenue using form No. 01a/DNHT issued together with Decree No. 14/2019/ND-CP dated February 1, 2019 of the Government.

2. A copy of the document from the competent state agency stating that the taxpayer is permitted to produce bioethanol, submitted as part of the initial special consumption tax refund application.

Article 30. Documents required for tax refund applications under Double Taxation Avoidance Agreements and other international treaties.

1. In the case of requesting a tax refund under a Double Taxation Avoidance Agreement, the dossier includes:

a) Application for tax refund under Double Taxation Avoidance Agreements and other international treaties, using form No. 02/HT issued with Appendix I of this Circular.

b) Documents related to the tax refund application, including:

b.1) A certificate of residence issued by the tax authority of the country of residence, legalized by consular authorities, clearly stating the resident status in which tax year;

b.2) Copies of economic contracts, service contracts, agency contracts, entrustment contracts, technology transfer contracts, or labor contracts signed with Vietnamese organizations or individuals; certificates of deposit in Vietnam; certificates of capital contribution to companies in Vietnam (depending on the type of income in each specific case) certified by the taxpayer;

b.3) A written confirmation from the Vietnamese organization or individual signing the contract regarding the actual time and operational status according to the contract (except in cases of tax refunds for foreign carriers);

b.4) Power of attorney in cases where an organization or individual authorizes a legal representative to carry out procedures for applying the tax agreement. If an organization or individual prepares a power of attorney to authorize a legal representative to carry out tax refund procedures into another party's account, consular legalization (if the authorization is done abroad) or notarization (if the authorization is done in Vietnam) is required according to regulations;

b.5) ​​List of tax payment documents according to mẫu số 02-1/HT issued with Appendix I of this Circular.

2. In cases where a tax refund is requested under another international agreement, the dossier includes:

a) Application for tax refund under Double Taxation Avoidance Agreements and other international treaties, using form No. 02/HT issued with Appendix I of this Circular, with confirmation from the agency proposing the signing of the international treaty.

b) Documents related to the tax refund application, including:

b.1) A copy of the international treaty;

b.2) A copy of the contract with the Vietnamese party, certified by the foreign organization, individual, or authorized representative;

b.3) A contract summary certified by the foreign organization, individual, or authorized representative. The contract summary includes the following contents: contract name and the names of the contract clauses, scope of work of the contract, tax obligations under the contract;

b.4) Power of attorney in cases where a foreign organization or individual authorizes a Vietnamese organization or individual to carry out tax refund procedures in accordance with international agreements. If an organization or individual prepares a power of attorney to authorize a legal representative to carry out tax refund procedures into another party's account, consular legalization (if the authorization is done abroad) or notarization (if the authorization is done in Vietnam) is required according to regulations;

b.5) ​​List of tax payment documents according to mẫu số 02-1/HT issued with Appendix I of this Circular.

Article 31. Documents required for requesting a refund of uncredited input value-added tax upon change of ownership, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations.

1. In cases where the tax authority is required to conduct an on-site inspection of the taxpayer's premises as stipulated in point g, clause 1, Article 110 of the Law on Tax Administration and Chapter VIII of this Circular, the taxpayer is not required to submit a Request for Refund of State Budget Revenue.

The tax authority shall base its decision on the inspection results in the Conclusion or Decision on Handling and other inspection documents to determine the amount of uncredited input value-added tax eligible for refund and process the refund for the taxpayer in accordance with the provisions of this Section.

2. In cases not subject to on-site inspection at the taxpayer's premises as stipulated in Clause 1 of this Article, the taxpayer shall prepare and submit a Request for Refund of State Budget Revenue using Form No. 01/HT issued with Appendix I of this Circular to the tax authority.

Article 32. Receiving applications for tax refunds

1. Request a tax refund using electronic documents.

a) Taxpayers submit their tax refund applications electronically through the General Department of Taxation's electronic portal or through other electronic portals as prescribed for electronic transactions in the tax field.

b) The acceptance of electronic tax refund applications from taxpayers shall be carried out in accordance with the regulations on electronic transactions in the tax field.

c) Within 3 working days from the date indicated on the Notice of Receipt of Tax Refund Application Form No. 01/TB-HT issued with Appendix I of this Circular, the tax authority processing the tax refund application as prescribed in this Circular (hereinafter referred to as the tax authority processing the tax refund application) shall issue a Notice of Acceptance of Tax Refund Application Form No. 02/TB-HT issued with Appendix I of this Circular or a Notice of Non-Refundability Form No. 04/TB-HT issued with Appendix I of this Circular in case the application is not eligible for a tax refund via the General Department of Taxation's electronic portal or other electronic portals where the taxpayer submits the electronic tax refund application.

2. Request a tax refund using paper documents.

a) In cases where taxpayers submit refund applications on paper to the tax authority, tax officials will check the completeness of the application according to regulations. If the application is incomplete, the tax official will request the taxpayer to complete the application as required. If the application is complete, the tax official will send a Notice of Receipt of Application (Form No. 01/TB-HT issued with Appendix I of this Circular) to the taxpayer and record the receipt of the application in the tax management application system.

b) In cases where taxpayers submit documents via postal service, tax officials shall stamp the documents as received, record the date of receipt, and register the documents in the tax management application system.

c) Within 03 working days from the date of receiving the tax refund application, the tax authority shall send a Notice of Acceptance of the Tax Refund Application (Form No. 02/TB-HT) or a Notice of Incorrect Application Procedure (Form No. 03/TB-HT) issued with Appendix I of this Circular for applications sent via postal service, or a Notice of Non-Refund (Form No. 04/TB-HT) issued with Appendix I of this Circular in cases where the applicant is not eligible for a tax refund.

3. Cancel the tax refund application.

If a taxpayer has submitted a tax refund application to the tax authority and wishes to cancel it, they must submit a written request to cancel the tax refund application using form No. 01/ĐNHUY issued with Appendix I of this Circular. Within 03 working days from the date of receiving the written request to cancel the tax refund application from the taxpayer, the tax authority processing the tax refund application shall send a notification of acceptance of the request to cancel the tax refund application using form No. 02/TB-HT issued with Appendix I of this Circular to the taxpayer, and simultaneously close the tax refund application in the tax authority's record book.

Taxpayers may amend their tax refund request to carry forward the deduction to the tax return of the next filing period from the time of receiving the Notice of Acceptance of the Request to Cancel the Tax Refund Application, provided they meet the conditions for declaration, deduction, or resubmission of the tax refund application.

If the tax authority has already announced a decision to conduct a pre-refund audit, the taxpayer is not allowed to submit a request to cancel the tax refund application. The tax authority will process the pre-refund audit application in accordance with Article 110 of the Law on Tax Administration and Chapter VIII of this Circular.

Article 33. Classification of tax refund applications

1. Documents subject to pre-refund verification are those falling under one of the following categories:

a) The taxpayer's application for an initial tax refund for each refund case as stipulated by tax law. If a taxpayer submits an initial tax refund application to the tax authorities but does not qualify for a refund, subsequent refund applications will still be considered initial applications. Specific cases are as follows:

a.1) Cases eligible for refund under value-added tax regulations include:

a.1.1) Refund of value-added tax on goods and services purchased for investment projects;

a.1.2) Refund of value-added tax on goods and services purchased for the production and business of goods and services for export;

a.1.3) Value-added tax refund for ODA programs and projects with non-refundable aid;

a.1.4) Value-added tax refund for goods and services purchased domestically using non-refundable aid funds not classified as official development assistance from foreign agencies and organizations.

a.2) First-time tax refund in accordance with the provisions of the law on special consumption tax.

a.3) Initial tax refund for each contract or agreement signed with organizations and individuals in Vietnam in accordance with the Double Taxation Avoidance Agreement and other international treaties to which the Socialist Republic of Vietnam is a party.

b) The taxpayer's application for a tax refund must be submitted within 02 years from the date of being penalized for tax evasion;

In cases where a taxpayer makes multiple tax refund requests within a two-year period, if, in the first request submitted after being penalized for tax evasion, the tax authority finds no false declarations resulting in underpayment of tax or overpayment of tax as stipulated in Article 142 of the Law on Tax Administration, or any tax evasion as stipulated in Article 143 of the Law on Tax Administration, then subsequent tax refund requests will not be subject to pre-refund inspection. However, if subsequent requests are found to contain false declarations or tax evasion as stipulated in Articles 142 and 143 of the Law on Tax Administration, the tax refund requests will still be subject to pre-refund inspection within the two-year period from the date of being penalized for tax evasion.

c) Documents for tax refund upon transfer and assignment (for state-owned enterprises), dissolution, bankruptcy, cessation of operations, and sale for organizations and enterprises;

In cases where taxpayers, as stipulated in this point, are subject to tax audit for the purpose of ceasing operations, and the amount of tax eligible for refund has been determined, the tax authority shall process the refund based on the audit results, without classifying the file as subject to pre-refund audit.

d) Tax refund applications are classified as high-risk tax cases according to the risk management classification in tax administration;

d) Tax refund applications that fall under the category of early refund but have exceeded the deadline as notified in writing by the tax authority, and the taxpayer has not provided explanations or supplementary documents, or has provided explanations or supplementary documents but has not been able to prove that the declared tax amount is correct;

e) Documents for value-added tax refunds for exported and imported goods not settled through commercial banks or other credit institutions as prescribed by law.

2. Documents eligible for early tax refund are those of taxpayers who do not fall under the cases specified in Clause 1 of this Article.

Article 34. Processing of tax refund applications

1. Determine the amount of tax to be refunded.

a) Principles for handling situations where the tax authority determines that the eligible tax refund amount differs from the amount requested by the taxpayer:

a.1) If the amount of tax requested for refund is greater than the amount of tax eligible for refund, the taxpayer will be refunded only the amount of tax eligible for refund.

a.2) If the amount of tax requested for refund is less than the eligible amount, the taxpayer will be refunded the amount of tax requested for refund.

b) For tax refund applications that are eligible for an upfront refund.

The tax authority will use the taxpayer's refund application and taxpayer information managed by the tax authority in its database to conduct a review of the taxpayer's application at the tax authority's headquarters to determine the eligibility and circumstances for a tax refund, specifically:

b.1) In cases where the tax refund application falls under the eligible categories and circumstances for tax refunds, the tax authority will compare the requested refund amount in the application with the taxpayer's tax declaration. The refunded tax amount must be declared in accordance with the Law on Tax Administration and its implementing regulations.

b.2) In cases where there is insufficient information to determine whether the taxpayer's tax refund application is eligible for a refund, the tax authority shall prepare a Notice of Explanation and Supplementation of Information and Documents according to mẫu số 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP and send it to the taxpayer within 03 working days from the date the tax authority receives the taxpayer's tax refund application. If the taxpayer applies for an electronic tax refund, the Notice shall be sent via the General Department of Taxation's electronic portal.

Within 10 working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting a written explanation or supplementary information and documents as requested by the tax authority's Notice.

If, after the deadline specified in the tax authority's notice, the taxpayer fails to provide explanations or supplementary documents for the tax refund application; or if the submitted explanation or supplementary documents fail to prove the accuracy of the declared tax amount, the tax authority shall transfer the tax refund application to the pre-refund audit category and send a Notice of Transfer to the Pre-Refund Audit Category (Form No. 05/TB-HT issued with Appendix I of this Circular) to the taxpayer within 06 working days from the date of acceptance of the tax refund application as stipulated in Article 32 of this Circular.

The period from the date the tax authority issues the Notice of Explanation, Additional Information, and Documents to the date the tax authority receives the taxpayer's explanation, additional information, and documents is not included in the tax authority's processing time for tax refund applications.

c) In cases where the tax refund application is subject to pre-refund verification:

During the tax refund application review process, if the tax authority determines that the tax amount is eligible for a refund, they will process the refund for the eligible amount to the taxpayer without waiting for the results of the full tax refund application verification; for tax amounts requiring verification or requiring the taxpayer to provide explanations or additional documents, the refund will be processed when all conditions are met according to regulations.

In cases where the pre-refund inspection report determines that the taxpayer has both eligible tax refunds and outstanding tax, late payment penalties, and fines, the tax authority shall issue a Decision on handling tax law violations and offset the taxpayer's eligible tax refund amount in the Decision on Tax Refund and Offset of State Budget Revenue, using form No. 02/QD-HT issued with Appendix I of this Circular.

d) If, during a tax audit or inspection, it is discovered that a taxpayer shows signs of tax evasion according to tax laws and also shows signs of criminal activity, the tax authority shall transfer the case file to the police for handling in accordance with the provisions of the Criminal Procedure Code.

d) If the tax inspection or audit deadline has passed but the tax authority has not yet received the results, opinions, or verification from the police or competent authority, the following procedures shall apply:

d.1) If the tax authority determines that the tax amount is eligible for refund, it will process the refund for the eligible amount to the taxpayer without waiting for the results of the full refund application; for the tax amount requiring verification or explanation and additional documentation from the taxpayer, the refund will be processed when all conditions are met according to regulations.

(d.2) In cases of post-refund audits and inspections, the tax authority must complete the audit and inspection within the prescribed timeframe. For tax amounts already refunded that are awaiting the results of verification from relevant agencies, the tax authority must clearly state in the audit report and conclusion that there is insufficient basis to conclude that the tax amount is eligible for a refund. Once the results of verification from relevant agencies are available, if the tax authority determines that the refunded tax amount is ineligible for a refund, it shall issue a Decision on the recovery of the refund using form No. 03/QD-THH attached to Appendix I of this Circular and impose penalties and calculate late payment interest (if any) as prescribed.

2. Determine the amount of tax, late payment penalties, fines, and other outstanding payments owed to the state budget that will be offset against the tax refund.

The tax authority processing the tax refund application will simultaneously refund and offset the amount of tax, late payment penalties, fines, and other outstanding payments owed to the state budget (hereinafter referred to as tax debt) against the amount of tax refunded to the taxpayer as prescribed.

Tax debts owed by taxpayers are offset (excluding tax debts currently undergoing debt write-off procedures, and tax debts paid in installments as stipulated in Articles 83 and 124 of the Law on Tax Administration), including:

a) Tax arrears are managed by the tax authorities through the tax management application system;

b) Outstanding tax amounts (excluding customs fees and charges) provided by the customs authority in accordance with the Regulations on Information Exchange and Coordination between the Customs Authority and the Tax Authority;

c) Tax arrears as requested in writing by agencies and organizations assigned to manage state budget revenues not under the tax authority's management as stipulated in Clause 3, Article 3 of the Law on Tax Administration (other agencies).

d) If the taxpayer has outstanding tax amounts at the head office but a subsidiary has tax arrears recorded in the tax management application system, the tax authority must continue to offset the amounts. If multiple subsidiaries have outstanding tax amounts, the offsetting order will prioritize the debt with the furthest payment deadline of the subsidiary.

If a subsidiary unit has outstanding tax refunds, these must be offset against the tax debt owed by the head office.

d) In cases where a taxpayer has remaining tax refunds and requests the tax authority to deduct the refunded amount to pay the outstanding tax on behalf of another taxpayer, the tax authority shall determine the refunded amount and offset it against the outstanding tax of the other taxpayer after offsetting the taxpayer's outstanding tax according to the procedures specified in points a, b, c, and d of this clause.

e) The tax authority is responsible for the amount of tax debt on the tax management application system; the customs authority is responsible for the amount of tax debt on the customs authority's system provided to the tax authority; and other agencies (agencies and organizations assigned to manage state budget revenues not managed by the tax authority as stipulated in Clause 3, Article 3 of the Law on Tax Administration) are responsible for the amount of state budget debt proposed for offsetting by the tax authority. After receiving the Decision on tax refund and offsetting of state budget revenue as stipulated in Article 36 of this Circular, if the taxpayer has any difficulties regarding the amount of tax debt offset against the amount of tax refunded, the tax authority directly managing the taxpayer, the customs authority, and other agencies proposing the debt offsetting are responsible for resolving the difficulties for the taxpayer as stipulated in this point.

If the amount of tax debt offset is higher than the actual tax debt, it is considered an overpayment. The tax authorities, customs authorities, and other agencies requesting the offsetting of tax debt shall handle the matter in accordance with the provisions of this Circular and relevant laws.

Article 35. Application of professional measures in processing tax refund applications.

1. The customs authority is responsible for the information on exported and imported goods on the Customs Declaration Form in accordance with customs law and tax administration law.

If the customs declaration form is not available in the customs authority's database, the tax authority processing the tax refund application will send a written request to the relevant customs authority to provide the form as a basis for processing the value-added tax refund for the taxpayer.

2. Based on the results of risk analysis and assessment, requirements for value-added tax refund management, or through inspections and detection of signs of violations of tax and customs laws, the tax authority is responsible for providing information on taxpayer violations to the customs authority to carry out customs inspection and supervision as prescribed.

The General Department of Taxation periodically, on the 20th of the following month, or on an ad hoc basis when necessary, sends a written request to the General Department of Customs to apply classification criteria for inspection and supervision of high-risk export and import goods for tax refund purposes. The request must clearly state the criteria for identification and the methods for inspection and supervision of export and import goods for the enterprise; the goods; and the geographical area and field of export and import activities, in accordance with the provisions of the Customs Law.

Within a maximum of 05 working days from receiving the request from the General Department of Taxation, the General Department of Customs must apply the criteria for classification and measures for inspection and supervision of imported and exported goods. If these criteria are not applied or if there are difficulties, the General Department of Customs shall send a written request to the General Department of Taxation within the aforementioned timeframe, clearly stating the reasons for not or not yet applying them.

3. In cases where tax audits and inspections reveal that a taxpayer purchasing goods or services from another taxpayer (the supplier of goods or services) has engaged in tax evasion, the tax authority must supplement the audit and inspection plan to the supplier of goods or services; or request the tax authority directly managing the supplier of goods or services to supplement the plan and conduct audits and inspections, or provide information on the supplier's compliance with tax laws to serve as a basis for resolving tax refund claims.

4. In cases where the taxpayer has payment transactions related to organizations or individuals with suspicious transactions according to the warning list of the banking inspection and supervision agency; or during tax audits, it is discovered that the taxpayer has bank payment documents with incomplete or incorrect information:

a) The tax authority processing the tax refund application shall issue a written request to the relevant credit institution or payment intermediary service provider to provide information (including account statements) of the payer (or transferor) and the beneficiary of the amount on the document (or individuals related to the beneficiary) in order to have a basis for processing the value-added tax refund;

b) The tax authority processing the tax refund application shall send a written request to the border customs authority to provide information on the amount of cash (foreign currency or Vietnamese Dong) brought through the border into Vietnam within 05 working days from the date of receiving the request from the tax authority, in order to have a basis for processing the value-added tax refund for goods exported across the land border as prescribed.

5. During the tax refund process, if the tax authority, through tax inspection and audit, discovers that the taxpayer shows signs of violating the law and has transferred the case to the police for investigation, or if the taxpayer's accounting books, invoices, and documents related to the requested tax refund are seized by a competent state agency, the tax authority must send a Notice of Ineligibility for Tax Refund (Form No. 04/TB-HT issued with Appendix I of this Circular) to the taxpayer. The tax authority will process the tax refund upon receiving the results or opinion from the police or competent authority, or upon receiving all required documents.

Article 36. Decision on tax refund

1. The tax authority processing the tax refund application determines the amount of tax to be refunded, the amount of tax not to be refunded, the amount of tax debt to be offset, the amount of tax proposed to be paid on behalf of another taxpayer to the state budget, the remaining amount of tax to be refunded to the taxpayer, prepares a tax refund proposal and drafts a Tax Refund Decision according to mẫu số 01/QĐHT (or Tax Refund and Offset Decision according to mẫu số 02/QĐHT), an Appendix of tax amounts, late payment penalties, and fines payable to be offset according to mẫu số 01/PL-BT (if any), and a Notice of Non-Refund According to mẫu số 04/TB-HT (if any) issued with Appendix I of this Circular.

2. The tax authority must fully update the tax refund application information on the tax management application system, including: tax declaration documents, refund request documents, tax refund inspection report (if any), decision on tax handling through inspection and audit of compliance with tax laws (if any), draft tax refund decision or tax refund decision combined with offsetting against state budget revenue, appendix of tax amount, late payment interest, and penalties payable to be offset according to form No. 01/PL-BT (if any), or notice of non-refund (if any).

3. The Tax Sub-department assigned to receive and process applications as stipulated in point a, clause 2, Article 27 of this Circular shall transfer all tax refund application files as stipulated in clauses 1 and 2 of this Article to the Tax Department for consideration and issuance of a tax refund decision. The Tax Department issues a Decision on tax refund according to form No. 01/QDHT in cases where the taxpayer no longer owes tax, or a Decision on refund and offsetting of state budget revenue according to form No. 02/QDHT, Appendix of tax amount, late payment interest, and penalties payable to be offset according to form No. 01/PL-BT (if any) in cases where the taxpayer still owes tax or the taxpayer requests offsetting the refunded tax amount with debts or revenues arising from other taxpayers, or a Decision on payment to the bank acting as a VAT refund agent as stipulated in Article 21 of Circular No. 72/2014/TT-BTC dated May 30, 2014 of the Ministry of Finance, amended and supplemented by Clause 15, Article 1 of Circular No. 92/2019/TT-BTC dated December 31, 2019 of the Ministry of Finance regarding tax refunds to banks acting as VAT refund agents, and a Notice of non-refund eligibility. Circular No. 04/TB-HT is issued together with Appendix I of this Circular. The Tax Department is responsible for making tax refund decisions in accordance with the law.

4. The tax authority (except as stipulated in Clause 3 of this Article) shall issue a Decision on tax refund using Form No. 01/QDHT attached to Appendix I of this Circular in cases where the taxpayer no longer owes tax, or a Decision on tax refund combined with offsetting state budget revenue using Form No. 02/QDHT, Appendix No. 01/PL-BT attached to Appendix I of this Circular in cases where the taxpayer still owes tax or the taxpayer requests offsetting the refunded tax amount against debts or revenues arising from other taxpayers, or a Decision on payment to the bank acting as the VAT refund agent as stipulated in Article 21 of Circular No. 72/2014/TT-BTC dated May 30, 2014 of the Ministry of Finance, amended and supplemented by Clause 15, Article 1 of Circular No. 92/2019/TT-BTC dated... Decision No. 31/12/2019 of the Ministry of Finance regarding tax refunds for banks acting as VAT refund agents.

5. The tax authority shall update and fully record all tax refund decisions, or tax refund decisions combined with offsetting against state budget revenue, or decisions on payment to banks acting as VAT refund agents, into the tax management application system on the same day the decision is issued.

Article 37. Issuance of Orders for Refund of State Budget Revenue or Orders for Refund and Offset of State Budget Revenue

1. The tax authority issues a Decision on tax refund or a Decision on tax refund combined with offsetting state budget revenue, and a Decision on payment to the bank acting as the VAT refund agent, and prepares an Order for refund of state budget revenue or an Order for refund combined with offsetting state budget revenue in accordance with regulations on the implementation of state budget accounting and State Treasury operations.

Immediately after the issuance of the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue, the tax authority shall send the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue to the State Treasury electronically; in cases where electronic transmission of refund information is not possible, the tax authority shall send the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue in paper form to the State Treasury for the purpose of refunding the tax to the taxpayer.

2. The State Treasury shall process tax refunds for taxpayers within one working day from the date of receiving the Order for Refund of State Budget Revenue or the Order for Refund and Offsetting of State Budget Revenue transferred by the tax authority.

Article 38. Returning the results of tax refund processing.

1. The tax authority shall send a Notice of Non-Refund (for non-refundable tax amounts), a Tax Refund Decision, or a Tax Refund and Offset Decision, or a Decision on Payment to the bank acting as the VAT refund agent, to the taxpayer, relevant agencies, and organizations via the General Department of Taxation's electronic portal on the same day or no later than the next working day from the date of issuance of the Decision or Notice.

2. In cases where the Tax Department issues a Decision on tax refund or a Decision on tax refund combined with offsetting against state budget revenue or a Decision on payment to a bank acting as a VAT refund agent for taxpayers managed by the District Tax Office, the Tax Department shall send the Decision to the District Tax Office for monitoring the taxpayer's obligations.

3. In cases where the taxpayer offsets the tax refund against the tax debt of another taxpayer or against the amount payable at another tax authority as stipulated in this Circular, the tax authority shall issue a Decision on tax refund and offsetting against state budget revenue and send the Decision to the tax authority managing state budget revenue and the tax authority managing the allocated area for offsetting to account for state budget revenue.

Article 39. Post-refund inspection and audit of taxpayers.

1. The tax authorities shall conduct post-refund inspections and audits in accordance with the provisions of Sections 1, 2, and 3 of Chapter XIII of the Law on Tax Administration and the provisions of the law on inspections and audits.

2. Based on the results of post-refund inspections and audits at the taxpayer's premises, if it is discovered that the refunded tax amount is not in accordance with regulations, the tax authority shall issue a Decision on the recovery of the refund using form No. 03/QD-THH attached to Appendix I of this Circular to recover the refunded tax amount from the taxpayer, impose penalties for violations, and calculate late payment interest (if any) as prescribed.

Article 40. Revocation of tax refunds

1. In cases where the tax authority or competent state agency, through inspection or audit, discovers that a taxpayer has received a refund improperly, the taxpayer must pay the excess refund amount and the corresponding late payment penalty as stipulated in Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget from the date the State Treasury disburses the refund or the date the State Treasury accounts for the offsetting of the tax refund against state budget revenue according to the Decision on the recovery of tax refunds (Form No. 03/QD-THH issued with Appendix I of this Circular) of the tax authority, or the Decision or Document of the competent state agency.

2. If a taxpayer discovers that they have received an incorrect refund, they must file a supplementary declaration as prescribed in Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; and simultaneously pay the overpaid amount and the corresponding late payment penalty as prescribed in Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget from the date the State Treasury disburses the refund or the date the State Treasury accounts for the tax refund against state budget revenue.

3. In cases where a taxpayer has been refunded value-added tax (VAT) for exported goods but the seller returns the exported goods, the taxpayer must file an amended tax return as prescribed in Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; simultaneously, they must pay the refunded amount corresponding to the returned exported goods and pay the corresponding late payment penalty as prescribed in Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget from the date the State Treasury disburses the refund or the date the State Treasury accounts for the offsetting of the VAT refund against state budget revenue.

4. Taxpayers may declare additional deductions for amounts incorrectly refunded but still meeting the conditions for value-added tax deduction as prescribed by value-added tax law, starting from the tax period following the period in which the error was discovered (in the case specified in Clause 2 of this Article), or declare this in the tax return for the tax period in which the tax authority issued a Decision on the recovery of the refund or a Decision or Document from a competent state agency (in the case specified in Clause 1 of this Article).

Section 2. REFUND OF EXCESS PAYMENT

Article 41. Responsibilities of tax authorities in receiving and processing applications for refund of overpaid taxes.

1. Responsibility for receiving refund applications for overpaid fees:

a) The directly managing tax authority is responsible for receiving applications for refunds of overpaid taxes (including cases of refunds of overpaid taxes according to corporate income tax settlements; refunds of overpaid value-added tax of taxpayers who have paid value-added tax as prescribed in points b and c, Clause 3, Article 13 of this Circular; refunds of overpaid taxes when changing ownership, converting businesses, merging, consolidating, dividing, separating, dissolving, going bankrupt, or ceasing operations) except for cases prescribed in points b and c of this Clause.

b) The tax authority responsible for managing state budget revenue is responsible for receiving applications for refunds of overpaid or erroneous payments made by taxpayers within its assigned revenue collection area.

c) The tax authority that receives the personal income tax return from individuals who directly file their tax return is responsible for receiving the refund of overpaid personal income tax returns.

2. Responsibilities for processing overpayment refund applications:

a) The tax authority receiving the overpayment refund application as stipulated in Clause 1 of this Article is responsible for processing the taxpayer's overpayment refund application, including: classifying the refund application as either eligible for a pre-refund or pre-refund audit; determining the amount of overpaid tax, late payment interest, and penalties to be refunded; determining the amount of outstanding tax, penalties, and late payment interest to be offset against the refund amount; issuing a Tax Refund Decision or a Tax Refund and Offset Decision or a Notice of Non-Refund (if any); issuing an Order for Refund of State Budget Revenue or an Order for Refund and Offset of State Budget Revenue to the State Treasury for the purpose of refunding the taxpayer as prescribed.

b) In cases where a taxpayer's overpayment refund application includes an overpayment in the area where the allocated revenue is received, the directly managing tax authority is responsible for coordinating with the tax authority managing the allocated area to process the overpayment refund application for the taxpayer in accordance with point a of this clause.

c) In cases where there is an overpayment refund due to ownership change, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations, and the overpayment occurs in other localities, the directly managing tax authority is responsible for coordinating with the tax authority managing state budget revenue or the tax authority managing the allocated locality to process the overpayment refund application in accordance with point a of this clause for the taxpayer.

Article 42. Documents for refunding overpaid amounts

1. Documents required for personal income tax refund on income from salaries and wages.

a) In cases where organizations or individuals paying income from salaries and wages carry out tax settlements for individuals who have authorized them to do so

Profile include:

a.1) A written request for processing overpaid tax, late payment penalties, and fines, using form No. 01/DNXLNT issued with Appendix I of this Circular;

a.2) Authorization document as prescribed by law in cases where the taxpayer does not directly carry out the tax refund procedure, except when a tax agent submits the tax refund application according to the contract signed between the tax agent and the taxpayer;

a.3) List of tax payment documents according to mẫu số 02-1/HT issued with Appendix I of this Circular (applicable to organizations and individuals paying income).

b) In cases where individuals with income from salaries and wages directly settle their tax obligations with the tax authorities, have overpaid taxes, and request a refund on their personal income tax return, they are not required to submit a tax refund application.

The tax authorities process refunds based on the personal income tax return to process refunds for overpaid taxes to taxpayers in accordance with regulations.

2. Documents for refunding overpaid taxes and other fees include:

a) A written request for processing overpaid tax, late payment penalties, and fines, using form No. 01/DNXLNT issued with Appendix I of this Circular;

b) Authorization document in cases where the taxpayer does not directly carry out the tax refund procedure, except when a tax agent submits the tax refund application according to the contract signed between the tax agent and the taxpayer;

c) Supporting documents (if any).

3. In cases of overpayment of taxes due to changes in ownership, business transformation, mergers, consolidations, divisions, separations, dissolutions, bankruptcies, or cessation of operations, which are subject to on-site inspection by the tax authority as stipulated in point g, clause 1, Article 110 of the Law on Tax Administration and Chapter VIII of this Circular, if the Conclusion or Decision on Handling and other inspection documents indicate an overpayment of taxes, the taxpayer is not required to submit a tax refund application as stipulated in this clause. The tax authority shall base its procedures for refunding the overpayment on the Conclusion or Decision on Handling and other inspection documents as prescribed.

Article 43. Receiving applications for refund of overpaid amounts.

The process of receiving refund applications for overpaid amounts shall be carried out in accordance with the provisions of Article 32 of this Circular.

Article 44. Classification of overpayment refund files

1. Documents for refunding overpaid taxes as stipulated in points b, c, d, and e of Clause 1, Article 33 of this Circular are subject to pre-refund verification.

2. Refund applications for overpaid taxes in cases not covered by Clause 1 of this Article are eligible for priority tax refunds.

Article 45. Processing of overpayment refund applications

1. Determine the amount of overpaid tax, late payment penalties, and fines that are eligible for refund.

a) The principle for handling cases where the tax authority determines that the eligible tax refund amount differs from the amount requested by the taxpayer shall be in accordance with the provisions of point a, clause 1, Article 34 of this Circular.

b) For tax refund applications that are eligible for a pre-refund.

The tax authorities will review the taxpayer's overpayment refund application and the taxpayer's tax obligation information and the amount of tax paid on the tax management application system to verify and determine whether an overpayment is eligible for a refund and the amount of overpaid tax, late payment penalties, and fines to be reimbursed.

b.1) In cases where the overpaid tax refund application falls under the eligible categories and circumstances for refund, the tax authority will compare the requested refund amount in the tax refund application with the tax declaration, and information on the taxpayer's tax compliance status on the tax management application system to determine the refund amount and the time when the overpaid tax arose, in accordance with tax laws.

b.2) In cases where there is insufficient information to determine whether the taxpayer's overpayment refund application falls under the eligible categories and circumstances for a refund, the tax authority shall prepare a Notice of Explanation and Supplementation of Information and Documents using Form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP and send it to the taxpayer within 03 working days from the date the tax authority receives the taxpayer's refund application. If the taxpayer applies for an electronic refund, the Notice shall be sent via the General Department of Taxation's electronic portal.

Within 10 working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting a written explanation or supplementary information and documents as requested by the tax authority.

If, after the deadline specified in the tax authority's notice, the taxpayer fails to provide explanations or supplementary documents for the tax refund application; or if the submitted explanation or supplementary documents fail to prove the accuracy of the declared tax amount, the tax authority shall transfer the tax refund application to the pre-refund audit category and send a Notice of Transfer to the Pre-Refund Audit Category (Form No. 05/TB-HT issued with Appendix I of this Circular) to the taxpayer within 06 working days from the date of acceptance of the tax refund application as stipulated in Article 32 of this Circular. The period from the date the tax authority issues the Notice requesting explanations or supplementary documents to the date the tax authority receives the taxpayer's explanation or supplementary documents is not included in the tax authority's processing time for the tax refund application.

c) For tax refund applications subject to pre-refund verification.

During the tax refund application review process, if the tax authority determines that the tax amount is eligible for a refund, it will process the refund for the eligible amount to the taxpayer without waiting for a full verification of the tax refund application; for tax amounts requiring verification or requiring the taxpayer to provide explanations or additional documents, the tax authority will process the refund when all conditions are met according to regulations.

In cases where the pre-refund inspection report determines that the taxpayer has both eligible tax refunds and outstanding late payment penalties or fines, the tax authority shall issue a Decision on handling tax law violations and offset the taxpayer's eligible tax refund amount in the Decision on Tax Refund and Offset of State Budget Revenue, using form No. 02/QD-HT issued with Appendix I of this Circular.

d) For overpayment refund applications from taxpayers with overpayments in the province where the allocated revenue is received, the directly managing tax authority shall preside over the consolidation of tax obligations and the amount of tax paid to the state budget at its head office and in the provinces where the allocated revenue is received. Within 3 working days from the date of receiving the taxpayer's tax refund application, the directly managing tax authority and the tax authority managing the allocated area as stipulated in point b, clause 6, Article 03 of this Circular must verify and confirm the amount of tax paid and the outstanding tax amount for each location where the allocated revenue is received. The tax authority is responsible for the completeness and accuracy of the data on the tax management application system as a basis for processing tax refunds for taxpayers in accordance with regulations.

d) For individual income tax refund applications with income from salaries and wages that are directly settled with the tax authorities, the tax authorities processing the personal income tax settlement applications will aggregate the amounts payable and paid by the taxpayer during the tax settlement period arising at tax authorities nationwide to determine the amount of overpaid according to the tax settlement.

e) For tax refund applications related to ownership transfer, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations, where there is an overpayment of tax, late payment penalties, or fines at the tax authority managing state budget revenue or the tax authority managing the allocated area as stipulated in point b, clause 6, Article 3 of this Circular, within 10 working days from the date of receiving the tax refund application from the taxpayer, the directly managing tax authority and the tax authority managing state budget revenue, or the tax authority managing the allocated area, must verify and confirm the outstanding tax, late payment penalties, and fines for each area. The tax authorities are responsible for the completeness and accuracy of the data on the tax management application system as a basis for resolving overpayment refunds for taxpayers as prescribed.

g) In cases where the taxpayer has paid value-added tax as prescribed in points b and c of Clause 3, Article 13 of this Circular, or corporate income tax as prescribed in point b of Clause 3, Article 17 of this Circular, and after offsetting with the obligations of the head office, there is an overpayment, the directly managing tax authority shall refund the excess amount to the taxpayer.

2. Determine the amount of tax, penalties, and late payment interest to be offset against the overpaid amount eligible for refund in accordance with the provisions of Clause 2, Article 34 of this Circular.

Article 46. Decision on tax refund

1. The tax authority receives and processes tax refund applications, determining the amount of tax to be refunded, the amount of tax not to be refunded, the amount of tax debt to be offset, the amount of tax proposed to be paid on behalf of another taxpayer to the state budget, the remaining amount of tax to be refunded to the taxpayer, and prepares a tax refund proposal and drafts a Tax Refund Decision, or a Tax Refund Decision combined with offsetting of state budget revenue, an Appendix of the amount of tax, late payment interest, and penalties overpaid to be refunded according to form No. 01/PL-HTNT (if any), an Appendix of the amount of tax, late payment interest, and penalties payable to be offset according to form No. 01/PL-BT (if any), or a Notice of Non-Refund (if any).

2. The tax authority must fully update the tax refund application system with the following information: tax declaration documents, refund request documents, tax refund inspection report (if any), decision on tax handling through inspection and audit of compliance with tax laws (if any), draft tax refund decision or tax refund decision combined with offsetting against state budget revenue, appendix of overpaid tax, late payment interest, and penalties to be refunded (if any), appendix of tax, late payment interest, and penalties payable to be offset (if any), or notice of non-refund (if any).

3. Based on the amount of tax refunded to the taxpayer and the amount of tax still owed, the head of the tax authority shall proceed in one of the following two cases:

a) Issue a Decision on tax refund according to mẫu số 01/QĐHT, and an Appendix specifying the amount of overpaid tax, late payment interest, and penalties to be refunded according to mẫu số 01/PL-HTNT (if any) issued with Appendix I of this Circular, in cases where the taxpayer no longer owes any tax.

b) Issue a Decision on tax refund and offsetting against state budget revenue according to mẫu số 02/QĐHT, Appendix of the amount of tax, late payment interest, and penalties overpaid to be refunded (if any), Appendix of the amount of tax, late payment interest, and penalties payable to be offset (if any) issued with Appendix I of this Circular in cases where the taxpayer still owes tax or the taxpayer requests offsetting the refunded tax amount against debts or revenues arising from other taxpayers.

4. The tax authority shall issue a Decision to update and fully record the Tax Refund Decision or the Tax Refund and Offset Decision into the tax management application system on the same day the Decision is issued. If the taxpayer is entitled to a refund in foreign currency, the tax authority shall convert the refunded amount into Vietnamese Dong according to the opening selling exchange rate of the Vietnam Foreign Trade Joint Stock Commercial Bank at the time the Tax Refund Decision or the Tax Refund and Offset Decision is issued.

Article 47. Issuance of Orders for Refund of State Budget Revenue or Orders for Refund and Offset of State Budget Revenue

1. Based on the Decision on tax refund or the Decision on tax refund combined with offsetting state budget revenue, the tax authority shall prepare an Order for refunding state budget revenue or an Order for refunding combined with offsetting state budget revenue in accordance with the regulations on the implementation of the State Budget Accounting System and the operational activities of the State Treasury.

Immediately after the issuance of the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue, the tax authority shall send the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue to the State Treasury electronically; in cases where electronic transmission of refund information is not possible, the tax authority shall send the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue in paper form to the State Treasury for the purpose of refunding the tax to the taxpayer.

The State Treasury processes tax refunds for taxpayers within the timeframe stipulated in the administrative procedures under the State Treasury's purview.

2. In the case of tax refunds for allocated revenue (except as stipulated in Clause 5 of this Article), the tax authority directly managing the head office shall determine the amount to be refunded to each province where state budget revenue was collected, the amount to be offset for each province that is entitled to the revenue, and prepare an Order for Refund of State Budget Revenue or an Order for Refund and Offset of State Budget Revenue to be sent to the State Treasury.

The State Treasury makes payments to taxpayers according to the Order for Refund of State Budget Revenue or the Order for Refund and Offset of State Budget Revenue issued by the tax authority, and accounts for the refund of the portion of state budget revenue that is the responsibility of its locality. Simultaneously, it transfers the documents to the State Treasuries where the state budget revenue was collected for accounting purposes, and to the entities entitled to the offset revenue for accounting purposes.

3. In cases of overpayment due to ownership transfer, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations, if the amount to be refunded is at the tax authority managing state budget revenue or the tax authority managing the allocated area, the directly managing tax authority shall determine the amount to be refunded to each province where state budget revenue was collected and the amount to be offset for each province that receives the revenue. The State Treasury shall refund the portion that is the responsibility of its locality and transfer the documents to the State Treasuries where state budget revenue was collected for accounting purposes, and to the provinces that receive the offset revenue for accounting purposes.

4. In cases where an individual directly settles their personal income tax return with the tax authority, the tax authority processing the application shall issue a Refund Order for State Budget Revenue or a Refund Order combined with Offset of State Budget Revenue and send it to the State Treasury for accounting purposes. The documents shall then be forwarded to the State Treasuries where the State Budget Revenue to be offset is located for accounting purposes.

5. In cases where the taxpayer has overpaid value-added tax or corporate income tax refunds as stipulated in point g, clause 10 of this Circular, the directly managing tax authority shall prepare a Refund Order for State Budget Revenue or a Refund Order combined with Offset of State Budget Revenue and send it to the State Treasury for accounting purposes. The refund will then be processed and the documents transferred to the State Treasuries where the State Budget revenue to be offset is located for accounting purposes.

Article 48. Returning the results of tax refund processing.

1. The tax authority shall send a Notice of Non-Refund (for non-refundable tax amounts), a Tax Refund Decision, an Appendix of overpaid tax amounts, late payment penalties, and fines (if any) according to Form No. 01/PL-HTNT, or a Tax Refund Decision combined with offsetting against state budget revenue, an Appendix of overpaid tax amounts, late payment penalties, and fines (if any) according to Form No. 01/PL-HNTKBT (if any) to the taxpayer and relevant agencies and organizations via the General Department of Taxation's electronic portal on the same day from the date of issuance of the decision or notice.

In cases where taxpayers do not have an electronic transaction account with the tax authority, the tax authority will send the results of the tax refund application through the tax authority's one-stop service department for refund applications received in person or for refund applications received via postal service.

2. In cases where a taxpayer has a refund or an amount offset against state budget revenue in multiple localities, the directly managing tax authority shall send the Tax Refund Decision, the Appendix of the overpaid tax amount, late payment interest, and penalties to be refunded (if any), or the Tax Refund Decision combined with offsetting state budget revenue, the Appendix of the overpaid tax amount, late payment interest, and penalties to be refunded and offset against state budget revenue (if any) to the tax authority managing state budget revenue and the tax authority managing the allocated locality for monitoring the taxpayer's obligations and accounting for state budget revenue.

3. In cases of overpayment due to ownership change, business transformation, merger, consolidation, division, separation, dissolution, bankruptcy, or cessation of operations, if there is an amount eligible for refund at the tax authority managing state budget revenue or the tax authority managing the allocated area, the directly managing tax authority shall send a Notice of Non-Refundable Tax, a Tax Refund Decision, or a Tax Refund and Offset Decision to the tax authority managing state budget revenue or the tax authority managing the allocated area.

Article 49. Post-refund inspection and audit of taxpayers.

Post-refund inspections and audits of taxpayers shall be carried out in accordance with the provisions of Article 39 of this Circular.

Article 50. Revocation of tax refunds

If a taxpayer discovers, or if the tax authority or competent state agency discovers through inspection or audit, that a taxpayer has been reimbursed for overpaid taxes improperly, the provisions of Clauses 1 and 2 of Article 40 of this Circular shall apply.

Chapter VI

Tax exemptions, tax reductions; installment tax payments; debt forgiveness for taxes, penalties, and late payments.

Article 51. Procedures, documents, and cases where taxpayers determine the amount of tax exempted or reduced.

1. Cases where taxpayers determine the amount of tax exemption or reduction themselves:

a) Corporate income tax: Taxpayers are entitled to preferential tax rates, tax exemption periods, tax reductions, and tax-exempt income according to corporate income tax laws;

b) Resource tax: Organizations and individuals engaged in the exploitation of natural marine resources are exempt from resource tax; individuals permitted to exploit branches, twigs, firewood, bamboo, reeds, and other similar materials for domestic use are exempt from resource tax; natural water exploited by households and individuals for domestic use; natural water used for hydroelectric power production by households and individuals for domestic use; land exploited and used on-site within allocated or leased land areas; land exploited for leveling and construction of security, military, and dike projects;

c) Business license fee: The business license fee is payable by those exempted from the fee as stipulated in Article 3 of Government Decree No. 139/2016/ND-CP dated October 4, 2016, on business license fees, and Clause 1, Article 1 of Government Decree No. 22/2020/ND-CP dated February 24, 2020, amending and supplementing a number of articles of Government Decree No. 139/2016/ND-CP dated October 4, 2016, on business license fees.

d) Personal income tax: Individuals with income from salaries and wages whose tax payable after the annual settlement is 50.000 VND or less;

d) In other cases, taxpayers determine the amount of tax exempted or reduced themselves in their tax return or tax exemption/reduction application submitted to the directly managing tax authority or the tax authority managing state budget revenue, except for the cases guided in Clause 1, Article 52 of this Circular.

2. Procedures for applying for tax exemption or reduction:

a) Regarding corporate income tax as stipulated in point a, clause 1 of this Article:

a.1) Tax return form;

a.2) Appendix on preferential corporate income tax rates;

a.3) Documents related to determining the amount of tax exempted or reduced.

b) Regarding the resource tax stipulated in point b, clause 1 of this Article:

b.1) Organizations and individuals are not required to file monthly resource tax returns and annual resource tax settlements.

b.2) Procedures for tax exemption for individuals permitted to harvest branches, twigs, firewood, bamboo, reeds, canes, and other similar plants for domestic use:

The application for tax exemption, using form No. 06/MGTH issued with Appendix I of this Circular, must be certified by the People's Committee of the commune where the individual resides. This document must be submitted once before exploitation to the Tax Sub-department where the individual resides.

b.3) Procedures for tax exemption on natural water used for hydropower production by households and individuals for domestic use:

The application for tax exemption, using form No. 06/MGTH issued with Appendix I of this Circular, must be accompanied by an explanation of the hydropower production equipment used for household purposes, certified by the People's Committee of the commune where the applicant resides. This application must be submitted once before commencement of operations to the tax authority directly managing the area where the operation takes place.

b.4) Procedures for tax exemption for land exploited and used on-site within the allocated or leased land area; land exploited for leveling and construction of security, military, and dike structures:

Organizations and individuals assigned or leased land for self-exploitation, or contractors undertaking construction, must submit a written request using form No. 06/MGTH issued with this Circular, along with a copy of the approved documents from the competent authority regarding the construction of projects in the investor's locality, including security, military, and dike construction projects; in the case of a contractor undertaking construction, a signed contract with the investor is required. This set of documents must be sent to the tax authority directly managing the exploitation area before exploitation begins to qualify for resource tax exemption..

c) For organizations and individuals engaged in the exploitation of natural marine resources and natural water resources exploited by households and individuals for domestic use, which are exempt from resource tax, and in cases where taxpayers determine the amount of tax exempted or reduced as guided in points c and d of Clause 1 of this Article, no procedures for tax exemption or reduction are required.

Article 52. Procedures, documents, and cases in which the tax authority notifies or decides on tax exemption or reduction.

1. The tax authorities will notify and decide on tax exemptions and reductions for the following cases:

a) Exemption from personal income tax for income as stipulated in Clauses 1, 2, 3, 4, 5, and 6 of Article 4 of the Law on Personal Income Tax;

b) Tax reductions as prescribed for individuals, household businesses, and individual business owners facing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes;

c) Reducing excise tax for taxpayers producing goods subject to excise tax who are facing difficulties due to natural disasters or unexpected accidents, in accordance with the law on excise tax;

d) Exemption or reduction of resource tax for resource taxpayers affected by natural disasters, fires, or unexpected accidents causing damage to declared and taxed resources;

d) Exemption or reduction of non-agricultural land use tax;

e) Exemption from or reduction of agricultural land use tax as prescribed by the Law on Agricultural Land Use Tax and Resolutions of the National Assembly;

g) Exemption from or reduction of land rent, water surface rent, and land use fees;

h) Exemption from registration fee.

2. The procedures for tax exemption and tax reduction applications in cases where the tax authority notifies or decides on tax exemption or reduction as stipulated in Clause 1 of this Article shall be carried out in accordance with the provisions of Articles 53, 54, 55, 59, 60, and 61 of this Circular.

Article 53. Procedures for tax exemption applications as stipulated in point a, clause 1, Article 52 of this Circular.

1. For cases of transfer, inheritance, or gift of real estate (including future housing, future construction projects, construction projects, and housing already handed over by the project owner but not yet granted a Certificate of Land Use Rights, Ownership of Housing and Assets Attached to Land according to the law on housing and the law on real estate business) between husband and wife, between biological parents and children, between adoptive parents and adopted children; between mother-in-law, father-in-law and daughter-in-law; between father-in-law, mother-in-law and son-in-law; between paternal grandparents and grandchildren; between maternal grandparents and grandchildren; and between siblings. The tax exemption dossier includes: Personal Income Tax Declaration Form No. 03/BDS-TNCN issued with Appendix II of this Circular and relevant documents to determine the tax exemption eligibility for each case, specifically as follows:

a) For real estate transfers, inheritances, or gifts between spouses, one of the following documents is required: a copy of the Household Registration Book, a copy of the Marriage Certificate, or a Court Decision on divorce or remarriage (for cases of house division due to divorce or consolidation of ownership due to remarriage).

b) For real estate transfers, inheritances, or gifts between biological parents and their children, one of the following documents is required: a copy of the Household Registration Book (if they share the same book) or a copy of the Birth Certificate. In the case of illegitimate children, a copy of the decision recognizing the parent-child relationship issued by the competent authority is required.

c) For real estate transfers, inheritances, or gifts between adoptive parents and adopted children, one of the following two documents is required: a copy of the Household Registration Book (if they share the same Household Registration Book) or a copy of the Decision recognizing the adoption issued by the competent authority.

d) For real estate transfers, inheritances, or gifts between grandparents and grandchildren, the following documents are required: a copy of the grandchild's birth certificate and a copy of the grandchild's father's birth certificate; or a copy of the household registration book showing the relationship between the grandparents and the grandchild; or other documents certified by a competent authority regarding the relationship between the grandparents and the grandchild.

d) For real estate transfers, inheritances, or gifts between maternal grandparents and grandchildren, the following documents are required: a copy of the grandchild's birth certificate and a copy of the grandchild's mother's birth certificate; or a copy of the household registration book showing the relationship between the maternal grandparents and the grandchild; or other documents certified by a competent authority proving the relationship between the maternal grandparents and the grandchild.

e) For real estate transfers, inheritances, or gifts between siblings, the following documents are required: a copy of the household registration book or a copy of the birth certificate of the transferor and the transferee showing a relationship with the same parents, or the same father but different mothers, or the same mother but different fathers, or other documents certified by a competent authority proving a blood relationship.

g) For real estate transfers, inheritances, or gifts between father-in-law, mother-in-law and daughter-in-law; or father-in-law, mother-in-law and son-in-law, the following documents are required: A copy of the household registration book clearly stating the relationship between the father-in-law, mother-in-law and daughter-in-law; or between the father-in-law, mother-in-law and son-in-law; or a copy of the marriage certificate and birth certificate of the husband or wife as a basis for determining the relationship between the transferor (father-in-law, mother-in-law) and daughter-in-law or father-in-law, mother-in-law and son-in-law.

h) In cases of real estate transfers, inheritances, or gifts that are exempt from tax as stated in Clause 1 of this Article, but the transferor or recipient of the inheritance or gift does not have a birth certificate or household registration book, confirmation from a competent authority regarding the relationship between the transferor and the recipient of the transfer, inheritance, or gift must be provided as a basis for determining tax-exempt income.

2. For cases where individuals are allocated land by the State without payment or with a reduction in land use fees as prescribed by law, the dossier includes:

A copy of the land allocation decision issued by the competent authority.

3. For cases involving the transfer of agricultural land allocated by the State to households and individuals for production purposes, the dossier includes: A written agreement on land transfer or a contract for the transfer of agricultural land between the parties, certified by the competent authority.

Copies of documents for real estate transfers and conversions of agricultural land exempt from tax as stipulated in Clauses 1, 2, and 3 of this Article must be notarized or certified by a competent authority.

4. For individuals transferring ownership of only one house or land use right in Vietnam, personal income tax is exempted according to regulations. The required documents include:

Individuals transferring property must file tax returns as prescribed in point 9.3, Appendix I, List of Tax Return Documents issued with Decree No. 126/2020/ND-CP. On Tax Return Form No. 03/BDS-TNCN issued with Appendix II of this Circular, individuals must self-declare tax-exempt income and clearly state that they are exempt from personal income tax as prescribed for their sole residential property or land use right, and are legally responsible for declaring that they own only one residential property or land use right in Vietnam.

Article 54. Procedures and documents for tax reduction as stipulated in point b, clause 1, Article 52 of this Circular.

1. For taxpayers facing difficulties due to natural disasters or fires.

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A report determining the extent and value of property damage, issued by a competent authority and certified by the local government at the commune level where the natural disaster or fire occurred, using form No. 02/MGTH attached to Appendix I of this Circular. The competent authority to determine the extent and value of damage is the financial agency or the appraisal agencies that determine the extent and value of property damage;

c) In case of damage to goods, the taxpayer shall provide an inspection report (inspection certificate) on the extent of damage from the inspection agency, and the inspection agency shall be legally responsible for the accuracy of the inspection certificate in accordance with the law;

d) In cases of damage to land and crops, the financial agency is responsible for determining the extent of the damage;

d) Documents confirming compensation from the insurance company or a compensation agreement from the arsonist (if any);

e) Expense documents directly related to disaster relief and fire prevention;

g) Personal income tax final settlement declaration form No. 02/QTT-TNCN issued together with Appendix II of this Circular (if the taxpayer requests a reduction in personal income tax on income from salaries and wages).

2. Documents for taxpayers facing hardship due to an accident.

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A written record or report confirming the accident, certified by the police or confirming the extent of injuries by a medical authority;

c) Documents confirming compensation from the insurance company or a compensation agreement from the person causing the accident (if any);

d) Expense documents directly related to accident remediation;

d) Personal income tax final settlement declaration form No. 02/QTT-TNCN issued together with Appendix II of this Circular (if the taxpayer requests a reduction in personal income tax on income from salaries and wages).

3. Documentation for taxpayers suffering from serious illnesses.

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the medical record or a summary of the medical record or the patient's examination book as prescribed by law on medical examination and treatment;

c) Documents proving medical examination and treatment expenses issued by a health authority; or invoices for the purchase of medicine accompanied by a doctor's prescription;

d) Personal income tax final settlement declaration form No. 02/QTT-TNCN issued together with Appendix II of this Circular (if the taxpayer requests a reduction in personal income tax on income from salaries and wages).

Article 55. Procedures and documentation for tax reduction applications for excise tax as stipulated in point c, clause 1, Article 52 of this Circular.

1. For taxpayers facing difficulties due to natural disasters, the tax reduction application includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A report determining the extent and value of property damage, issued by the competent authority and certified by the local commune-level government where the natural disaster occurred, using form No. 02/MGTH attached to Appendix I of this Circular;

The competent authority to determine the extent and value of damage is the financial agency or the appraisal agency that determines the extent and value of property damage.

In the case of damage to goods: the taxpayer must provide an inspection report (inspection certificate) on the extent of the damage from an inspection agency, and the inspection agency shall be legally responsible for the accuracy of the inspection certificate as prescribed by law.

c) Financial statements (if applicable to a business) accompanied by an explanatory analysis determining the amount of damage incurred and the amount of losses resulting from the damage.

2. For taxpayers facing hardship due to unforeseen circumstances, the tax reduction application includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A written record or report confirming the accident, certified by the police or confirming the extent of injuries by a medical authority;

c) Documents confirming compensation from the insurance company or a compensation agreement from the person causing the accident (if any);

d) Expense documents directly related to accident remediation.

Article 56. Procedures for tax exemption and reduction applications for resource tax as stipulated in point d, clause 1, Article 52 of this Circular.

1. For cases of exemption or reduction of resource tax due to natural disasters or fires causing damage to declared and taxed resources, the exemption or reduction application dossier includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular.

b) A report determining the extent and value of resource damage caused by the competent authority, with confirmation from the local commune-level government where the natural disaster or fire occurred, using form No. 02/MGTH issued with Appendix I of this Circular.

The competent authority to determine the extent and value of damage is the financial agency or the appraisal agency that determines the extent and value of property damage.

c) In case of damage to goods: The taxpayer must provide an inspection report (inspection certificate) from a legal authority regarding the extent of the damage, and the accuracy of the inspection certificate must comply with the law. The inspection authority is responsible for the accuracy of the inspection report.

2. For cases of exemption or reduction of resource tax due to unforeseen accidents causing damage to declared and taxable resources, the exemption or reduction application dossier includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A written record or report confirming the accident, certified by the police or confirming the extent of injuries by a medical authority;

c) Documents confirming compensation from the insurance company or a compensation agreement from the person causing the accident (if any);

d) Expense documents directly related to accident remediation.

Article 57. Procedures and documents for tax exemption and reduction for non-agricultural land use tax as stipulated in point d, clause 1, Article 52 of this Circular.

1. For cases of exemption or reduction of non-agricultural land use tax, except for exemption of non-agricultural land use tax for households and individuals with an annual tax payable of VND 50.000 (50 thousand dong) or less; the exemption/reduction application includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) Copies of documents related to the taxable land plot, such as: Land use right certificate, Land allocation decision, Land lease decision or contract, Decision permitting change of land use purpose;

c) A copy of the document proving eligibility for exemption or reduction of non-agricultural land use tax.

The head of the tax authority (where the land plot is directly managed) shall, based on the application for tax exemption or reduction as stipulated in this clause, determine the amount of non-agricultural land use tax to be exempted or reduced and decide on the exemption or reduction of non-agricultural land use tax for the taxpayer for each tax period.

For tax exemption applications falling under the provisions of Clauses 4, 5, and 6 of Article 9 and Clauses 2 and 3 of Article 10 of the Law on Non-Agricultural Land Use Tax, the head of the tax authority (where the land parcel is directly managed) shall issue a general decision based on the list proposed by the People's Committee of the commune. Annually, the People's Committee of the commune is responsible for reviewing and sending the list of eligible tax exemptions and reductions to the tax authority for implementation within its jurisdiction.

For tax exemption and reduction applications falling under the provisions of Clause 9, Article 9 and Clause 4, Article 10 of the Law on Non-Agricultural Land Use Tax, the head of the tax authority (where the land parcel is directly managed) shall issue a Decision on tax exemption and reduction based on the taxpayer's application and confirmation from the People's Committee of the commune where the damaged land is located.

2. In cases where households or individuals have an annual non-agricultural land use tax payable of VND 50.000 (50 thousand dong) or less, they are not required to submit an application for exemption from non-agricultural land use tax. The tax authority, through the TMS application, will generate a list of eligible taxpayers and send it to the People's Committee of the commune where the taxpayer owns the land for verification and confirmation of each household or individual eligible for exemption. Based on the list of eligible taxpayers sent by the People's Committee of the commune, the tax authority will issue a tax exemption decision according to its prescribed authority.

Article 58. Procedures and documents for tax exemption and reduction for agricultural land use tax as stipulated in point e, clause 1, Article 52 of this Circular.

1. In cases where taxpayers face difficulties due to natural disasters or fires, the exemption/reduction application includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A report determining the extent and value of property damage, issued by a competent authority and certified by the local commune-level government where the natural disaster or fire occurred, using form No. 02/MGTH attached to Appendix I of this Circular;

c) Financial statements (if applicable to a business) accompanied by an explanatory analysis determining the amount of damage incurred and the amount of losses resulting from the damage.

2. In cases where taxpayers face difficulties due to unforeseen accidents, the tax exemption/reduction application includes:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A written record or report confirming the accident, certified by the police or confirming the extent of injuries by a medical authority;

c) Documents confirming compensation from the insurance company or a compensation agreement from the person causing the accident (if any);

d) Expense documents directly related to accident remediation.

3. For cases of exemption or reduction of agricultural land use tax as prescribed by the Law on Agricultural Land Use Tax and its implementing regulations, the provisions of the Law on Agricultural Land Use Tax and its implementing regulations shall apply.

4. For cases of exemption from agricultural land use tax as stipulated in the National Assembly's Resolution for each period, the provisions of the National Assembly's Resolution and its implementing guidelines shall apply.

Article 59. Procedures and documents for exemption and reduction of land rent and water surface rent as stipulated in point g, clause 1, Article 52 of this Circular.

1. Documents for exemption from land and water surface lease fees during the basic construction period, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law);

c) A copy of the Investment Policy Decision issued by the competent authority in accordance with the law on investment (except in cases where the investment project is not subject to the issuance of an Investment Policy Decision in accordance with the law on investment) or the document approving the investment policy in accordance with the law on investment or the document approving the project in accordance with the law;

d) A copy of the Decision on land lease or water surface lease issued by the competent state agency.

2. Documents for exemption or reduction of land and water surface lease fees as stipulated by investment laws, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law and in cases where the State has allocated land without collecting land use fees and is now converting it to land lease or where the State has leased land and is now eligible for exemption or reduction of land lease fees);

c) A copy of the Investment Policy Decision issued by the competent authority in accordance with the law on investment (except in cases where the investment project is not subject to the issuance of an Investment Policy Decision in accordance with the law on investment) or the document approving the investment policy in accordance with the law on investment or the document approving the project in accordance with the law;

d) A copy of the Decision on land lease or water surface lease issued by the competent state agency.

3. Documents for exemption or reduction of land and water surface lease fees for cooperatives, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law);

c) A copy of the Investment Policy Decision issued by the competent authority in accordance with the law on investment (except in cases where the investment project is not subject to the issuance of an Investment Policy Decision in accordance with the law on investment) or the document approving the investment policy in accordance with the law on investment or the document approving the project in accordance with the law;

d) A copy of the Decision on land lease or water surface lease issued by the competent state agency.

4. Documents for cases of exemption from land and water surface lease fees not associated with new land leases as stipulated by the Government, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Decision on land lease or water surface lease issued by the competent state agency;

c) A copy of the document proving eligibility for exemption or reduction of land and water surface lease fees.

5. Documents for exemption from land and water surface lease fees for farmers, farm workers, and members of agricultural cooperatives receiving contracts from enterprises and agricultural production cooperatives as stipulated by the Government, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Decision on land lease, water surface lease or the Land lease, water surface lease contract as prescribed by land law;

c) A copy of the document proving eligibility for exemption or reduction of land and water surface lease fees.

6. Documents for exemption from land and water surface lease fees during periods of temporary suspension of operations due to force majeure, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A confirmation document from the investment registration authority regarding the period of temporary suspension of the project's operations, or a confirmation document from the competent state management agency;

c) A copy of the Decision on land lease or water surface lease issued by the competent state agency.

7. For cases where the investor implements a housing project for workers on land leased from an industrial park or industrial cluster infrastructure business, the dossier includes:

a) A written request in the form No. 01/MGTH issued with Appendix I of this Circular from an infrastructure business enterprise requesting exemption from land rent for the land area leased to a secondary investor to implement a housing project for workers;

b) A written request in the form No. 01/MGTH issued with Appendix I of this Circular from a secondary investor leasing land from an infrastructure business enterprise, requesting exemption from land rent to implement a housing project for workers;

c) A copy of the housing construction project for workers, prepared, appraised, and approved in accordance with the laws on investment and housing;

d) A copy of the Decision approving the investment project for the construction of housing for workers in accordance with the law;

d) A copy of the land sublease agreement between the investor implementing the housing project for workers and the enterprise operating the infrastructure of the industrial park or industrial cluster.

8. Documents for exemption or reduction of land rent for land used for the construction of scientific research facilities, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Certificate of High-Tech Enterprise, Science and Technology Enterprise, or Science and Technology Organization;

c) A copy of the land lease decision issued by the competent state agency.

9. Documents for exemption or reduction of land rent according to other regulations of the Government, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law and in cases where the State has allocated land without collecting land use fees and is now converting it to land lease or where the State has leased land and is now eligible for exemption or reduction of land lease fees);

c) A copy of the Investment Policy Decision issued by the competent authority in accordance with the law on investment (except in cases where the investment project is not subject to the issuance of an Investment Policy Decision in accordance with the law on investment) or the document approving the investment policy in accordance with the law on investment or the document approving the project in accordance with the law;

d) A copy of the Decision on land lease issued by the competent state agency;

d) A copy of the document proving eligibility for exemption or reduction of land rent.

10. Documents for reducing land rent for land used for agricultural, forestry, aquaculture, and salt production that suffers production losses due to natural disasters or fires, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) Minutes determining the output by the competent authority and confirmed by the local government at the commune level where the natural disaster or fire occurred, according to mẫu số 02/MGTH issued with Appendix I of this Circular;

The competent authority to determine the extent and value of damage is the financial agency or the appraisal agency that determines the extent and value of property damage.

In the case of damage to goods: the taxpayer must provide an inspection report (inspection certificate) on the extent of the damage from an inspection agency, and the inspection agency shall be legally responsible for the accuracy of the inspection certificate as prescribed by law.

c) A copy of the land lease decision issued by the competent state agency.

Article 60. Procedures and documents for exemption and reduction of land use fees as stipulated in point g, clause 1, Article 52 of this Circular.

1. For land within the allocated residential land limit for people who have rendered meritorious services to the revolution, the dossier includes:

Documents required for exemption or reduction of land use fees within the allocated residential land limit when using land to implement housing and residential land policies for people with meritorious services to the revolution, include:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) Relevant documents proving eligibility for exemption or reduction of land use fees according to the law on persons who have rendered meritorious services to the revolution;

c) Decisions or documents in accordance with the law on exemption or reduction of land use fees issued by the Provincial People's Committee or by agencies authorized or delegated by the Provincial People's Committee.

2. Documents for exemption from land use fees within the allocated residential land limit for poor households and ethnic minority households in areas with particularly difficult socio-economic conditions, border areas, and islands, according to the list of communes issued by competent state agencies; documents for reduction of land use fees within the allocated residential land limit for poor households and ethnic minority households not located in areas with particularly difficult socio-economic conditions, border areas, and islands, include:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) For households belonging to ethnic minorities, a household registration certificate is required (in areas where such certificates exist); or confirmation from the People's Committee at the commune level (in areas where household registration does not exist);

c) For poor households, they must have permanent residence registration in the locality within the area where land is eligible for exemption or reduction of land use fees, and have confirmation from the competent authority regarding their poverty status as prescribed by the Ministry of Labor, War Invalids and Social Affairs.

3. Documents for exemption from land use fees within the allocated land limit for residential purposes when issuing the first land certificate for land converted from non-residential to residential land due to household separation for ethnic minority households and poor households in particularly difficult communes in ethnic minority and mountainous areas, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A confirmation document from a competent state agency regarding the conversion of land use from non-residential land to residential land due to household separation;

c) Household registration book of ethnic minority households and poor households in particularly difficult communes in ethnic minority and mountainous areas (certified copy) or confirmation from the People's Committee of the commune (in places where there is no household registration); For households classified as poor, confirmation from the competent authority on poverty status as prescribed by the Ministry of Labor, War Invalids and Social Affairs is required.

4. Documents for exemption from land use fees for land allocated within the land allocation limit for fishing village households and people living on rivers, lagoons, and estuaries who relocate to resettlement areas and sites according to plans, projects, and programs approved by competent authorities, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the land allocation decision issued by the competent state authority.

c) A copy of the document from the competent state agency regarding the project implementation.

5. Documents for exemption from land use fees for the land area allocated within the land allocation limit for residential purposes, intended for resettlement or allocation to households and individuals in flood-prone residential clusters and areas according to projects approved by competent authorities, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Decision on allocating residential land for resettlement purposes issued by the competent state agency;

c) A copy of the document from the competent state agency approving the project implementation.

6. Documents for exemption or reduction of land use fees for investment projects in the social sector where the State allocates land with land use fees in accordance with the law before the effective date of the 2013 Land Law include:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law);

c) A copy of the Investment Policy Decision issued by the competent authority in accordance with the law on investment (except in cases where the investment project is not subject to the issuance of an Investment Policy Decision in accordance with the law on investment) or the document approving the investment policy in accordance with the law on investment or the document approving the project in accordance with the law;

d) A copy of the Decision on land allocation issued by the competent state agency for the implementation of the investment project.

7. Documents required for exemption or reduction of land use fees for cemetery and burial ground infrastructure investment projects include:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law);

c) A copy of the Investment Policy Decision (except in cases where an Investment License or Investment Registration Certificate is not required under investment law);

d) A copy of the Decision on land allocation issued by the competent state agency for the implementation of the investment project.

8. Documents required for exemption from land use fees for investors in social housing construction projects:

a) Documents for exemption from land use fees for social housing projects invested in accordance with Clause 1, Article 53 of the 2014 Housing Law:

a.1) The request document must be in the form No. 01/MGTH issued together with Appendix I of this Circular;

a.2) A copy of the Decision or document approving the investment policy or approving the investment project issued by the competent authority in accordance with the law;

a.3) A copy of the land allocation decision issued by the competent state authority.

b) Documents for exemption from land use fees for social housing projects invested in accordance with Clause 2, Article 53 of the 2014 Housing Law (except for cases specified in point c, this clause):

b.1) The request document must be in the form No. 01/MGTH issued together with Appendix I of this Circular;

b.2) A copy of the Decision or document approving the investment policy or approving the investment project issued by the competent authority in accordance with the law;

b.3) A copy of the land allocation decision issued by the competent state agency;

b.4) Commitment of enterprises and cooperatives regarding rental prices that do not exceed the rental prices issued by the provincial People's Committee in accordance with the law on housing.

c) Documents for exemption from land use fees for social housing projects invested in accordance with Clause 2, Article 53 of the 2014 Housing Law for employees of the unit renting the housing:

c.1) The request document must be in the form No. 01/MGTH issued together with Appendix I of this Circular;

c.2) A copy of the Decision or document approving the investment policy or approving the investment project issued by the competent authority in accordance with the law;

c.3) A copy of the land allocation decision issued by the competent state agency;

c.4) A copy of the list of employees of the enterprise or cooperative who have been allocated housing, certified by a competent state agency in accordance with the provisions of housing law;

c.5) Commitment of enterprises and cooperatives regarding rental prices that do not exceed the rental prices issued by the provincial People's Committee in accordance with the law on housing.

d) Documents for exemption from land use fees for social housing projects invested in accordance with Clause 3, Article 53 of the 2014 Housing Law:

d.1) The request document must be in the form No. 01/MGTH issued together with Appendix I of this Circular;

d.2) A copy of the Decision or document approving the investment policy or approving the investment project issued by the competent authority in accordance with the law;

d.3) A copy of the land management certificate issued by the state agency certifying the legal land area of ​​the investor for the purpose of investing in and constructing social housing, in accordance with land law regulations.

9. Documents for exemption from land use fees for other cases as per the Prime Minister's Decision, including:

a) The request form is in the format No. 01/MGTH issued with Appendix I of this Circular;

b) A copy of the Investment Certificate or Investment License or Investment Registration Certificate (except in cases where these documents are not required under investment law); or a Science and Technology Enterprise Certificate for science and technology enterprises;

c) A copy of the Investment Policy Decision (except in cases where an Investment License or Investment Registration Certificate is not required under investment law).

Article 61. Documents proving ownership of property or property in the application for exemption from registration fee.

1. For land allocated, leased, or recognized by the State for agricultural, forestry, aquaculture, and salt production purposes: Confirmation from the Land Use Rights Registration Office on the "Information Transfer Form for Fulfilling Land-Related Financial Obligations" stating that the land meets the conditions for granting a Certificate of Land Use Rights in the form of land allocation, lease, or recognition by the State.

2. For land used for community purposes by religious organizations and places of worship recognized or permitted to operate by the State: Documents proving that the religious establishment is permitted to operate by the State.

3. For houses, land, special assets, specialized assets, and assets serving national defense and security: An approval decision from the competent authority regarding the allocation or procurement of special assets, specialized assets, and assets serving national defense and security; or confirmation from the competent authority of the police or national defense agency regarding the land and property of the unit that are specialized assets serving national defense and security purposes.

4. Regarding houses and land eligible for compensation and resettlement:

a) Decision to reclaim the old house and land and decision to allocate a new house and land by the competent state agency.

b) Certificates of land use rights, house ownership, and assets attached to land of the land user whose land is being reclaimed by the State, issued by competent authorities, and which do not indicate any outstanding financial obligations.

In cases where the land user has fulfilled their obligation to pay registration fees but has not yet been issued or has lost the certificate: Proof of payment of registration fees by the owner of the house or land that was confiscated by the State; or confirmation from the land and house record management agency; or a decision on exemption from registration fees issued by a competent state agency.

c) Invoice or contract for the transfer of land use rights, legally valid house purchase contract as prescribed by law, accompanied by the original document proving receipt of money, compensation, or support from the land and house recovery agency (for cases where compensation or support is received in cash).

5. For the renewal of property ownership and usage rights certificates: Documents proving ownership and usage rights of the property that have been renewed.

6. Regarding the assets of a business that has been successfully equitized into a joint-stock company:

a) Decision of the competent authority on converting the enterprise into a joint-stock company or decision of the competent authority on restructuring the enterprise.

b) A list of assets transferred from the enterprise to the joint-stock company (for enterprises that are only partially equitized, there must be a decision on asset transfer from the enterprise) or to the new enterprise according to the enterprise restructuring decision of the competent authority; or a summary table of the results of inventory and reassessment of the enterprise's assets as prescribed, including the names of assets for which registration fees are declared.

7. For assets for which registration fees have already been paid, and which are received or contributed by organizations or individuals due to division, separation, merger, or acquisition:

a) Documents proving that the person owning the registered property is a member of that organization (Decision on the establishment of the organization or the organization's charter containing the name of the member contributing property or documents proving the contribution of property; or the name is listed in the business registration and there are documents proving the contribution of property).

b) Decisions on the dissolution, division, separation, merger, or consolidation of organizations and the distribution of assets to contributing members.

c) Proof of payment of registration fee (for cases where registration fee is payable); or Registration fee declaration form with the Tax Authority's determination stating: exemption from registration fee (for cases exempted from registration fee according to regulations); or Notification of payment of registration fee from the tax authority of the person transferring the property to the recipient; or Certificate of ownership or right to use the property registered in the name of the person contributing the property (for organizations receiving capital contributions and declaring registration fee); or Certificate of ownership or right to use the property registered in the name of the dissolved organization (for members receiving property and declaring registration fee).

d) Business cooperation contract (in the case of capital contribution), or decision on the division and transfer of assets in the form of capital increase or decrease by the competent authority (for the transfer of assets between member units or within a single budget unit).

8. For houses built out of compassion, solidarity, or humanitarian aid: Documents transferring land use rights and house ownership between the donor and the recipient.

9. For assets under finance lease:

a) Financial lease contracts are signed between the lessor and the lessee of assets in accordance with the laws on financial leasing.

b) Minutes of the financial lease contract termination between the lessor and the lessee.

c) Certificate of right to use and ownership of assets of the financial leasing company.

10. Replacement casings, frames, and assemblies must be re-registered within the warranty period:

a) Property warranty certificate.

b) A replacement asset release form, accompanied by a document from the seller returning the old asset to the buyer.

11. For cases proving family relationships, use one of the following documents depending on the relationship: Household registration book, marriage certificate, birth certificate, adoption decision of a competent state agency as prescribed by law, or confirmation of that relationship from a competent state agency.

12. For cases where a vehicle has been registered and issued a military license plate by the Ministry of National Defense, and is now permitted by the Ministry of National Defense to be converted to a military vehicle for economic purposes due to the conversion of a state-owned enterprise into a joint-stock company or other forms of restructuring of state-owned enterprises as prescribed by law:

a) Decision of the Chief of General Staff on the inclusion in military equipment (to determine whether the registered asset, issued a military license plate by the Ministry of National Defense, is exempt from or not subject to registration fee as prescribed).

b) Decision of the competent authority on converting the enterprise into a joint-stock company or decision of the competent authority on restructuring the state-owned enterprise.

c) A list of assets transferred from military vehicles serving national defense purposes by the enterprise to the joint-stock company or to a new enterprise in accordance with the enterprise restructuring decision of the competent authority; or a summary table of the results of inventory and reassessment of the enterprise's assets as prescribed.

13. For vessels, high-speed passenger boats, and container ships operating in the inland waterway transport sector, the exemption from registration fees is determined according to the Certificate of Technical Safety and Environmental Protection for Inland Waterway Vessels issued by the Vietnam Register, specifically:

The Certificate of Technical Safety and Environmental Protection for Inland Waterway Vessels issued by the Vietnamese registration authority states:

a) For "High-speed passenger ships (high-speed passenger vessels)":

a.1) Under the "purpose" section: write "passenger ship".

a.2) In the section “Certification that the vessel's technical characteristics and pollution prevention recorded in this certificate meet the technical requirements of current regulations and standards and are granted”: the vessel classification mark VRH HSC; VRM HSC; or in the section “Operating capability”: the vessel's speed of 30 km/h or more must be indicated.

b) For "Container ship," under the purpose section, write "container carrier."

Article 62. Procedures for tax exemption and reduction under the Double Taxation Avoidance Agreement (Tax Agreement)

1. For foreign contractors:

In addition to tax declarations, foreign contractors must also submit applications for tax exemptions or reductions in accordance with tax agreements.

a) For the deduction and declaration method:

a.1) When calculating provisional corporate income tax, taxpayers submit applications for tax exemption or reduction under tax agreements to the tax authorities at the same time as making quarterly provisional corporate income tax payments. The application includes:

a.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

a.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately before the year of notification, which qualifies the applicant for tax exemption or reduction under the tax agreement, and which has been consular legalized;

a.1.3) Copies of contracts signed with organizations and individuals in Vietnam and abroad, certified by the taxpayer;

a.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

a.2) If the taxpayer had already submitted a request for tax exemption or reduction under the tax agreement in the previous year, in subsequent years they only need to submit copies of the contracts signed with new organizations and individuals in Vietnam and abroad (if any), certified by the taxpayer.

a.3) When filing the corporate income tax return, taxpayers must submit a Certificate of Residence that has been legalized by the consular office for that tax year and confirmation of contract performance from the contracting parties along with the Corporate Income Tax Return.

b) For the direct method:

b.1) For business activities and other types of income:

b.1.1) Within 15 days before the tax filing deadline, the foreign contractor or the Vietnamese party signing the contract or paying income to the foreign contractor shall submit to the tax authority directly managing the Vietnamese party a dossier requesting tax exemption or reduction under the Tax Agreement, including:

b.1.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

b.1.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately before the year of notification, which qualifies the applicant for tax exemption or reduction under the tax agreement, and which has been consular legalized;

b.1.1.3) Copies of contracts signed with organizations and individuals in Vietnam, certified by the taxpayer;

b.1.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

b.1.2) In cases where securities trading activities do not involve a securities purchase and sale contract, the taxpayer shall submit a Certificate of Stock and Bond Custody Account certified by the Custodian Bank or securities company, using form No. 01/TNKDCK issued with Appendix I of this Circular.

b.1.3) For income from capital transfer activities: taxpayers must submit an additional certified copy of the capital transfer contract and a certified copy of the Investment Certificate of the Vietnamese company in which the foreign investor contributes capital.

b.1.4) For cases where foreign government agencies have income that is exempt from tax under the provisions on interest from loans of the Tax Agreement: The taxpayer shall submit a copy of the loan agreement signed between the foreign government agency and the organization or individual in Vietnam, certified by the taxpayer.

b.1.5) If a request for tax exemption or reduction under a tax agreement was submitted in the previous year, in subsequent years only copies of newly signed economic contracts with organizations and individuals in Vietnam and abroad (if any), certified by the taxpayer, need to be submitted.

b.1.6) Within 15 days before the end of the employment contract in Vietnam or before the end of the tax year (whichever comes first), the foreign contractor shall send the original (or certified copy) of the consularly legalized Certificate of Residence for that tax year to the Vietnamese party signing the contract or paying the income. Within 03 working days from the date of receiving the Certificate of Residence, the Vietnamese party signing the contract or paying the income shall submit the original (or certified copy) of this Certificate of Residence to the tax authority.

b.1.7) If the Certificate of Residence is not yet available at the above time, the foreign contractor is obligated to commit to submitting the original (or a certified copy) of the Certificate of Residence, legalized by consular authorities, in the quarter immediately following the end of the tax year.

b.2) For foreign airlines:

b.2.1) Within 15 days before commencing air travel or before the first tax period of the year (whichever comes first), the foreign airline's office in Vietnam shall submit to the tax authorities a notification of eligibility for tax exemption or reduction under the tax agreement. The dossier shall include:

b.2.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

b.2.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately before the year of notification, which qualifies the applicant for tax exemption or reduction under the tax agreement, and which has been consular legalized;

b.2.1.3) A copy of the license to operate in the Vietnamese market (flight permit) issued by the Civil Aviation Authority in accordance with the Civil Aviation Law, certified by the taxpayer;

b.2.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

b.2.2) If a request for tax exemption or reduction under the tax agreement was submitted in the previous year, then in subsequent years only copies of the new Vietnamese market operating license (flight permit) issued by the Civil Aviation Authority, with confirmation from the taxpayer (if any), need to be submitted.

b.2.3) Within 15 days before the end of the employment contract in Vietnam or before the end of the tax year (whichever comes first), the Vietnamese office of the foreign airline shall send the consular-legalized Certificate of Residence for that tax year and the Statement of International Transport Income for ticket sales in the Vietnamese market (Form No. 01-1/HKNN), and the Statement of International Transport Income for seat swapping and sharing in international air transport (Form No. 01-2/HKNN) for the relevant tax year to the tax authority as a basis for applying for exemption or reduction of corporate income tax from international transport activities of the foreign airline.

b.3) For foreign carriers:

b.3.1) When settling taxes, foreign carriers or their agents must submit to the tax authorities a request for tax exemption or reduction under the tax agreement. The dossier includes:

b.3.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

b.3.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country or territory where the foreign shipping company is located for the tax year immediately preceding the year of application for tax exemption or reduction under the Tax Agreement, which has been consular legalized.

b.3.2) Agents of foreign carriers in Vietnam or representative offices of foreign carriers are responsible for storing records, documents, and certificates in accordance with the Accounting Law, the Decree guiding the Accounting Law, and the Maritime Code, and presenting them when requested by the tax authorities.

b.3.3) In cases where a foreign carrier or its agent authorizes a legal representative to carry out the procedures for applying the tax agreement, an original copy of the authorization letter must also be submitted.

b.3.4) At the end of the year, the foreign carrier or its agent shall submit to the tax authority the consular-legalized Certificate of Residence of the shipping company for that year.

b.3.5) If a request for tax exemption or reduction under the tax agreement was submitted in the previous year, in subsequent years the foreign carrier or its agent only needs to notify any changes to the information requested in Form No. 01/HTQT of the previous year and provide the corresponding documents.

b.3.6) In cases where foreign carriers have agents in multiple localities in Vietnam, or where agents of foreign carriers have branches or representative offices (hereinafter referred to as branches) in multiple localities in Vietnam, the foreign carriers or their agents shall submit the original (or certified copy) of the consular-legalized Certificate of Residence to the local Tax Department where the agent of the foreign carrier has its head office; send a copy of the consular-legalized Certificate of Residence to the local Tax Departments where the foreign carrier has branches, and clearly state where the original (or certified copy) was submitted in the Request for Tax Exemption or Reduction under the Tax Agreement.

b.4) For foreign reinsurance:

Foreign reinsurance organizations directly submit applications for the application of the Tax Agreement for each year for all reinsurance contracts that they have signed or plan to sign in that year. Foreign reinsurance organizations may authorize tax agents, representative offices of their companies in Vietnam, or Vietnamese reinsurance companies to submit the applications. In this case, foreign reinsurance organizations submit two application dossiers to the tax authorities: a provisional application dossier and a formal application dossier. Specifically, as follows:

b.4.1) For provisional applications: 05 days before signing the contract; or 05 days after contract execution; or 05 days before payment, whichever occurs first, foreign reinsurance organizations are responsible for submitting provisional applications along with relevant documents to the tax authorities. Foreign reinsurance organizations with representative offices in Vietnam submit their applications to the Provincial/City Tax Department where the representative office is located. For foreign reinsurance organizations without representative offices in Vietnam:

b.4.1.1) In cases where foreign reinsurance organizations directly submit their applications, they should submit them to the Provincial/City Tax Department where the first Vietnamese reinsurance company is expected to sign the contract;

b.4.1.2) In cases where foreign reinsurance organizations authorize their legal representatives in Vietnam (Tax agents, auditing firms, or the first Vietnamese reinsurance company expected to sign the contract…) to submit the documents: Submit to the Provincial/City Tax Department where the legal representative is registered for tax payment.

b.4.1.3) The proposed application dossier includes: A proposed application form in accordance with mẫu số 01/TBH-TB issued with Appendix I of this Circular; The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence, legalized by consular authorities (for the year immediately preceding the year of submission of the proposed application); A list of reinsurance contracts already signed or planned to be signed in accordance with mẫu số 01-1/TBH-TB issued with Appendix I of this Circular; A power of attorney in case the taxpayer authorizes a legal representative to carry out the procedure for applying the tax agreement.

b.4.2) For formal applications: Within the first quarter of the following year, the foreign reinsurance institution is responsible for submitting a formal application to the tax authority along with similar related documents as for the submission of a provisional application.

The formal application dossier includes: A formal application form (Form No. 02/TBH-TB) issued with Appendix I of this Circular; The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence, legalized by consular services in that tax year; Copies of reinsurance contracts executed during the year, certified by the taxpayer (including both planned and unplanned contracts submitted to the tax authority) but not yet submitted to the tax authority; A list of contracts by type, using Form No. 02-1/TBH-TB issued with Appendix I of this Circular. At the time of submitting the formal application dossier, the taxpayer will classify the contracts and submit a list of contracts by type (with specific criteria); only one certified copy of each contract type should be submitted as a sample. The taxpayer is responsible for this statistical compilation. A power of attorney is required when a taxpayer authorizes a legal representative to carry out procedures for applying the tax agreement.

c) For the mixed method:

c.1) Within 15 days before the tax filing deadline, the foreign contractor shall submit to the tax authority where it is registered a request for tax exemption or reduction under the tax agreement. The dossier includes:

c.1.1) The request document must be in the form No. 01/HTQT issued together with Appendix I of this Circular;

c.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately preceding the year of application for tax exemption or reduction under the Tax Agreement, which has been legalized by consular authorities;

c.1.3) Copies of contracts signed with organizations and individuals in Vietnam, certified by the taxpayer;

c.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

c.2) If a request for tax exemption or reduction under a tax agreement was submitted in the previous year, then in subsequent years only copies of newly signed economic contracts with organizations and individuals in Vietnam and abroad, certified by the taxpayer (if any), need to be submitted.

c.3) Within 15 days before the end of the employment contract in Vietnam or before the end of the tax year (whichever comes first), the foreign contractor shall send the consular-legalized Certificate of Residence for that tax year to the tax authority where it is registered.

c.4) If, at the above time, the foreign contractor has not yet obtained the Certificate of Residence, it is obligated to commit to submitting the Certificate of Residence, legalized by consular authorities, in the quarter immediately following the end of the tax year.

2. For foreign individuals:

a) For individuals who are foreign residents and have income from salaries, wages, business income, capital investment income, royalties, income from real estate transfers, capital transfers, securities transfers, income from independent professional activities, and other income subject to tax, the income is paid through the Vietnamese party that signed the contract or made the income payment.

a.1) Within 15 days before executing a contract with Vietnamese organizations or individuals: The foreign individual shall send to the Vietnamese party signing the contract or paying the income a request for tax exemption or reduction under the tax agreement to be submitted to the tax authority directly managing the Vietnamese party along with the tax return for the first tax filing. The dossier includes:

a.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

a.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately preceding the year of application for tax exemption or reduction under the tax agreement, which has been legalized by consular authorities;

a.1.3) A copy of the employment contract with the foreign employer and a personal signature taking responsibility for that copy (if any);

a.1.4) A copy of the employment contract with the employer in Vietnam (for income from salaries, wages, and business income) or a copy of legal documents proving the source of the income (for other types of income), and the individual signs a commitment to take responsibility for the copy;

a.1.5) A copy of the passport used for entry and exit in Vietnam, with the individual signing a commitment to take responsibility for the accuracy of that copy;

a.1.6) A copy of the business registration certificate or professional license, or tax registration certificate issued by the country of residence for individuals with income from independent professional activities (income of doctors, lawyers, engineers, architects, dentists, accountants), certified by the taxpayer;

a.1.7) A copy of the business registration certificate or professional license issued by Vietnam (for professions that require business registration or a professional license under Vietnamese law) for individuals with income from independent professional activities (income of doctors, lawyers, engineers, architects, dentists, accountants) certified by the taxpayer;

a.1.8) Copies of contracts signed with organizations and individuals in Vietnam, certified by the taxpayer. Specifically:

a.1.8.1) In the case of real estate transfer: a copy of the real estate transfer contract.

a.1.8.2) In the case of capital transfer: a copy of the capital transfer contract; a copy of the investment certificate of the Vietnamese company in which the foreign investor contributes capital, certified by the taxpayer.

a.1.8.3) In the case of securities transfer: A copy of the securities purchase and sale contract. If the securities transaction does not have a securities purchase and sale contract, the taxpayer shall submit a certificate of securities and bond custody account certified by the custodian bank or securities company according to mẫu số 01/TNKDCK issued with Appendix I of this Circular.

a.1.9) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

a.2) If a request for tax exemption or reduction under the tax agreement was submitted in the previous year, then in subsequent years only copies of the employment contracts signed with new organizations and individuals in Vietnam and abroad (if any) need to be submitted.

a.3) Within 15 days before the end of the employment contract in Vietnam or before the end of the tax year (whichever comes first), the individual shall submit the Certificate of Residence for that tax year and a copy of their passport to the Vietnamese party signing the contract or paying the income. Within 03 working days from the date of receiving the Certificate of Residence, the Vietnamese party signing the contract or paying the income shall be responsible for submitting this Certificate of Residence to the tax authority.

a.4) If, at the above time, the foreign individual has not yet obtained a certificate of residence, they are obligated to commit to submitting the Certificate of Residence in the quarter immediately following the end of the tax year.

a.5) In cases where an individual is from a country or territory that has signed a tax agreement with Vietnam and does not have provisions for issuing a residence certificate, the individual shall provide a copy of their passport instead of a residence certificate.

a.6) If, at the time of submitting a copy of the passport, the individual's country or territory of residence cannot be determined, the individual is obligated to commit to submitting a copy of the passport in the first quarter of the following year.

b) For athletes and artists who are foreign residents and earn income from cultural and sports performances in Vietnam.

b.1) Within 15 days before the implementation of the contract (or cultural, sports, or physical education exchange program) with Vietnamese organizations or individuals: The foreign individual shall send to the Vietnamese party signing the contract or paying income the application for tax exemption or reduction under the tax agreement to be submitted to the tax authority directly managing the Vietnamese party along with the tax return for the first tax filing. The application includes:

b.1.1) The request document must follow mẫu số 01/HTQT (form number 01/HTQT) issued with Appendix I of this Circular;

b.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately preceding the year of application for tax exemption or reduction under the tax agreement, which has been legalized by consular authorities;

b.1.3) Certificate from the Vietnamese representative agency in cultural and sports exchange programs regarding the content of activities and income for which tax exemption is requested under the tax agreement;

b.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

b.2) Within 15 days before the end of the employment contract in Vietnam (or cultural, sports, or physical education exchange program) or before the end of the tax year (whichever comes first), the foreign individual shall send the Certificate of Residence for that tax year to the Vietnamese party that signed the contract or paid the income. Within 03 working days from the date of receiving the Certificate of Residence, the Vietnamese party that signed the contract or paid the income shall be responsible for submitting this Certificate of Residence to the tax authority.

b.3) If, at the above time, the foreign individual has not yet obtained a certificate of residence, they are obligated to commit to submitting the Certificate of Residence in the quarter immediately following the end of the tax year.

b.4) In cases where there is no employment contract with an employer abroad or an employment contract with an employer in Vietnam, the taxpayer may submit to the tax authority an appointment letter or other equivalent documents that are valid as an employment contract.

b.5) ​​In cases where an individual is from a country or territory that has signed a tax agreement with Vietnam and there is no provision for issuing a certificate of residence, the individual shall provide a copy of their passport instead of a Certificate of Residence. The individual is responsible for committing to and bearing responsibility for the absence of a provision for issuing a certificate of residence in the application for tax exemption or reduction under the tax agreement.

b.6) If, at the time of submitting the passport copy, the individual's country or territory of residence cannot be determined, the individual is obligated to commit to submitting the passport copy in the first quarter of the following year.

c) For individuals who are foreign residents and have income from salaries, wages, business income, or income from inheritance or gifts arising in Vietnam, paid by organizations or individuals abroad (including cases where non-resident individuals have income in Vietnam but receive income abroad).

c.1) On the filing date of the first tax return, individuals who are foreign residents, either directly or through an authorized representative in Vietnam, shall submit to the Tax Department directly managing the area where the individual works or conducts business a request for tax exemption or reduction under the tax agreement. The application includes:

c.1.1) The request document must be in the form No. 01/HTQT issued together with Appendix I of this Circular;

c.1.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence immediately preceding the year of application for tax exemption or reduction under the tax agreement, which has been consular legalized;

c.1.3) A copy of the employment contract or a copy of legal documents proving the source of income or the right to receive inheritance or gifts (for income from salaries, wages, or income from inheritance or gifts) or a copy of the economic contract signed with Vietnamese organizations or individuals (for income from business) and the individual signs a commitment to take responsibility for that copy;

c.1.4) A copy of the passport used for entry and exit in Vietnam, with the individual signing a commitment to take responsibility for the accuracy of that copy;

c.1.5) A copy of the business registration certificate or professional license, and tax registration certificate issued by the country of residence for individuals with income from independent professional activities (income of doctors, lawyers, engineers, architects, dentists, accountants), certified by the taxpayer;

c.1.6) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

c.2) If a request for tax exemption or reduction under the tax agreement was submitted in the previous year, then in subsequent years only copies of the employment contracts signed with new organizations and individuals in Vietnam and abroad (if any) need to be submitted.

c.3) Within 15 days before the end of the employment contract in Vietnam or before the end of the tax year (whichever comes first), the individual, either in person or through an authorized representative in Vietnam, shall submit the Certificate of Residence for that tax year and a copy of their passport to the tax authority directly managing the area where the individual works or conducts business.

c.4) If, at the above time, the foreign individual has not yet obtained a certificate of residence, they are obligated to commit to submitting the Certificate of Residence in the quarter immediately following the end of the tax year.

c.5) In cases where an individual is from a country or territory that has signed a tax agreement with Vietnam and does not have provisions for issuing a residence certificate, the individual shall provide a copy of their passport instead of a residence certificate.

c.6) If, at the time of submitting the passport copy, the individual's country or territory of residence cannot be determined, the individual is obligated to commit to submitting the passport copy in the first quarter of the following year.

d) For individuals who are residents of Vietnam, they are entitled to tax exemptions and reductions on income as stipulated in the Articles on income from government services, income of students and vocational trainees, and income of teachers, professors, and researchers.

d.1) Within 15 days before executing a contract with Vietnamese organizations or individuals, the foreign individual shall submit to the Vietnamese party signing the contract or paying the income a dossier requesting tax exemption or reduction under the tax agreement to be submitted to the tax authority directly managing the Vietnamese party along with the tax return of the first tax filing. The dossier includes:

d.1.1) The request document must be in the form No. 01/HTQT issued together with Appendix I of this Circular;

d.1.2) Original (or certified copy) of the Certificate of Residence issued by the tax authority immediately before the year of notification, which qualifies for tax exemption or reduction under the Tax Agreement.

d.1.3) Certificate from the Vietnamese representative agency relating to income-generating activities for which tax exemption is requested under the tax agreement.

d.1.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

3. Deduct taxes paid abroad from taxes payable in Vietnam.

Organizations and individuals residing in Vietnam who have paid taxes in a country that has signed a tax agreement with Vietnam, and whose tax payments comply with the laws of that country and the provisions of the tax agreement, are entitled to deduct the amount of tax paid (or deemed paid) in that country from the tax payable in Vietnam. The procedure for deducting the tax paid abroad from the tax payable in Vietnam is as follows:

a) Taxpayers submit an application to the tax authority directly managing their tax affairs requesting the deduction of taxes paid (or considered paid) abroad from taxes payable in Vietnam. The application includes:

a.1) Application for deduction of foreign tax from tax payable in Vietnam under the Tax Agreement, using form No. 02/HTQT issued with Appendix I of this Circular, which provides information on the transaction related to the foreign tax amount requested to be deducted from the tax payable in Vietnam within the scope of the Tax Agreement.

a.2) Other documents depending on the type of deduction requested. Specifically:

a.2.1) Direct deduction case: The taxpayer has paid tax in a country that is a signatory to the Agreement with Vietnam and is entitled to deduct it from the tax payable in Vietnam in accordance with the provisions of the tax agreement.

a.2.1.1) A certified copy of the foreign income tax return;

a.2.1.2) A certified copy of the foreign tax payment receipt;

a.2.1.3) Original confirmation from the foreign tax authority regarding the amount of tax paid.

a.2.2) Case of deducting lump-sum tax: Taxpayers who have income and would otherwise have to pay tax in a Contracting State with Vietnam, but are exempted or granted a reduction as a special preferential measure under the law of that Contracting State, may deduct this amount from the tax payable in Vietnam as stipulated in the tax agreement.

a.2.2.1) A certified copy of the foreign income tax return;

a.2.2.2) A copy of the business registration certificate or other legal documents confirming business operations abroad, certified by the taxpayer;

a.2.2.3) A confirmation letter from a competent foreign authority regarding the amount of tax exempted or reduced and confirming that the proposed deduction of the lump-sum tax is in accordance with the tax agreement and the laws of the relevant Contracting State.

a.2.3) Indirect deduction case: The taxpayer has already paid corporate income tax on income before it is distributed to that recipient in a country that has signed a tax agreement with Vietnam, and is entitled to deduct it from the tax payable in Vietnam in accordance with the provisions of the tax agreement.

a.2.3.1) Legal documents proving the relationship and capital contribution ratio of the entity requesting the deduction;

a.2.3.2) A copy of the foreign income tax return of the company distributing dividends in which the investor contributed capital, certified by the taxpayer;

a.2.3.3) A certified copy of the withholding tax return for dividends received;

a.2.3.4) Confirmation from the foreign tax authority regarding the amount of tax paid on the distributed shares and the amount of corporate income tax paid before the distribution of dividends.

a.3) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

b) The tax authority shall review and process the application for tax paid abroad that is deductible from the tax payable in Vietnam, in accordance with the tax agreement and the guidelines in this Circular, within 10 working days from the date of receiving the complete application as stated in point a of this clause. The 10 working days period does not include the time for supplementing and clarifying the application.

4. Proposal to apply the Bilateral Agreement Procedure under the Double Taxation Avoidance Agreement.

a) A taxpayer who is a resident of Vietnam may request the application of bilateral agreement procedures with the Vietnamese tax authority when they believe that the resolution by the foreign tax authority has resulted or will result in the taxpayer being charged taxes that are not in accordance with the provisions of the tax agreement. A taxpayer who is a resident of a foreign country may request the application of bilateral agreement procedures with the foreign tax authority where the taxpayer is a resident.

b) This guidance does not cover the bilateral agreement procedure for Advance Pricing Agreements (APAs).

c) The taxpayer requests the application of the bilateral agreement procedure within the time limit stipulated in the Bilateral Agreement Procedures section of each tax agreement.

d) The taxpayer submits an application for the bilateral agreement procedure to the General Department of Taxation. The application includes:

d.1) A written request to apply for the bilateral agreement procedure using form No. 01/DTA-MAP issued with Appendix I of this Circular;

d.2) Financial statements and tax returns related to the proposed application of the bilateral agreement procedure;

d.3) Documents relating to the notification of tax liability from a foreign tax authority;

d.4) Documentation on determining the transfer pricing of related-party transactions of the taxpayer for the tax period for which the bilateral agreement procedure is requested (for the bilateral agreement procedure on determining transfer pricing);

d.5) Information, documents, contracts, detailed descriptions of transactions and activities related to determining tax obligations and the basis for the applicant's argument regarding the bilateral agreement procedure on tax agreement provisions applied by the foreign tax authority that are inconsistent with the provisions of the tax agreement, and the applicant's analysis related to determining tax obligations;

d.6) Documentation proving tax payment in cases where the applicant has paid the tax related to the request for the application of the bilateral agreement procedure;

d.7) A copy of the request for the application of the bilateral agreement procedure and accompanying documents in cases where the applicant has already submitted or will submit a request for the application of the bilateral agreement procedure to the foreign tax authority;

d.8) A copy of the complaint request document and accompanying documents in case the applicant has already submitted or will submit a complaint under other complaint resolution mechanisms inside and outside Vietnam, and the results of the complaint resolution (if any).

d) The General Department of Taxation receives requests from taxpayers who are residents of Vietnam to apply for bilateral agreement procedures and carries out bilateral agreement procedures with foreign tax authorities in accordance with the provisions of the tax agreement.

Article 63. Procedures for tax exemption and reduction under international treaties other than double taxation avoidance agreements.

1. In cases where foreign organizations or individuals register, declare, and pay taxes directly with the tax authorities:

a) Within 03 working days from the date of signing the contract with the Vietnamese party, the foreign organization or individual shall submit to the tax authority where they are registered the application for tax exemption or reduction, including:

a.1) The request document, in the form No. 01/DUQT issued with Appendix I of this Circular, must be certified by the agency proposing the signing of the international treaty;

a.2) A copy of the international treaty;

a.3) A copy of the contract with the Vietnamese party, certified by the foreign organization, individual, or authorized representative;

a.4) A contract summary certified by the foreign organization, individual, or authorized representative. The contract summary includes the following contents: Contract name and names of contract clauses, scope of work of the contract, tax obligations under the contract;

a.5) Power of attorney in cases where a foreign organization or individual authorizes a Vietnamese organization or individual to carry out procedures for requesting tax exemption or reduction. The power of attorney must bear the signatures of representatives from both parties.

b) In cases where, due to the specific nature of the transaction, the foreign organization or individual cannot provide the contract with the Vietnamese party, the foreign organization or individual shall submit documents equivalent to a contract and provide a detailed explanation in the Request Form No. 01/DUQT issued with Appendix I of this Circular for the tax authority to consider and decide.

2. In cases where foreign organizations or individuals do not register, declare, and pay taxes directly with the tax authorities:

a) For foreign organizations and individuals:

a.1) On the date of signing the contract with the Vietnamese party, the foreign organization or individual sends to the Vietnamese party a dossier requesting tax exemption or reduction, including:

a.1.1) The request document, in the form No. 01/DUQT issued with Appendix I of this Circular, must be certified by the agency proposing the signing of the international treaty;

a.1.2) A copy of the international treaty;

a.1.3) A copy of the contract with the Vietnamese party, certified by the foreign organization, individual, or authorized representative;

a.1.4) A contract summary certified by the foreign organization, individual, or authorized representative. The contract summary includes the following contents: contract name and the names of the contract clauses, scope of work of the contract, tax obligations under the contract;

a.1.5 Power of attorney in cases where a foreign organization or individual authorizes a Vietnamese organization or individual to carry out procedures for requesting tax exemption or reduction. The power of attorney must bear the signatures of representatives from both parties.

a.2) In cases where, due to the specific nature of the transaction, the foreign organization or individual cannot provide the contract with the Vietnamese party, the foreign organization or individual shall submit documents equivalent to a contract and provide a detailed explanation in the application for tax exemption or reduction for the tax authority to consider and decide.

b) For the Vietnamese side:

Within 03 working days of receiving the application for tax exemption or reduction from a foreign organization or individual, the Vietnamese party is obligated to forward the taxpayer's application for tax exemption or reduction to the tax authority where the Vietnamese party is registered for tax.

Article 64. Time limit and results of processing tax exemption and reduction applications.

1. Time limit for processing tax exemptions and reductions

Within 30 days of receiving complete documents, the tax authority shall issue a decision on tax exemption or reduction; notify the taxpayer in writing of the reasons why they are not eligible for tax exemption or reduction; and inform them whether or not they are eligible for tax exemption or reduction under the tax agreement or other international treaty.

In cases where on-site verification is necessary to obtain sufficient grounds for processing tax exemption or reduction applications, within 40 days from the date of receiving complete documents, the tax authority shall issue a decision on tax exemption or reduction; notify the taxpayer in writing of the reasons for not being granted tax exemption or reduction; and inform the taxpayer whether or not they are eligible for tax exemption or reduction under the tax agreement or other international treaty.

In cases where the tax authority receives tax exemption or reduction applications along with tax declaration documents through the integrated one-stop mechanism, within 05 working days from the date of receiving the legally valid, complete, and correctly formatted tax exemption or reduction application transferred by the agency receiving the application through the integrated one-stop mechanism, the tax authority shall determine the amount of tax exemption or reduction or notify the taxpayer in writing of the reasons for not granting the tax exemption or reduction.

2. Provide the results of processing tax exemption and tax reduction applications.

a) In cases where the tax authority directly receives the taxpayer's application for tax exemption or reduction:

a.1) Issue decisions on tax exemption and reduction using form No. 03/MGTH attached to Appendix I of this Circular for cases eligible for tax exemption and reduction (except for cases specified in point a.3, clause 2 of this Article);

a.2) Issue a Notice of Non-Exemption from Tax or Tax Reduction using Form No. 04/MGTH attached to Appendix I of this Circular, clearly stating the reasons for cases not eligible for tax exemption or tax reduction (except for cases specified in point a.3, clause 2 of this Article);

a.3) Issue a Notice using form No. 03-1/MGTH attached to Appendix I of this Circular regarding whether the taxpayer is eligible or not eligible for tax exemption or reduction under tax agreements and other international treaties;

During the process of handling tax exemption and reduction applications, if there is missing information requiring explanation or additional documentation, the tax authority will send a Notice of Explanation and Additional Information/Documents, using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, to the taxpayer requesting explanation and additional information/documents.

b) In cases where the tax authority receives tax exemption/reduction applications along with tax declaration documents through a single-window integrated system.

b.1) The tax authority determines the amount of tax exemption or reduction and records it in the Tax Payment Notice issued together with Appendix II of Decree No. 126/2020/ND-CP for cases eligible for tax exemption or reduction.

b.2) Issue a Notice of Non-Exemption from Tax or Reduction using Form No. 04/MGTH attached to Appendix I of this Circular, clearly stating the reasons for cases not eligible for tax exemption or reduction. During the processing of tax exemption or reduction applications, if there is missing information requiring explanation or additional documentation, the tax authority shall send a Notice of Explanation and Additional Information/Documents (using Form No. 01/TB-BSTT-NNT attached to Decree No. 126/2020/NĐ-CP) to the agency receiving the application through the integrated one-stop service to request the taxpayer to provide explanation and additional information/documents.

c) In cases of tax exemption as stipulated in point a, clause 2, Article 79 of the Law on Tax Administration: The tax authority shall issue a Decision listing households and individuals eligible for tax exemption according to mẫu số 05/MGTH (form No. 05/MGTH) issued together with Appendix I of this Circular.

Article 65. Documents for debt cancellation of tax, late payment penalties, and fines.

1. Procedure for processing applications for tax debt cancellation, late payment penalties, and fines.

a) Based on the authority and circumstances for debt cancellation stipulated in Clause 1, Article 87 of the Law on Tax Administration, the tax authority directly managing the taxpayer shall prepare a dossier for tax debt cancellation, late payment penalties, and fines and send it to the superior authority in the following order:

a.1) For dossiers prepared and submitted by the District Tax Office, the Provincial Tax Department will review the dossiers:

a.1.1) If the case does not fall under the category of debt cancellation, the Tax Department shall notify the District Tax Office using form No. 02/XOANO issued together with Appendix I of this Circular;

a.1.2) In cases where the debtor is eligible for debt cancellation but the application is incomplete, the Tax Department shall notify the District Tax Office to supplement the application using form No. 03/XOANO issued with Appendix I of this Circular;

a.1.3) In cases where the debtor is eligible for debt cancellation and the dossier is complete, the Tax Department shall prepare a written request and draft a decision on debt cancellation using form No. 04/XOANO issued with Appendix I of this Circular, along with the dossier, and send it to the Provincial People's Committee for consideration and decision.

a.2) For files prepared by the Tax Department:

If the case falls under the category of debt cancellation and the dossier is complete, the Tax Department shall prepare a written request and draft a decision on debt cancellation using form No. 04/XOANO issued with Appendix I of this Circular, along with the dossier, and send it to the Provincial People's Committee for consideration and decision.

b) Based on the authority and circumstances for debt cancellation stipulated in Clauses 2, 3, and 4 of Article 87 of the Law on Tax Administration, the directly managing tax authority shall prepare a debt cancellation request dossier and submit it to the superior authority in the following order:

b.1) In the case of applications for debt cancellation of tax, late payment penalties, and fines ranging from VND 05 billion to less than VND 10 billion:

b.1.1) The Sub-Department of Taxation shall prepare and submit the dossier to the Tax Department for appraisal as prescribed in point a.1 of this section. If the case does not fall under the debt cancellation category, the Tax Department shall notify the Sub-Department of Taxation using form No. 02/XOANO issued with Appendix I of this Circular. If the case falls under the debt cancellation category, the Tax Department shall prepare a request document with the dossier and send it to the General Department of Taxation.

b.1.2) The Tax Department prepares dossiers for taxpayers under its direct management and sends them to the General Department of Taxation for review and decision.

b.1.3) The General Department of Taxation reviews the application:

b.1.3.1) In cases not eligible for debt cancellation, the General Department of Taxation shall notify the Tax Department using form No. 02/XOANO issued together with Appendix I of this Circular;

b.1.3.2) In cases where the debtor is eligible for debt cancellation but the application is incomplete, the General Department of Taxation shall notify the Tax Department to supplement the application using form No. 03/XOANO issued with Appendix I of this Circular;

b.1.3.3) In cases where the debtor is eligible for debt cancellation and the documentation is complete, the General Department of Taxation shall issue a Decision on Debt Cancellation using form No. 05/XOANO issued together with Appendix I of this Circular.

b.2) In the case of applications for debt cancellation of tax, late payment penalties, and fines ranging from VND 10 billion to less than VND 15 billion:

b.2.1) The District Tax Office and the Provincial Tax Department shall prepare and submit the dossier according to the instructions in point b.1 of this section;

b.2.2) The General Department of Taxation reviews the application:

b.2.2.1) In cases where the debt is not eligible for cancellation or requires additional documentation, the General Department of Taxation shall notify the Tax Department in accordance with the instructions in point b.1 of this section;

b.2.2.2) In cases where the debtor is eligible for debt cancellation and the documentation is complete, the General Department of Taxation will draft a debt cancellation decision using form No. 06/XOANO and submit it to the Ministry of Finance for consideration and decision.

b.3) In cases where the application for debt cancellation of tax, late payment penalties, and fines amounts to VND 15 billion or more:

b.3.1) The Tax Sub-department, Tax Department, and General Department of Taxation shall prepare and appraise dossiers in accordance with the instructions in point b.1 of this section;

b.3.2) In cases where the debtor is eligible for debt cancellation and the documentation is complete, the General Department of Taxation shall draft a debt cancellation decision using form No. 07/XOANO issued with Appendix I of this Circular, and submit it to the Ministry of Finance for submission to the Prime Minister for consideration and decision.

2. Documents for writing off tax debts, late payment penalties, and fines.

a) For cases where enterprises or cooperatives are declared bankrupt as stipulated in Clause 1, Article 85 of the Law on Tax Administration, the dossier includes:

a.1) The request document must be in the form No. 01/XOANO issued together with Appendix I of this Circular;

a.2) Decision declaring the bankruptcy of the enterprise or cooperative (original or certified copy from the tax authority);

a.3) Documents detailing the division of assets by the enforcement officer showing the amount of tax debt that can be recovered or cannot be recovered (original or certified copy from the tax authority);

a.4) Decision on suspending the enforcement of the bankruptcy declaration decision by the civil enforcement agency (original or certified copy from the tax authority);

a.5) Notification of outstanding tax debt at the time of requesting debt cancellation (original or certified copy from the tax authority).

b) For cases where an individual has died or been declared dead by a court, or has lost their civil capacity as stipulated in Clause 2, Article 85 of the Law on Tax Administration, the dossier shall be prepared as follows:

b.1) In the case where the individual has died or has been declared dead by a court:

b.1.1) The request document must be in the form No. 01/XOANO issued with Appendix I of this Circular;

b.1.2) Death certificate, or notice of death, or court decision declaring a person deceased, or other documents replacing the notice of death as prescribed by law on civil registration and management (original or certified copy from the tax authority);

b.1.3) A document certified by the People's Committee of the commune where the deceased last resided, stating that the deceased had no assets, including inherited assets (original or certified copy from the tax authority);

b.1.4) Notification of outstanding tax debt at the time of requesting debt cancellation (original or certified copy from the tax authority).

b.2) Cases where an individual is legally considered to have lost their civil capacity:

b.2.1) The request document must be in the form No. 01/XOANO issued with Appendix I of this Circular;

b.2.2) Court decision declaring loss of civil capacity (original or certified copy from the tax authority);

b.2.3) A document prepared by the guardian, certified by the People's Committee of the commune where the person lacking civil capacity resides, stating that the person lacking civil capacity has no assets, including inherited assets (original or certified copy from the tax authority);

b.2.4) Notification of outstanding tax debt at the time of requesting debt cancellation (original or certified copy from the tax authority).

c) For tax debts, late payment penalties, and fines that have been outstanding for more than 10 years as stipulated in Clause 3, Article 85 of the Law on Tax Administration, the dossier includes:

c.1) The request document must be in the form No. 01/XOANO issued together with Appendix I of this Circular;

In cases of debt cancellation for individuals, individual business owners, household heads, business owners, private enterprise owners, and owners of single-member limited liability companies, the request document must include the following information: Full name, citizen identification card number or identity card number or passport number or other legally valid personal identification of the individual, individual business owner, household head, business owner, private enterprise owner, and owner of a single-member limited liability company.

c.2) A document from the directly managing tax authority requesting the business registration authority or competent state agency to revoke the business registration certificate or cooperative registration certificate or investment registration certificate or establishment and operation license or professional practice license (original or certified copy from the tax authority);

c.3) Decision to revoke the business registration certificate or business license or cooperative registration certificate or investment registration certificate or establishment and operation license or professional license (original or certified copy from the tax authority);

c.4) Notification of outstanding tax amount at the time of requesting debt cancellation (original or certified copy from the tax authority);

c.5) Decisions on enforcing administrative decisions on tax management or documents proving that enforcement measures have been taken against taxpayers (original or certified copy from the tax authority);

c.6) A document certified by the People's Committee of the commune confirming that the taxpayer no longer owns assets or conducts production and business activities in the area (original or certified copy from the tax authority).

Article 66. Installment payment of outstanding taxes

1. Procedure for processing applications for installment payments of outstanding tax debts.

a) Taxpayers shall prepare a request for installment payment of outstanding tax debts as prescribed in Clause 2 of this Article and submit it to the tax authority directly managing them.

b) If the application for installment payment of outstanding tax is incomplete according to regulations, within 03 working days from the date of receipt of the application, the tax authority must notify the taxpayer in writing using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, requesting the taxpayer to provide explanations or supplement the application.

If the application for installment payment of outstanding tax is complete, within 10 working days from the date of receipt of the application, the tax authority shall issue:

b.1) A notice of non-approval of installment payment of tax arrears, using form No. 03/NDAN issued with Appendix I of this Circular, shall be issued in cases where the guarantee letter is found to be illegal. Simultaneously, the tax authority shall send a document using form No. 05/NDAN issued with Appendix I of this Circular to the guarantor for verification, and the guarantor shall send the verification results to the tax authority within the time limit prescribed by law;

b.2) Decision to approve installment payment of tax arrears according to mẫu số 04/NDAN issued with Appendix I of this Circular for cases eligible for installment payment of tax arrears.

2. Documents for installment payment of outstanding tax debt

a) The request document must follow mẫu số 01/NDAN (form number 01/NDAN) issued with Appendix I of this Circular;

b) A guarantee letter in accordance with the law on guarantees and must include a commitment that the guarantor will make the payment on behalf of the taxpayer in case the taxpayer fails to make the installment payments of the outstanding tax amount within the prescribed timeframe;

c) Decision on enforcing administrative decisions regarding tax management (if any).

3. Number of installments and amount of tax arrears payments.

a) The amount of tax debt that can be paid in installments is the amount of tax debt as of the time the taxpayer requests installment payment, but it must not exceed the amount of tax debt guaranteed by a credit institution.

b) Taxpayers may pay their outstanding tax in installments over a period not exceeding 12 months and for the duration of the guarantee letter's validity.

c) Taxpayers are allowed to pay their outstanding tax in installments each month, provided that the amount paid in each installment is not less than the average monthly amount of tax payable in installments. Taxpayers must determine the amount of late payment penalties incurred and pay them along with the amount of tax payable in installments.

4. Installment payment period for outstanding tax debts

The deadline for paying outstanding tax in installments is no later than the last day of the month. If, after the committed monthly installment payment deadline, the taxpayer fails to pay, pays insufficient amounts, or the guarantor fails to fulfill their payment obligation, within 05 working days from the expiration of the committed installment payment deadline, the tax authority shall prepare a document using form No. 02/NDAN issued with Appendix I of this Circular and send it to the guarantor requesting them to fulfill their guarantee obligation as prescribed by law, and simultaneously send it to the taxpayer.

Chapter VII

TAXPAYER INFORMATION

Article 67. Building information technology infrastructure and software systems to serve the collection, processing, and management of taxpayer information systems.

1. The taxpayer information system is built and managed uniformly from the central to local levels; it promptly serves tax management and other state management tasks; meets the requirements of socio-economic development; ensures safety, security, and national security; and complies with technical standards and regulations on information technology.

2. Technical Infrastructure The taxpayer information system includes: server equipment, workstations, data storage and backup devices, connection lines, network equipment, information security equipment (or software), data synchronization equipment, peripheral and auxiliary equipment, local area network and wide area network, and technical infrastructure management services.

3. Software systems for collecting, processing, and managing taxpayer information include: operating systems, database management systems, open-source software, commercial software, and internal software.

Article 68. Collection, processing and management of taxpayer information systems

1. Collect taxpayer information

Taxpayer information is collected and updated promptly, ensuring accuracy, honesty, and objectivity, from taxpayers and relevant organizations and individuals in accordance with their responsibilities in providing taxpayer information as stipulated in Articles 97 and 98 of the Law on Tax Administration, Articles 26, 27, and 28 of Decree No. 126/2020/ND-CP, and other relevant legal regulations.

2. Processing taxpayer information

The tax authorities are responsible for processing taxpayer information and data and storing it in a database in accordance with regulations. The processing of information and data includes:

a) Inspect and evaluate compliance with regulations and procedures in the collection of information and data;

b) Review and assess the legal basis and reliability of information and data;

c) Synthesize, organize, classify, and process information and data in accordance with regulations;

d) For information and data updated from the databases of relevant organizations and individuals, the organization or individual providing the information is responsible for ensuring the accuracy of the information and data.

3. Managing the taxpayer information system.

The tax authorities are responsible for managing the taxpayer information system in accordance with the following regulations:

a) Taxpayer information is managed, exploited, and shared electronically in a manner that ensures it is used for the intended purpose and complies with legal regulations;

b) Taxpayer information is connected and exchanged with the information systems and databases of relevant ministries, sectors, localities, and organizations as prescribed;

c) Guiding, inspecting, and supervising the updating, processing, and utilization of the taxpayer information system;

d) Develop and issue regulations on taxpayer data components and methods of data transmission and reception with tax authorities to build unified information technology systems;

d) Develop and issue operational procedures to serve as a basis for the unified implementation of updating, processing, exploiting, and using the taxpayer information system;

e) Granting access and usage rights to the taxpayer information system; managing the connection, sharing, and provision of data with databases of ministries, central and local agencies.

Article 69. Provision, handling of errors, omissions, verification, and correction of information.

1. Provide information to taxpayers.

The tax authorities directly manage and notify taxpayers nationwide about the status of their tax obligations through their electronic tax transaction accounts on the General Department of Taxation's electronic portal. This includes information on: the status of payments due, payments made, outstanding payments, overpayments, exemptions, debt write-offs, refunds, refunds received, and remaining refunds incurred in the previous month, as well as outstanding payments, overpayments, and remaining refunds recorded in the tax management application system.

2. Cases of errors, omissions, verification, and adjustment of information on state budget revenue collection and payment (hereinafter referred to as verification)

a) The taxpayer discovers that the information recorded in the tax management application system of the tax sector, provided periodically by the tax authority as prescribed in Clause 1 of this Article, differs from the information monitored by the taxpayer.

b) The taxpayer discovers that the information declared on the state budget payment document is inaccurate. The taxpayer may only request corrections to state budget payment documents that meet the following conditions:

b.1) Budget payment documents from the previous year, but for which adjustments are requested in the following year, can only be adjusted during the budget settlement adjustment period.

b.2) No adjustments are recommended regarding the total amount and currency type on the state budget payment document.

b.3) Not falling under the cases requiring submission of a written request for offsetting overpayments or requesting a tax refund as stipulated in Clause 0 and Article 42 of this Circular.

c) The tax authority or competent state agency issuing tax notices or decisions discovers errors or omissions that require correction of information already accounted for in state budget revenue.

d) The State Treasury discovers errors or omissions that require correction of information already recorded for state budget revenue or conducts a review of amounts already recorded in accounts awaiting processing by tax authorities.

d) The commercial bank where the State Treasury has an account or the commercial bank where the taxpayer has an account (in the case of transferring state budget payments directly to the State Treasury via interbank channels) discovers errors or omissions requiring correction related to the information on state budget payment documents of the taxpayer that have been transmitted to the State Treasury.

e) Commercial banks or payment intermediary service providers where taxpayers make payments to the state budget, upon discovering errors or omissions requiring correction related to the taxpayer's payment documents, have forwarded the information to the commercial bank where the State Treasury has an account.

g) Tax authorities and competent state agencies discover errors or omissions that require correction regarding information exchanged or provided between agencies.

3. The request for review includes the following documents:

a) The request for review must be in the form No. 01/TS issued with Appendix I of this Circular.

b) Supporting documents (if any): Copies of the taxpayer's payment receipts to the state budget or copies of relevant decisions, notices, and documents.

4. Procedures for processing requests for review.

a) Processing requests for review at the tax authority

a.1) In cases where the taxpayer discovers errors or omissions in the information as stipulated in point a, clause 2 of this Article

a.1.1) The taxpayer submits a request for review to the tax authority as prescribed in Clause 5 of this Article.

a.1.2) Within 03 working days from the date of receiving a complete request for verification from the taxpayer, the tax authority shall compare the information requested by the taxpayer with the data on the tax management application system.

In cases where the information tracking the taxpayer's tax obligations on the tax management application system is incorrect or inaccurate compared to the basis for tracking the taxpayer's tax obligations (tax declarations accepted by the tax authority, documents for payment to the state budget, notices, decisions, and other documents from the tax authority and competent state agencies), the tax authority shall adjust the information on the system to match the basis for tracking the taxpayer's tax obligations and send the results of the review request to the taxpayer in accordance with the Notice form 01/TB-TS issued with Appendix I of this Circular.

Specifically, if there are errors or omissions in the accounting information for state budget revenue collection compared to the state budget payment documents, within one working day from the date of receiving the taxpayer's request for review, the tax authority shall prepare a Request for Adjustment of State Budget Revenue (according to mẫu C1-07a/NS or C1-07b/NS issued with the Circular of the Ministry of Finance guiding the state budget accounting regime and State Treasury operations) and send it to the State Treasury to request adjustment. Based on the adjustment documents sent by the State Treasury via the General Department of Taxation's electronic portal, the tax authority shall record the accounting according to the State Treasury's adjustment information, adjusting the increase or decrease in late payment penalties arising from the adjustment (if any). At the same time, the tax authority shall send the results of the review request to the taxpayer in the form of a Notice ( mẫu 01/TB-TS issued with Appendix I of this Circular).

If the information tracking the taxpayer's tax obligations is accurate and consistent with the tax obligation tracking basis (tax return documents accepted by the tax authority, state budget payment documents, notices, decisions, and other documents from the tax authority and competent state agencies), the tax authority will send a Notice of No Adjustment (Form No. 01/TB-TS issued with Appendix I of this Circular), stating the reason for not adjusting. Alternatively, if the information is insufficient, the notice will request additional information (Form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP) for the taxpayer to provide explanations and supplementary information and documents. The time for supplementing information and documents will not be included in the processing time. After receiving the taxpayer's explanations and supplementary information, if there are errors or omissions in the accounting information for state budget revenue collection, the information will be adjusted for the taxpayer.

a.2) In cases where the taxpayer discovers errors or omissions in the information as stipulated in point b, clause 2 of this Article.

Within 05 working days from the date of receiving a complete request for review from the taxpayer, the tax authority will review the documents recorded in the tax management application system and the requested adjustments:

a.2.1) If the taxpayer's request for adjustment of documents meets all the conditions for adjusting information as stipulated in point b, clause 2 of this Article, within 02 working days from the date of receiving the complete request for review from the taxpayer, the tax authority shall prepare a document requesting adjustment of state budget revenue (according to mẫu C1-07a/NS or C1-07b/NS issued with the Circular of the Ministry of Finance guiding the state budget accounting regime and State Treasury operations) and send it to the State Treasury to request adjustment. Based on the adjusted document information sent by the State Treasury via the General Department of Taxation's electronic portal, the tax authority shall record the adjustments according to the State Treasury's adjusted information, adjusting the increase or decrease in late payment penalties arising from the adjustment (if any). Simultaneously, send a Notice of Resolution of the Request for Review to the taxpayer using form No. 01/TB-TS issued with Appendix I of this Circular.

a.2.2) If the taxpayer's request for adjustment of tax documents does not meet the conditions, the tax authority shall send a Notice of Non-Adjustment using form No. 01/TB-TS issued with Appendix I of this Circular, stating the reason for not adjusting the tax payment information. If there is insufficient basis for adjusting the information, a Notice requesting additional information shall be sent using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/ND-CP for the taxpayer to explain and supplement information and documents. The time for supplementing information and documents shall not be included in the processing time. After receiving the explanation and supplementary information from the taxpayer, if all conditions for adjusting information as stipulated in point b, clause 2 of this Article are met, the information shall be adjusted for the taxpayer.

a.3) In case the tax authority discovers errors or omissions as stipulated in point c, clause 2 of this Article, the tax authority shall prepare a Request for Adjustment of State Budget Revenue (according to mẫu C1-07a/NS or C1-07b/NS issued together with the Circular of the Ministry of Finance guiding the accounting regime for the state budget and operational activities of the State Treasury) and send it to the State Treasury for adjustment.

b) Processing requests for verification at the State Treasury

b.1) In cases where the State Treasury makes adjustments at the request of the tax authority as stipulated in point a of this clause: Within 02 working days from the date of receiving the adjustment request from the tax authority, the State Treasury shall review the information already accounted for in budget revenue, adjust the information as requested, and transmit the adjustment documents to the tax authority as prescribed.

b.2) In cases where the State Treasury discovers errors, omissions, or the need to supplement information on accounting for state budget revenue as prescribed in point d, clause 2 of this Article:

b.2.1) The State Treasury shall adjust the information and transmit the adjustment documents to the tax authority as prescribed so that the tax authority can adjust the information on budget revenue collection.

b.2.2) The State Treasury is responsible for preparing a verification letter to send to the tax authority regarding amounts already accounted for in the tax authority's pending revenue collection account, so that the tax authority can supplement the information for accounting state budget revenue.

b.3) In cases where the State Treasury receives a request for verification from the bank where the State Treasury maintains an account, or receives a request for verification from the bank where the taxpayer makes payments to the state budget (in the case of transferring state budget payments through interbank channels directly to the State Treasury), or from the taxpayer (in the case of direct payments at the State Treasury) regarding errors or omissions related to the information on state budget payment documents transmitted to the State Treasury as stipulated in point d, clause 2 of this Article:

The State Treasury shall correct any errors or omissions in the information on state budget payment documents as prescribed. If the state budget revenue information has already been transmitted to the tax authority, the State Treasury shall transmit the correction information to the tax authority and notify the bank where the State Treasury maintains its account. In cases where there are excess or insufficient funds compared to the state budget payment documents of the taxpayer, the matter shall be handled according to the regulations on handling errors and omissions in payments of the bank or the State Treasury.

c) Processing requests for verification at commercial banks where the State Treasury maintains its account:

Upon receiving an electronic request for verification from a commercial bank or intermediary payment service provider where the taxpayer makes payments to the state budget as stipulated in point e, clause 2 of this Article, the bank where the State Treasury maintains its account shall conduct the verification and perform the following:

c.1) For information on state budget revenue collection documents that have not yet been transmitted to the State Treasury, the bank where the State Treasury maintains its account shall correct any errors or omissions in accordance with the regulations on handling errors and omissions in payments.

c.2) For information on state budget revenue collection documents that have been transmitted to the State Treasury, the bank where the State Treasury maintains its account shall send a request for verification to the State Treasury to make adjustments to errors and omissions related to the accounting of state budget revenue.

d) Handling errors or omissions at commercial banks or intermediary payment service providers where taxpayers make payments to the state budget:

Upon discovering errors or omissions, the commercial bank or intermediary payment service provider where the taxpayer makes payments to the state budget shall take the following action:

d.1) In cases where the funds have not been transferred and the budget payment information has not been sent to the bank where the State Treasury has an account or to the State Treasury (in the case of transferring state budget payments directly to the State Treasury via interbank channels), the commercial bank or the payment intermediary service provider shall conduct an investigation and correct any errors or omissions in accordance with the regulations on handling errors and omissions in payments.

d.2) If the money has been transferred and the budget payment information has been sent to the commercial bank where the State Treasury has an account or to the State Treasury (in the case of transferring state budget payments via interbank channels directly to the State Treasury), the commercial bank or the payment intermediary service provider shall send an electronic request for verification to the commercial bank where the State Treasury has an account or to the State Treasury (in the case of transferring state budget payments via interbank channels directly to the State Treasury).

d) Handling errors or omissions at tax authorities or competent state agencies in accordance with the case specified in point g, clause 2 of this Article:

d.1) When discovering errors or omissions, the tax authority or competent state agency must send a request for verification as prescribed in Clause 3 of this Article to the relevant agency through the electronic information exchange system between sectors.

(d.2) Upon receiving a request for review, the tax authority or competent state agency is responsible for resolving the review request and sending the review results to the requesting agency or unit via the electronic information exchange system between sectors.

5. Responsibilities for receiving and processing requests for review.

a) The tax authority receives and processes requests for review from taxpayers, specifically:

a.1) Directly managing tax authority:

a.1.1) Receiving and processing requests for verification of budget payment documents where the tax authority directly managing the collection is the tax authority responsible for collecting the revenue indicated on the document.

a.1.2) Receiving and processing requests for review of taxpayers' tax declarations, state budget payment documents, notices, decisions, and other documents issued by tax authorities and competent state agencies that are directly managed by the tax authority.

a.2) The tax authority managing state budget revenue receives and processes requests for review of taxpayers' tax declarations, state budget payment documents, notices, decisions, and other documents from tax authorities and competent state agencies that have been received or issued by the tax authority managing state budget revenue.

a.3) The tax authority managing the area receives the allocation as stipulated in point b, clause 6, Article 3 of this Circular:

Coordinate with the directly managing tax authority to process requests for review related to the allocation received under the provisions of point a.1 of this section.

b) The State Treasury receives the request for verification from the commercial bank where the State Treasury has an account or the bank where the taxpayer makes payments to the state budget (in the case of transferring state budget payments directly to the State Treasury via interbank channels).

c) The commercial bank where the State Treasury maintains an account receives and processes the request for verification submitted by the commercial bank or intermediary payment service provider where the taxpayer makes payments to the state budget.

d) The commercial bank or payment intermediary service provider where the taxpayer makes payments to the state budget shall receive the taxpayer's request for verification in accordance with the regulations of the commercial bank or payment intermediary service provider.

Article 70. Confirmation of fulfillment of tax obligations

1. Receiving and processing requests for confirmation of tax obligations to the state budget or confirmation of the amount of tax paid to the state budget (hereinafter referred to as confirmation of tax obligations to the state budget).

a) Taxpayers shall submit a written request for confirmation of their tax obligations to the state budget using form No. 01/DNXN issued with Appendix I of this Circular to the tax authority as prescribed in point c of this clause.

In cases where a foreign contractor does not directly declare and pay taxes to the tax authorities, but instead has their tax withheld and paid on their behalf by a Vietnamese organization or individual, and the Vietnamese party has fulfilled its tax obligations to the foreign contractor: The foreign contractor or the Vietnamese party withholding and paying on their behalf shall send a written request for confirmation of tax obligations to the state budget to the tax authority directly managing the Vietnamese party to confirm the completion of the foreign contractor's tax obligations.

b) Processing requests for confirmation of tax obligations to the state budget at the tax authority managing state budget revenue.

b.1) Review data and information regarding the fulfillment of tax obligations by taxpayers.

Based on tax management data in the tax management application system, the tax authority managing state budget revenue conducts a review of tax obligations to the state budget, including:

b.1.1) The amount of tax, late payment penalties, and fines paid, still due, outstanding, and overpaid by the taxpayer;

b.1.2) Tax administrative violations by the taxpayer (if any).

b.2) If the taxpayer's requested information matches the information in the tax management application system, the tax authority shall send a Notice of Confirmation of Tax Obligation to the State Budget, Form No. 01/TB-XNNV, issued together with Appendix I of this Circular, to the taxpayer as prescribed in point b.4 of this section.

b.3) In cases where the information requested by the taxpayer and the information on the tax management application system are incomplete or differ, the tax authority shall send a Notice requesting additional information using form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/NĐ-CP to the taxpayer for explanation and supplementation of information as prescribed in point b.4 of this section.

The time taken by taxpayers to provide additional information is not included in the processing time for requests to confirm the fulfillment of tax obligations to the state budget.

After receiving additional information from the taxpayer, if the information is sufficient, the tax authority shall send a Notice of Confirmation of Tax Obligation to the State Budget, using form No. 01/TB-XNNV issued with Appendix I of this Circular, to the taxpayer as prescribed in point b.4 of this section. If the tax authority determines that the taxpayer does not qualify for confirmation of tax obligation to the state budget, the tax authority shall issue a Notice using form No. 01/TB-XNNV issued with Appendix I of this Circular, clearly stating the reason for not confirming the taxpayer's obligation as prescribed in point b.4 of this section.

b.4) Within 10 working days from the date of receiving the taxpayer's request for confirmation of tax obligation fulfillment, the tax authority shall issue a Notice of Confirmation of Tax Obligation Fulfillment using form No. 01/TB-XNNV attached to Appendix I of this Circular to confirm or not confirm for the taxpayer, or a Notice of Request for Additional Information using form No. 01/TB-BSTT-NNT attached to Decree No. 126/2020/ND-CP to the taxpayer for explanation or additional information.

c) Responsibilities for receiving and processing requests for confirmation of tax obligations to the state budget:

c.1) Directly managing tax authority:

c.1.1) Receiving and processing written requests for confirmation of tax obligations to the state budget from taxpayers under the direct management of the tax authority.

c.1.2) To take the lead in receiving and processing requests for confirmation of tax obligations to the state budget for revenue items managed by multiple tax authorities (including revenue items managed by the tax authority responsible for state budget revenue collection and the tax authority managing the allocated area).

c.1.3) In cases where the foreign contractor does not directly declare and pay taxes to the tax authorities, but the Vietnamese party deducts and pays the tax on their behalf, the tax authority directly managing the Vietnamese party will only confirm the foreign contractor's compliance when the Vietnamese party has fully deducted and paid the tax into the state budget on behalf of the foreign contractor as prescribed.

c.2) The tax authority manages the collection of state budget revenue:

c.2.1) Receiving and processing written requests from taxpayers to confirm their tax obligations to the state budget for revenue collected by the tax authorities.

c.2.2) Coordinate and be responsible for tax obligations related to revenue managed by the tax authority on the tax management application system.

c.3) The tax authority managing the area receives the allocation as stipulated in point b, clause 6, Article 3 of this Circular:

c.3.1) Receiving and processing written requests from taxpayers to confirm their tax obligations to the state budget for allocated revenue collected by the tax authority.

c.3.2) Coordinate and be responsible for tax obligations related to revenue managed by the tax authority on the tax management application system.

2. Confirmation of taxes paid in Vietnam for foreign residents:

In the case where a resident of a country that has signed a tax agreement with Vietnam is required to pay income tax in Vietnam according to the provisions of the tax agreement and Vietnamese tax law, and wishes to confirm the amount of tax paid in Vietnam in order to deduct it from the tax payable in their country of residence, the following procedures must be followed:

a) In cases where taxpayers request confirmation of taxes paid in Vietnam, they should submit their application to the Provincial/City Tax Department where they are registered for tax payment to process the confirmation. The application includes:

a.1) Application for confirmation of tax paid in Vietnam under the Tax Agreement, using form No. 03/HTQT issued with Appendix I of this Circular, providing information on transactions related to taxable income and the tax arising from those transactions within the scope of the Tax Agreement;

a.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence (clearly stating the resident status during which tax period) which has been legalized by consular authorities;

a.3) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

Within 07 working days from the date of receiving the application, the Tax Department where the taxpayer is registered is responsible for issuing a certificate confirming the income tax paid in Vietnam according to Form No. 04/HTQT or Form No. 05/HTQT issued with Appendix I of this Circular. Form No. 04/HTQT is used to confirm personal income tax and corporate income tax; Form No. 05/HTQT is used to confirm income tax on dividends, interest on loans, royalties or technical service fees.

During the process of handling tax returns where information is missing or additional documents are required, the tax authority will send a Notice of Explanation and Additional Information/Documents, using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, to the taxpayer requesting explanation and additional information/documents.

Within 10 working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting a written explanation or supplementary information and documents as requested by the tax authority.

b) In cases where the taxpayer requests confirmation of tax liability arising in Vietnam but not payable due to tax incentives, and this amount is considered as tax already paid for the purpose of deducting lump-sum tax in their country of residence, they should submit the request to the Tax Department for confirmation. The application includes:

b.1) Application for confirmation of tax paid in Vietnam under the Tax Agreement, using form No. 03/HTQT issued with Appendix I of this Circular, which provides information on transactions related to taxable income, the amount of tax incurred, and tax incentives applicable to those transactions within the scope of the Tax Agreement;

b.2) The original (or certified copy) of the Certificate of Residence issued by the tax authority of the country of residence (clearly stating the resident status during which tax period) which has been legalized by consular authorities;

b.3) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

Within 07 working days from the date of receiving complete documents, the Tax Department is responsible for confirming the amount of tax incurred in Vietnam but not payable due to tax incentives granted to the applicant.

During the process of handling tax returns where information is missing or additional documents are required, the tax authority will send a Notice of Explanation and Additional Information/Documents, using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, to the taxpayer requesting explanation and additional information/documents.

Within 10 working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting a written explanation or supplementary information and documents as requested by the tax authority.

3. Confirmation of Vietnamese residency status:

a) Organizations and individuals requesting confirmation of being a tax resident of Vietnam in accordance with the tax agreement shall follow the procedures below:

a.1) For taxpayers who are already registered as taxpayers, submit the Application for Confirmation of Vietnamese Residence (Form No. 06/HTQT) issued with Appendix I of this Circular and the Power of Attorney (in case the taxpayer authorizes a legal representative to carry out the procedure for applying the tax agreement) to the Tax Department where they are registered.

a.2) For entities that are not subject to tax declaration and payment:

a.2.1) Application form as instructed in section a.1, clause 3 of this Article;

a.2.2) Confirmation from the management agency or local government regarding the place of permanent residence or registered address for individuals, or the establishment registration certificate for organizations.

a.2.3) Confirmation from the income-paying agency (if any). In the absence of this confirmation, the applicant must self-declare the income in the application and bear legal responsibility;

a.2.4) Power of attorney in cases where the taxpayer authorizes a legal representative to carry out the procedures for applying the tax agreement.

b) Within 07 working days from the date of receiving complete documents, the Tax Department shall, based on the provisions of Article 4 of the Tax Agreement relating to the definition of a resident, consider and issue a Certificate of Residence Form No. 07/HTQT issued together with Appendix I of this Circular to the applicant.

In cases where a tax agreement is to be applied in a country or territory that is a tax agreement partner with Vietnam (hereinafter referred to as the tax agreement partner), the tax authority of the tax agreement partner requires the Vietnamese resident to provide a certificate of residence issued by the Vietnamese tax authority in the form prescribed by that tax agreement partner's tax authority: if this certificate of residence form contains similar indicators and information to the Certificate of Residence Form No. 07/HTQT issued with Appendix I of this Circular, or includes additional indicators and information within the scope of the tax authority's management (information on nationality, business activities of the subject), then the Tax Department shall certify this certificate of residence form.

During the process of handling tax returns where information is missing or additional documents are required, the tax authority will send a Notice of Explanation and Additional Information/Documents, using form No. 01/TB-BSTT-NNT issued with Decree No. 126/2020/NĐ-CP, to the taxpayer requesting explanation and additional information/documents.

Within 10 working days from the date the tax authority issues the Notice, the taxpayer is responsible for submitting a written explanation or supplementary information and documents as requested by the tax authority.

Chapter VIII

TAX AUDIT

Article 71. Examination of tax records at the tax office.

1. Classification of tax records:

Tax returns are classified into three risk levels: Low risk, medium risk, and high risk.

2. The tax authority shall propose a plan to inspect tax records at the tax authority's headquarters or handle high-risk records in accordance with Clauses 3 and 4 of this Article.

3. Check tax records

When the tax authority conducts an inspection, verification, comparison, and analysis of tax records and finds inaccurate or incomplete declarations, or issues requiring clarification regarding the amount of tax payable, tax exemptions, tax reductions, tax refunds, or tax deductions carried forward to the next period, the tax authority will issue a notice (first notice) using form No. 01/KTT requesting the taxpayer to provide explanations and supplementary information and documents.

Within 10 working days from the date the tax authority issues a notice requesting clarification or additional information and documents, the taxpayer must provide clarification or additional information and documents. This clarification or additional information and documents can be provided in person at the tax authority or in writing (paper or electronic).

If the taxpayer provides a direct explanation at the tax office, the tax office shall prepare a working record using form No. 02/KTT issued together with Appendix I of this Circular.

4. Processing test results

a) If the taxpayer has provided explanations and supplementary information and documents (first or second time) proving that the declared tax amount is correct, the tax return will be accepted; the explanations and supplementary information will be kept together with the tax return.

b) If the taxpayer has provided explanations and additional information and documents but the information is still insufficient to prove the accuracy of the tax declaration or if there are further clarifications needed, the tax authority will issue a second notice (form No. 03/KTT) stating that the taxpayer may continue to provide explanations, additional documents, or voluntarily submit supplementary tax declarations, and the taxpayer will be solely responsible for the content of the supplementary declarations. The deadline for providing explanations, additional documents, or supplementary tax declarations is 10 working days from the date the tax authority issues the notice. The tax authority will notify the taxpayer to provide explanations and additional information and documents no more than twice for each inspection at the tax authority's headquarters.

c) If, after the deadline specified in the second notice from the tax authority, the taxpayer fails to provide explanations, supplement information, or documents; or fails to submit supplementary tax returns; or provides explanations or submits supplementary tax returns but fails to prove the declared tax amount is correct, the tax authority will determine the tax payable if there are sufficient grounds for determination; in cases where there are insufficient grounds for determining the tax payable, the tax authority will issue a decision to conduct an inspection at the taxpayer's premises or use it as a basis for developing an inspection plan based on the risk management principle.

d) If the taxpayer has provided explanations or supplementary information and documents (for the second time) and the tax authority has sufficient grounds to determine that an administrative tax violation has occurred, the tax authority shall draw up a record of the administrative violation and handle it according to regulations.

Article 72. On-site inspection of the taxpayer's premises.

1. On-site inspections at the taxpayer's premises, inspection frequency, and the time for sending the inspection decision shall be carried out in accordance with points a, b, d, e, f, g of Clause 1, Clause 2, and Clause 3 of Article 110 of the Law on Tax Administration.

Cases of dissolution or cessation of operations that do not require tax settlement as stipulated in point g, clause 1, Article 110 of the Law on Tax Administration:

a) Taxpayers subject to corporate income tax at a percentage rate on revenue from the sale of goods and services as stipulated by the law on corporate income tax, who are dissolving or ceasing operations.

b) The taxpayer is dissolved or ceases operations, but from the time of establishment to the time of dissolution or cessation of operations, the business has not generated any revenue and has not used any invoices.

2. Develop, approve, and revise annual inspection plans and topics.

a) Annually, the General Department of Taxation provides guidance on developing inspection plans and thematic inspections throughout the entire tax authority system.

b) Tax authorities at all levels shall, based on the guidance of the General Department of Taxation, develop inspection plans and thematic inspections, specifically:

b.1) The District Tax Office shall prepare and submit the annual inspection plan and topics to the Provincial Tax Department for review and approval.

b.2) The Tax Department shall prepare and submit to the General Department of Taxation for review and approval the annual inspection plan and topics.

b.3) The General Department of Taxation shall prepare and self-approve its inspection plan and topics, and submit the approved plan to the Inspectorate of the Ministry of Finance.

c) Annually, the tax authorities review and adjust inspection plans and topics for the following cases:

c.1) At the request of the Minister of Finance, or the head of the superior tax authority;

c.2) Based on the proposal of the head of the tax authority assigned to plan and conduct the inspection.

c.3) Due to duplicate processing in inspection activities.

When adjusting plans or thematic projects, tax authorities must clearly state the reasons for the adjustment and report the adjustments to the agency that approved the plan or thematic project.

d) In addition to developing the annual inspection plans and thematic inspections mentioned above, tax authorities at all levels may develop thematic inspection plans as required by the head of the tax authority at the same level or as directed by a higher authority. The development of these thematic inspection plans must be carried out according to the principles of risk management and approved by the head of the tax authority at the same level, and reported to a higher authority.

3. Handling duplication in inspection activities

a) In cases where the inspection subject of a lower-level tax authority overlaps with the tax inspection and audit plan of the State Inspectorate, the State Audit Office, or a higher-level tax authority, the plan of the State Inspectorate, the State Audit Office, and the higher-level tax authority shall be followed;

b) In cases of overlapping inspection targets between the tax authority's inspection plan and those of other state agencies, the head of the tax authority shall coordinate with the head of the state agency with which the overlap occurs to handle the issue and report to the plan approval authority when necessary.

4. Publicize the annual inspection plan and topics.

Annual inspection plans and topics (including revised plans and topics) must be publicly available on the tax authority's website or notified to taxpayers and the tax authority directly managing the taxpayers (notified in writing, by phone, or by email) no later than 30 working days from the date of issuance of the decision approving or adjusting the inspection plan and topics.

5. Procedures for tax audits at the taxpayer's premises.

a) Issuing a Decision on Tax Audit

The tax authority issues a tax audit decision in cases stipulated in Article 110 of the Law on Tax Administration. A tax audit at the taxpayer's premises can only be conducted when there is a decision to conduct a tax audit at the taxpayer's premises.

The tax authority issues a tax audit decision for high-risk areas and periods, excluding tax refund audits. The tax audit decision is prepared according to mẫu số 04/KTT (Form No. 04/KTT) issued with Appendix I of this Circular.

The inspection period is determined according to the provisions of Clause 4, Article 110 of the Law on Tax Administration. In case of extension, the Head of the inspection team shall report to the competent authority to issue the Extension Decision using form No. 05/KTT issued together with Appendix I of this Circular.

b) The inspection pursuant to the Tax Inspection Decision must be conducted no later than 10 working days from the date of issuance of the Inspection Decision, except in cases where the Tax Inspection Decision must be revoked according to mẫu số 06/KTT issued with Appendix I of this Circular or the inspection time must be postponed.

Upon commencing a tax audit, the Head of the Tax Audit Team is responsible for announcing the Tax Audit Decision, preparing the Announcement Minutes, and explaining the contents of the Audit Decision so that the taxpayer understands and is responsible for complying with the Audit Decision. The Announcement Minutes of the Audit Decision shall be prepared according to mẫu số 07/KTT (Form No. 07/KTT) issued with Appendix I of this Circular.

c) If the taxpayer submits a written request to postpone the inspection, the request must clearly state the reason and the postponement period. Alternatively, if the tax authority has a force majeure reason for postponing the inspection, the tax authority shall notify the taxpayer in writing before the deadline for announcing the inspection decision expires, using form No. 08/KTT issued with Appendix I of this Circular.

During the inspection, if unforeseen circumstances arise that prevent the inspection from continuing, the Head of the Inspection Team shall report to the person who issued the Inspection Decision to temporarily suspend the inspection. The suspension period shall not be included in the inspection timeframe.

d) In cases where adjustments to the Inspection Decision are necessary during the tax audit process (replacing the Head of the Inspection Team, members, or adding members to the inspection team; adding content or the inspection period; or reducing the number of members, content, or the inspection period), the Head of the Inspection Team must report to the competent authority to issue an Adjustment Decision to the Inspection Decision. The Adjustment Decision to the Inspection Decision shall be made according to mẫu số 09/KTT, 10/KTT, 11/KTT issued with Appendix I of this Circular.

d) Tax inspection report

d.1) Upon completion of the tax audit at the taxpayer's premises, the audit team shall prepare a draft audit report using form No. 12/KTT issued with Appendix I of this Circular and publicly announce it to the audit team and the taxpayer for comments and explanations. The taxpayer's comments and explanations must be kept together with the draft report (if any). The minutes of public announcement of the draft audit report shall be prepared using form No. 13/KTT issued with Appendix I of this Circular.

The process of providing explanations, finalizing, and signing the Inspection Report between the Inspection Team and the taxpayer must be completed within 05 working days from the date the inspection is finished. If the taxpayer still has comments, they should be recorded in the Report or kept together with the signed Report. The Inspection Report must be signed on each page by the Head of the Inspection Team and the taxpayer (or their legal representative), and stamped with the taxpayer's seal if the taxpayer is an organization with its own seal (including the seal and overlapping pages of the report).

(d.2) If there are still unresolved issues regarding policies and mechanisms requiring consultation, this should be recorded in the minutes. Upon receiving a written response, the inspection team or inspection department shall be responsible for preparing an appendix to the minutes with the taxpayer using form No. 14/KTT issued with Appendix I of this Circular for processing in accordance with the law.

d.3) If the taxpayer fails to sign the inspection report within the prescribed time limit, the Head of the inspection team must draw up a record of administrative violation for the failure to sign the report, report to the competent authority to issue a decision on administrative penalties as prescribed, and at the same time request the taxpayer to sign the inspection report.

e) Processing the results of the tax audit

e.1) No later than 03 working days from the date of signing the Inspection Report with the taxpayer, the Head of the inspection team must report the inspection results to the head of the inspection department and the person who issued the inspection decision.

If the inspection results lead to tax penalties or administrative sanctions, the head of the tax authority shall issue a Decision on handling tax violations or transfer the file to the competent authority for imposing sanctions. If the inspection results do not lead to tax penalties or administrative sanctions, the person who issued the inspection decision shall issue an Inspection Conclusion using form No. 15/KTT attached to Appendix I of this Circular.

e.2) If, during a tax audit, violations of tax regulations with signs of tax evasion or tax fraud are discovered, within 05 working days from the date of completion of the audit, the audit team is responsible for reporting to the Head of the tax authority for consideration of conducting an investigation or transferring the audit file to the investigating agency in accordance with the law.

The sequence, procedures, and time limits for issuing decisions on handling tax violations, transferring files to the competent authority for enforcement, or transferring files for inspection to the investigating agency are regulated by the Law on Handling Administrative Violations, the Law on Criminal Procedure, guiding documents for implementation, and Government Decree No. 125/2020/ND-CP dated October 19, 2020, on administrative sanctions for tax and invoice violations.

g) On-site inspections at the taxpayer's premises are recorded electronically.

6. Supervising the Inspection Team

a) Monitoring of the tax inspection team's activities at the taxpayer's premises is carried out for all tax inspection teams and is done through self-monitoring by the person issuing the inspection decision or by assigning supervision.

If the person issuing the tax audit decision conducts the supervision themselves, this is stipulated in the audit decision. If supervision is delegated, the person issuing the audit decision issues the supervision decision.

b) The monitoring decision is sent to the tax inspection team, the supervisor, the tax audited entity, relevant agencies, organizations, and individuals, and is announced at the same time as the inspection decision is announced at the taxpayer's premises.

c) Monitoring of the tax inspection team's activities at the taxpayer's premises shall be conducted regularly from the date of announcement of the inspection decision until the end of the inspection period at the taxpayer's premises and must comply with the law, ensuring accuracy, objectivity, transparency, democracy, and timeliness.

7. Databases used for carrying out the procedures stipulated in Clause 5 of this Article, if they meet the conditions for using information technology applications, do not necessarily have to be implemented at the taxpayer's headquarters.

Chapter IX

TAX MANAGEMENT OF E-COMMERCE, DIGITAL-BASED BUSINESS ACTIVITIES, AND OTHER SERVICES PROVIDED BY FOREIGN PROVIDERS WITHOUT A PERMANENT ESTABLISHMENT IN VIETNAM

Article 73. Organizations and individuals involved in tax management for e-commerce business activities, digital platform-based businesses, and other services provided by foreign suppliers without a permanent establishment in Vietnam.

1. Foreign suppliers without a permanent establishment in Vietnam that conduct e-commerce business, digital platform-based business, and other services with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers).

2. Organizations and individuals in Vietnam purchase goods and services from suppliers abroad.

3. Organizations and tax agents operating under Vietnamese law are authorized by foreign suppliers to register for tax, declare tax, and pay tax in Vietnam.

4. Commercial banks, payment intermediary service providers, and organizations and individuals with rights and obligations related to e-commerce business, digital platform-based business, and other services of foreign providers.

Article 74. Registration for conducting electronic tax transactions

1. Overseas suppliers must register for electronic tax transactions along with their initial tax registration through the General Department of Taxation's electronic portal when registering for electronic transactions, ensuring they meet the following conditions: They must have access to and be able to use the Internet; and they must have an email address for communication with the directly managing tax authority.

2. The overseas supplier registers an official email address to receive all notifications during the electronic transaction process with the directly supervising tax authority.

3. After successfully completing the initial tax registration procedure, the General Department of Taxation's electronic portal will send information about the electronic transaction account and tax identification number to the taxpayer's registered email address to enable them to carry out tax procedures on the General Department of Taxation's electronic portal.

Article 75. Tax Identification Number

The tax identification number for cases where the foreign supplier directly or authorizes the registration, declaration, and payment of taxes is implemented according to the regulations in Circular No. 105/2020/TT-BTC dated December 3, 2020, of the Ministry of Finance guiding tax registration.

Article 76. Direct tax registration of overseas suppliers

1. Initial tax registration documents:

Overseas suppliers register for tax directly using form 01/NCCNN issued with Appendix I of this Circular on the General Department of Taxation's electronic portal.

2. Documents for changing tax registration information:

Overseas suppliers submit tax registration information change documents using form No. 01-1/NCCNN issued with Appendix I of this Circular to the tax authority directly managing them via the General Department of Taxation's electronic portal.

3. Overseas suppliers use electronic transaction authentication codes issued by the tax authorities through the General Department of Taxation's Electronic Information Portal for authentication when registering for tax.

Article 77. Direct tax declaration and calculation by foreign suppliers.

1. Overseas suppliers shall file tax returns directly through the General Department of Taxation's electronic portal, using the electronic transaction authentication code issued by the tax authority through the General Department of Taxation's electronic portal, and submit electronic tax return documents to the directly managing tax authority, as follows:

a) Tax declarations for overseas suppliers are quarterly.

b) Electronic tax return form No. 02/NCCNN issued with Appendix I of this Circular.

c) Foreign suppliers pay value-added tax and corporate income tax using the percentage method based on revenue.

c.1) The revenue subject to value-added tax is the revenue received by the foreign supplier.

c.2) Taxable revenue for corporate income tax purposes is the revenue received by the foreign supplier.

d) The percentage rate for calculating value-added tax on revenue is as stipulated in point b, clause 2, Article 8 of Government Decree No. 209/2013/ND-CP dated December 18, 2013, detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax.

d) The percentage rate for calculating corporate income tax on revenue as stipulated in Clause 3, Article 11 of Government Decree No. 218/2013/ND-CP dated December 26, 2013, detailing and guiding the implementation of the Corporate Income Tax Law.

2. If, after completing the tax declaration and payment procedures, the foreign supplier discovers any errors or omissions, they shall declare an adjustment to the tax payable arising in Vietnam using Form No. 02/NCCNN issued with Appendix I of this Circular.

3. The principles for determining revenue generated in Vietnam for tax declaration and calculation are as follows:

a) The types of information used to identify transactions of organizations and individuals purchasing goods and services originating in Vietnam are as follows:

a.1) Information relating to payments made by organizations or individuals in Vietnam, such as credit card information based on bank identification numbers (BINs), bank account information, or similar information used by the purchasing organization or individual to pay the supplier abroad.

a.2) Information on the residency status of the organization (individual) in Vietnam (payment address, delivery address, home address, or similar information that the purchasing organization (individual) declares to the overseas supplier).

a.3) Information about the access of organizations (individuals) in Vietnam, such as information about the country code of the SIM card, IP address, location of the landline telephone line, or similar information of the purchasing organization or individual.

b) When determining whether a transaction occurs in Vietnam for tax declaration and calculation purposes, the foreign supplier shall proceed as follows:

b.1) Use two non-conflicting pieces of information, including one relating to the organization's (individual's) payment in Vietnam and another relating to the residency status or access information of the aforementioned organization or individual in Vietnam.

b.2) In cases related to payment by organizations or individuals where the information cannot be collected or is inconsistent with other information, the foreign provider is permitted to use two non-conflicting pieces of information, including one piece of residency status and one piece of access information for the organization or individual in Vietnam.

4. Overseas suppliers use electronic transaction authentication codes issued directly by the tax authority to verify transactions when filing or making adjustments.

5. After the overseas supplier submits tax declarations and adjustments (if any), the directly managing tax authority will issue and notify the overseas supplier of the tax payment identification code to serve as the basis for the overseas supplier to pay the tax.

6. Foreign suppliers are responsible for storing information used to identify transactions of purchasing organizations and individuals arising in Vietnam as stipulated in Clause 3 of this Article, for the purpose of tax audits and inspections by tax authorities. The storage shall comply with relevant provisions of the Law on Tax Administration.

7. In cases where the foreign supplier is from a country or territory that has signed a tax agreement with Vietnam, the procedures for tax exemption or reduction shall be carried out in accordance with the Double Taxation Avoidance Agreement as stipulated in Article 62 of this Circular.

Article 78. Direct payment of taxes by foreign suppliers

1. For overseas suppliers, after receiving the tax identification code for the amount payable to the state budget from the directly managing tax authority, the overseas supplier shall pay the tax in freely convertible foreign currency into the state budget revenue account as notified on the General Department of Taxation's electronic portal, ensuring that the correct tax identification code for the amount payable to the state budget sent by the directly managing tax authority is entered.

2. If a foreign supplier overpays the tax declared in their tax return, they may offset the overpayment against the tax payable in the next tax period.

Article 79. Authorization of foreign suppliers to carry out tax registration, tax declaration, and tax payment in Vietnam.

1. In cases where a foreign supplier authorizes an organization or tax agent operating under Vietnamese law (hereinafter referred to as the authorized party), the authorized party is responsible for carrying out tax procedures (tax registration, declaration, and payment) according to the contract signed with the foreign supplier. Based on the scope of authorization and the responsibilities of each party as stipulated in the authorization contract, the authorized party shall carry out the corresponding tax procedures as prescribed in Articles 76, 77, and 78 of this Circular with respect to the foreign supplier.

2. In cases where a foreign supplier has directly registered for tax, declared, and paid taxes in Vietnam but then authorizes an organization or tax agent to declare and pay taxes on their behalf, the foreign supplier must notify the directly managing tax authority by updating the information using form No. 01-1/NCCNN issued with Appendix I of this Circular and submitting relevant documents at least 05 working days before the authorization contract takes effect.

a) The foreign supplier is responsible for providing complete and accurate documents, records, and information necessary for tax procedures in accordance with the contract signed between the two parties.

b) In cases where a foreign supplier signs an authorization contract with a tax agent, the legal representative of the tax agent shall sign and stamp the legal representative section of the tax authority's documents and transaction records. The tax declaration form must include the full name and professional license number of the tax agent's employee. The tax agent's documents and transaction records shall be limited to the scope of tax procedures authorized as stated in the signed tax procedure service contract.

3. The authorized party is responsible for providing accurate and timely documents and evidence, as requested by the tax authorities, to prove the accuracy of tax declarations, tax payments, and requests for tax exemptions and reductions (if any).

4. The tax authority is directly responsible for providing the login account and password for the General Department of Taxation's electronic portal to the authorized party to carry out authorized tax procedures and sending notifications related to authorized tax procedures during the electronic transaction process to the authorized party's email address.

Article 80. Responsibilities of tax authorities in managing taxes on e-commerce business activities, digital platform-based business activities, and other services provided by foreign suppliers.

1. The General Department of Taxation is the tax authority directly responsible for tax management of overseas suppliers. It is responsible for issuing tax identification numbers to overseas suppliers in accordance with regulations, receiving tax declarations, and carrying out tasks related to tax declaration and payment by overseas suppliers.

2. Update the list of foreign water suppliers who are directly or indirectly registered for tax purposes and file tax returns on the General Department of Taxation's electronic portal.

3. Coordinate with relevant agencies to identify and publish the names and website addresses of foreign suppliers that have not registered, declared, or paid taxes, with whom buyers of goods and services have conducted transactions in Vietnam.

4. Tax authorities in Vietnam have the right to coordinate with tax authorities abroad to exchange information and urge foreign suppliers to declare and pay taxes; to collect taxes from foreign suppliers if it can be proven that the foreign supplier has declared and paid taxes incorrectly; and to coordinate with competent authorities to implement and handle, in accordance with the law, cases where foreign suppliers fail to comply with their tax obligations in Vietnam.

Article 81. Responsibilities of relevant organizations and individuals in Vietnam in the case of purchasing goods and services from foreign suppliers.

1. Organizations established and operating under Vietnamese law, or organizations registered to operate under Vietnamese law, that purchase goods and services from foreign suppliers or distribute goods and provide services on behalf of foreign suppliers, where the foreign suppliers do not register for tax, declare taxes, or pay taxes in Vietnam as prescribed in Articles 76, 77, 78, and 79 of this Circular, are obligated to declare, deduct, and pay taxes on behalf of the foreign suppliers as prescribed in Circular No. 103/2014/TT-BTC dated August 6, 2014, of the Ministry of Finance.

2. Individuals who purchase goods or services from foreign suppliers, and where those foreign suppliers do not register for tax, declare tax, or pay tax in Vietnam as stipulated in Articles 76, 77, 78, and 79 of this Circular, shall have their taxes deducted and paid on their behalf by commercial banks or payment intermediary service providers, as stipulated in point a, clause 3, Article 30 of Decree No. 126/2020/ND-CP.

The General Department of Taxation is responsible for notifying the head office of the bank or payment intermediary service provider of the name and website address of foreign suppliers that have not registered, declared, or paid taxes, with whom the buyer of goods and services has conducted transactions. The head office is responsible for notifying the bank's branches of the list of foreign suppliers so that the branches can declare, deduct, and pay taxes on behalf of the foreign suppliers when making payments for transactions with them, as stipulated in Government Decree No. 70/2014/ND-CP dated July 17, 2014, detailing the implementation of several articles of the Foreign Exchange Ordinance and the Ordinance amending and supplementing several articles of the Foreign Exchange Ordinance. The amount of tax declared, deducted, and paid on behalf of the foreign supplier is determined based on the revenue received by the foreign supplier, and the percentage rate for calculating value-added tax and corporate income tax on revenue as stipulated in points d and e, Clause 1, Article 77 of this Circular. If the type of goods or services in each transaction cannot be determined, the highest percentage rate for calculating value-added tax and corporate income tax shall be applied.

3. No later than the 20th of each month, commercial banks and payment intermediary service providers are responsible for declaring and remitting to the state budget the amount deducted and remitted for tax obligations payable by foreign suppliers, using Form No. 03/NCCNN issued with Appendix I of this Circular.

4. In cases where individuals purchase goods or services from foreign suppliers and pay by card or other methods that commercial banks or payment intermediary service providers cannot deduct or remit on their behalf, the commercial banks or payment intermediary service providers are responsible for monitoring the amount transferred to foreign suppliers and periodically, on the 10th of each month, sending a report to the General Department of Taxation using Form No. 04/NCCNN issued with Appendix I of this Circular.

5. The declaration, deduction, payment on behalf of, and monitoring of amounts transferred to overseas suppliers by commercial banks and payment intermediary service providers, as stipulated in Clauses 2, 3, and 4 of this Circular, shall be carried out from the date the General Department of Taxation sends a notification to the head office of the bank or payment intermediary service provider.

Chapter X

AUTHORIZED COLLECTION FEE

Article 82. Authorized Collection Funds

1. Content of authorized collection of expenditures

The Tax Authority authorizes organizations and individuals to collect certain taxes and other revenues belonging to the state budget within the scope of the tax authority's management as follows:

a) Land use tax on agricultural land for households and individuals;

b) Non-agricultural land use tax for households and individuals;

c) Taxes for household businesses and individual business owners paying taxes using the lump-sum method;

d) Business license fee and environmental protection fee for household businesses and individual businesses paying taxes using the lump-sum method;

d) Other taxes and revenues belonging to the state budget, if approved by the Minister of Finance.

2. Amount of fees for authorized collection:

The commission fee for authorized collection of revenues under Clause 1 of this Article is determined as a percentage of the total amount of taxes and other revenues belonging to the state budget as stipulated in the Authorized Collection Contract.

The Tax Authority establishes appropriate authorized collection budgets to meet the tax collection management requirements for each locality. The authorized collection budget is decided by the Director General of the General Department of Taxation after approval from the Ministry of Finance. Expenditures for authorized collection are allocated outside the administrative management expenditure limits and are included in the regular operating budget of the Tax Authority as prescribed.

3. Prepare budgets, manage, utilize, disburse, and settle accounts for funds collected under delegated collection.

a) Budget preparation: At the time of preparing the annual budget, based on the content and expenditure levels prescribed by competent authorities, the budget for state budget revenue collection authorized by the tax authority, and the budget implementation situation of the previous year, the estimated budget implementation for this year is prepared to prepare the budget for authorized revenue collection for the overall planning year within the state budget expenditure budget of the General Department of Taxation submitted to the Ministry of Finance as prescribed.

b) Management and Use: The allocated budget for authorized tax collection is included in the annual regular state budget expenditure plan of the General Department of Taxation. The use of authorized tax collection funds must comply with the purpose, target, content, expenditure level, and authorized tax collection contract as prescribed. Any unused authorized tax collection funds allocated at the end of the year will be carried over to the following year for continued use.

c) Accounting and settlement: The General Department of Taxation shall maintain accounting books to record and account for funds according to accounting accounts, the state budget classification, and consolidate the settlement of authorized revenue collection in the annual budget settlement report in accordance with current regulations.

Chapter 11

SOME OTHER ISSUES

Article 83. Coordination of tax management for defense and security enterprises

The General Department of Taxation, in coordination with the Finance Department of the Ministry of National Defence and the Planning and Finance Department of the Ministry of Public Security, monitors, inspects, and urges defence and security companies to declare, pay, and settle corporate income tax arising from the production and business of goods and services serving defence and security purposes, as well as other production and business activities of products, goods, and services, in accordance with regulations.

Article 84. Use of the national population database and the national citizen identification database

When documents concerning the background, identity, and residence of citizens, which are part of the dossiers stipulated in this Circular, have been abolished by the national population database, the national residence database, and the national citizen identification database, the tax authority is responsible for using information in the national population database, the national residence database, and the national citizen identification database, based on information exchange and provision between state management agencies as prescribed in point c, clause 2, Article 26 of Decree No. 126/2020/ND-CP, to resolve administrative procedures for taxpayers as prescribed.

Article 85. Language used in documents for transactions with tax authorities

The language used in tax filings is Vietnamese. Documents in foreign languages ​​must be translated into Vietnamese. The taxpayer must sign and stamp the translation and is legally responsible for its accuracy. If a foreign-language document exceeds 20 A4 pages, the taxpayer must submit a written explanation and request that only relevant content and clauses related to determining tax obligations be translated.

For applications for tax exemption or reduction under tax agreements, depending on the nature of each contract and the requirements of the tax authorities (if any), taxpayers need to translate the contents of the contract such as: contract name, names of contract clauses, contract execution time or the actual time the foreign contractor's experts are present in Vietnam (if any), responsibilities and commitments of each party; provisions on confidentiality and product ownership (if any), authorized signatories of the contract, contents related to determining tax obligations and similar contents (if any); and also submit a certified copy of the contract.

Consular legalization of documents issued by competent foreign authorities is only mandatory in specific cases as guided in Articles 30, 62, and 70 of this Circular.

Article 86. Deadline for filing tax returns and deadline for paying taxes

The deadline for filing tax returns is governed by Clauses 1, 2, 3, 4, and 5 of Article 44 of the Law on Tax Administration and Article 10 of Decree No. 126/2020/ND-CP. The deadline for paying taxes is governed by Clauses 1, 2, and 3 of Article 55 of the Law on Tax Administration and Article 18 of Decree No. 126/2020/ND-CP. If the deadline for filing tax returns or paying taxes coincides with a public holiday, the deadline for filing tax returns or paying taxes will be the next working day following that holiday, as stipulated in the Civil Code.

Chapter 10

TERMS ENFORCEMENT

Article 87. Enforcement

1. This Circular shall take effect from January 1, 2022.

2. The tax declaration forms prescribed in this Circular shall apply to tax periods beginning from January 1, 2022 onwards. The tax finalization declaration for the 2021 tax year shall also be based on the forms prescribed in this Circular.

3. This Circular repeals:

a) Circular No. 156/2013/TT-BTC dated November 6, 2013, of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration; the Law amending and supplementing a number of articles of the Law on Tax Administration and Government Decree No. 83/2013/NĐ-CP dated July 22, 2013;

b) Circular No. 99/2016/TT-BTC dated June 29, 2016 of the Ministry of Finance guiding the management of value-added tax refunds;

c) Circular No. 31/2017/TT-BTC dated April 18, 2017, amending and supplementing a number of articles of Circular No. 99/2016/TT-BTC dated June 29, 2016, of the Ministry of Finance guiding the management of value-added tax refunds;

d) Circular No. 208/2015/TT-BTC dated December 28, 2015 of the Ministry of Finance regulating the operation of tax advisory councils at the commune, ward, and town levels;

d) Circular No. 71/2010/TT-BTC dated May 7, 2010, of the Ministry of Finance guiding the determination of tax for businesses selling automobiles and motorbikes that record the selling price of automobiles and motorbikes on invoices issued to consumers lower than the usual market transaction price;

e) Circular No. 06/2017/TT-BTC dated January 20, 2017 of the Ministry of Finance amending and supplementing Clause 1, Article 34a of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration (which has been supplemented in Clause 10, Article 2 of Circular 26/2015/TT-BTC);

g) Circular No. 79/2017/TT-BTC dated August 1, 2017 of the Ministry of Finance amending and supplementing sub-point b1, Point b, Clause 4, Article 48 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration.

4. This Circular repeals the provisions of the following Circulars:

a) Article 1 of Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance amends Circulars 156/2013/TT-BTC, 111/2013/TT-BTC, 219/2013/TT-BTC, 08/2013/TT-BTC, 85/2011/TT-BTC, 39/2014/TT-BTC and 78/2014/TT-BTC to reform and simplify administrative procedures on taxation;

b) Articles 14, 15, 16, 17, 18, 19, 20, and 21 of Chapter IV of Circular No. 151/2014/TT-BTC dated October 10, 2014, of the Ministry of Finance guiding the implementation of Decree No. 91/2014/ND-CP dated October 1, 2014, of the Government on amending and supplementing a number of articles in the Decrees regulating taxes;

c) Article 2 of Circular No. 26/2015/TT-BTC dated February 27, 2015, of the Ministry of Finance guiding value-added tax and tax management under Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Laws on taxation and amending and supplementing a number of articles of the Decrees on taxation and amending and supplementing a number of articles of Circular No. 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance on invoices for the sale of goods and provision of services;

d) Article 17, Clause 3 of Article 18 of Circular No. 84/2016/TT-BTC dated June 17, 2016 of the Ministry of Finance guiding procedures for collecting and remitting state budget revenue for taxes and domestic revenues;

d) Article 3 of Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance guiding Decree No. 100/2016/ND-CP dated July 1, 2016 of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Law on Value Added Tax, the Law on Special Consumption Tax and the Law on Tax Administration and amending a number of articles in tax circulars;

e) Articles 3, 4, 12, 20 and 23 of Circular No. 36/2016/TT-BTC dated February 26, 2016 of the Ministry of Finance guiding the implementation of regulations on taxes for organizations and individuals conducting oil and gas exploration and exploitation activities as prescribed by the Oil and Gas Law;

g) Articles 4, 25 and 26 of Circular No. 176/2014/TT-BTC dated November 17, 2014 of the Ministry of Finance guiding the tax on exploration, development and exploitation of oil and gas by the Vietnam-Russia Joint Venture “Vietsovpetro” from Block 09-1 under the 2010 Agreement and the 2013 Protocol;

h) Articles 3 and 4, point b of clause 1 of Article 7, and points c, d, and e of clause 2 of Article 7 of Circular No. 22/2010/TT-BTC dated February 12, 2010, of the Ministry of Finance guiding the implementation of Decree No. 100/2009/ND-CP dated November 3, 2009, of the Government stipulating the collection of surcharges on the share of oil profits of oil and gas contractors when crude oil prices fluctuate upwards;

i) Clauses 2, 3, and 4 of Section II, Part B and Clauses 2, 3, and 4 of Section IV, Part B of Circular No. 56/2008/TT-BTC dated June 23, 2008, of the Ministry of Finance guiding the declaration, payment, and settlement of state revenues as stipulated in Article 18 of the Regulations on Financial Management of the Parent Company – Vietnam Oil and Gas Group issued together with Decree No. 142/2007/ND-CP dated September 5, 2007, of the Government.

k) Points a and b of Clause 1, Article 21 of Circular No. 72/2014/TT-BTC dated May 30, 2014 of the Ministry of Finance stipulating value-added tax refunds for goods carried by foreigners and Vietnamese residing abroad when exiting the country (as amended and supplemented by Clause 15, Article 1 of Circular No. 92/2014/TT-BTC dated December 31, 2019 of the Ministry of Finance) regarding the application dossier for payment and refund to banks acting as value-added tax refund agents;

l) Clause 2, Article 3 of Joint Circular No. 206/2014/TTLT/BTC-BQP dated December 24, 2014, of the Ministry of Finance and the Ministry of National Defense guiding the implementation of tax declaration and payment and other state budget revenues for units and enterprises under the Ministry of National Defense;

m) Point b, Clause 2, Section II of Joint Circular No. 85/2005/TTLT/BTC-BCA dated September 26, 2005, between the Ministry of Finance and the Ministry of Public Security, guiding the implementation of tax policies and state budget revenue collection for the production and business activities of goods and services of units under the Ministry of Public Security;

n) Article 5; Article 6; Article 24; Clause 1, points a, b, c, d, e, e.3, e.4, e.5, e.6, e.7 of Clause 2, Clause 7, Clause 8 of Article 26 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on Personal Income Tax and Government Decree No. 65/2013/ND-CP detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax.

o) Clauses 1 and 2, points a.1, a.2, a.3, a.4, b, c, d, and e of clause 3, clause 4, points b, c, d, and e of clause 6 of Article 21; Article 22; Article 23; Article 24; Appendix 02 and sample forms of Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance guiding the implementation of value added tax and personal income tax for resident individuals engaged in business activities; This document provides guidance on implementing certain amendments and additions to personal income tax regulations as stipulated in Law No. 71/2014/QH13 amending and supplementing a number of articles of the Laws on Taxation and Government Decree No. 12/2015/ND-CP dated February 12, 2015, detailing the implementation of the Law amending and supplementing a number of articles of the Laws on Taxation and amending and supplementing a number of articles of the Decrees on Taxation.

5. The registration, declaration, and payment of taxes for foreign suppliers as stipulated in Articles 76, 77, 78, and 79 of this Circular shall be implemented from the time the General Department of Taxation announces the operationalization of the registration, declaration, and tax payment system for foreign suppliers on the Electronic Information Portal.

6. If the legal documents referenced for application in this Circular are amended, supplemented, or replaced by new legal documents, the new documents shall apply.

Article 88. Transitional provisions

1. Decisions extending the tax payment deadline, decisions on installment payments of tax arrears, and notices accepting the waiver of late payment penalties issued before the effective date of this Circular shall remain in effect until the expiration date specified in the Decision or Notice.

2. For overpayments by taxpayers as stipulated in Article 26 of this Circular (including amounts arising before the effective date of this Circular), the tax authorities shall carry out procedures to process the non-refundable tax, late payment interest, and penalties as stipulated in Article 26 of this Circular.

3. For individuals filing personal income tax returns for real estate transfer activities, the deadline for filing tax returns continues to follow the guidelines in Clause 11, Article 2 of Government Decree No. 12/2015/ND-CP dated January 12, 2015, and Clause 5, Article 21 of Circular No. 92/2015/TT-BTC dated June 15, 2015, of the Ministry of Finance.

4. For hydropower plants that have already received guidance from the Ministry of Finance on the allocation ratio of tax obligations before this Circular takes effect, they shall continue to implement the guidance already provided by the Ministry of Finance.

5. For taxpayers engaged in telecommunications services with dependent accounting branches in provinces other than their head office, participating in postpaid telecommunications services as stipulated in Clause 4, Article 20 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance, the taxpayer shall submit tax declaration documents using Form No. 01/GTGT, and the appendix of the value-added tax allocation table payable to the locality where the revenue is received, using Form No. 01-6/GTGT ​​issued with Appendix II of this Circular, to the directly managing tax authority.

Article 89. Responsible for implementing

1. Tax authorities at all levels are responsible for disseminating and guiding organizations, individuals, and taxpayers to comply with the contents of this Circular.

2. Organizations, individuals, and taxpayers subject to the provisions of this Circular shall fully comply with the instructions contained in this Circular.

During the implementation process, if any difficulties or obstacles arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for timely resolution.

Recipients: - Central Office and Party Committees; - Congress office; - Office of the President; - Office of the General Secretary; - People's Procuratorate of the Supreme; – Supreme People's Court; - State audit; – Ministries and ministerial-level agencies, government agency, – Central agencies of mass organizations; – People's Council, People's Committee, Department of Finance, Tax Department, State Treasury provinces and centrally-administered cities; - Announcement; - Department of Document Inspection (Ministry of Justice); - Government website; - Website of the Ministry of Finance; Website of the General Department of Taxation; - Units under the Ministry of Finance; – Save: VT, TCT (VT, CS).

KT MINISTER DEPUTY   Tran Xuan Ha