Policy update
Q u y Nguyen
Tax administration law takes effect Vietnam has passed a new Law on Tax Administration No.38/2019/QH14, effective from 1 July 2020. Under the new law, tax authorities have been granted additional enforcement powers. The new law makes it a little easier for both individuals and entities to file taxes. There are a number of other notable changes, as outlined below. Increased enforcement on related-party transactions Under the new law, tax authorities will have additional power to collect tax, particularly in instances where individuals or companies attempt to evade tax. This will include instances where companies fail to abide by transfer pricing requirements and transactions where entities intentionally attempt to avoid paying tax. To help ensure compliance, Vietnamese tax authorities will increase cooperation with international jurisdictions through information exchanges. Further, businesses that engage in
transfer pricing will be required to file these as a separate return, rather than include this information as part of the corporate income tax return.
Tax administration certificate Pursuant to the new regulations at Article 34, tax registration certificates are granted within three working days from receipt of taxpayers’ valid tax registration submissions. In instances of certificates being lost or damaged, they will be reissued by tax authorities within two working days of receipt of all required documentation.
Tax declaration and payment Taxpayers are required to make tax declarations and calculations at local tax offices where the head office is based. In cases where taxpayers adopt a centralised accounting at their head office, they must declare tax at the head office and calculate and allocate tax obligations to each province. The deadline for annual personal income tax (PIT) filing of individuals directly declaring PIT with the tax authorities has been increased to 120 days from the end of the calendar year, from the current 90-day deadline.
before the announcement of the tax or other competent authorities on tax audit or inspection.
Taxpayers may make supplementary declarations of erroneous tax dossiers within 10 years from the date of expiration of the submission deadline of the erroneous tax declaration but
Once it has been implemented, individuals will be able to use their citizenship code to file taxes . At present, individuals are required to have a tax code and an identity card
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