LAW

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE LAW ON TAX ADMINISTRATION

Pursuant to the Constitution of the Socialist Republic of Vietnam 1992, amended and supplemented in the Resolution No. 51/2001/QH10;

The National Assembly promulgates the Law on amending and supplementing a number of articles of the Law on Tax administration No. 78/2006/QH11,

Article 1.

Amending and supplementing a number of articles of the Law on Tax administration:

1. Clause 4, 5 and 6 is added to Article 4 as follows:

“4. Applying the risk management mechanism to tax administration:

a) The application of risk management mechanism in tax administration includes: collecting information and data related to tax payers; establishing the tax administration criteria; assessing the compliance with law of tax payers; suggesting and applying tax administration measures;

b) The tax authority shall manage and use professional information systems to asses taxation risks, the compliance with law of tax payers, select objects of tax inspection, and support other activities in tax administration.

5. Giving priorities when carrying out taxation procedures applicable to exports and imports if the tax payer satisfy the following requirements:

a) Do not violate the laws on tax and customs within consecutive 02 years;

b) Make payments via banks as prescribed by law;

c) Carry out electronic customs procedures and taxation procedures;

d) Comply with the law on accounting and statistics;

dd) Reach the required rated of export and import turnover.

6. The Government shall specify Clause 4 and Clause 5 of this Article.”

2. Clause 10, 11 and 12 is added to Article 5 as follows:

 “10. Risk management in tax administration is the systematic application of laws and professional processes to determine, assess, and classify the risks that might negatively affect the efficiency and legitimacy of tax administration, and to form the basis for the tax authority to reasonably allocate resources and efficiently take managerial measures.

1.1. Prior agreement on the method of calculating taxable prices is a written agreement between the tax authority and tax payers, or between the tax authority, tax payers and the tax authorities of the nations and territory with which Vietnam has signed the Agreements on double taxation and the prevention of tax evasion, applicable to income tax within a certain period, specifying the bases for tax calculation, the method of determining taxable prices or taxable prices according to market prices. The prior agreement on the method of determining taxable prices shall be made before the tax payer submit the tax declaration dossier.

12. The prior determination of customs value and codes, the prior certification of the origins of exports and imports are the customs’ issuing papers to determine customs value and codes, to determine the origins of exports and imports before carrying out customs procedures.”

3. Clause 1 and Clause 2 Article 6 is amended and supplemented as follows:

“1. Receive supports and instruction to pay tax; provide information and documents to fulfill the tax obligations and enjoy taxation benefits.

2. Request the tax authority to explain the tax calculation and tax imposition; request the customs to determine the customs value and codes, certify the origins of exports and imports before carrying out customs procedures as prescribed by the Government; request the verification of the quality, quantity, and category of exports and imports.”

4. Clause 10 is added to Article 7 as follows:

“10. In case the tax payer doing business in a locality with information technology infrastructure shall make declaration, pay tax, and make transactions with the tax authority via electronic instruments as prescribed by the laws on electronic transactions.

The Government shall specify this Clause .”

5. Clause 2 and Clause 3 Article 8 is amended and supplemented as follows:

“2. Disseminate and instruct the laws on tax; announce the taxation procedure at the offices and websites of the tax authority and on the mass media.

3. The tax authority must explain and provide information relevant to the determination of tax liability for tax payers; the tax authority must announce the tax being paid by local households and traders; the customs must determine the customs values and codes, certify the origins of exports and imports before carrying out customs procedures as prescribed by the Government.”

6. Clause 9 is added to Article 9 as follows:

“9. the tax authority shall apply the mechanism for prior agreement on the method of determining taxable prices to tax payers and tax authorities of the nations and territories with which Vietnam has signed the Agreements on prevention of double taxation and tax evasion applicable to income tax.”

7. Clause 3 is added to Article 30 as follows:

“3. The mechanism for prior agreement on the method of determining taxable prices is applied based on the request of the tax payer and the agreement between the tax authority and the tax payer under a unilateral agreement, bilateral agreement, and multilateral agreement between the tax authority, the tax payer and the tax authority of relevant nations and territories.

The Government shall specify this Clause .”

8. Clause 1a is added after Clause 1 Article 31; Clause 6 Article 31 is amended and supplemented as follows:

“1a.  The tax declaration dossier of taxes being declared and paid every quarter includes:

a) The quarterly tax declaration;

b) The list of invoices sold goods and services (if any);

c) The list of invoices of purchased goods and services (if any);

d) Other documents related to the tax payable.”

“6. The Government shall specify the taxes being declared every month, every quarter, every year, temporarily declared every quarter, declared every time the tax liability arises, the tax finalization declaration the criteria for determining tax payers making declaration every quarter, and the dossier of tax declaration of each case.”

9. Clause 1, 2, 3 and 6 Article 32 is amended and supplemented as follows:

“1. For the taxes being declared every month and every quarter:

a) On the 20^th of the month succeeding the month when the tax liability arises at the latest, applicable to the taxes declared and paid every month;

b) On the 30 of the month succeeding the month when the tax liability arises at the latest, applicable to the taxes declared and paid every quarter.

2. For annual taxes:

a) On the 30^th of the first month of the calendar year or the fiscal year at the latest, applicable to the annual tax declaration.

For taxes on the use of non-agricultural land and land rents, the time limit for making tax declaration is prescribed by the laws on taxes on the use of non-agricultural land and land rents;

b) On the 30^th of the quarter succeeding the quarter when the tax liability arises at the latest, applicable to the initial tax declaration every quarter;

a) On the 90^th as from the end of the calendar year or the fiscal year at the latest, applicable to the annual tax declaration.

3. a) On the 10^th as from the tax liability arises at the latest, applicable to the taxes declared every time the tax liability arises;

The time limit for submitting the declaration of taxes on land income and registration fee is specified by the Government and relevant laws.”

“6. The location for submitting tax declarations:

a) The tax payers shall submit the tax declarations at the authority in charge;

b) When submitting the tax declaration according to single-window system, the location for submitting the tax declaration is provided by that system;

c) The locations for submitting the tax declaration of exports and imports are specified by the Law on Customs;

d) The Government shall specify the location for submitting tax declarations in cases such as: the tax payer engages in multiple businesses; the tax payer conducts business or production in multiple localities; the tax payer having tax liabilities; the tax payer having tax on the incomes from land; the tax payer making electronic declaration, and other necessary cases.”

10. Clause 2 and Clause 4 Article 33 is amended and supplemented as follows:

“2. The extension does not exceed 30 days, applicable to the submission of monthly, quarterly, and annual tax declarations, initial tax declarations, occasional tax declarations; and does not exceed 60 days applicable to the submission of tax finalizations, as from the deadline for submitting tax declarations.”

“4. Within 03 working days as from the reception of the application for extending the tax declaration, the tax authority must issue the written approval or refusal to the tax payer.”

11. Article 42 is amended and supplemented as follows: