Tax Administration Law No.38/2019/QH14 takes effect from 01 July 2020

On June 13th, 2019, the National Assembly passed a new Tax Administration Law including some notable changes as follows:

Changing in deadline for submitting tax declaration dossiers.

  • For the quarterly tax declaration, the deadline is the last day of the first month of the subsequent quarter in which the tax obligation is incurred (the current regulation is the 30th day of the first month of the next quarter)
  • For the yearly tax declaration:

No later than the last day of the 3rd month from the end of the calendar year or the fiscal year for the annual tax finalization dossier (the current regulation is the 90th day from the end of the fiscal year or calendar year);

No later than the last day of the 4th month from the end of the calendar year for personal income tax finalization dossiers of individuals who directly settling tax (extension of 01 month versus current regulations)

Adding tax payer’s rights

  • Have right to know the deadline for resolving tax refunds, non-refundable tax amounts and legal basis for non-refundable tax amounts.
  • To be consulted to view and print all electronic documents of taxpayers sent to the electronic information portal of tax administration agencies according to the provisions of this Law and the law on electronic transactions.
  • Use electronic vouchers in transactions with tax administration agencies and other related agencies and organizations.
  • Not to be subject to tax violations, not to be charged late payment in case the taxpayers comply with guiding documents and handling decisions issued by tax agencies and competent state agencies related to the tax obligations of taxpayers.

New regulations on tax administration for e-commerce activities

For e-commerce business, digital based business and other services performed by overseas suppliers without a permanent establishment in Vietnam, the overseas suppliers have the obligation to directly implement or authorize the tax registration, tax declaration and payment in Vietnam according to the regulations of the Minister of Finance.

Clarifying and managing more closely for related-party transactions

  • The price of related-party transaction is performed by tax payers according to the independent transactions to declare and determine the payable tax amount on the principle that shall not reduce the taxable income;
  • Taxpayers which aresmall businesses and having low tax risks shall be exempted and applied a simplified mechanism in declaration and determination of related-party transaction prices.

The new tax administration law takes effect from July 1st, 2020. The regulation on invoices and electronic documents of the Law takes effect from July 1st, 2022.

Decree 126/2020/ND-CP Law of Tax Adminstration

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