New points of 2019 Law on Tax Administration to take effect

New and highlighted contents of the 2019 Law on Tax Administration passed by the XIVth National Assembly on June 13, 2019

I. In respect of tax authorities

Regional Tax Subdepartments are additionally eligible as tax authorities because a number of Tax Subdepartments have been merging into Regional Tax Subdepartments.

II. In respect of subject matters of tax administration

The followings are added:

  1. Administration of invoices and evidencing documents;
  2. Tax-related international cooperation;
  3. Communication to and support for tax payers.

III. Broadening of responsibilities for tax-related international cooperation

The supplementary responsibility mentioned above is defined as “Taking supportive measures to collect taxes under treaties to which Vietnam is a party, including:

  1. Requesting overseas tax authorities and other authorized entities to assist in collecting taxes in their countries with respect to tax accrued in Vietnam that tax payers are obliged to pay when they have no longer resided in Vietnam;
  2. Providing assistance in collecting taxes at the request of overseas tax authorities with respect to tax accruals payable abroad of tax payers residing in Vietnam by accelerating collection of taxes accrued”.

IV. Addition of rights vested in taxpayers

  1. Receiving documents relating to tax obligations of entities having appropriate jurisdiction when conducting checks, inspections and audits.
  2. Being updated on time limits for making decisions on tax refunds, and informed of nonrefundable tax amounts and legal bases for such amounts.
  3. Receiving decisions on tax-related sanctions and notices of tax checks and inspections and requesting any justification for what is included in decisions on tax-related sanctions;
  4. Receiving exemptions from tax-related administrative penalties or payment of late payment interest to the extent that any violation arises due to taxpayers’ compliance with instructional documents and sanctioning decisions of tax authorities or competent state authorities regarding identification of taxpayer’s tax obligations.

V. In respect of tax registration time-limits

1. Pursuant to the existing regulation laid down in Article 22 of 2006 Law on Tax Administration

Tax registrants must make tax registrations within 10 working days after:

– Obtaining business registration certificates or establishment and operation licenses or investment certificates;

– Starting business with respect to organizations not bound to apply for business registrations or family households or natural persons subject to the business registration requirement, and yet to obtain business registration certificates; etc.

2. Pursuant to the new regulations laid down in Article 30 in 2019 Law on Tax Administration

Taxpayers are obliged to apply for tax registrations and may receive their TINs before starting their business or owing obligations to the state budget.

Within 10 working days from receipt of valid tax registration documentation, in case of loss or damage to such certificates, tax authorities will reissue new ones within 5 working days of receipt of taxpayers’ requests.

3. Pursuant to the new regulations laid down in Article 34 in 2019 Law on Tax Administration

Tax registration certificates are granted within 03 working days from receipt of taxpayers’ valid tax registration submissions.  In case of being lost, badly damaged, worn out or burnt, they will be reissued by tax authorities within 2 working days of receipt of all required documentation.

VI. Extension of time limits for submission of PIT finalization documents

1. Pursuant to the existing regulations laid down in clause 2 of Article 32 of 2006 Law on Tax Administration,

Annual PIT finalization documents may be submitted not later than the 90th day after end of a calendar year or a fiscal year.

2. Pursuant to the new regulations laid down in point b of clause 2 of Article 44 in 2019 Law on Tax Administration,

PIT finalization documents of persons directly submitting these documents must be filed not later than the last day of the fourth month after end of a calendar year.

VII. In respect of time limits for grant of tax registration certificates

1. Pursuant to the existing regulation laid down in Article 26 of 2006 Law on Tax Administration,

Within 10 working days from receipt of valid tax registration documentation, in case of loss or damage to such certificates, tax authorities will reissue new ones within 5 working days of receipt of taxpayers’ requests.

2. Pursuant to the new regulations laid down in Article 34 in 2019 Law on Tax Administration,

Tax registration certificates are granted within 03 working days from receipt of taxpayers’ valid tax registration submissions.  In case of being lost, badly damaged, worn out or burnt, they will be reissued by tax authorities within 2 working days of receipt of all required documentation.

VIII. Additional accounting services rendered by tax agents to small and medium enterprises

Point c of clause 1 of Article 104 in 2019 Law on Tax Administration regulates that tax agents may provide accounting services to extra-small enterprises.

IX. Legitimization of regulations on electronic invoices (in effect from July 1, 2022)

Previously, electronic invoices were prescribed in sub-law instruments, typically including Decree No. 119/2018/ND-CP dated September 12, 2018.

2019 Law on Tax Administration is in force from July 1, 2020; in particular, regulations on electronic invoices and evidencing documents take effect from July 1, 2022.