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Taxpayers have gained additional rights following the Tax Management Law, which took effect from July 2020

Thứ năm    |     25 January, 2024

In June 2019, the new Tax Management Law was passed by the National Assembly with significant changes, replacing the Tax Management Laws of 2006 and 2012. The Tax Management Law 38/2019/QH14 will take effect from July 1, 2020. Here are 5 notable changes compared to the previous law:

1. Addition of new rights for taxpayers

In addition to existing rights, several new rights have been added to ensure the interests of taxpayers, including:

  • Receiving relevant documents regarding tax obligations from competent authorities during inspections, audits, and examinations.
  • Taxpayers will not be fined for administrative tax violations, nor charged late payment fees in cases where they comply with instructions and decisions of tax authorities and other competent state agencies regarding tax obligations.
  • Accessing, viewing, and printing all electronic documents submitted to the tax management portal in accordance with this Law and electronic transaction laws. Using electronic documents in transactions with tax authorities and related agencies and organizations.

Notably, taxpayers are entitled to compensation for damages caused by tax authorities and officials as regulated by the law. Additionally, taxpayers have the right to lodge complaints, initiate lawsuits against administrative decisions, and actions related to their legitimate rights and interests.

2. Tax agents can provide accounting services for micro-enterprises

The provision allowing tax agents to provide accounting services for micro-enterprises helps reduce costs for businesses and creates conditions for their development. Services provided by tax agents to taxpayers under contracts include:

  • Tax registration, declaration, payment, settlement, preparation of tax exemption or reduction applications, tax refunds, and other tax-related procedures on behalf of taxpayers.
  • Tax advisory services.
  • Provision of accounting services for micro-enterprises when there is at least one certified accountant. Micro-enterprises are defined according to the regulations on support for small and medium-sized enterprises.

3. Strengthening management of e-commerce activities

Article 42 of the Tax Management Law No. 38 on tax declaration states: For e-commerce and digital platform-based businesses and other services provided by foreign suppliers without a permanent establishment in Vietnam, foreign suppliers are directly responsible or authorized to register, declare, and pay taxes in Vietnam as regulated by the Minister of Finance.

4. New regulations on tax registration, declaration, and payment deadlines

Taxpayers must register for tax and obtain a tax identification number from the tax authority before commencing production, business activities, or incurring obligations to the state budget (previously within 10 working days from the date of receiving the business registration certificate or establishment and operation license or investment certificate).

Specifically, regarding deadlines:

  • Tax declaration and payment: The last day of the first month of the following quarter (except for provisional corporate income tax payments which still adhere to the previous deadline of the last day of the following quarter).
  • Annual tax settlement: The last day of the third month from the end of the calendar year or fiscal year.
  • Annual tax declaration: The last day of the first month of the calendar year or fiscal year.
  • Personal income tax settlement (individuals directly settling): The last day of the fourth month from the end of the calendar year.

5. Regulations on electronic invoices and documents

The Tax Management Law amends Chapter X with 6 Articles on electronic invoices, documents, principles of issuance, management, and use of electronic invoices. Accordingly, when selling goods or providing services, the seller must issue electronic invoices to the buyer in standard data format, containing complete content as required by tax laws and accounting laws, regardless of the value of each transaction. If the seller uses a cash register, they must register to use electronic invoices generated from the cash register connected to the tax authority.

The Law also stipulates that electronic documents include various types of documents and receipts expressed in electronic data form by tax authorities or organizations responsible for tax deduction provided to taxpayers via electronic means when conducting tax procedures or other revenues under the state budget and other types of electronic documents and receipts.