Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance guiding a number of articles of the Law on Tax Administration and the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, and Decree No. 106/2010/ND-CP of October 28, 2010

TAX DECLARATION DOSSIERS MUST BE SUBMITTED IF NO TAX OBLIGATION ARISES

The Ministry of Finance issued the Circular No. 28/2011/TT-BTC dated February 28, 2011 guiding a number of articles of the Law on Tax Administration and the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, and Decree No. 106/2010/ND-CP of October 28, 2010.

Contents of tax administration include Tax declaration, tax calculation; Tax assessment; Tax payment; Authorized tax collection; Responsibility to fulfill tax obligations; Procedures for tax exemption or reduction; remission of tax and fine arrears; Procedures for tax refund or clearing; Tax examination and inspection; Settlement of complaints, denunciations and legal actions related to the implementation of tax laws.

For taxes to be declared on a monthly, quarterly or yearly basis, if no tax obligation arises in a tax period or taxpayers are currently eligible for tax incentives, exemption or reduction, taxpayers shall still submit tax declaration dossiers to tax agencies within the set time limit. Taxpayers are not required to submit tax declaration dossiers for the period in which business operations are suspended and no tax obligation arises.

For taxes to be declared on a monthly or quarterly basis, the first tax period is counted from the date of commencement of activities that give rise to the tax obligation to the last day of the month or quarter, and the last tax period is counted from the first day of a month or quarter to the date of termination of activities that give rise to the tax obligation. The annual tax period for enterprise income tax or royalty is counted according to the calendar year or the fiscal year applied by taxpayers. The annual tax period for other taxes is the calendar year.

As according to this Circular, tax agencies shall directly examine dossiers and issue decisions on tax exemption or reduction in the following cases: Tax exemption or reduction for business households or individuals that pay tax according to the presumption method and suspend business operations; PIT exemption or reduction for taxpayers facing difficulties caused by natural disasters, fires, accidents or dangerous diseases; Exemption from or reduction of excise tax, land rent, water surface rent, housing and land tax or agricultural land use tax for taxpayers facing difficulties caused by natural disasters, fires or accidents, thus suffering losses and unable to pay tax.