Circular 80/2021/TT-BTC guiding the Law on Tax Administration and Decree 126/2020/ND-CP

CIRCULAR

Guiding the implementation of a number of articles of the Law on Tax Administration and the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration^[1]

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the Laws, Ordinances and Decrees on taxes, charges, fees and other state budget revenues;

Pursuant to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Taxation;

The Minister of Finance promulgates the Circular guiding the implementation of a number of articles of the Law on Tax Administration and the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides guidance on state budget revenues managed by tax offices as specified in Articles 7, 28, 42, 59, 60, 64, 72, 73, 76, 80, 86, 96, 107 and 124 of the June 13, 2019 Law on Tax Administration, and Articles 30 and 39 of the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration (below referred to as Decree No. 126/2020/ND-CP), regarding foreign currencies used in tax declaration and payment and exchange rates; tasks, powers and responsibilities of commune-level tax consultancy councils; tax declaration and calculation, distribution of payable tax amounts, and tax declaration forms; handling of cases of late tax payment; handling of overpaid tax, late-payment interest and fine amounts; installment payment of tax arrears, and dossiers of request for extension of tax payment time limits; order and procedures for tax refund, classification of tax refund dossiers, receipt of tax refund dossiers; dossiers of request for tax exemption or reduction; dossiers of request for write-off of tax arrears, late payment interests and fines; collection and processing of taxpayer information and building and management of taxpayer information systems; order, procedures and dossiers for tax examination; tax administration for e-commerce and digital platform-based business activities and other services provided by foreign suppliers without Vietnam-based resident establishments; and expenses for authorized tax collection.

Article 2. Subjects of application

This Circular applies to taxpayers, tax offices, tax officers, state agencies, and other related organizations and individuals specified in Article 2 of the Law on Tax Administration.

Article 3. Interpretation of terms

In addition to the terms interpreted in the Law on Tax Administration and Decree No. 126/2020/ND-CP, a number of terms referred to in this Circular are construed as follows:

1. “E-commerce activities” means performance of part or the whole of the process of commerce activities by electronic devices connected to the Internet, mobile telecommunications networks or other open networks as specified in the Government’s Decree No. 52/2013/ND-CP of May 16, 2013, on e-commerce.

2. “Digital platform-based business activities” means business activities carried out by business entities via intermediary digital systems in order to ensure connection to customers in the digital environment.

3. “Province” means an administrative locality equivalent to province or centrally run city.

4. “Distribution of payable tax amounts” means a taxpayer’s tax declaration at the tax office managing it/him/her or at a tax office managing state budget revenues and determination of the payable tax amount for each province entitled to state budget revenues (locality receiving distributed state budget revenues) in accordance with law.

5. “Managing tax offices” include:

a/ Tax offices managing localities where taxpayers’ head offices are based, except those specified at Point c of this Clause;

b/ Tax offices managing localities where taxpayers’ dependent units are based but their head offices are not based while such dependent units directly make tax declaration with tax offices in such localities;

c/ The Large Taxpayers Department under the General Department of Taxation established under the Prime Minister’s Decision No. 15/2021/QD-TTg of March 30, 2021;

d/ Tax offices issuing tax identification numbers, for individuals earning income from salaries and wages, which may be changed depending on tax offices carrying out tax finalization for such individuals under regulations;

dd/ Tax offices managing issuing units, for individuals who receive inheritances or gifts being securities or capital contributions to economic organizations or business establishments in Vietnam and have to declare taxes directly with tax offices. In case there are different tax offices managing different issuing units, managing tax offices are tax offices in localities where individuals receiving inheritances or gifts reside.

Names of managing tax offices may be written in tax registration certificates or tax identification number notices or notices of managing tax offices or notices of assignment of managing tax offices upon issuance of enterprise identification numbers, cooperative identification numbers or tax identification numbers or upon change of registration information or upon re-assignment of managing tax offices in accordance with law.

6. “Tax office managing locality receiving distributed state budget revenues” means the tax office in the locality entitled to state budget revenues that is stated by taxpayers in their tax declaration forms but may not receive tax declaration dossiers of taxpayers under regulations. Tax offices managing localities receiving distributed state budget revenues include:

a/ Tax offices in localities where taxpayers’ head offices are based that do not directly manage taxpayers;

b/ Tax offices in provinces where taxpayers’ head offices are not based that are entitled to state budget revenues as specified in Clauses 2 and 4, Article 11 of Decree No. 126/2020/ND-CP and Articles 12 thru 19 of this Circular.

7. “Tax office managing state budget revenues” means a tax office that manages localities where taxpayers carry out tax declaration, payment, refund, exemption or reduction procedures and other tax-related procedures in accordance with the Law on Tax Administration and guiding documents or under assignment documents of competent agencies but does not directly manage taxpayers.

8. “Dependent units” include branches and representative offices.

9. “Business location” means a place where a taxpayer carries out production and business activities (except locations of head offices and dependent units).

10. “Tax Branches” include Tax Branches and regional Tax Branches.

11. “Material damage” means losses of property of taxpayers that can be calculated in money, such as machinery, equipment, vehicles, supplies, goods, workshops, working offices, money, and papers valuable as money.

Article 4. Freely convertible foreign currencies used in tax declaration and payment and actual exchange rates

1. Cases in which tax declaration and payment are made in freely convertible foreign currencies:

a/ For activities of prospecting, exploration and exploitation of oil and gas (except crude oil, condensate, and natural gas sold on Vietnam’s market or unless otherwise provided by the Government), royalty, enterprise income tax; surcharges for divided interests on oil upon increase in crude oil price; interests on oil and gas divided to host countries; commissions for signing oil and gas contracts; commissions for commercial oil and gas discoveries; production commissions; charges for reading and use of oil and gas documents; compensations for failure to fulfill minimum commitments; enterprise income tax on income from transfer of benefits from entry into oil and gas contracts; special tax, surcharges, and enterprise income tax on retained oil volumes of oil and gas activities of Vietsovpetro Joint Venture at Block 09.1 shall be declared and paid into the state budget in freely convertible foreign currencies used in payment transactions.

b/ For charges, fees and other revenues collected by overseas representative missions of the Socialist Republic of Vietnam:

They shall be declared and paid into the state budget in freely convertible foreign currencies stated in documents providing rates of charges, fees and other revenues.

c/ For charges and fees that Vietnam-based agencies and organizations are allowed to collect in foreign currencies:

They shall be declared and paid into the state budget in freely convertible foreign currencies stated in documents providing charge and fee rates.

d/ For e-commerce and digital platform-based business activities and other services provided by foreign suppliers without Vietnam-based resident establishments:

They shall be declared and paid into the state budget in freely convertible foreign currencies.

2. Actual exchange rates must comply with the accounting law.

Article 5. Tax administration responsibilities of managing tax offices, tax offices managing localities receiving distributed state budget revenues and tax offices managing state budget revenues

1. Responsibilities of managing tax offices:

Managing tax offices shall fully implement the provisions on tax administration for taxpayers of the Law on Tax Administration and guiding documents (except Clause 3 of this Article), specifically as follows:

a/ To receive tax declarations dossiers, extend time limits for submission of tax declaration dossiers and sanction tax-related violations concerning taxpayers’ submission of tax declaration dossiers.

b/ To calculate and adjust late-payment interests of taxpayers.

c/ To guide and urge taxpayers to make tax declaration and pay tax amounts into the state budget.

d/ To take measures to urge and enforce payment of tax arrears.

dd/ To receive and process dossiers of request for extension of tax payment time limits, installment payment of tax arrears, freezing of tax arrears, write-off of tax arrears, exemption from late-payment interests, or non-imposition of late payment interests.

e/ To receive and settle written requests for handling of taxpayers’ overpaid amounts under Articles 25 and 26 of this Circular.

g/ To receive and process taxpayers’ dossiers of request for tax refund in accordance with Chapter V of this Circular.

h/ To receive and process taxpayers’ dossiers of request for tax exemption or reduction in accordance with Chapter VI of this Circular.

i/ To carry out inspection and examination of taxpayers and sanction violations (if any) detected through inspection or examination.

k/ To additionally perform the following tasks in case taxpayers are subject to distribution of payable tax amounts:

k.1/ To identify taxpayers subject to distribution of payable tax amounts as specified in Articles 12 thru 19 of this Circular in order to guide and urge taxpayers to determine payable tax amounts for each locality receiving distributed state budget revenues and submit the table for distribution of payable tax amounts together with tax declaration dossiers to managing tax offices; to sanction tax-related violations concerning taxpayers’ submission of tax declaration dossiers.

k.2/ To calculate and adjust late-payment interests for the whole payable tax amounts (including also payable tax amounts in localities receiving distributed state budget revenues) of taxpayers.

k.3/ To guide and urge taxpayers to pay tax amounts into the state budget in localities receiving distributed state budget revenues.

k.4/ To take measures to urge and enforce payment of tax arrears for payable tax amounts of localities receiving distributed state budget revenues; at the same time, to notify such to tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular for coordination.

k.5/ To receive dossiers of request for extension of tax payment time limits, installment payment of tax arrears, freezing of tax arrears or write-off of tax arrears of localities receiving distributed state budget revenues; at the same time, to notify such to tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular for coordination.

k.6/ To receive and process dossiers of request for exemption from late-payment interests or non-imposition of late-payment interests on tax arrears in localities receiving distributed state budget revenues.

k.7/ To receive written requests for handling of overpaid tax amounts in localities receiving distributed state budget revenues and coordinate with tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular in handling such amounts under Articles 25 and 26 of this Circular.

k.8/ To receive and process taxpayers’ dossiers of request for refund of distributed tax amounts that have been overpaid and coordinate with tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular in handling such amounts under Section 2, Chapter V of this Circular.

k.9/ To receive and process taxpayers’ dossiers of request for tax exemption or reduction in localities receiving distributed state budget revenues and coordinate with tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular in considering and giving tax exemption or reduction under Chapter VI of this Circular.

k.10/ To assume the prime responsibility for, and coordinate with tax offices managing localities receiving distributed state budget revenues in, inspecting and examining all production and business activities of taxpayers and sanction violations (if any) detected through inspection or examination, including also the determination of payable tax amounts for localities receiving distributed state budget revenues.

k.11/ To sum up data and report to People’s Councils and People’s Committees on results of the collection of state budget revenues under regulations for all amounts paid into the state budget and amounts refunded to taxpayers in the localities, including also revenues falling under the management responsibility of other managing tax offices but payable by taxpayers having their head offices based in the localities.

2. Responsibilities of tax offices managing localities receiving distributed state budget revenues:

a/ To monitor and supervise taxpayers in declaring distribution of payable tax amounts and pay tax amounts into the state budget in localities receiving distributed state budget revenues; to request taxpayers to provide information and documents related to distributed state budget revenues; to notify managing tax offices of cases in which taxpayers fail to implement or improperly implement regulations on distribution of payable tax amounts.

b/ To take measures to urge and enforce payment of tax arrears for payable tax amounts in localities receiving distributed state budget revenues and notify such to managing tax offices (except tax offices managing localities receiving distributed state budget revenues specified at Point a, Clause 6, Article 3 of this Circular).

c/ To coordinate with one another in processing dossiers of request for extension of tax payment time limits, installment payment of tax arrears, freezing of tax arrears or write-off of tax arrears in provinces entitled to distributed state budget revenues at the request of managing tax offices (except tax offices managing localities receiving distributed state budget revenues specified at Point a, Clause 6, Article 3 of this Circular).

d/ To assume the prime responsibility for, or coordinate with managing tax offices in, clearing taxpayers’ distributed tax amounts that have been overpaid under Articles 25 and 26 of this Circular (except tax offices managing localities receiving distributed state budget revenues specified at Point a, Clause 6, Article 3 of this Circular).

dd/ To coordinate with one another in making refund of distributed tax amounts that have been overpaid for taxpayers at the request of managing tax offices under Section 2, Chapter V of this Circular (except tax offices managing localities receiving distributed state budget revenues specified at Point a, Clause 6, Article 3 of this Circular).

e/ To coordinate with one another in carrying out inspection and examination of taxpayers at the request of managing tax offices.

3. Responsibilities of tax offices managing state budget revenues:

Tax offices managing state budget revenues shall fully implement the provisions on tax administration for revenues they are assigned to manage in localities of the Law on Tax Administration and guiding documents, specifically as follows:

a/ To receive tax declarations dossiers, extend time limits for submission of tax declaration dossiers and sanction tax-related violations concerning taxpayers’ submission of tax declaration dossiers with regard to revenues they are assigned to manage.

b/ To calculate and adjust late-payment interests of taxpayers with regard to revenues they are assigned to manage. In the cases specified at Points b and c, Clause 2, Article 13 of this Circular, late payment interests shall be calculated and adjusted at managing tax offices.

c/ To guide and urge taxpayers to pay tax amounts into the state budget with regard to revenues they are assigned to manage.

d/ To take measures to urge and enforce payment of tax arrears with regard to revenues they are assigned to manage.

dd/ To receive and process dossiers of request for exemption from late payment interests, non-imposition of late-payment interests, or extension of tax payment time limits with regard to revenues they are assigned to manage under Articles 22, 23 and 24 of this Circular.

e/ To receive and settle written requests for handling of taxpayers’ overpaid amounts with regard to revenues they are assigned to manage under Articles 25 and 26 of this Circular.

g/ To receive and process taxpayers’ dossiers of request for value-added tax refund for investment projects they are assigned to manage under Section 1, Chapter V of this Circular.

h/ To receive and process taxpayers’ dossiers of request for refund of overpaid tax amounts with regard to revenues they are assigned to manage under Section 2, Chapter V of this Circular.

i/ To receive and process taxpayers’ dossiers of request for tax exemption or reduction with regard to revenues they are assigned to manage under Chapter VI of this Circular.

k/ To carry out inspection and examination of taxpayers having revenues they are assigned to manage and sanction violations (if any) detected through inspection or examination.

l/ In case taxpayers are subject to distribution of payable tax amounts with regard to the revenues specified at Point dd, Clause 1, Article 13, in Article 15, and at Point d, Clause 1, Article 17, of this Circular, tax offices managing state budget revenues shall additionally perform tasks like those of managing tax offices with regard to taxpayers entitled to distributed state budget revenues under Point k, Clause 1 of this Article.

Chapter II

COMMUNE-LEVEL TAX CONSULTANCY COUNCILS

Article 6. Composition of commune-level tax consultancy councils

1. A tax consultancy council shall be composed of:

a/ Its Chairperson being the Chairperson or a Vice Chairperson of the commune-level People’s Committee;

b/ A standing member being the Head or a Deputy Head of the Inter-Commune Tax Team or a holder of the equivalent post;

c/ A member being a civil servant in charge of financial matters under the commune-level People’s Committee;

d/ A member being the Chairperson of the commune-level Fatherland Front Committee;

dd/ A member being the Head of the commune-level Public Security office;

e/ Members being heads of residential quarters or holders of equivalent posts;

g/ Members being heads of market management units;

h/ Members being representatives of business households and business individuals in the locality.

In case a district-level administrative locality has no commune-level administrative unit, the chairperson of the district-level People’s Committee shall decide on the formation of a tax consultancy council with its members similar to those specified in this Clause.

2. To join a tax consultancy council, representatives of business households and business individuals must satisfy the following conditions:

a/ Having properly observed state regulations on production and business activities and tax laws;

b/ Having conducted business activities for at least 3 years by the date of joining the council. In case there are no business households or business individuals having operated for at least 3 years, those with the longest operation period shall be selected. In selecting representatives to join the council, priority shall be given to heads or deputy heads of production and business units or managers or deputy managers in charge of business lines in commune-level localities or markets or trade centers.

3. The number of representatives of business households and business individuals joining a tax consultancy council must not exceed 5. The chairperson of the district-level People’s Committee shall, based on the number and scale of business households and business individuals in the locality, decide on the number of representatives of business households and business individuals joining a tax consultancy council.

Article 7. Formation of tax consultancy councils

1. Chairpersons of district-level People’s Committees shall, based on the number and scale of business households and business individuals in their localities, decide to form commune-level tax consultancy councils at the request of heads of Tax Branches.

2. Tax consultancy councils shall be formed and has a term of office of up to 5 years.

3. A tax consultancy council shall be re-formed or have its members added or replaced in the following cases:

a/ It shall be re-formed when its term of office specified in Clause 2 of this Article expires.

b/ One of its members shall be added or replaced in the following cases:

b.1/ He/she no longer satisfies the conditions specified in Clauses 1 and 2, Article 6 of this Circular;

b.2/ Representative(s) of business household(s) and/or business individual(s) is/are added to ensure the law-specified number of operating business households and business individuals or to replace those having ceased business activities in the commune-level locality;

b.3/ Other cases as proposed by the Head of the Tax Branch.

4. Procedures for formation of a tax consultancy council:

a/ The commune-level Fatherland Front Committee shall nominate or recommend, and send to the Tax Branch a list of, business households and business individuals that may join the tax consultancy council. The Tax Branch shall provide information on listed business households and business individuals for the Fatherland Front Committee to select.

b/ The Head of the Tax Branch shall, based on the composition and list of members of the tax consultancy council, propose the chairperson of the district-level People’s Committee to issue a decision on formation of the tax consultancy council under this Article (according to Form No. 07-1/HDTV provided in Appendix I to this Circular).

Article 8. Working principles and regime of a tax consultancy council

1. The Chairperson and members of the tax consultancy council shall operate on a part-time basis. The council submits to direct leadership by its chairperson with regard to the contents specified in this Circular.

2. The tax consultancy council shall meet to collect its members’ opinions on contents put for consultation as convened by its chairperson. The council’s meeting shall be held when attended by its chairperson and at least 2/3 of its total members (including also its chairperson). The council may collect its members’ opinions on contents put for consultation by electronic means. In case of divergent opinions, voting shall be conducted to make decision by majority; if votes for and vote against are equal, decision shall be made based on the votes inclusive of the vote of the council’s chairperson for use as a basis for making a minutes of the council’s meeting.

3. Meetings of the tax consultancy council shall be recorded in minutes made according to Form No. 07-2/HDTV provided in Appendix I to this Circular. Such a minutes must bear signatures of members of the tax consultancy council who attend the meeting. In case opinions are collected by electronic means, the council’s standing member shall summarize and record opinions in the minutes like in case of in-person meeting.

Article 9. Working relationship between a tax consultancy council and a tax office

1. Working relationship in consultation

a/ A Tax Branch shall prepare a complete dossier of request for consultation and coordination and send it to the tax consultancy council at least 5 working days before the date requested for the council to send its consultancy opinions or feedback. Such a dossier must comprise:

a.1/ Documents for consultation on expected year-beginning turnover and presumptive tax amounts, for business households and business individuals paying tax by the presumption method, including:

a.1.1/ A tentative list of presumptive turnover and tax amounts of business households and business individuals, made according to Form No. 07-3/HDTV provided in Appendix I to this Circular;

a.1.2/ Updated regulations and instructions relating to contents put for consultation (if any).

a.2/ Documents for consultation on adjusted presumptive turnover and tax amounts, for business households and business individuals that change their business activities in the tax year, including:

a.2.1/ A list of business households and business individuals with their information and tax amounts adjusted, made according to Form No. 07-4/HDTV provided in Appendix I to this Circular;

a.2.2/ Updated regulations and instructions relating to contents put for consultation (if any).

a.3/ Documents for consultation on plans to urge and manage activities of business households and business individuals paying tax by the presumption method in the locality, including:

a.3.1/ A plan to urge and manage activities of business households and business individuals paying tax by the presumption method in the locality, based on each content and theme to meet management requirements in each field and period in accordance with law and instructions of the concerned provincial-level Tax Department (below referred to as Tax Department);

a.3.2/ The Tax Department’s directing documents and instructions relating to contents requested for coordination.

b/ The chairperson of the tax consultancy council shall send a dossier of consultancy results and feedback on coordination to the Tax Branch within the requested time limit. Such dossier must comprise:

b.1/ A notice of results of consultancy on cases in which the tax consultancy council requests adjustment of presumptive turnover and tax amounts of business households and business individuals against expected figures of the Tax Branch, made according to Form No. 07-5/HDTV and Form No. 07-6/HDTV provided in Appendix I to this Circular. Particularly, a dossier of request for consultation and coordination on the plan to urge and manage activities of business households and business individuals paying tax by the presumption method in the locality is not required to comprise the notices, made according to Form No. 07-5/HDTV and Form No. 07-6/HDTV provided in Appendix I to this Circular;

b.2/ Minutes of the meeting of the tax consultancy council, made according to Form No. 07-2/HDTV provided in Appendix I to this Circular.

2. Working relationship in processing of consultancy results

In case results of the estimation and calculation of payable tax amounts and adjustment of tax amounts for business households and business individuals are different from consultancy results provided by the tax consultancy council, the Tax Branch shall send a notice, made according to Form No. 07-7/HDTV provided in Appendix I to this Circular, to the tax consultancy council simultaneously with posting official data on results of the estimation and calculation of payable tax amounts and adjustment of tax amounts for business households and business individuals.

3. Working relationship in provision of information and documents

The Tax Branch shall provide, and direct inter-commune Tax Teams to provide information and documents to the tax consultancy council within the ambit of the council’s powers specified in Article 10 of this Circular.

Article 10. Powers of tax consultancy councils

1. To receive training and documents on current tax and tax administration policies relating to tax administration for business households and business individuals;

2. To request Tax Branches to provide information on management of tax collection for business households and business individuals paying tax by the presumption method in localities.

Article 11. Responsibilities of tax consultancy councils

1. Responsibilities for providing consultancy on tax and tax administration

a/ To provide consultancy on year-beginning presumptive turnover and tax amounts of business households and business individuals paying tax by the presumption method, including also those that earn turnover not high enough for imposition of value-added tax and personal income tax;

b/ To provide consultancy on adjusted tax amounts for business households and business individuals paying tax by the presumption method upon change in their production and business activities, such as change in scale and location; change in business lines; or cessation or suspension of business activities in the tax year;

c/ To coordinate with Tax Branches in urging and managing activities of business households and business individuals paying tax by the presumption method in localities.

2. Responsibilities of the chairperson of a tax consultancy council

a/ To decide on working programs and plans of the council;

b/ To invite delegates to and convene and preside over meetings of the council;

c/ To assign specific tasks to members of the council;

d/ To decide on and take general responsibility for activities of the council and its members during their task performance under regulations;

dd/ To send reports to the chairperson of the district-level People’s Committee and the head of the Tax Branch in case he/she or other members can no longer join the council;

e/ To sign documents in the name of the council.

3. Responsibilities of members of tax consultancy councils

a/ General responsibilities of members of a tax consultancy council

a.1/ To perform the tasks assigned by the council’s chairperson and take responsibility before the latter for their task performance;

a.2/ To participate in all activities of the council;

a.3/ To present their opinions written at meetings of the council;

a.4/ To send reports to the council’s chairperson in case they can no longer join the council.

b/ Responsibilities of the standing member of a tax consultancy council

b.1/ To propose formulation of working programs and plans of the council and assignment of tasks to the council’s members for the council’s chairperson for consideration and decision;

b.2/ To prepare documents for and make minutes of meetings of the council and sum up opinions contributed by the council’s members;

b.3/ To report to the council’s chairperson and head of the Tax Branch in case it is necessary to change or add members of the council.

4. Tax consultancy councils shall send tax consultancy results to district- and commune-level People’s Committees simultaneously with sending such results to Tax Branches.

Chapter III

TAX DECLARATION AND CALCULATION, DISTRIBUTION OF PAYABLE TAX AMOUNTS

Article 12. Distribution of payable tax amounts for taxpayers practicing centralized cost-accounting with their dependent units and business locations based in provinces where their head offices are not based

1. A taxpayer doing business in a provincial-level locality where its/his/her head office is not based and practicing centralized cost-accounting at the head office under Clauses 2 and 4, Article 11 of Decree No. 126/2020/ND-CP shall make tax declaration and calculation and submit tax declaration dossiers to the managing tax office and distribute payable tax amounts for each province where it/he/she carries out business activities.

2. Cases and methods of distribution of payable tax amounts, and tax declaration, calculation and finalization of taxes subject to distribution must comply with Articles 13 thru 19 of this Circular.

3. A taxpayer shall make tax declaration and distribute payable tax amounts in an adequate, accurate and timely manner under regulations. The distribution of payable tax amounts for provinces entitled to state budget revenues must ensure that such amounts are not larger than payable tax amounts stated in the taxpayer’s tax declaration dossiers. In case no payable tax amount arises, it is not required to determine payable tax amounts for provinces entitled to state budget revenues. The principle of distribution mentioned in this Clause does not apply to the cases specified at Points b and c, Clause 2, Article 13, and Point b, Clause 2, Article 17, of this Circular.

4. A taxpayer shall, based on the payable tax amount for each province entitled to distributed state budget revenues, make payment documents and pay tax amounts into the state budget under regulations. The State Treasury office that receives the taxpayer’s documents of payment into the state budget shall conduct cost-accounting of the revenues for each locality receiving distributed state budget revenues.

5. If a taxpayer is detected through inspection or examination to have made tax declaration or distributed payable tax amounts in contravention of regulations, the managing tax office shall re-determine tax amounts to be distributed for provinces entitled to distributed state budget revenues.

6. In case value-added tax (VAT), enterprise income tax (EIT) and royalty amounts of a hydropower plant are distributed for different provinces, the Tax Department of the locality where the hydropower plant’s executive office is based shall, in pursuance to Articles 13, 15 and 17 of this Circular, assume the prime responsibility for, and coordinate with the hydropower plant’s owner and Tax Departments of the localities sharing the hydropower plant and its reservoir in, reaching agreement to determine the ratio of distribution of the payable tax amount for each tax for each province entitled to state budget revenues. In case no agreement can be reached, the Tax Department of the locality where the hydropower plant’s executive office is based shall report such to the Ministry of Finance (the General Department of Taxation) for guidance.

Article 13. VAT declaration, calculation and payment, distribution of payable VAT amounts

1. Cases of distribution of payable VAT amounts:

a/ Computing lottery business activities;

b/ Real estate transfer activities, except the case specified at Point b, Clause 1, Article 11 of Decree No. 126/2020/ND-CP;

c/ Construction activities under regulations on the system of national economic sectors and specialized laws;

d/ Dependent units and business locations being production establishments (including also processing and assembly establishments), except the case specified at Point c, Clause 1, Article 11 of Decree No. 126/2020/ND-CP;

dd/ A hydropower plant located in more than one province.

2. Distribution method:

a/ Distribution of payable VAT amounts for computing lottery business activities

Payable VAT amount for each province where computing lottery business activities are carried out equals (=) payable VAT amount for computing lottery business activities multiplied by (x) ratio (%) of actual turnover from sale of computing lottery tickets in such province to the taxpayer’s total actual turnover from ticket sale.

The actual turnover from computing lottery business activities shall be determined as follows:

In case computing lottery tickets are distributed via terminal equipment, such turnover is that generated via terminal equipment registered for sale of computing lottery tickets within the administrative boundary of each province under the lottery agency contracts signed with the computing lottery company or lottery ticket stalls established by the taxpayer in the locality.

In case computing lottery tickets are distributed via telephone and the Internet, such turnover shall be determined in each province where customers register their participation in lucky draws upon opening of lucky draw accounts under regulations on computing lottery business.

b/ Distribution of payable VAT amounts for real estate transfer activities:

Payable VAT amount for each province from real estate transfer activities equals (=) VAT-exclusive turnover from real estate transfer activities in such province multiplied by (x) 1%.

c/ Distribution of payable VAT amounts for construction activities:

Payable VAT amount for each province from construction activities equals (=) VAT-exclusive turnover from construction activities in such province multiplied by (x) 1%.

VAT-exclusive turnover shall be determined under contracts for construction works and work items. In case a construction work or work item is built in different provinces and it is impossible to determine the turnover from such work or work item in each province, the taxpayer shall, after determining the percentage of 1% of turnover of the work or work item, base itself/himself/herself on the ratio (%) of investment value of the work or work item in each province to the total investment value to determine the payable VAT amount for such province.

d/ Distribution of payable VAT amount for the province where a taxpayer’s dependent units and business locations being production establishments are based:

d.1/ Payable VAT amount for the province where a production establishment is based equals (=) turnover calculated at VAT-exclusive price multiplied by (x) 2% (for goods subject to the VAT rate of 10%) or 1% (for goods subject to the VAT rate of 5%) provided that the total payable VAT amount for provinces where production establishments are based does not exceed the taxpayer’s payable VAT amount in the locality where its/his/her head office is based. In case a production establishment transfers finished products or semi-finished products to other units within the taxpayer’s system for sale, the turnover from produced products shall be determined on the basis of product costs.

d.2/ In case the taxpayer makes calculation for tax declaration and payment at the percentage specified at Point d.1 of this Clause while the total payable VAT amount for provinces where its/his/her production establishments are based is larger than its/his/her total payable VAT amount in the locality where its/his/her head office is based, it/he/she shall distribute payable VAT amounts for provinces where production establishments are based according to the following formula: The payable VAT amount for each province where a production establishment is based equals (=) the taxpayer’s payable VAT amount in the locality where its/his/her head office is based multiplied by (x) ratio (%) of turnover calculated at VAT-exclusive price of products produced in such province to the total turnover calculated at VAT-exclusive price of the taxpayer’s produced products.

d.3/ Turnover used for determining the rate of distribution mentioned at Point d.1 or d.2 of this Clause is the actual turnover earned in a tax period. In case additional declaration leads to a change in the actual turnover earned, the taxpayer shall again determine and distribute the payable tax amount for each tax period in which errors are made and for which additional declaration has been made in order to determine the difference in the VAT amount not yet distributed or excessively distributed for each locality.

dd/ Distribution of payable VAT amounts for provinces where a hydropower plant is located:

Payable VAT amount for each province where a hydropower plant is located equals (=) payable VAT amount for the hydropower plant multiplied by (x) ratio (%) of investment value of the part of the hydropower plant located in such province to the total investment value of the hydropower plant.

3. Tax declaration and payment:

a/ For computing lottery business activities:

A taxpayer shall declare VAT for computing lottery business activities nationwide and submit to the managing tax office a VAT declaration made according to Form No. 01/GTGT, and the annex on table for distribution of payable VAT amounts for localities entitled to state budget revenues for computing lottery business activities made according to Form No. 01-3/GTGT provided in Appendix II to this Circular; and pay the tax amount distributed for each province where computing lottery business activities are carried out under Clause 4, Article 12 of this Circular.

b/ For real estate transfer activities:

b.1/ A taxpayer shall declare VAT and submit a VAT declaration form to the tax office in the province where the real estate put for transfer is located, made according to Form No. 05/GTGT provided in Appendix II to this Circular; and pay the declared tax amount into the state budget in such province.

b.2/ The taxpayer shall write the VAT-exclusive turnover from real estate transfer activities in the tax declaration dossier for the locality where its/his/her head office is based in order to determine the payable tax amount for all production and business activities carried out in such locality. The paid VAT amount for the province where the real estate put for transfer is located shall be cleared against the payable VAT amount for the locality where the taxpayer’s head office is based.

c/ For construction activities:

c.1/ A taxpayer being a construction contractor that signs a contract directly with a project owner to build construction works in the province where its/his/her head office is not based, including also construction works and work items located in more than one province, shall make a VAT declaration for such works and work items with the tax office in the locality where the works or work items are built according to Form No. 05/GTGT provided in Appendix II to this Circular; and pay the declared tax amount into the state budget in such province. In case the State Treasury office has made tax credit under Clause 5 of this Article, the taxpayer is not required to pay into the state budget an amount equivalent to the credited tax amount.

c.2/ The taxpayer shall write the VAT-exclusive turnover from construction activities in the tax declaration for the locality where its/his/her head office is based in order to determine the payable tax amount for all production and business activities carried out in such locality. The paid VAT amount for the province where the construction works are built shall be cleared against the payable VAT amount for the locality where the taxpayer’s head office is based.

d/ For dependent units and business locations being production establishments:

A taxpayer shall declare VAT for production and business activities of its/his/her dependent units and business locations being production establishments and submit to the managing tax office a VAT declaration, made according to Form No. 01/GTGT, and the annex on table for distribution of payable VAT amounts for localities entitled to state budget revenues (except hydropower generation and computing lottery business activities), made according to Form No. 01-6/GTGT provided in Appendix II to this Circular; and pay the tax amount distributed for each province where its/his/her production establishments are based under Clause 4, Article 12 of this Circular.

dd/ For a hydropower plant located in more than one province:

A taxpayer shall declare VAT for the hydropower plant and submit a VAT declaration, made according to Form No. 01/GTGT, and the annex on table for distribution of payable VAT amounts for localities entitled to state budget revenues for hydropower generation activities, made according to Form No. 01-2/GTGT provided in Appendix II to this Circular, to the tax office of the locality where the hydropower plant’s executive office is based; and pay the tax amount distributed for each province where the hydropower plant is located under Clause 4, Article 12 of this Circular.

4. Dependent units that directly sell goods and use invoices registered by themselves or by the taxpayer with the tax office managing them and monitoring the cost-accounting of output and input VAT amounts shall declare and pay VAT to the managing tax office.

5. The State Treasury office shall credit VAT of contractors when carrying out procedures for payment of state budget funds for capital construction investment to the project owner as follows:

a/ The State Treasury office where the project owner opens its/his/her transaction account shall credit VAT for payment into the state budget at the rate of 1% of VAT-exclusive turnover for the completed volume of capital construction works or work items, except the cases specified at Point b of this Clause.

b/ The State Treasury office shall not credit VAT for:

b.1/ Capital construction investment amounts for which the project owner carries out procedures for advance payment under regulations.

b.2/ Capital construction investment amounts paid for project management activities: amounts paid for project management jobs directly performed by the project owner; expenses of project management units, expenses for ground clearance, and expenses for projects implemented by the people themselves.

b.3/ Construction investment expenses of projects and works funded by commune-level budgets each of which is capitalized at under VND 1 billion.

b.4/ Cases in which the taxpayer can prove its/his/her full payment of tax amount into the state budget.

c/ When making payment at the State Treasury office, the project owner shall make a payment document according to the form provided in the Government’s Decree No. 11/2020/ND-CP of January 20, 2020, on administrative procedures in the field of state treasury (below referred to as Decree No. 11/2020/ND-CP) and send it to the State Treasury office for the latter to credit VAT. The VAT amount credited by the State Treasury office in the payment document shall be cleared against the contractors’ payable VAT amounts. The project owner shall provide the payment document to the contractors for which/whom the State Treasury office has credited tax.

d/ The cost-accounting of the VAT amount already credited by the State Treasury office as a state budget revenue shall be carried out on the principle that for a capital construction work built in a province, the credited VAT amount shall be accounted as a state budget revenue of such province.

In case a work is located in more than one province, its owner shall determine the VAT-exclusive turnover of such work for each province and make a payment document according to the form provided in Decree No. 11/2020/ND-CP and send it to the State Treasury office for the latter to credit VAT and account such revenue as a state budget revenue for each province. In case a construction work or work item is located in more than one province while it is impossible to determine its turnover generated in each province, after determining the rate of 1% of the VAT-exclusive turnover from such work or work item, the payable VAT amount for each province shall be determined based on the ratio (%) of investment value of the work or work item in such province to the total investment value. In case a work is located within a province (e.g., a work built in more than one district or work built in a district where the contractor’s head office is not based), the Tax Department shall coordinate with the Department of Finance in advising the provincial-level People’s Council and People’s Committee to decide on distribution of cost-accounted state budget revenues in districts.

dd/ The State Treasury office shall account as a state budget revenue the credited VAT amount, include all information on the tax receipt in the List of documents of payment into the state budget, and forward such List to the tax office under regulations.

Article 14. Excise tax declaration, calculation and payment, distribution of payable excise tax amounts

1. Cases of distribution: computing lottery business activities.

2. Distribution method:

Payable excise tax amount for each province where computing lottery business activities are carried out equals (=) payable excise tax amount for computing lottery business activities multiplied by (x) ratio (%) of actual turnover from sale of computing lottery tickets in such province to the taxpayer’s actual turnover from ticket sale.

The actual turnover from sale of computing lottery tickets shall be determined under Point a, Clause 2, Article 13 of this Circular.

3. Tax declaration and payment:

A taxpayer shall declare excise tax for all computing lottery business activities nationwide and submit a tax declaration, made according to Form No. 01/TTDB, the annex on table for determination of deductible excise tax amounts for purchased materials and imported goods (if any), made according to Form No. 01-2/TTDB, and the annex on table for distribution of deductible excise tax amounts for localities entitled to state budget revenues for computing lottery business activities, made according to Form No. 01-3/TTDB provided in Appendix II to this Circular, to the managing tax office; and pay the tax amount distributed for the province where computing lottery business activities are carried out under Clause 4, Article 12 of this Circular.

Article 15. Royalty declaration, calculation and payment, distribution of payable royalty amounts

1. Cases of tax distribution: hydropower generation activities with a hydropower reservoir located in more than one province.

2. Distribution method:

a/ Bases for distribution of payable royalty amount for each province:

a.1/ t is the area of the hydropower reservoir bed, t.1 is the area of the hydropower reservoir bed in province G, and t.2 is the area of the hydropower reservoir bed in province H.

Percentage (%) of the reservoir bed in province G: T.1 = t.1/t x 100.

Percentage (%) of the reservoir bed in province H: T.2 = t.2/t x 100.

a.2/ k is the expense for payment of compensation for ground clearance and local resident resettlement, k.1 is the expense for payment of compensation for ground clearance and local resident resettlement in province G, and k.2 is the expense for payment of compensation for ground clearance and local resident resettlement in province H.

Percentage (%) of expense for payment of compensation for ground clearance and local resident resettlement in province G: K.1 = k.1/k x 100.

Percentage (%) of expense for payment of compensation for ground clearance and local resident resettlement in province H: K.2 = k.2/k x 100.

a.3/ s is the number of households subject to resettlement, s.1 is the number of households subject to resettlement in province G, and s.2 is the number of households subject to resettlement in province H.

Percentage (%) of households subject to resettlement in province G: S.1 = s.1/s x 100.

Percentage (%) of households subject to resettlement in province H: S.2 = s.2/s x 100.

a.4/ v is the value of compensation for material damage for the reservoir bed area, v.1 is the value of compensation for material damage for the reservoir bed area in province G, and v.2 is the value of compensation for material damage for the reservoir bed area in province H.

Percentage (%) of value of compensation for material damage for the reservoir bed area in province G: V.1 = v.1/v x 100.

Percentage (%) of value of compensation for material damage for the reservoir bed area in province H: V.2 = v.2/v x 100.

b/ Formula for royalty calculation:

3. Royalty declaration and payment:

A taxpayer owning a hydropower plant shall declare royalty and submit a royalty declaration, made according to Form No. 01/TAIN, and royalty finalization declaration, made according to Form No. 02/TAIN, to the tax office managing state budget revenues in the locality where water resources exploitation activities are carried out. In case the hydropower plant’s reservoir is located in more than one province, the taxpayer shall submit a royalty declaration, made according to Form No. 01/TAIN, royalty finalization, made according to Form No. 02/TAIN, and the annex on table for distribution of payable royalty amounts for localities entitled to state budget revenues from hydropower generation activities, made according to Form No. 01-1/TAIN provided in Appendix II to this Circular, for the hydropower plant to the tax office of the locality where the hydropower plant’s executive office is based; and pay the royalty amount distributed for the province where the hydropower reservoir is located under Clause 4, Article 12 of this Circular.

Article 16. Environmental protection tax (EPT) declaration, calculation and payment, distribution of payable EPT amounts

1. Cases of distribution:

a/ Petrol and oil, for the case specified at Point a.2, Clause 4, Article 11 of Decree No. 126/2020/ND-CP;

b/ Domestically mined and sold coal, for the case specified at Point b, Clause 4, Article 11 of Decree No. 126/2020/ND-CP.

2. Distribution method:

a/ Distribution of payable EPT amounts for petrol and oil:

Payable EPT amount for each province where the taxpayer’s dependent unit is located equals (=) total payable EPT amount distributed for such province for petrol and oil commodities.

Payable EPT amount distributed for each province for each petrol or oil commodity equals (=) payable EPT amount for each petrol or oil commodity stated in the tax declaration multiplied by (x) ratio (%) of output of each petrol or oil commodity sold by the dependent unit which is subject to EPT declaration and calculation to the taxpayer’s total output of each petrol or oil commodity sold which is subject to EPT declaration and calculation.

b/ Distribution of payable EPT amounts for domestically mined and sold coal:

Payable EPT amount for each province where the coal mining company’s head office is based shall be determined according to the following formula:

3. Tax declaration and payment:

a/ For petrol and oil:

In case a dependent unit of a key trader or a dependent unit of a subsidiary of a key trader that carries out business activities in a provincial-level locality where the key trader’s or subsidiary’s head office is not based and does not practice cost-accounting for EPT separate declaration, such key trader or subsidiary shall declare EPT and submit an EPT declaration, made according to Form No. 01/TBVMT, and the annex on table for distribution of payable EPT amounts for localities entitled to state budget revenues for petrol and oil, made according to Form No. 01-2/TBVMT provided in Appendix II to this Circular, to the managing tax office; and pay the tax amount distributed for the province where the dependent unit’s head office is based under Clause 4, Article 12 of this Circular.

b/ For domestically mined and sold coal:

For an enterprise engaged in domestic mining and sale of coal through managing, and assigning its subsidiaries or dependent units to exploit, process and sell coal, the units assigned to sell coal shall declare tax for all EPT amounts for mined coal and submit an EPT declaration, made according to Form No. 01/TBVMT, and the annex on table for determination of payable EPT amounts for localities entitled to state budget revenues for coal, made according to Form No. 01-1/TBVMT provided in Appendix II to this Circular, to the managing tax office; and pay the tax amount distributed for the province where the coal mining company’s head office is based under Clause 4, Article 12 of this Circular.

Article 17. EIT declaration, calculation, finalization and payment, distribution of payable EIT amounts

1. Cases of distribution:

a/ Computing lottery business activities;

b/ Real estate transfer activities;

c/ Dependent units and business locations being production establishments;

d/ Hydropower plants with each of which located in more than one province.

2. Distribution method:

a/ Distribution of payable EIT amounts for computing lottery business activities:

Payable EIT amount for each province where computing lottery business activities are carried out equals (=) payable EIT amount for computing lottery business activities multiplied by (x) ratio (%) actual turnover from sale of computing lottery tickets in such province to the taxpayer’s actual total turnover from ticket sale.

The actual turnover  from sale of computing lottery tickets shall be determined under Point a, Clause 2, Article 13 of this Circular.

b/ Distribution of payable EIT amounts for real estate transfer activities:

Payable EIT amount for each province where real estate transfer activities are carried out to be temporarily paid every quarter and finalized equals (=) turnover from real estate transfer activities to be used for EIT calculation in such province multiplied by (x) 1%.

c/ Distribution of payable EIT amounts for taxpayers that have dependent units and business locations being production establishments:

Payable EIT amount for each province where the taxpayer’s production establishments are based equals (=) payable EIT amount for production and business activities multiplied by (x) ratio (%) of expenses of each production establishment to the taxpayer’s total expenses (excluding expenses for activities eligible for EIT incentives). Expenses used for determination of the distribution ratio are expenses actually paid in the tax period.

The payable EIT amount for production and business activities is exclusive of the payable EIT amount for activities eligible for EIT incentives. The payable EIT amount for activities eligible for EIT incentives shall be determined based on outcomes of production and business activities eligible for incentives and incentive level.

d/ Distribution of payable EIT amounts for a hydropower plant located in more than one province:

Payable EIT amount for the hydropower plant equals (=) payable EIT amount for production and business activities multiplied by (x) ratio (%) of expenses for each hydropower plant to the taxpayer’s total expenses (excluding expenses for activities eligible for EIT incentives). Expenses used for determining the distribution ratio are expenses actually paid in the tax period. The payable EIT amount for production and business activities is exclusive of the payable EIT amount for activities eligible for EIT incentives.

After the payable EIT amount for the hydropower plant is determined, the payable EIT amount for each province equals (=) payable EIT amount for the hydropower plant multiplied by (x) ratio (%) of investment value of the part of the hydropower plant located within the administrative boundary of such province to total investment value of the hydropower plant.

3. Tax declaration, finalization and payment:

a/ For computing lottery business activities:

a.1/ Tax declaration and temporary payment on a quarterly basis:

A taxpayer is not required to submit the quarterly tax declaration dossier but shall determine the tax amount to be temporarily paid every quarter under Point b, Clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay the EIT amount into the state budget for each province where computing lottery business activities are carried out.

a.2/ Tax finalization:

A taxpayer shall make EIT finalization declaration for all computing lottery business activities according to Form No. 03/TNDN and submit the annex on table for distribution of payable EIT amounts for localities entitled to state budget revenues for computing lottery business activities, made according to Form No. 03-8C/TNDN provided in Appendix II to this Circular, to the managing tax office; and pay the tax amount distributed for each province where computing lottery business activities are carried out under Clause 4, Article 12 of this Circular.

In case the tax amount temporarily paid on a quarterly basis is smaller than the payable tax amount distributed for each province stated in the tax finalization declaration form, the taxpayer shall pay the deficit. In case the tax amount temporarily paid on a quarterly basis is larger than the payable tax amount distributed for each province, the difference shall be regarded as an overpaid tax amount and handled under Article 60 of the Law on Tax Administration and Article 25 of this Circular.

b/ For real estate transfer activities:

b.1/ Tax declaration and temporary payment on a quarterly basis:

A taxpayer is not required to submit the quarterly tax declaration dossier but shall determine the tax amount to be temporarily paid on a quarterly basis under Point b, Clause 2 of this Article in order to pay the EIT amount into the state budget for each province where real estate transfer activities are carried out.

b.2/ Tax finalization:

A taxpayer shall make EIT finalization declaration for all real estate transfer activities according to Form No. 03/TNDN, determine the payable EIT amount for each province under Point b, Clause 2 of this Article and state it in the annex on table for distribution of payable EIT amounts for localities entitled to state budget revenues for real estate transfer activities, made according to Form No. 03-8A/TNDN provided in Appendix II to this Circular, to the managing tax office; and pay into the state budget the tax amount distributed for each province where real estate transfer activities are carried out under Clause 4, Article 12 of this Circular.

The tax amount temporarily paid in the year in provinces (excluding the tax amount temporarily paid for turnover from the implementation of investment projects to build infrastructure facilities and houses for transfer or lease-purchase with progress-based collection of advance payments from customers and such turnover is not yet included in the turnover used for EIT calculation in the year) shall be cleared against the payable EIT amount for real estate transfer activities in each province and stated in Form No. 03-8A/TNDN provided in Appendix II to this Circular; if not yet fully cleared, such amount shall be further cleared against the payable EIT amount for real estate transfer activities as shown in the tax finalization declaration in the locality where the taxpayer’s head office is based in Form No. 03/TNDN provided in Appendix II to this Circular.

In case the tax amount temporarily paid on a quarterly basis is smaller than the payable tax amount shown in the tax finalization declaration in the locality where the taxpayer’s head office is based in Form No. 03/TNDN provided in Appendix II to this Circular, the taxpayer shall pay the deficit for the locality where its/his/her head office is based. In case the tax amount temporarily paid on a quarterly basis is larger than the payable tax amount shown in the tax finalization declaration, the difference shall be regarded as an overpaid tax amount and handled under Article 60 of the Law on Tax Administration and Article 25 of this Circular.

c/ For dependent units and business locations being production establishments:

c.1/ Tax declaration and temporary payment on a quarterly basis:

A taxpayer is not required to submit a quarterly tax declaration dossier but shall determine the tax amount to be temporarily paid every quarter under Point b, Clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay the EIT amount for each province where its/his/her production establishment is based, including also localities where its/his/her units eligible for EIT incentives are based.

c.2/ Tax finalization:

A taxpayer shall make an EIT finalization declaration for all production and business activities according to Form No. 03/TNDN, submit the annex on table for distribution of payable EIT amounts for localities entitled to state budget revenues for production establishments, made according to Form No. 03-8/TNDN provided in Appendix II to this Circular, to the managing tax office; and pay the tax amount distributed for each province where its/his/her production establishment is based under Clause 4, Article 12 of this Circular.

Particularly for activities eligible for EIT incentives, the taxpayer shall make an EIT finalization declaration according to Form No. 03/TNDN provided in Appendix II to this Circular at the managing tax office, determine the payable EIT amount for such activities and state it in Form No. 03-3A/TNDN, Form No. 03-3B/TNDN, Form No. 03-3C/TNDN, and Form No. 03-3D/TNDN provided in Appendix II to this Circular, and submit such declaration forms at the tax office in the locality where the taxpayer’s units eligible for tax incentives are based but its/his/her head office is not based and the managing tax office.

In case the tax amount temporarily paid on a quarterly basis is smaller than the payable tax amount distributed for each province as shown in the tax finalization declaration, the taxpayer shall pay the deficit. In case the tax amount temporarily paid on a quarterly basis is larger than the payable tax amount distributed for each province, the difference shall be regarded as an overpaid tax amount and handled under Article 60 of the Law on Tax Administration and Article 25 of this Circular.

d/ For a hydropower plant located in more than one province:

d.1/ Tax declaration and temporary payment on a quarterly basis:

A taxpayer is not required to submit a quarterly tax declaration dossier but shall determine the tax amount to be temporarily paid on a quarterly basis under Point b, Clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay the EIT amount into the state budget for each province where the hydropower plant is based.

d.2/ Tax finalization:

A taxpayer shall make an EIT finalization declaration for all production and business activities according to Form No. 03/TNDN, submit the annex on table for distribution of payable EIT amounts for localities entitled to state budget revenues for hydropower generation activities made according to Form No. 03-8/TNDN and Form No. 03-8B/TNDN provided in Appendix II to this Circular to the managing tax office; and pay the tax amount distributed for each province where the taxpayer’s hydropower plant is based under Clause 4, Article 12 of this Circular.

In case the tax amount temporarily paid on a quarterly basis is smaller than the payable tax amount distributed for each province as stated in the tax finalization declaration, the taxpayer shall pay the deficit. In case the tax amount temporarily paid on a quarterly basis is larger than the payable tax amount distributed for each province, the difference shall be regarded as an overpaid tax amount and handled under Article 60 of the Law on Tax Administration and Article 25 of this Circular.

4. Member units of economic groups and corporations that have been able to account their turnover, expense and taxable income amounts shall make declaration for EIT payment with tax offices managing them.

5. In case a member unit carries out business activities different from general business activities of its economic group or corporation and can separately account income from such other business activities, it shall declare EIT to the managing tax office.

Article 18. Tax declaration, calculation and finalization, distribution of payable amounts, payment of after-tax profits left after setting aside funds

1. Cases of distribution: computing lottery business activities.

2. Distribution method:

An after-tax profit amount left after setting aside funds to be paid for each province where computing lottery business activities are carried out equals (=) payable after-tax profit amount left after setting aside funds for computing lottery business activities multiplied by (x) ratio (%) of actual turnover from sale of computing lottery tickets in such province to the taxpayer’s total turnover from ticket sale.

The actual turnover from sale of computing lottery tickets shall be determined under Point a, Clause 2, Article 13 of this Circular.

3. Tax declaration and payment:

a/ Tax declaration and temporary payment on a quarterly basis:

A taxpayer is not required to submit a quarterly tax declaration dossier but shall determine the tax amount to be temporarily paid on a quarterly basis under Point c, Clause 6, Article 8 of Decree No. 126/2020/ND-CP in order to pay the after-tax profit amount left after setting aside funds from computing lottery business activities in each province where such activities are carried out.

b/ Tax finalization:

A taxpayer shall make a finalization declaration for the after-tax profit amount left after setting aside funds from computing lottery business activities nationwide, and submit a declaration, made according to Form No. 01/QT-LNCL, and the annex on table for distribution of payable after-tax profit amounts left for localities entitled to state budget revenues for computing lottery business activities, made according to Form No. 01-1/QT-LNCL provided in Appendix II to this Circular, to the managing tax office; and pay the money amount distributed for each province where computing lottery business activities are carried out under Clause 4, Article 12 of this Circular.

In case the amount temporarily paid on a quarterly basis is smaller than the payable amount distributed for each province as stated in the finalization declaration, the taxpayer shall pay the deficit. In case the amount temporarily paid on a quarterly basis is larger than the payable amount distributed for each province, the difference shall be regarded as an overpaid amount and handled under Article 60 of the Law on Tax Administration and Article 25 of this Circular.

Article 19. Personal income tax (PIT) declaration and calculation, distribution of payable PIT amounts

1. Cases of distribution:

a/ Withholding of PIT for income from salaries and wages paid at the taxpayer’s head office to employees working at dependent units or business locations in the province where the taxpayer’s head office is not based.

b/ Withholding of PIT for income from computing lottery prizes of individuals.

2. Distribution method:

a/ Distribution of payable PIT for income from salaries and wages:

A taxpayer shall separately determine the PIT amount to be distributed for income from salaries and wages of individuals working in each province based on the actually withheld tax amount of each individual. In case an employee is transferred, rotated or seconded, depending on the time of income payment, the to-be-withheld PIT amount shall be counted for the province where such employee works.

b/ Distribution of payable PIT amounts for income from computing lottery prizes of individuals:

A taxpayer shall separately determine the payable PIT amount for income from computing lottery prizes of an individual in each province where he/she registers for participation in lucky draws for the mode of distribution via telephone or the Internet or place of issuance of computing lottery tickets for the mode of distribution via terminal equipment according to the actually withheld tax amount of each individual.

3. Tax declaration and payment:

a/ PIT for income from salaries and wages:

a.1/ A taxpayer that pays salaries and wages to employees working at its/his/her dependent units and business locations in the province where its/his/her head office is not based shall withhold PIT for income from salaries and wages under regulations and submit the tax declaration, made according to Form No. 05/KK-TNCN, and the annex on table for determination of payable PIT amounts for localities entitled to state budget revenues, made according to Form No. 05-1/PBT-KK-TNCN provided in Appendix II to this Circular, to the managing tax office; and pay the PIT amount for income from salaries and wages into the state budget for each province where the employees work under Clause 4, Article 12 of this Circular. The PIT amount shall be determined for each province on a monthly or quarterly basis corresponding to the period of PIT declaration and shall not be re-determined upon PIT finalization.

a.2/ Individuals who earn income from salaries and wages and have to directly declare tax to tax offices include resident individuals earning income from salaries and wages paid overseas; non-resident individuals earning income from salaries and wages paid overseas for jobs performed in Vietnam; individuals earning income from salaries and wages paid by international organizations, embassies and consulates in Vietnam for which PIT has not yet been withheld; and individuals receiving bonus stocks from income payers.

b/ PIT for income from computing lottery prizes of individuals:

An income-paying institutional taxpayer that withholds PIT for income from computing lottery prizes of individuals shall declare PIT under regulations, submit a tax declaration, made according to Form No. 06/TNCN, and the annex on table for determination of payable PIT amounts for localities entitled to state budget revenues, made according to Form No. 05-1/PBT-KK-TNCN provided in Appendix II to this Circular, to the managing tax office; and pay the PIT amount for such income into the state budget for each province where the individuals register for participation in lucky draws for the mode of distribution via telephone or the Internet or place of issuance of computing lottery tickets for the mode of distribution via terminal equipment under Clause 4, Article 12 of this Circular.

Article 20. Declaration forms, annexes to declaration forms, relevant documents in tax declaration dossiers

Tax declaration form, annex to declaration form, commentary document on additional declaration, dependent registration form, paper of authorization for PIT finalization, commitment paper, report on estimated output of exploited oil and gas and rate for temporary tax payment, table for determination of monthly payable tax amount increased compared to the tax amount declared on a quarterly basis, and request for change from monthly tax period to quarterly tax period for each kind of tax and other revenues belonging to the state budget are provided in Appendix II to this Circular.

Chapter IV

HANDLING OF TAX, LATE-PAYMENT INTEREST AND FINE AMOUNTS

Article 21. Handling of cases of late tax payment

1. Determination of late-payment interests

Late-payment interests shall be determined on the basis of late paid tax amounts, number of late payment days and late-payment interest rate specified in Article 59 of the Law on Tax Administration. A period for calculation of a late-payment interest shall be counted continuously from the date following the date on which the late-payment interest is charged to the date preceding the date on which the taxpayer pays the tax arrears amount into the state budget.

2. Notices of late-payment interests

Every month, tax offices shall issue notices of late-payment interests together with notices of tax arrears (according to Form No. 01/TTN provided in Appendix I to this Circular) to taxpayers that have tax arrears falling overdue for 30 days or more. For non-agricultural land use tax, tax offices shall notify tax arrears and late-payment interests of taxpayers being individuals or households through organizations authorized to collect taxes.

To settle administrative procedures for taxpayers or upon request of competent state agencies, tax offices shall determine and notify tax arrears up to the time they issue notices (according to Form No. 02/TTN provided in Appendix I to this Circular).

3. Reduction of late-payment interests

a/ In case taxpayers make additional declarations in their tax declaration dossiers, resulting in reduction of their payable tax amounts, they shall determine by themselves reduced late-payment interests in their additional declarations. Tax offices shall base themselves on tax liability management information of taxpayers to determine late-payment interests to be reduced and send to taxpayers a notice thereof, made according to Form No. 03/TTN provided in Appendix I to this Circular.

b/ In case tax offices or competent state agencies detect through inspection or examination understated payable tax amounts or decide on or notify reduction of payable tax amounts, the tax offices shall reduce calculated late-payment interests corresponding to the understated or reduced payable tax amounts and send to taxpayers a notice thereof, made according to Form No. 03/TTN provided in Appendix I to this Circular.

Article 22. Order, procedures and dossiers for non-imposition of late-payment interests

1. The period eligible for non-imposition of late-payment interests for the case specified at Point a, Clause 5, Article 59 of the Law on Tax Administration shall be counted from the date when state budget-using units are obliged to pay to taxpayers but fail to do so to the date such units do so.

2. The order, procedures and dossiers of request for non-imposition of late-payment interests for the case specified at Point a, Clause 5, Article 59 of the Law on Tax Administration are specified as follows:

a/ Order and procedures

a.1/ Taxpayers shall make and send dossiers of request for non-imposition of late-payment interests to tax offices managing them or tax offices managing state budget revenues.

a.2/ In case a dossier of request for non-imposition of late-payment interests is not complete as required, within 3 working days after receiving it, a tax office shall send a notice, made according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP, to request the taxpayer to explain or supplement the dossier.

In case the dossier of request for non-imposition of late-payment interests is complete, within 10 working days after receiving it, the tax office shall issue a notice of disapproval of non-imposition of late-payment interests, made according to Form No. 04/KTCN provided in Appendix I to this Circular, for taxpayers ineligible for non-imposition of late-payment interests, or a notice of approval of non-imposition of late-payment interests, made according to Form No. 05/KTCN provided in Appendix I to this Circular, for taxpayers eligible for non-imposition of late-payment interests.

b/ Dossier of request for non-imposition of late-payment interests

b.1/ A written request for non-imposition of late-payment interests, made according to Form No. 01/KTCN provided in Appendix I to this Circular;

b.2/ A written certification (the original or a certified copy) by the state budget-using unit that the taxpayer has not yet received payment, made according to Form No. 02/KTCN provided in Appendix I to this Circular;

b.3/ A goods or service provision contract (the original or a copy certified by the taxpayer) signed with the project owner.

3. Responsibilities of taxpayers and related agencies

a/ Taxpayers shall pay tax arrears into the state budget no later than the working day following the day when they receive payment from state budget-using units and send to tax offices a notice thereof, made according to Form No. 03/KTCN provided in Appendix I to this Circular.

b/ State budget-using units shall certify status of payment to taxpayers and take responsibility before law for their certification.

c/ Tax offices shall supervise the performance of tax liability by taxpayers.  

d/ State Treasury offices shall coordinate with tax offices in providing information on progress of the payment of state budget funds.

Article 23. Order, procedures and dossiers for exemption from late-payment interests

1. The order of processing dossiers for exemption from late-payment interests for the cases specified in Clause 8, Article 59 of the Law on Tax Administration is specified as follows:

a/ Taxpayers shall make and send dossiers of request for exemption from late-payment interests to tax offices managing them or tax offices managing state budget revenues.

b/ In case a dossier of request for exemption from late-payment interests is not complete as required, within 3 working days after receiving it, a tax office shall send a notice, made according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP, to request the taxpayer to explain or supplement the dossier.

In case the dossier of request for exemption from late-payment interests is complete under regulations, within 10 working days after receiving it, the tax office shall issue a notice of disapproval of exemption from late-payment interests, made according to Form No. 03/MTCN provided in Appendix I to this Circular, for taxpayers ineligible for exemption from late-payment interests, or a decision on exemption from late-payment interests, made according to Form No. 02/MTCN provided in Appendix I to this Circular, for taxpayers eligible for exemption from late-payment interests.

2. Dossiers for exemption from late-payment interests

a/ For cases in which taxpayers suffer consequences of natural disasters, catastrophes, epidemics, fires or other unexpected events, such a dossier must comprise:

a.1/ A written request for exemption from late-payment interests, made by the taxpayer according to Form No. 01/MTCN provided in Appendix I to this Circular;

a.2/ A competent agency’s written certification (the original or a copy certified by the taxpayer) of the time and place of occurrence of the natural disaster, catastrophe, epidemic, fire or unexpected event;

a.3/ A document (the original or a certified copy) on determination of material damage value, issued by a financial agency or an independent assessment agency;

a.4/ A document (the original or a copy certified by the taxpayer) defining the responsibility of organizations and/or individuals to pay compensation for damage (if any);

a.5/ Documents (the originals or copies certified by the taxpayer) relevant to the payment of compensation for damage (if any).

b/ In other force majeure events as specified in Clause 1, Article 3 of Decree No. 126/2020/ND-CP, such a dossier must comprise:

b.1/ A written request for exemption from late-payment interests, made by the taxpayer according to Form No. 01/MTCN provided in Appendix I to this Circular;

b.2/ A document (the original or a copy certified by the taxpayer) on determination of material damage value issued by a financial agency or an independent assessment agency, for cases in which the taxpayer has to suspend or stop its/his/her production or business activities due to a war, riot or strike;

b.3/ A document (the original or a copy certified by the taxpayer) proving that the risk is not caused by or does not fall under responsibility of the taxpayer that is financially incapable to pay taxes and late-payment interests into the state budget, for cases in which the taxpayer encounters a risk that is not caused by it/him/her or does not fall under its/his/her responsibility;

b.4/ Documents (the originals or copies certified by the taxpayer) relevant to the payment of compensation for damage by an insurer (if any).

3. Determination of to-be-exempted late-payment interests

a/ For taxpayers that suffer consequences of natural disasters, catastrophes, epidemics, fires or other unexpected events specified at Point a, Clause 27, Article 3 of the Law on Tax Administration: To-be-exempted late-payment interests are late-payment interests that have not yet been paid by the time of occurrence of such natural disasters, catastrophes, epidemics, fires or unexpected events and do not exceed the material damage value after subtracting compensation and insurance amounts (if any) paid under regulations.

b/ For taxpayers that encounter other force majeure events as specified in Clause 1, Article 3 of Decree No. 126/2020/ND-CP: To-be-exempted late-payment interests are late-payment interests that have not yet been paid by the time of occurrence of such events and do not exceed the material damage value after subtracting compensation and insurance amounts (if any) paid under regulations.

4. Competence to issue decisions on exemption from late-payment interests

Heads of tax offices managing taxpayers or tax offices managing state budget revenues shall issue decisions on exemption from late-payment interests according to Form No. 04/MTCN provided in Appendix I to this Circular.

Article 24. Order, procedures and dossiers for extension of tax payment time limit

1. Order and procedures for processing dossiers for extension of tax payment time limit for the cases specified in Article 62 of the Law on Tax Administration

a/ Taxpayers shall make and send dossiers of request for extension of tax payment time limits to tax offices managing them or tax offices managing state budget revenues.

b/ In case a dossier of request for extension of tax payment time limit is not complete as required or a sign of violation is detected in the material damage value stated in a dossier as determined by the taxpayer itself/himself/herself or other errors, within 3 working days after receiving the dossier, a tax office shall send a notice thereof, made according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP, to the taxpayer requesting the latter to explain or supplement the dossier.

In case a dossier of request for extension of tax payment time limit is complete, within 10 working days after receiving it, a tax office shall issue a notice of disapproval of extension of tax payment time limit according to Form No. 03/GHAN provided in Appendix I to this Circular for taxpayers ineligible for extension of tax payment time limits, or a decision on extension of tax payment time limit according to Form No. 02/GHAN provided in Appendix I to this Circular for taxpayers eligible for extension of tax payment time limit.

2. Dossiers for extension of tax payment time limit

a/ For taxpayers that suffer consequences of natural disasters, catastrophes, epidemics, fires or unexpected events specified at Point a, Clause 27, Article 3 of the Law on Tax Administration, such a dossier must comprise:

a.1/ A written request for extension of tax payment time limit, made by the taxpayer according to Form No. 01/GHAN provided in Appendix I to this Circular;

a.2/ A competent agency’s written certification (the original or a copy certified by the taxpayer) of the time and place of occurrence of the natural disaster, epidemic, fire or unexpected event;

a.3/ A document on determination of material damage value made by the taxpayer or its/his/her lawful representative who shall take responsibility for the accuracy of provided data;

a.4/ A document (the original or a copy certified by the taxpayer) defining responsibility of organizations and/or individuals to pay compensation for damage (if any);

a.5/ Documents (the originals or copies certified by the taxpayer) relevant to the payment of compensation for damage (if any).

b/ For other force majeure events as specified in Clause 1, Article 3 of Decree No. 126/2020/ND-CP, such a dossier must comprise:

b.1/ A written request for extension of tax payment time limit, made by the taxpayer according to Form No. 01/GHAN provided in Appendix I to this Circular;

b.2/ A document on determination of material damage value made by the taxpayer or its/his/her lawful representative who shall take responsibility for the accuracy of provided data;

b.3/ A competent agency’s written certification (the original or copy certified by the taxpayer) of the time and place of occurrence of the force majeure event; and a document proving that the taxpayer is forced to suspend or stop its/his/her production or business activities, for cases in which the taxpayer is forced to do so due to a war, riot or strike;

b.4/ A document (the original or a copy certified by the taxpayer) proving that the risk is not caused by or does not fall under responsibility of the taxpayer that is financially incapable to pay taxes and late-payment interests into the state budget, for cases in which the taxpayer encounters a risk that is not caused by it/him/her or does not fall under its/his/her responsibility;

b.5/ Documents (the originals or copies certified by the taxpayer), if any, relevant to the payment of compensation for damage by an insurer.

c/ For cases of relocation of production or business establishments specified at Point b, Clause 1, Article 62 of the Law on Tax Administration, such a dossier must comprise:

c.1/ A written request for extension of tax payment time limit, made by the taxpayer according to Form No. 01/GHAN provided in Appendix I to this Circular;

c.2/ A competent state agency’s decision (the original or a copy certified by the taxpayer) on relocation of the taxpayer’s production or business establishment;

c.3/ A relocation scheme or tentative plan (the original or a copy certified by the taxpayer), clearly stating the relocation plan and schedule of the taxpayer.

3. Determination of amounts eligible for extension of tax payment time limit

a/ For taxpayers that suffer consequences of natural disasters, catastrophes, epidemics, fires or unexpected events specified at Point a, Clause 27, Article 3 of the Law on Tax Administration: Amounts eligible for extension of payment time limit are tax arrears calculated by the time such taxpayers are hit by natural disasters, catastrophes, epidemics, fires or unexpected events but not exceeding the material damage value after subtracting compensation and insurance amounts (if any) paid under regulations.

b/ For taxpayers that encounter other force majeure events specified in Clause 1, Article 3 of Decree No. 126/2020/ND-CP: Amounts eligible for extension of tax payment time limit are tax arrears calculated by the time such taxpayers encounter other force majeure events but not exceeding the material damage value after subtracting compensation and insurance amounts (if any) paid under regulations.

c/ For cases of relocation of production or business establishments specified at Point b, Clause 1, Article 62 of the Law on Tax Administration: Amounts eligible for extension of tax payment time limit are tax arrears calculated by the time such taxpayers cease their production or business activities to carry out the relocation but not exceeding expenses for and damage caused by the relocation after subtracting support and compensation amounts paid under regulations. Relocation expenses exclude expenses for building new production or business establishments. In case a competent agency detects failure of a taxpayer to relocate its/his/her production or business establishment, the taxpayer shall pay tax amounts for which payment time limits have been extended and late-payment interests calculated on such tax amounts.

Article 25. Handling of overpaid tax, late-payment interest and fine amounts

1. A taxpayer that has an overpaid tax, late-payment interest or fine amount (below referred to as overpaid amount) as specified in Clause 1, Article 60 of the Law on Tax Administration may have such amount handled as follows:

a/ Clearing of such overpaid amount against the tax arrears amount or unpaid late-payment interest or fine amount (below referred to as arrears amount) or against the payable tax, late-payment interest or fine amount in the next period (below referred to as payable amount) in the following cases:

a.1/ Clearing against the taxpayer’s arrears amount of the same economic content (sub-item) and in the same locality of state budget revenue collection with the overpaid amount.

a.2/ Clearing against the taxpayer’s payable amount of the same economic content (sub-item) and in the same locality of state budget revenue collection with the overpaid amount.

a.3/ An income-paying organization that has an overpaid PIT amount shall make clearing under Points a.1 and a.2 of this Clause. Upon finalization, an overpaid PIT amount shall be determined to equal (=) the overpaid tax amount of the individual authorizing the finalization minus (-) the remaining payable tax amount of the authorizing individual. The income-paying organization shall refund the overpaid PIT amount to the finalization-authorizing individual when making PIT finalization.

a.4/ Clearing against arrears amounts or  payable amounts of the same economic contents (sub-item) and in the same locality of state budget revenue collection with other taxpayers as soon as the taxpayer no longer has arrears amounts.

a.5/ In case the taxpayer has an overpaid foreign-currency amount in one of cases of tax declaration and payment in foreign currencies specified in Article 4 of this Circular, when making clearing, the taxpayer shall convert such amount into Vietnam dong at the selling rate at the beginning of the day as announced by the Joint-Stock Commercial Bank for Foreign Trade of Vietnam at the time of determination of the overpaid amount for clearing.

b/ Refund or refund-cum-clearing against amounts to be paid into the state budget

After making clearing under the guidance at Point a of this Clause, if a taxpayer still has an overpaid amount or no longer has an arrears amount, it/he/she may send a dossier of request for refund or refund-cum-clearing against amounts to be paid into the state budget under Article 42 of this Circular. As soon as the taxpayer no longer has an arrears amount, it/he/she may have the overpaid amount refunded.

c/ Time of determination of overpaid amounts for clearing or refund:

c.1/ In case a taxpayer calculates and declares a tax amount by itself/himself/herself and pays the declared tax amount, the time of determination of an overpaid amount is the date when it/he/she pays such amount into the state budget. In case the taxpayer pays a tax amount before submitting a tax declaration dossier, the time of determination of an overpaid amount is the date when it/he/she submits the tax declaration dossier. In case of an additionally declared dossier, the time of determination of an overpaid amount is the date when it/he/she submits such dossier.

c.2/ In case a taxpayer determines its/his/her payable tax amount according to a payment notice of a tax office or competent state agency, the time of determination of an overpaid amount is the date when it/he/she pays such amount into the state budget. In case the taxpayer pays a tax amount before receiving a payment notice, the time of determination of an overpaid amount is the date of issuance of such payment notice. In case of an adjustment or supplementation notice, the time of determination of an overpaid amount is the date of issuance of such notice.

c.3/ In case a taxpayer pays a tax amount under a decision of a tax office or a decision or document of a competent state agency, the time of determination of an overpaid amount is the date when it/he/she pays such amount into the state budget. In case the taxpayer pays a tax amount before receiving such decision or document, the time of determination of an overpaid amount is the date of issuance of such decision or document. In case of more than one decision or document, the time of determination of an overpaid amount is the date of issuance of the last one.

c.4/ In case a taxpayer has paid a tax amount into the state budget but later executed a court judgment or ruling, the time of determination of an overpaid amount is the date when such judgment or ruling becomes legally effective.

2. Order and procedures for clearing overpaid tax, late-payment interest and fine amounts

a/ A taxpayer that has an overpaid amount cleared against an arrear or payable amount under Point a.1, a.2 or a.3, Clause 1 of this Article is not required to send a dossier of request for clearing of overpaid amount to a tax office. The tax office shall carry out automatic clearing on the tax administration system under regulations on tax-related accounting for the cases specified at Points a.1 and a.2, Clause 1 of this Article and provide information to the taxpayer under Article 69 of this Circular.

b/ A taxpayer that has an overpaid amount cleared against an arrears amount or payable amount under Point a.4, Clause 1 of this Article shall send a dossier of request for clearing of overpaid amount, which must comprise a written request for handling of overpaid tax, late-payment interest or fine amount, made according to Form No. 01/DNXLNT provided in Appendix I to this Circular, and relevant documents (if any), to a tax office competent to handle overpaid amounts specified in Clause 3 of this Article.

c/ A tax office shall receive and process taxpayers’ dossiers of request for clearing of overpaid amounts under Clause 3 of this Article. Within 5 working days after receiving a taxpayer’s complete dossier of request for clearing of overpaid amount, the tax office shall collate the overpaid amount and arrears amount or  payable amount stated in the request with data on the tax administration system:

c.1/ In case the overpaid amount and arrears amount or payable amount stated in the taxpayer’s request is consistent with data on the tax administration system, the tax office shall clear the overpaid amount against the arrears  or payable amount as requested by the taxpayer and send a notice, made according to Form No. 01/TB-XLBT provided in Appendix I to this Circular, to the taxpayer having the overpaid amount requested for clearing and the taxpayer having the arrears or payable amount eligible for clearing.

c.2/ In case the overpaid amount and arrears or payable amount stated in the taxpayer’s request is ineligible for clearing under Clause 1 of this Article, the tax office shall send a notice, made according to Form No. 01/TB-XLBT provided in Appendix I to this Circular, to the taxpayer clearly stating the reason for clearing refusal.

In case the taxpayer’s request is not consistent with data on the tax administration system, the tax office shall send a notice, made according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP, to the taxpayer to request information explanation or addition. The period of information explanation or addition by the taxpayer shall not be counted into the period for the tax office to process the dossier of request for clearing of overpaid amount. After receiving the explained or added information from the taxpayer, if the overpaid amount or arrear  or payable amount stated in the taxpayer’s request is consistent with data on the tax administration system, the tax office shall carry out clearing under Point c.1 of this Clause.

Past the time limit for information explanation or addition stated in the tax office’s notice, if the taxpayer fails to make information explanation or addition or the overpaid amount or arrear or payable amount stated in the taxpayer’s request remains inconsistent with data on the tax administration system even after the taxpayer makes information explanation or addition, the tax office shall send a notice, made according to Form No. 01/TB-XLBT provided in Appendix I to this Circular, to the taxpayer, clearly stating the reason for refusal to clear the overpaid amount.

3. Competence of tax offices to clear overpaid amounts

a/ A managing tax office shall:

a.1/ Make on the tax administration system clearing of the overpaid amount against the arrears  or payable amount of the taxpayer in the cases specified at Points a.1 and a.2, Clause 1 of this Article which is under its direct management.

a.2/ Receive and process written requests for handling of the overpaid amount of the taxpayer in the case specified at Point a.4, Clause 1 of this Article the collection of which is directly managed by it or by the tax office managing the locality receiving distributed state budget revenues under Point b, Clause 6, Article 3 of this Circular.

b/ A tax office managing state budget revenues shall:

b.1/ Make on the tax administration system clearing of the overpaid amount of the taxpayer the collection of which is managed by it in the cases specified at Points a.1 and a.2, Clause 1 of this Article.

b.2/ Receive and process written requests for handling of the overpaid amount of the taxpayer the collection of which is managed by it in the case specified at Point a.4, Clause 1 of this Article.

c/ A tax office managing a locality receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular shall:

c.1/ Make on the tax administration system clearing of the overpaid amount against the arrears  or  payable amount of the taxpayer in the cases specified at Points a.1 and a.2, Clause 1 of this Article under its management with regard to distributed revenues.

c.2/ Coordinate with the managing tax office in making clearing of the overpaid amount against the arrears  or payable amount the collection of which is managed by the locality entitled to distributed state budget revenues under the guidance at Point a.4, Clause 1 of this Article.

Article 26. Non-refund of overpaid tax, late-payment interest and fine amounts

In case a taxpayer has an overpaid tax, late-payment interest or fine amount (below referred to as overpaid amount) that is ineligible for refund and a tax office finalizes the overpaid amount on an accounting book or the tax administration application system in order to impose non-refund of such amount under Clause 3, Article 60 of the Law on Tax Administration:

1. For a taxpayer that has an overpaid amount specified at Point a, Clause 3, Article 60 of the Law on Tax Administration:

a/ The taxpayer shall send a written refusal to receive back the overpaid amount, made according to Form No. 01/DNKHT provided in Appendix I to this Circular.

b/ The tax office defined in Clause 4 of this Article shall receive and process the taxpayer’s refusal within 5 working days after receiving it as follows:

b.1/ In case the amount is consistent with that stated in the taxpayer’s request, the tax office shall issue a decision on non-refund of overpaid amount according to Form No. 01/QD-KHTNT provided in Appendix I to this Circular to finalize the overpaid amount on the accounting book, then send it to the taxpayer.

b.2/ In case the amount is inconsistent with that stated in the taxpayer’s request, the tax office shall issue a notice to request explanation or addition of information and documents according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP, then send it to the taxpayer for information explanation or addition.

The period of information explanation or addition by the taxpayer shall not be accounted into the period of processing the taxpayer’s written refusal to receive back the overpaid amount. After receiving explained or added information from the taxpayer, if such information is consistent with data on the tax administration application system, the tax office shall issue a decision on non-refund of overpaid amount. Past the time limit for information addition notified by the tax office, if the taxpayer fails to explain or add information, the tax office shall issue a notice stating that the overpaid amount is ineligible for finalization according to Form No. 02/TB-KHTNT provided in Appendix I to this Circular, stating the reason for refusal to finalize the overpaid amount at the request of the taxpayer.

2. For a taxpayer that is not operating at the registered address and has an overpaid amount specified at Point b, Clause 3, and Clause 4, Article 60 of the Law on Tax Administration:

a/ Past 180 days from the date a tax office issues a notice stating that the taxpayer is not operating at the registered address in accordance with the regulations on tax registration, the managing tax office shall post a notice of the overpaid amount of the taxpayer, made according to Form No. 01/DSKNT provided in Appendix I to this Circular, on its website and in the mass media after it makes clearing of the overpaid amount against the arrears of the taxpayer nationwide.

b/ Before issuing a notice of the overpaid amount under Point a of this Clause, the managing tax office shall coordinate with the tax office managing state budget revenues or tax office managing the locality receiving distributed state budget revenues in determining the overpaid amount and  arrears of the taxpayer nationwide after the tax administration application system makes the clearing under Point a.1, Clause 1, Article 25 of this Circular and issue a decision on refund-cum-clearing of amounts to be paid into the state budget according to Form No. 02/QDHT provided in Appendix I to this Circular (the refundable amount is equal to the arrears to be cleared and there is no remainder to be refunded after the clearing). The tax office shall make and send an order of refund-cum-clearing of amounts to be paid into the state budget to the State Treasury office under Article 47 of this Circular.

c/ Past 1 year after a notice of the overpaid amount of the taxpayer that is not operating at the registered address is posted on the website of the tax office and in the mass media under Point a of this Clause, if the tax office receives no written reply of the taxpayer requesting refund of the overpaid amount, the managing tax office shall issue a decision on non-refund of the overpaid amount, according to Form No. 01/QD-KHTNT provided in Appendix I to this Circular, for the reason that the taxpayer is not operating at the registered address and finalize the non-refundable overpaid amount on the accounting book.

d/ Within 3 working days after finalizing the taxpayer’s non-refundable overpaid amount on the accounting book, the managing tax office shall publicize on its website the decision on non-refund of the overpaid amount for the reason that the taxpayer is not operating at the registered address.

3. For a taxpayer that has an overpaid amount falling overdue for 10 years from the date of payment into the state budget and does not make clearing of such amount against its/his/her payable tax amount and is not entitled to tax refund under Point c, Clause 3, Article 60 of the Law on Tax Administration:

a/ After March 31 every year, a tax office defined in Clause 4 of this Article shall review and draw up a list of overpaid amounts falling overdue for 10 years from the date of payment into the state budget and not yet cleared by the taxpayer against its/his/her payable tax amount on the tax administration database according to Form No. 01/DSKNT provided in Appendix I to this Circular.

b/ The managing tax office shall send to the taxpayer a notice of the overpaid amount falling overdue for 10 years, made according to Form No. 02/TB-KHTNT provided in Appendix I to this Circular. Particularly, overpaid amounts of taxpayers not operating at registered addresses or having their tax identification numbers invalidated shall be publicized by tax offices on their websites.

c/ Within 15 working days after a tax office sends a notice to the taxpayer or publicizes such notice on its website, if the tax office receives no reply of the taxpayer, it shall issue a decision on non-refund of the overpaid amount for the reason that the taxpayer has an overpaid amount falling overdue for 10 years according to Form No. 01/QD-KHTNT provided in Appendix I to this Circular and finalize the taxpayer’s overpaid amount on the accounting book.

d/ Within 3 working days after finalizing the overpaid amount on the accounting book, the tax office shall publicize on its website the decision on non-refund of the overpaid amount for the reason that the taxpayer has an overpaid amount falling overdue for 10 years.

4. Competence to receive and process written refusals to receive back overpaid amounts and issue decisions on non-refund of overpaid amounts

a/ Managing tax offices shall:

a.1/ Receive and process written refusals to receive back overpaid amounts of taxpayers and issue decisions on non-refund of overpaid amounts for those the collection of which is managed by the managing tax offices or by tax offices managing localities receiving distributed state budget revenues under Point b, Clause 6, Article 3 of this Circular.

a.2/ Issue decisions on non-refund of overpaid amounts for the reason that taxpayers are not operating at registered addresses under their direct management.

a.3/ Issue decisions on non-refund of overpaid amounts for the reason that taxpayers have overpaid amounts falling overdue for 10 years, for overpaid amounts the collection of which is managed by them or by tax offices managing localities receiving distributed state budget revenues under Point b, Clause 6, Article 3 of this Circular.

b/ Tax offices managing state budget revenues shall:

b.1/ Receive and process written refusals to receive back overpaid amounts of taxpayers and issue decisions on non-refund of overpaid amounts for those the collection of which is managed by them.

b.2/ Coordinate with managing tax offices in reviewing overpaid amounts or arrears before the latter issue decisions on non-refund of overpaid amounts for the reason that taxpayers are not operating at registered addresses and make clearing and finalization of overpaid amounts the collection of which is managed by them under such decisions.

b.3/ Issue decisions on non-refund of overpaid amounts for the reason that taxpayers have overpaid amounts falling overdue for 10 years, for overpaid amounts the collection of which is managed by them.

c/ Tax offices managing localities receiving distributed state budget revenues under Point b, Clause 6, Article 3 of this Circular shall:

Coordinate with managing tax offices in reviewing overpaid amounts and arrears managed by them before the latter issue decisions on non-refund of overpaid amounts under Clauses 1, 2 and 3 of this Article and make clearing and finalization of overpaid amounts the collection of which is managed by them under such decisions.

Chapter V

PROCEDURES FOR TAX REFUND

Section 1

TAX REFUND IN ACCORDANCE WITH THE TAX LAWS

Article 27. Responsibility of tax offices for processing tax refund dossiers

1. In case of tax refund in accordance with the tax laws:

a/ VAT refund in accordance with the VAT law.

b/ Refund of excise tax in accordance with the law on excise tax, for biogasoline.

c/ Tax refund in accordance with double taxation avoidance agreements and other treaties to which the Socialist Republic of Vietnam is a contracting party.

2. Responsibility to receive and process tax refund dossiers in accordance with the tax laws:

a/ Tax Departments shall receive and process tax refund dossiers specified in Clause 1 of this Article (except the cases specified at Points b and c of this Clause) for taxpayers managed by them and taxpayers managed by Tax Branches.

Particularly for Tax Departments of Hanoi, Ho Chi Minh City, and Binh Duong and Dong Nai provinces, their directors may assign Tax Branches to receive VAT dossiers of taxpayers managed by such Tax Branches and process such dossiers in the steps of classifying tax refund dossiers into those subject to refund before inspection and those subject to refund after inspection; determining refundable tax amounts; determining tax arrears, fine and late-payment interest amounts to be cleared against refundable tax amounts; drafting decisions on tax refund or decisions on tax refund-cum-clearing against amounts to be paid into the state budget or notices of dossiers’ ineligibility for tax refund (if any), then forward such dossiers to Tax Departments for further carrying out procedures for tax refund under this Circular.

b/ Tax Departments where taxpayers declare VAT amounts of investment projects under Point a, Clause 1, Article 11 of Decree No. 126/2020/ND-CP shall receive and process tax refund dossiers for such investment projects.

c/ Managing tax offices shall receive and process dossiers for refund of input VAT amounts not yet fully credited upon the ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy or termination of operation of enterprises.

Article 28. Dossiers of request for VAT refund

A dossier of request for VAT refund in accordance with the VAT law (except cases of VAT refund in accordance with treaties; and refund of input VAT amounts not yet fully credited upon the ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy or termination of operation of enterprises under Articles 30 and 31 of this Circular) must comprise:

1. A written request for refund of a state budget revenue, made according to form No. 01/HT provided in Appendix I to this Circular.

2. Relevant documents depending on different cases of tax refund, specifically as follows:

a/ In case of tax refund for an investment project:

a.1/ A copy of the investment registration certificate or investment certificate or investment license, for cases in which it is required to carry out procedures for grant of an investment registration certificate;

a.2/ For projects involving construction works: A copy of the land use rights certificate or land allocation decision or land lease contract issued by a competent agency; and the construction permit;

a.3/ A copy of the document on contribution to the charter capital;

a.4/ A copy of the business license, for sectors and trades subject to conditional business investment; a certificate of eligibility for conducting a sector or trade subject to conditional business investment; and a competent state agency’s written permission for conducting a sector or trade subject to conditional business investment under Point c, Clause 2, Article 10 of the Government’s Decree No. 209/2013/ND-CP of December 18, 2013 (revised under Clause 6, Article 1 of the Government’s Decree No. 100/2016/ND-CP of July 1, 2016);

a.5/ A list of invoices and bills for goods and services purchased, made according to Form No. 01-1/HT provided in Appendix I to this Circular, unless the taxpayer has sent e-invoices to the tax office;

a.6/ A decision on establishment of the project management unit, decision of the investment project owner on assignment of the project for management, regulation on organization and operation of the branch or project management unit (if such branch or project management unit carries out tax refund).

b/ In case of tax refund for exported goods or services:

b.1/ A list of invoices and bills for goods and services purchased, made according to Form No. 01-1/HT provided in Appendix I to this Circular, unless the taxpayer has sent e-invoices to the tax office;

b.2/ A list of customs declaration forms for which customs clearance has been granted, made according to Form No. 01-2/HT provided in Appendix I to this Circular, for exported goods for which customs clearance has been granted in accordance with the customs law.

c/ In case of tax refund for programs or projects funded by non-refundable official development assistance (ODA) loans:

c.1/ In case non-refundable ODA loans are directly managed and implemented by program or project owners:

c.1.1/ A copy of the treaty or non-refundable ODA agreement or exchange document on commitment and receipt of non-refundable ODA loans; a copy of the decision approving project documents or non-project documents or the decision on investment in the program and project documents or feasibility study report approved under Points a and b, Clause 2, Article 80 of the Government’s Decree No. 56/2020/ND-CP of May 25, 2020, on management and use of ODA and concessional loans of foreign donors (below referred to as Decree No. 56/2020/ND-CP).

c.1.2/ A written request for certification of valid expenses paid as non-business funds, for non-business expenses, and a written request for payment of investment capital, for investment expenses of the project owner under Point c, Clause 2, Article 80 of Decree No. 56/2020/ND-CP, and Point a, Clause 10, Article 10 of Decree No. 11/2020/ND-CP.

c.1.3/ A list of invoices and bills for goods and services purchased, made according to Form No. 01-1/HT provided in Appendix I to this Circular.

c.1.4/ A copy of the written certification by the agency managing the ODA-funded program or project for the program or project owner that funds provided for such program or project are non-refundable ODA loans eligible for VAT refund and that such program or project is not provided counterpart funds from the state budget for VAT payment.

c.1.5/ In case the program or project owner assigns part or the whole of program or project to another unit or organization for management or implementation in accordance with the regulations on management and use of non-refundable ODA loans while such assignment is not mentioned in the documents specified at Points c.1.1 and c.1.4 of this Clause, a copy of the document of the program or project owner on assignment of the non-refundable ODA-funded program or project to the tax refund-requesting unit or organization for management or implementation is required in addition to the documents specified at Points c.1.1, c.1.2, c.1.3 and c.1.4 of this Clause.

c.1.6/ In case the main contractor makes the tax refund dossier, a copy of the contract signed between the project owner and the main contractor showing the VAT-exclusive payment price based on bidding results is required in addition to the documents specified at Points c.1.1, c.1.2, c.1.3 and c.1.4 of this Clause.

The taxpayer shall only submit the documents specified at Points c.1.1, c.1.4, c.1.5 and c.1.6 of this Clause, for dossiers of request for first-time tax refund or upon any change or supplementation.

c.2/ In case non-refundable ODA loans are directly managed and implemented by donors:

c.2.1/ The documents specified at Points c.1.1 and c.1.3 of this Clause;

c.2.2/ In case the donor designates its/his/her representative office or program or project management or implementation organization (except the case specified at Point c.2.3 of this Clause) but such designation is not mentioned in the documents specified at Point c.1.1 of this Clause, the following documents are additionally required:

c.2.2.1/ A copy of the document of the donor on assignment of the non-refundable ODA-funded program or project to the representative office or an organization designated by the donor for management or implementation;

c.2.2.2/ A copy of the document of a competent agency on establishment of the representative office of the donor or organization designated by the donor.

c.2.3/ In case the main contractor makes the tax refund dossier, a copy of the contract signed between the donor and main contractor or a summary of such contract bearing the donor’s certification of the contract signing is required in addition to the documents specified at Point c.2.1 of this Clause. Such copy must contain the following information: identification number, signing date, term and value of the contract, scope of contracted jobs, payment mode and VAT-exclusive price based on bidding results.

The taxpayers shall only submit the documents specified at Points c.1.1, c.2.2 and c.2.3 of this Clause, for dossiers of request for first-time tax refund or upon any change or supplementation.

d/ In case of tax refund for goods and services domestically purchased with non-refundable aid other than ODA loans:

d.1/ A copy of the decision approving program or project documents, non-project aid amount and program or project and non-project documents as specified at Point a, Clause 2, Article 24 of the Government’s Decree No. 80/2020/ND-CP of July 8, 2020, on management and use of non-refundable aid other than ODA loans granted to Vietnam by foreign agencies, organizations and individuals (below referred to as Decree No. 80/2020/ND-CP);

d.2/ A written request for certification of valid expenses paid as non-business funds, for non-business expenses, and a written request for payment of investment capital, for investment expenses of the project owner (in case of receipt of non-refundable aid as state budget revenues) under Point b, Clause 2, Article 24 of Decree No. 80/2020/ND-CP, and Point a, Clause 10, Article 10 of Decree No. 11/2020/ND-CP.  

d.3/ A list of invoices and bills for goods and services purchased, made according to Form No. 01-1/HT provided in Appendix I to this Circular.

The taxpayer shall only submit the documents specified at Point d.1 of this Clause, for dossiers of request for first-time tax refund or upon any change or supplementation.

dd/ In case of tax refund for goods and services domestically purchased with international emergency aid for provision of relief to victims and remediation of disaster consequences in Vietnam:

dd.1/ A copy of the decision on receipt of emergency aid for provision of relief (in case of international emergency aid for provision of relief) or the decision on policy to receive international emergency aid for remediation of disaster consequences and the document on international emergency aid for remediation of disaster consequences (in case of international emergency aid for remediation of disaster consequences) under Clauses 6, 7 and 8, Article 3 of the Government’s Decree No. 50/2020/ND-CP of April 20, 2020, on receipt, management and use of international emergency aid for provision of relief and remediation of disaster consequences.

dd.2/ A list of invoices and bills for goods and services purchased, made according to Form No. 01-1/HT provided in Appendix I to this Circular.

The taxpayer shall only submit the documents specified at Point dd.1 of this Clause, for dossiers of request for first-time tax refund or upon any change or supplementation.

e/ In case of tax refund for those entitled to diplomatic privileges and immunities:

e.1/ A list of VAT amounts for goods and services purchased for use for diplomatic missions, made according to Form No. 01-3a/HT provided in Appendix I to this Circular, bearing certification by the Directorate of State Protocol of the Ministry of Foreign Affairs stating that input expenses are eligible for diplomatic immunities for tax refund.

e.2/ A list of diplomats entitled to VAT refund, made according to Form No. 01-3b/HT provided in Appendix I to this Circular.

g/ Tax refund for commercial banks acting as VAT refund agents for passengers on exit:

A list of VAT refund documents for foreigners on exit, made according to Form No. 01-4/HT provided in Appendix I to this Circular.

h/ In case of VAT refund under decisions of competent agencies in accordance with law: A decision of a competent agency.

Article 29. Dossier of request for excise tax refund for biogasoline

1. A written request for refund of a state budget revenue, made according to Form No. 01a/DNHT provided in the Appendix to the Government’s Decree No. 14/2019/ND-CP of February 1, 2019.

2. A copy of a competent state agency’s document stating that the taxpayer is licensed to produce biogasoline, to be enclosed with the dossier of request for first-time excise tax refund.     

Article 30. Dossiers of request for tax refund under double taxation avoidance agreements and other treaties

1. In case of request for tax refund under a double taxation avoidance agreement, a dossier must comprise:

a/ A written request for tax refund under the double taxation avoidance agreement and another treaty, made according to Form No. 02/HT provided in Appendix I to this Circular.

b/ Documents relevant to the tax refund dossier, including:

b.1/ A residence certificate granted by a tax authority of the host country and consularly legalized, clearly stating the taxpayer is a resident in which tax year;

b.2/ A copy of the economic contract, service provision contract, agency contract, entrustment contract, technology transfer contract or labor contract signed with a Vietnamese organization or individual, certificate of deposits in Vietnam, and certificate of capital contribution to a Vietnam-based company (depending on type of income in specific cases), bearing certification by the taxpayer;

b.3/ A written certification by the contract-signing Vietnamese organization or individual of the period and actual state of activities under the contract (except the case of tax refund for foreign carriers);       

b.4/ A power of attorney, for case of authorization by an organization or individual to its/his/her lawful representative to carry out procedures for application of the tax agreement. In case the organization or individual makes the power of attorney to authorize its/his/her lawful representative to carry out procedures for tax refund into the account of another entity, it/he/she shall carry out procedures for consular legalization (if the authorization is made overseas) or notarization (if the authorization is made in Vietnam) under regulations;

b.5/ A list of tax payment documents, made according to Form No. 02-1/HT provided in Appendix I to this Circular.

2. In case of request for tax refund under another treaty, a dossier must comprise:

a/ A written request for tax refund under the double taxation avoidance agreement and other treaties, made according to Form No. 02/HT provided in Appendix I to this Circular, bearing certification by the agency proposing conclusion of the treaty.

b/ Documents relevant to the tax refund dossier, including:

b.1/ A copy of the treaty;

b.2/ A copy of the contract signed with the Vietnamese partner, bearing certification by the foreign organization or individual or its/his/her authorized representative;

b.3/ A summary of the contract, bearing certification by the foreign organization or individual or its/his/her authorized representative, which must have the following contents: name of the contract and names of articles and clauses of the contract, scope of jobs under the contract, and tax liabilities in the contract;

b.4/ A power of attorney, for case of authorization by the foreign organization or individual to a Vietnamese organization or individual to carry out procedures for tax refund under the treaty. In case the organization or individual makes the power of attorney to authorize its/his/her lawful representative to carry out procedures for tax refund into the account of another entity, it/he/she shall carry out procedures for consular legalization (if the authorization is made overseas) or notarization (if the authorization is made in Vietnam) under regulations;

b.5/ A list of tax payment documents, made according to Form No. 02-1/HT provided in Appendix I to this Circular.

Article 31. Dossiers of request for refund of input VAT amounts not yet fully credited upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy or termination of operation of enterprises

1. In case a taxpayer is subject to inspection by a tax office at the former’s office under Point g, Clause 1, Article 110 of the Law on Tax Administration and Chapter VIII of this Circular, the taxpayer is not required to send a written request for refund of a state budget revenue.

The tax office shall base itself on inspection results in the conclusion or decision issued after inspection and other inspection documents to determine the input VAT amount not yet fully credited and eligible for refund and refund such amount to the taxpayer under this Section.

2. In case a taxpayer is not subject to inspection at its/his/her office as mentioned in Clause 1 of this Article, the taxpayer shall make a written request for refund of a state budget revenue according to Form No. 01/HT provided in Appendix I to this Circular, then send it to the tax office.

Article 32. Receipt of dossiers of request for tax refund

1. Tax refund request with e-dossiers

a/ Taxpayers shall send their e-dossiers of request for tax refund via the Portal of the General Department of Taxation or other portals under regulations on e-transactions in the field of taxation.

b/ Taxpayers’ e-dossiers of request for tax refund shall be received under regulations on e-transactions in the field of taxation.

c/ Within 3 working days from the date stated in a notice of receipt of a dossier of request for tax refund, made according to Form No. 01/TB-HT provided in Appendix I to this Circular, the tax office processing dossiers of request for tax refund specified in Article 27 of this Circular (below referred to as tax refund dossier-processing tax office) shall issue a notice of acceptance of the dossier of request for tax refund, made according to Form No. 02/TB-HT provided in Appendix I to this Circular, or a notice of dossiers’ ineligibility for tax refund, made according to Form No. 04/TB-HT provided in Appendix I to this Circular in case the dossier is ineligible for tax refund, via the Portal of the General Department of Taxation or another portal via which the taxpayer has submitted its/his/her e-dossier of request for tax refund.

2. Tax refund request with paper dossiers

a/ In case a taxpayer submits its/his/her paper dossier of request for tax refund at a tax office, the tax officer shall examine the completeness of the dossier under regulations. In case the dossier is incomplete, the tax officer shall request the taxpayer to complete the dossier under regulations. In case the dossier is complete, the tax officer shall send a notice of receipt of the dossier, made according to Form No. 01/TB-HT provided in Appendix I to this Circular, to the taxpayer and make an entry in the dossier entry book on the tax administration application system.

b/ In case a taxpayer sends its/his/her dossier by post, a tax officer shall append a seal of receipt on the dossier, state the date of dossier receipt and make an entry in the dossier entry book on the tax administration application system.

c/ Within 3 working days after receiving a dossier of request for tax refund, a tax office shall send a notice of acceptance of the dossier, made according to Form No. 02/TB-HT, or a notice that the dossier is improperly established, made according to Form No. 03/TB-HT provided in Appendix I to this Circular, for dossiers sent by post, or a notice of dossiers’ ineligibility for tax refund, made according to Form No. 04/TB-HT provided in Appendix I to this Circular, for those ineligible for tax refund.

3. Revocation of dossiers of request for tax refund

A taxpayer that has submitted a dossier of request for tax refund to a tax office and later wishes to have such dossier revoked shall make a written request for revocation of the dossier of request for tax refund according to Form No. 01/DNHUY provided in Appendix I to this Circular. Within 3 working days after receiving the request, the tax refund dossier-processing tax office shall send a notice of acceptance of the dossier of request for revocation of the dossier of request for tax refund, made according to Form No. 02/TB-HT provided in Appendix I to this Circular, to the taxpayer and at the same time close the dossier of request for tax refund on its dossier entry book.

The taxpayer may declare an adjusted tax amount requested for refund for further credit in the tax declaration form of the subsequent tax declaration period as soon as a notice of acceptance of the dossier of request for revocation of the dossier of request for tax refund is issued, provided it/he/she fully satisfies conditions for tax declaration and credit or re-submission of such dossier.

In case the tax office has announced a decision on examination before tax refund, the taxpayer may not send a written request for revocation of the dossier of request for tax refund. The tax office shall process the dossier for examination before tax refund under Article 110 of the Law on Tax Administration and Chapter VIII of this Circular.

Article 33. Classification of tax refund dossiers

1. A dossier subject to examination before tax refund is a dossier falling into one of the following cases:

a/ Dossier of a taxpayer that requests tax refund for the first time in each of tax refund cases specified in the tax laws. In case a taxpayer has sent a tax refund dossier to a tax office for the first time but then it/he/she is ineligible for tax refund under regulations, its/his/her subsequent tax refund request may still be regarded as the first-time tax refund request. Below are some specific cases:

a.1/ Cases of refund in accordance with the VAT law include:

a.1.1/ VAT refund for goods and services purchased to serve investment projects;

a.1.2/ VAT refund for goods and services purchased to serve production and trading of goods or services for export;

a.1.3/ VAT refund for non-refundable ODA-funded programs and projects;

a.1.4/ VAT refund for goods and services domestically purchased with non-refundable aid other than ODA of foreign agencies and organizations.

a.2/ First-time tax refund in accordance with the law on excise tax.

a.3/ First-time tax refund for each contract or agreement signed with a Vietnamese organization or individual in accordance with a double taxation avoidance agreement or another treaty to which the Socialist Republic of Vietnam is
a contracting party.

b/ Dossier of a taxpayer that requests tax refund within 2 years after being handled for tax evasion;

In case the taxpayer requests tax refund for many times within 2 years, if at the first time of tax refund request after it/he/she is handled for tax evasion, a tax office checks its/his/her dossier of request for tax refund and finds that there is no untruthful declaration leading to a reduced payable tax amount or an increased refundable tax amount under Article 142 of the Law on Tax Administration or no act of tax evasion specified in Article 143 of the Law on Tax Administration, then its/his/her dossier of request for tax refund at subsequent times of tax refund request will not be subject to examination before tax refund. In case of detecting an untruthful declaration or an act of tax evasion specified in Article 142 or 143 of the Law on Tax Administration committed by the taxpayer at a subsequent time of tax refund request, its/his/her dossier of request for tax refund will still be subject to examination before tax refund within 2 years after it/he/she is handled for tax evasion.

c/ Tax refund dossier upon handover and transfer (for state enterprises), dissolution, bankruptcy, termination of operation or sale of organizations or enterprises;

In case a taxpayer specified at this Point is subject to tax inspection and finalization for termination of operation and its/his/her tax amount is eligible for refund, a tax office shall refund such tax amount based on inspection results and may not classify its/his/her dossier as that subject to examination before tax refund.

d/ Tax refund dossier classified as subject to tax-related high risks for risk management in tax administration;

dd/ Tax refund dossier eligible for tax refund before inspection, for which the taxpayer fails to make information explanation or supplementation though the time limit notified in writing by the tax office has past or for which the taxpayer has made information explanation or supplementation but cannot prove that the declared tax amount is accurate;

e/ VAT refund dossier for imported or exported goods for which payments are not made via commercial banks or other credit institutions in accordance with law.

2. Dossiers eligible for tax refund before inspection are those of taxpayers other than those specified in Clause 1 of this Article.

Article 34. Processing of tax refund dossiers

1. Determination of refundable tax amounts

a/ Principles to be adhered to when the tax office determines that the tax amount eligible for refund is different from that requested by the taxpayer for refund:

a.1/ In case the tax amount requested for refund is larger than that eligible for refund, the taxpayer may get the latter refunded.

a.2/ In case the tax amount requested for refund is smaller than that eligible for refund, the taxpayer may get the former refunded.        

b/ For a tax refund dossier eligible for tax refund before inspection:

The tax office shall base itself on the taxpayer’s tax refund dossier and taxpayer information managed by it on its database to examine such dossier at its head office in order to determine subjects and cases eligible for tax refund, specifically as follows:

b.1/ In case the tax refund dossier is eligible and falls into a case eligible for tax refund, the tax office shall collate the tax amount requested for refund stated in the dossier with that stated in the tax declaration dossier of the taxpayer. The refundable tax amount shall be declared in accordance with the Law on Tax Administration and guiding documents.

b.2/ In case information is insufficient to determine that the taxpayer’s tax refund dossier is eligible and falls into a case eligible for tax refund, the tax office shall make a notice of information explanation or supplementation according to Form No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP and send it to the taxpayer within 3 working days after receiving the taxpayer’s dossier. In case the taxpayer submits an e-dossier of request for tax refund, such notice shall be sent via the Portal of the General Department of Taxation.

Within 10 working days after the tax office issues such notice, the taxpayer shall send a document on information explanation or supplementation as notified by the tax office.

Past the time limit notified by the tax office, if the taxpayer fails to explain or supplement the tax refund dossier or has sent a document on dossier explanation or supplementation but cannot prove that the declared tax amount is accurate, the tax office shall classify  the dossier as that subject to examination before tax refund and send a notice on dossier transfer, made according to Form No. 05/TB-HT provided in Appendix I to this Circular to the taxpayer within 6 working days after accepting the dossier under Article 32 of this Circular.

The period from the date the tax office issues a notice requesting information explanation or supplementation to the date the tax office receives the taxpayer’s document on information explanation or supplementation shall not be counted into the time limit for the tax office to process the tax refund dossier.

c/ For a tax refund dossier subject to examination before tax refund:

In the course of examining a tax refund dossier, if a tax office determines that the tax amount requested for refund is eligible for refund, it shall refund such tax amount to the taxpayer without having to wait for results of the verification of the whole dossier. For a tax amount that needs to be verified or when it is necessary to request the taxpayer to explain or supplement the dossier, it shall refund such tax amount as soon as the law-specified conditions are fully satisfied.

In case the minutes of examination before tax refund states that the taxpayer concurrently has a tax amount eligible for refund and a tax, late-payment interest or fine amount subject to retrospective collection, the tax office shall issue a decision on handling of tax-related violations and clear the refundable tax amount of the taxpayer stated in the decision on tax refund-cum-clearing of amounts to be paid into the state budget, made according to Form No. 02/QD-HT provided in Appendix I to this Circular.

d/ In case a taxpayer is detected through tax examination or inspection to have committed an act of tax evasion against the tax laws which shows a sign of crime, the tax office shall transfer its/his/her file to a public security office for handling in accordance with the Criminal Procedure Code.

dd/ Past the tax examination or inspection time limit, if a tax office receives no examination or inspection results or opinions of and verification by a public security office or a competent agency:

dd.1/ In case the tax office determines that a tax amount is eligible for refund, it shall refund such amount to the taxpayer without having to wait for results of the verification of the whole tax refund dossier. For a tax amount that needs to be verified or requires explanation or addition of documents by the taxpayer, the tax office shall refund such tax amount as soon as the law-specified conditions are fully satisfied.

dd.2/ In case of examination or inspection after tax refund, the tax office shall complete the examination or inspection within the law-specified time limit. For a tax amount refunded before verification results are notified by related agencies, the tax office shall clearly state in the examination minutes or inspection conclusion that grounds are insufficient to conclude that such tax amount is eligible for refund. When verification results are notified by related agencies and the tax office determines that the refunded tax amount is actually ineligible for refund, it shall issue a decision on recovery of refunded tax amount according to Form No. 03/QD-THH provided in Appendix I to this Circular and impose fine and late-payment interest amounts (if any) under regulations.

2. Determination of tax, late-payment interest and fine amounts and other revenues not yet paid into the state budget which may be cleared against refundable tax amounts

Tax refund dossier-processing tax offices shall make tax refund-cum-clearing of tax, late-payment interest and fine amounts and other revenues not yet paid into the state budget (below collectively referred to as tax arrears) in order to make clearing against refundable tax amounts of taxpayers under regulations.

Taxpayers’ tax arrears that may be cleared (excluding those currently undergoing procedures for write-off and those to be paid in installments under Articles 83 and 124 of the Law on Tax Administration) include:

a/ Tax arrears managed by tax offices on the tax administration application system;

b/ Tax arrears (excluding customs charges and fees) informed by customs offices under the Regulation on information exchange and work coordination between customs offices and tax offices;

c/ Tax arrears stated in written requests of agencies and organizations assigned to manage state budget revenues the collection of which is not managed by tax offices under Clause 3, Article 3 of the Law on Tax Administration (other agencies).

d/ In case a taxpayer still has a refundable tax amount in the locality where its/his/her head office is based but its/his/her dependent units have tax arrears on the tax administration application system, the tax office shall continue making clearing thereof. In case a taxpayer has more than one dependent unit having tax arrears, the tax arrears amount with the farthest payment deadline of such units may be cleared first.

In case a taxpayer’s dependent unit still has a refundable tax amount, such amount shall be cleared against the taxpayer’s tax arrears amount in the locality where its/his/her head office is based.

dd/ In case a taxpayer still has a refundable tax amount and requests the tax office to deduct such amount to pay tax arrears for another taxpayer, the tax office shall determine the refundable tax amount and clear it against the tax arrears amount of another taxpayer after making clearing thereof against the taxpayer’s tax arrears amount according to the procedures specified at Points a, b, c and d of this Clause.

e/ Tax offices shall take responsibility for tax arrears on the tax administration application system; customs offices shall take responsibility for debts on the customs system they have informed to tax offices and other agencies (agencies and organizations assigned to manage state budget revenues the collection of which is not managed by tax offices under Clause 3, Article 3 of the Law on Tax Administration) that are responsible for debts owed to the state budget requested for clearing by tax offices. After receiving a decision on tax refund-cum-clearing of amounts to be paid into the state budget specified in Article 36 of this Circular, if the taxpayer has any questions about the tax arrears amount cleared against the refundable tax amount, the tax office managing the taxpayer, customs office and other agencies that have requested arrears/debt clearing shall answer such questions under this Point.

In case the cleared tax arrears amount is larger than the actual tax arrears amount, the difference shall be determined as an overpaid amount. The tax office, customs office and other agencies that have requested the tax arrears clearing shall handle such amount under Article 25 of this Circular and relevant regulations.

Article 35. Application of professional measures to process tax refund dossiers

1. Customs offices shall take responsibility for information about imported or exported goods on customs declaration forms in accordance with the customs law and law on tax administration.

In case customs declaration forms are not available on databases provided by customs offices, tax refund dossier-processing tax offices shall request in writing related customs offices to provide such customs declaration forms for use as a basis for refunding VAT to taxpayers.

2. Based on results of risk analysis and assessment and requirements of the management of VAT refund or upon detecting signs of violating the tax or customs laws through inspection, tax offices shall provide information about violations of taxpayers to customs offices for carrying out customs inspection and supervision under regulations.

On the 20^th day of a month following the last month of a quarter or when it is necessary, the General Department of Taxation shall send written requests to the General Department of Customs to apply channeling criteria for carrying out customs inspection and supervision of imported or exported goods subject to tax refund-related high risks. Such a written request must clearly state criteria for identifying and methods of inspecting and supervising imported or exported goods applicable to enterprises; goods items; and import or export locations and fields in accordance with the Customs Law.

Within 5 working days after receiving a request of the General Department of Taxation, the General Department of Customs shall apply channeling criteria and methods of inspecting and supervising imported or exported goods. In case of refusing to apply such criteria and methods or encountering a problem, the General Department of Customs shall exchange opinions in writing with the General Department of Taxation within the above time limit, clearly stating reasons for such refusal.

3. In case a taxpayer that purchases goods or services from another taxpayer (goods or service provider) is detected through tax examination or inspection to have committed an act of tax evasion, the tax office shall add a plan on examination or inspection of the goods or service provider; or request the tax office managing the goods or service provider to add a plan on and carry out examination or inspection or provide information about such provider’s observance of the tax laws in order to have grounds for tax refund.

4. In case a taxpayer has payment transactions related to organizations or individuals that have suspicious transactions according to warning lists provided by the banking supervision agency; or is detected through tax examination or inspection to have via-bank payment documents with incomplete and improper contents:

a/ The tax refund dossier-processing tax office shall request in writing related credit institutions and intermediary payment service providers to provide information (including also account statements) of payers (or transferors) and beneficiaries of money amounts on documents (or individuals affiliated to beneficiaries) in order to have grounds for VAT refund;

b/ The tax refund dossier-processing tax office shall request in writing border-gate customs offices to provide information about cash amounts (in foreign currencies or Vietnam dong) brought through border gates into Vietnam within 5 working days from the date of receipt of a tax office’s request for tax refund in order to have grounds for VAT refund for goods exported across land borders under regulations.

5. In the course of carrying out procedures for tax refund, if tax offices detect through tax examination or inspection taxpayers showing signs of violation and later transfer files of such taxpayers to public security offices for investigation, or if taxpayers have their accounting books, invoices and bills related to tax amounts requested for refund seized by competent state agencies, tax offices shall send to taxpayers a notice of dossiers’ ineligibility for tax refund, made according to Form No. 04/TB-HT provided in Appendix I to this Circular. Tax offices shall make tax refund as soon as they obtain results or opinions of public security offices or other competent agencies or have complete dossiers under regulations.          

Article 36. Tax refund decisions

1. The tax refund dossier-processing tax office shall determine the refundable tax amount, non-refundable tax amount, amount of tax arrears to be cleared, tax amount to be paid into the state budget on behalf of another taxpayer, and the remaining tax amount to be refunded to the taxpayer, make a tax refund proposal and a draft decision on tax refund according to Form No. 01/QDHT (or a decision on tax refund-cum-clearing against amounts to be paid into the state budget according to Form No. 02/QDHT) and an annex on the payable tax, late-payment interest and fine amounts to be cleared according to Form No. 01/PL-BT (if any), or a notice of dossiers’ ineligibility for tax refund according to Form No. 04/TB-HT (if any) provided in Appendix I to this Circular.

2. The tax office shall fully update on the tax administration application system information of the tax refund dossier, including: tax declaration dossier, dossier of request for tax refund, record of examination of tax refund (if any), decision on tax handling through inspection and examination of observance of the tax laws (if any), draft decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget, annex on the payable tax, late-payment interest, and fine amount to be cleared, made according to Form No. 01/PL-BT (if any), or notice of dossiers’ ineligibility for tax refund, made according to Form No. 04/TB-HT ( if any).

 3. The Tax Branch assigned to receive and process a tax refund dossier under Point a, Clause 2, Article 27 of this Circular shall transfer the whole dossier specified in Clauses 1 and 2 of this Article to the Tax Department for the latter to consider issuing a decision on tax refund. The Tax Department shall issue a decision on tax refund, made according to Form No. 01/QDHT, in case the taxpayer no longer owes tax arrears, or a decision on tax refund-cum-clearing of amounts to be paid into the state budget, made according to Form No. 02/QDHT and an annex on the payable tax, late-payment interest and fine amount to be cleared, made according to form No. 01/PL-BT (if any), in case the taxpayer still owes tax arrears or requests clearing of the refundable tax amount against the tax arrears or payable amount of another taxpayer, or a decision on payment to the bank acting as a VAT refund agent under Article 21 of the Ministry of Finance’s Circular No. 72/2014/TT-BTC of May 30, 2014 (below referred to as Circular No. 72/2014/TT-BTC), revised under Clause 15, Article 1 of the Ministry of Finance’s Circular No. 92/2019/TT-BTC of December 31, 2019 (below referred to as Circular No. 92/2019/TT-BTC), in case of tax refund to banks acting as VAT refund agents, or a notice of dossiers’ ineligibility for tax refund, made according to Form No. 04/TB-HT provided in Appendix I to this Circular. The Tax Department shall be held responsible for the tax refund decision in accordance with law.

4. The tax office (except the case specified in Clause 3 of this Article) shall issue a decision on tax refund according to Form No. 01/QDHT provided in Appendix I to this Circular, in case the taxpayer no longer owes tax arrears, or a decision on tax refund-cum-clearing of amounts to be paid into the state budget, made according to Form No. 02/QDHT, an annex on the payable tax, late-payment interest and fine amount to be cleared, made according to Form No. 01/PL-BT provided in Appendix I to this Circular, in case the taxpayer still owes tax arrears or requests clearing of the refundable tax amount against tax arrears or payable amount of another taxpayer, or a decision on payment to the bank acting as a VAT refund agent under Article 21 of Circular No. 72/2014/TT-BTC, revised under Clause 15, Article 1 of Circular No. 92/2019 /TT-BTC, in case of tax refund to banks acting as VAT refund agents.

5. The tax office shall fully update and account in the tax administration application system the decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget or decision on payment to the bank acting as a VAT refund agent right on the date such decision is issued.

Article 37. Issuance of orders of reimbursement of amounts paid into the state budget or orders of reimbursement-cum-clearing of amounts to be paid into the state budget

1. The tax office that issues a decision on tax refund, decision on tax refund-cum-clearing of amounts to be paid into the state budget or decision on payment to banks acting as VAT refund agents shall issue an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget under regulations on the state budget accounting regime and State Treasury operations.

Right after the order on reimbursement of amounts paid into the state budget or the order on reimbursement-cum-clearing of amounts to be paid into the state budget is issued, the tax office shall send such order to the State Treasury office by electronic means; in case of impossibility to transmit and receive information on reimbursement of amounts paid into the state budget by electronic means, the tax office shall send a paper order on reimbursement of amounts paid into the state budget or a paper order on reimbursement-cum-clearing of amounts to be paid into the state budget to the State Treasury office for the latter to make tax refund to the taxpayer.

2. The State Treasury office shall make tax refund to the taxpayer within 1 working day after receiving the tax office’s order on reimbursement of amounts to be paid into state budget or the order on reimbursement-cum-clearing of amounts to be paid into the state budget.

Article 38. Notification of tax refund settlement results

1. The tax office shall send a notice of dossiers’ ineligibility for tax refund (for the non-refundable tax amount), a decision on tax refund or a decision on tax refund-cum-clearing of amounts to be paid into the state budget, or a decision on payment to the bank acting as a VAT refund agent to the taxpayer, and related agencies and organizations via the Portal of the General Department of Taxation right on the day such notice or decision is issued or on the next working day at the latest.

2. In case a Tax Department issues a decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget or decision on payment to the bank acting as a VAT refund agent for a taxpayer managed by a Tax Branch, the Tax Department shall send such decision to the Tax Branch for the latter to monitor the taxpayer’s tax liabilities.

3. In case a taxpayer clears its/his/her refundable tax amount against the tax arrears of another taxpayer or against its/his/her payable amount at another tax office under Article 34 of this Circular, the tax office that issues the decision on tax refund-cum-clearing of amounts to be paid into the state budget shall send such decision to the tax office managing state budget revenues or the tax office managing the locality receiving distributed state budget revenues to be cleared for the latter to account state budget revenues.

Article 39. Post-tax refund inspection and examination of taxpayers

1. Tax offices shall carry out post-tax refund inspection and examination under Sections 1, 2, and 3, Chapter XIII of the Law on Tax Administration and regulations on inspection and examination.

2. Based on results of post-tax refund inspection and examination at a taxpayer’s head office, if detecting that the refunded tax amount is not compliant with regulations, the tax office shall issue a decision on recovery of refunded tax amount according to Form No. 03/QD-THH provided in Appendix I to this Circular to recover the tax amount refunded to the taxpayer, sanction the violation, and calculate late-payment interest (if any) under regulations.

Article 40. Recovery of refunded tax amounts

1. In case a tax office or competent state agency, through inspection and examination, discovers that a taxpayer has been refunded a tax amount in contravention of regulations, the taxpayer shall reimburse the excessively refunded tax amount and pay late-payment interest under Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget, counted from the date the refund is made by the State Treasury office or the date the State Treasury office clears the refunded tax amount against the amount to be paid into the state budget under the tax office’s decision on recovery of refunded tax amount, made according to Form No. 03/QD-THH provided in Appendix I to this Circular, or decision or document of the competent state agency.

2. A taxpayer that discovers that it/he/she has been refunded a tax amount in contravention of regulations shall make additional declarations under Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; and at the same time, reimburse the excessively refunded tax amount and pay late-payment interest under Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget, counted from the date the refund is made by the State Treasury office or the date the State Treasury office clears the refunded tax amount against the amount to be paid into the state budget.

3. In case a taxpayer has been refunded VAT on exported goods but such exported goods are returned by the seller, the taxpayer shall make additional declarations under Article 47 of the Law on Tax Administration and Article 7 of Decree No. 126/2020/ND-CP; and at the same time, reimburse the refunded tax amount equivalent to the tax amount for the returned goods volume and pay late-payment interest under Article 59 of the Law on Tax Administration and Article 21 of this Circular into the state budget, counted from the date the refund is made by the State Treasury office or the date the State Treasury office clears the refunded tax amount against the amount to be paid into the state budget.

4. Taxpayers may make additional declarations for credit of the tax amount that has been refunded in contravention of regulations but still meet the conditions for credit of VAT prescribed by the VAT law from the tax period following the period when it/he/she detects the errors, for the case specified in Clause 2 of this Article, or make declaration in the tax declaration dossier of the tax period when it/he/she receives the tax office’s decision on recovery of refunded tax amount or decision or document of a competent state agency, for the case specified in Clause 1 of this Article.

Section 2

REFUND OF OVERPAID AMOUNTS

Article 41. Responsibility of tax offices for receiving and processing dossiers of request for refund of overpaid amounts

1. Responsibility for receiving dossiers of request for refund of overpaid amounts:

a/ Managing tax offices shall receive dossiers of request for refund of overpaid amounts (including also cases of refunding overpaid amounts based on EIT finalization results; refunding overpaid VAT amounts of taxpayers that have paid VAT under Points b and c, Clause 3, Article 13 of this Circular; and refunding overpaid tax amounts upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises), except the cases specified at Points b and c of this Clause.

b/ Tax offices managing state budget revenues shall receive taxpayers’ dossiers of request for refund of overpaid or mistakenly paid amounts arising in localities under their management as assigned.

c/ Tax offices having received PIT finalization dossiers of individuals who make tax finalization by themselves shall receive dossiers of request for refund of overpaid amounts according to PIT finalization results.

2. Responsibility for processing dossiers of request for refund of overpaid amounts:

a/ Tax offices receiving dossiers of request for refund of overpaid amounts specified in Clause 1 of this Article shall process taxpayers’ dossiers of request for refund of overpaid amounts and proceed with the following jobs: classifying dossiers as either eligible for tax refund before examination or subject to examination before tax refund; determining the overpaid tax, late-payment interest and fine amounts to be refunded; determining the tax arrears, fine and late-payment interest amounts to be cleared against the refundable amounts; issuing a decision on tax refund or a decision on tax refund-cum-clearing of amounts to be paid into the state budget or a notice on dossiers’ ineligibility for tax refund (if any); and issuing an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget and send it to State Treasury offices for the latter to make tax refund to taxpayers under regulations.

b/ In case a taxpayer’s dossier of request for refund of overpaid amounts covers an overpaid amount in a locality entitled to distributed state budget revenues, the managing tax office shall coordinate with the tax office managing the locality receiving distributed state budget revenues in processing such dossier under Point a of this Clause for the taxpayer.

c/ In case a taxpayer’s dossier of request for refund of overpaid amounts upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises covers overpaid amounts in other localities, the managing tax office shall coordinate with the tax offices managing state budget revenues or the tax offices managing localities receiving distributed state budget revenues in processing such dossier under Point a, Clause 1 of this Article for the taxpayer.

Article 42.  Dossiers of request for refund of overpaid amounts

1. Dossiers of request for refund of PIT for income from salaries or wages

a/ In case organizations or individuals that pay income being salaries or wages make tax finalization for authorized individuals

A dossier must comprise:

a.1/ A written request for handling of overpaid tax, late-payment interest and fine amounts, made according to Form No. 01/DNXLNT provided in Appendix I to this Circular;

a.2/ A written authorization in accordance with law in case the taxpayer does not directly carry out tax refund procedures, except cases in which a tax agent submits the tax refund dossier under the contract signed between the tax agent and the taxpayer;

a.3/ A list of tax payment documents, made according to Form No. 02-1/HT provided in Appendix I to this Circular (applicable to income-paying organizations and individuals).

b/ For an individual who earns income from salary or wage and makes tax finalization with the tax office by himself/herself, if he/she has an overpaid amount and requests tax refund on the PIT finalization declaration, he/she is not required to submit a tax refund dossier.

The tax office shall base itself on the taxpayer’s PIT finalization dossier to process the taxpayer’s request for refund of overpaid amounts under regulations.

2. A dossier for request for refund of overpaid amounts of other taxes and other overpaid amounts must comprise:

a/ A written request for handling of overpaid tax, late-payment interest and fine amounts, made according to Form No. 01/DNXLNT provided in Appendix I to this Circular;

b/ A written authorization in case the taxpayer does not carry out tax refund procedures by itself/himself/herself, except cases in which a tax agent submits the tax refund dossier under the contract signed between the tax agent and the taxpayer;

c/ Accompanying documents (if any).

3. In case of requesting refund of overpaid amounts upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises which is subject to the tax office’s examination at the taxpayer’s head office under Point g, Clause 1, Article 110 of the Law on Tax Administration and Chapter VIII of this Circular, if examination conclusions or settlement decision and other examination documents state that the taxpayer has an overpaid tax amount, the taxpayer is not required to submit a tax refund dossier specified in this Clause. The tax office shall base itself on the examination conclusions or settlement decision and other examination documents to carry out procedures for refund of the overpaid tax amount to the taxpayer under regulations.

Article 43. Receipt of dossiers of request for refund of overpaid amounts

The receipt of dossiers of request for refund of overpaid amounts must comply with Article 32 of this Circular.

Article 44. Classification of dossiers of request for refund of overpaid amounts

1. Dossiers of request for refund of overpaid amounts specified at Points b, c, d, and dd, Clause 1, Article 33 of this Circular are subject to examination before tax refund.

2. Dossiers of request for refund of overpaid amounts not falling into the cases specified in Clause 1 of this Article are eligible for tax refund before examination.

Article 45. Processing of dossiers of request for refund of overpaid amounts

1. Determination of refundable overpaid tax, late-payment interest and fine amounts

a/ Principles to be applied in case the tax office determines that the tax amount eligible for refund is different from the tax amount requested by the taxpayer for refund must comply with Point a, Clause 1, Article 34 of this Circular.

b/ For tax refund dossiers eligible for tax refund before examination

The tax office shall base itself on the taxpayer’s dossier of request for refund of overpaid amounts and information on the taxpayer’s tax liabilities and paid tax amounts on the tax administration application system to check and determine cases of eligibility for refund of overpaid amounts and refundable overpaid tax, late-payment interest and fine amounts.

b.1/ In case the dossier of request for refund of overpaid amounts is eligible for refund, the tax office shall compare the tax amount requested for refund stated in the tax refund dossier with that stated in the tax declaration dossier and information on the taxpayer’s performance of tax liabilities on the tax administration application system to determine the refundable tax amount, and the time when the refundable overpaid amount occurs in accordance with tax laws.

b.2/ In case of lacking information to determine whether or not the taxpayer’s dossier of request for refund of overpaid amounts is eligible for tax refund, the tax office shall make a notice requesting information explanation or addition according to Form. No. 01/TB-BSTT-NNT provided in Appendix II to Decree No. 126/2020/ND-CP and send it to the taxpayer within 3 working days from the date the tax office receives the taxpayer’s dossier of request for tax refund. In case the taxpayer carries out e-procedures for tax refund, the notice shall be sent via the Portal of the General Department of Taxation.

Within 10 working days from the date the tax office issues the notice, the taxpayer shall send a document on information explanation or addition as requested in the notice.

Past the time limit stated in the notice of the tax office, if the taxpayer fails to make information explanation or addition in the tax refund dossier; or has given information explanation or addition in the dossier but cannot prove that the declared tax amount is accurate, the tax office shall re-classify the tax refund dossier as subject to examination before tax refund and send a notice thereof, made according to Form No. 05/TB-HT provided in Appendix I to this Circular, to the taxpayer within 6 working days from the date of acceptance of the tax refund dossier under Article 32 of this Circular. The period from the date the tax office issues the notice of request for information explanation or addition to the date the tax office receives the taxpayer’s document on information explanation or addition shall not be included in the time limit for processing the tax refund dossier by the tax office.

c/ For tax refund dossiers subject to examination before tax refund

In the course of examining a tax refund dossier, if the tax office determines that the tax amounts are eligible for refund, it shall refund such tax amounts to the taxpayer without having to wait for verification of the whole tax refund dossier; for tax amounts that need to be verified or in case it is necessary to request the taxpayer to make information explanation or addition in the tax refund dossier, the tax office shall make tax refund when the law-specified conditions are fully met.

In case it is determined in the minutes of pre-tax refund inspection that the taxpayer concurrently has tax amounts eligible for refund and tax, late-payment interest and fine amounts subject to retrospective collection, the tax office shall issue a decision on handling of tax-related violations and clear the taxpayer’s refundable tax amount stated in the decision on tax refund-cum-clearing of amounts to be paid into the state budget, made according to Form No. 02/QD-HT provided in Appendix I to this Circular.

d/ In case a taxpayer’s dossier of request for refund of overpaid amounts covers overpaid amounts in a locality entitled to distributed state budget revenues, the managing tax office shall assume the prime responsibility for summarizing the taxpayer’s tax liabilities and tax amounts paid into the state budget in the locality where the taxpayer’s head office is based and in the provinces entitled to distributed state budget revenues. Within 3 working days after receiving the taxpayer’s tax refund dossier, the managing tax office and the tax offices managing localities receiving distributed state budget revenues under Point b, Clause 6, Article 3 of this Circular shall compare and certify paid tax amounts and tax arrears in each locality receiving distributed state budget revenues. Tax offices shall be held responsible for completeness and accuracy of data on the tax administration application system used as a basis for tax refund for taxpayers under regulations.

dd/ For PIT refund dossiers of individuals earning income from salaries or wages and making tax finalization with tax offices by themselves, the tax offices that process PIT finalization dossiers shall sum up the taxpayers’ payable tax amounts and paid amounts arising at tax offices nationwide in the tax finalization period so as to determine the overpaid amounts according to tax finalization results.

e/ In case a dossier of request for tax refund upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises covers overpaid tax, late-payment interest and fine amounts at tax offices managing state budget revenues or tax offices managing localities receiving distributed budget revenues under Point b, Clause 6, Article 3 of this Circular, within 10 working days after receiving the dossier, the managing tax office, tax offices managing state budget revenues, and tax offices managing localities receiving distributed state budget revenues shall compare and certify the tax, late-payment interest and fine amounts owed in each locality. Tax offices shall be held responsible for completeness and accuracy of data on the tax administration application system used as a basis for refund of overpaid amounts to the taxpayer under regulations.

g/ In case a taxpayer has paid VAT under Points b and c, Clause 3, Article 13 of this Circular or paid EIT under Point b, Clause 3, Article 17 of this Circular, if there is an overpaid tax amount left after clearing the paid tax amount against the payable tax amount in the locality where the taxpayer’s head office is based, the managing tax office shall refund the overpaid amount to the taxpayer.

2. The determination of tax, fine and late-payment interest amounts to be cleared against refundable overpaid amounts must comply with Clause 2, Article 34 of this Circular.

Article 46. Tax refund decisions

1. Tax offices that receive and process tax refund dossiers shall determine refundable tax amounts, non-refundable tax amounts, to-be-cleared tax arrears, and tax amounts proposed to be paid into the state budget on behalf of other taxpayers, and remaining tax amounts to be refunded to the taxpayer, make a tax refund proposal and a draft decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget, an annex on overpaid tax, late-payment interest and fine amounts to be refunded according to Form No. 01/PL-HTNT (if any), an annex on the payable tax, late-payment interest and fine amounts to be cleared according to Form No. 01/PL-BT (if any) or a notice of dossiers’ ineligibility for tax refund (if any).

2. Tax offices shall fully update information on tax refund dossiers to the tax administration application system, including: tax declaration dossiers, dossiers of request for tax refund, tax refund inspection records (if any), decisions on handling of tax-related violations through inspection and examination of the observance of the tax laws (if any), the draft decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget, an annex on overpaid tax, late-payment interest and fine amounts to be refunded (if any), an annex on payable tax, late-payment interest and fine amounts to be cleared or a notice of dossiers’ ineligibility for tax refund (if any).

3. Based on the taxpayer’s refundable tax amount and tax arrears, the head of the tax office shall:

a/ Issue a decision on tax refund according to Form No. 01/QDHT and an annex on overpaid tax, late-payment interest and fine amounts to be refunded according to Form No. 01/PL-HTNT (if any) provided in Appendix I  to this Circular, in case the taxpayer owes no tax arrears; or,

b/ Issue a decision on tax refund-cum-clearing of amounts to be paid into the state budget according to Form No. 02/QDHT, an annex on overpaid tax, late-payment interest and fine amounts to be refunded (if any), an annex on payable tax, late-payment interest and fine amounts to be cleared (if any) provided in Appendix I to this Circular, in case the taxpayer still owes tax arrears or requests clearing of its/her/her refundable tax amount against tax arrears and payable amount of another taxpayer.

4. A tax office shall issue a decision to update and fully record the decision on tax refund or the decision on tax refund-cum-clearing of amounts to be paid into the state budget to the tax administration application system right on the day such decision is issued. In case the taxpayer has a refundable amount in a foreign currency, the tax office shall convert the refundable tax amount into Vietnam dong at the selling rate at the beginning of the day as announced by the Joint-Stock Commercial Bank for Foreign Trade of Vietnam at the time of issuance of the decision on tax refund or the decision on tax refund-cum-clearing of amounts to be paid into the state budget.

Article 47. Issuance of orders on reimbursement of amounts paid into the state budget or orders on reimbursement-cum-clearing of amounts to be paid into the state budget

1. Based on the decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget, the tax office shall issue an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget under regulations on implementation of the state budget accounting regime and State Treasury operations.

Right after issuing the order on reimbursement of amounts paid into the state budget or the order on reimbursement-cum-clearing of amounts to be paid into the state budget, the tax office shall send such order to the State Treasury office by electronic means; in case of impossibility to transmit and receive such order by electronic means, the tax office shall send the paper order on reimbursement of amounts paid into the state budget or the paper order on reimbursement-cum-clearing of amounts to be paid into the state budget to the State Treasury office for the latter to make tax refund to the taxpayer.

The State Treasury office shall make tax refund to the taxpayer within the time limit prescribed for administrative procedures in the field of State Treasury operations.

2. In case of tax refund for distributed state budget revenues (except the case specified in Clause 5 of this Article), the tax office managing the taxpayer’s head office shall determine the amount to be refunded to each province that has collected state budget revenues, the amount to be cleared for each province that has received distributed state budget revenues and make an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget and send it to the State Treasury office.

The State Treasury office shall make payment to the taxpayer under the tax office’s order on reimbursement of amounts paid into the state budget or the order on reimbursement-cum-clearing of amounts to be paid into the state budget and account the reimbursement of state budget revenues managed by its locality and, at the same time, transfer documents to State Treasury offices of the localities that have collected state budget revenues for the latter to account the reimbursement of amounts paid into the state budget and, State Treasury offices of the localities that have state budget revenues cleared for the latter to account the collection of state budget revenues.

3. In case of refund of overpaid amounts upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises, if there are to-be-refunded amounts at tax offices managing state budget revenues or tax offices managing localities receiving distributed state budget revenues, the managing tax office shall determine the amount to be refunded to each province that has collected state budget revenues and the amount to be cleared for each province that receives state budget revenues. The State Treasury offices shall reimburse the state budget revenues under management by localities where they are based and transfer documents to the State Treasury offices of localities that have collected state budget revenues and State Treasury offices of localities that have state budget revenues cleared for the latter to account the reimbursement and collection of state budget revenues, respectively.

4. For a PIT refund dossier of an individual who makes tax finalization with a tax office by himself/herself, the tax office processing the dossier shall make an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget and send such order to the State Treasury office for the latter to account the reimbursement of state budget revenues and transfer relevant documents to State Treasury offices of localities where there are to-be-cleared state budget revenues for the latter to account the collection of state budget revenues.

5. For a taxpayer’s dossier of request for refund of overpaid VAT or EIT amounts specified at Point g, Clause 1, Article 45 of this Circular, the managing tax office shall make an order on reimbursement of amounts paid into the state budget or an order on reimbursement-cum-clearing of amounts to be paid into the state budget and send it to the State Treasury office for the latter to account the reimbursement of state budget revenues and transfer relevant documents to State Treasury offices of localities where there are to-be-cleared state budget revenues for the latter to account the collection of state budget revenues.

Article 48. Notification of tax refund settlement results

1. A tax office shall send a notice of dossiers’ ineligibility for tax refund (for non-refundable tax amounts), tax refund decision, annex on refundable overpaid tax, late-payment interest and fine amounts, made according to Form No. 01/PL-HTNT (if any), or decision on tax refund-cum-clearing of amounts to be paid into the state budget, annex on overpaid tax, late-payment interest and fine amounts to be refunded and cleared against amounts to be paid into the state budget, made according to Form No. 01/PL-HNTKBT (if any), to taxpayers and related agencies and organizations via the Portal of the General Department of Taxation right on the day such decision or notice is issued.

For taxpayers that do not have e-transaction accounts with tax offices, tax offices shall send tax refund settlement results through their single-window sections, for dossiers hand-delivered or sent by post to tax offices.

2. In case a taxpayer has refundable amounts or amounts to be cleared against amounts to be paid into the state budget in more than one locality, the managing tax office shall send a decision on tax refund and an annex on refundable overpaid tax, late-payment interest and fine amounts (if any) or decision on tax refund-cum-clearing of amounts to be paid into the state budget, and an annex on refundable overpaid tax, late-payment interest and fine amounts to be cleared against amounts to be paid into the state budget (if any) to tax offices managing state budget revenues and tax offices managing localities receiving distributed state budget revenues for the latter to monitor the taxpayer’s tax liabilities and account the collection of state budget revenues.

3. In case of refund of overpaid amounts upon ownership conversion, transformation, merger, consolidation, division, splitting, dissolution, bankruptcy, or termination of operation of enterprises, if there are refundable amounts at tax offices managing state budget revenues and tax offices managing localities receiving state budget revenues, the managing tax office shall send a notice of dossiers’ ineligibility for tax refund for non-refundable tax amounts, a decision on tax refund or decision on tax refund-cum-clearing of amounts to be paid into the state budget (if any) to tax offices managing state budget revenues and tax offices managing localities receiving distributed state budget revenues.

Article 49. Post-tax refund inspection and examination of taxpayers

Post-tax refund inspection and examination of taxpayers must comply with Article 39 of this Circular.

Article 50. Recovery of refunded tax amounts

In case a taxpayer discovers by itself/himself/herself or a tax office or competent state agency discovers through inspection or examination that the taxpayer has been refunded an overpaid amount in contravention of regulations, Clauses 1 and 2, Article 40 of this Circular shall apply.

Chapter VI

TAX EXEMPTION, TAX REDUCTION; INSTALLMENT TAX PAYMENT; WRITE-OFF OF TAX ARREARS, LATE-PAYMENT INTERESTS AND FINES

Article 51. Procedures, dossiers and cases in which taxpayers determine by themselves exemptible or reducible tax amounts 

1. Cases in which taxpayers determine by themselves exemptible or reducible tax amounts:

a/ EIT: Taxpayers that are entitled to incentives regarding tax rates, tax exemption or reduction period and tax-exempt income in accordance with the law on EIT;

b/ Royalty: Organizations and individuals exploiting natural aquatic products that are exempt from royalty; individuals licensed to exploit branches, tops, firewood, and assorted bamboos for residential use that are exempt from royalty; natural water exploited by households and individuals for residential use; natural water used for hydropower generation and exploited by households and individuals for residential use; earth exploited and used on the spot in allocated or leased land areas; and earth exploited for leveling or construction of security or military works or dikes;

c/ License fee: License fee payers falling into cases exempt from license fee specified in Article 3 of the Government’s Decree No. 139/2016/ND-CP of October 4, 2016, on license fee (below referred to as Decree No. 139/2016/ND-CP), and Clause 1, Article 1 of the Government’s Decree No. 22/2020/ND-CP of February 24, 2020, amending and supplementing a number of articles of Decree No. 139/2016/ND-CP.

d/ PIT: Individuals earning income from salaries or wages who have an annual payable tax amount after finalization of up to VND 50,000;

dd/ In other cases, taxpayers shall determine by themselves exemptible or reducible tax amounts in tax declaration dossiers or tax exemption or reduction dossiers and send them to managing tax offices or tax offices managing state budget revenues, except the cases specified in Clause 1, Article 52 of this Circular.

2. Procedures and dossiers for tax exemption or reduction:

a/ For EIT specified at Point a, Clause 1 of this Article, a dossier for tax exemption or reduction must comprise:

a.1/ A tax finalization declaration;

a.2/ An annex on EIT amounts eligible for incentives;

a.3/ Documents related to the determination of exemptible or reducible tax amounts.

b/ For royalty specified at Point b, Clause 1 of this Article:

b.1/ Organizations and individuals are not required to make monthly royalty declarations and annual royalty tax finalization.

b.2/ Procedures for tax exemption for individuals licensed to exploit branches, tops, firewood, and assorted bamboos for residential use:

A written request for royalty exemption, made according to Form No. 06/MGTH provided in Appendix I to this Circular, certified by the commune-level People’s Committee of the locality where the taxpayer resides. This request shall be sent once before exploitation to the Tax Branch of the locality where the taxpayer resides.

b.3/ Procedures for tax exemption for natural water used for hydropower generation and exploited by households and individuals for residential use:

A written request for royalty exemption, made according to Form No. 06/MGTH provided in Appendix I to this Circular, together with an explanation of hydropower generation equipment for residential use, certified by the commune-level People’s Committee of the locality where the taxpayer resides. This request shall be sent once before exploitation to the managing tax office in the locality where water is exploited.

b.4/ Procedures for tax exemption for earth exploited and used on the spot in allocated or leased land areas; and earth exploited for leveling and construction of security and military works and dikes:

Organizations and individuals allocated or leased land that exploit earth by themselves or construction contractors shall submit a written request made according to Form No. 06/MGTH provided in Appendix I to this Circular, enclosed with a copy of the project owner’s dossier on construction of security and military works and dikes in the locality approved by a competent agency; in case a construction contractor submits the dossier, the dossier must comprise the contractor’s contract signed with the project owner. This dossier shall be sent before exploitation to the managing tax office in the locality where earth is exploited so as to enjoy royalty exemption.

c/ For organizations and individuals exploiting natural aquatic products, households and individuals exploiting natural water for residential use which is exempt from royalty, and taxpayers determining exemptible and reducible tax amounts by themselves under Points c and d, Clause 1 of this Article, they are not required to carry out procedures and make dossiers for tax exemption or reduction.

Article 52. Procedures, dossiers and cases in which tax offices notify or decide on tax exemption or reduction

1. Tax offices shall notify and decide on tax exemption or reduction in the following cases:

a/ Exemption from PIT on income amounts specified in Clauses 1 thru 6, Article 4 of the Law on PIT;

b/ Tax reduction under regulations for individuals, business households and business individuals facing difficulties due to natural disasters, fires, accidents or fatal diseases affecting their tax payment ability;

c/ Reduction of excise tax for taxpayers producing excise tax-liable goods and facing difficulties due to natural disasters or accidents in accordance with the law on excise tax;

d/ Royalty exemption or reduction for royalty payers that encounter natural disasters, fires, or accidents causing damage to quantity of natural resources for which royalty has been declared and paid;

dd/ Tax exemption or reduction for non-agricultural land use tax;

e/ Exemption or reduction of agricultural land use tax in accordance with the Law on Agricultural Land Use Tax and resolutions of the National Assembly;

g/ Exemption or reduction of land rental, water surface rental and land use levy;

h/ Exemption from registration fee.

2. Procedures and dossiers for tax exemption or reduction in cases tax offices notify or decide on tax exemption or reduction specified in Clause 1 of this Article must comply with Articles 53 thru 61 of this Circular.

Article 53. Procedures and dossiers for tax exemption specified at Point a, Clause 1, Article 52 of this Circular

1. In case of transfer, inheritance, and presentation of gifts being real estate (including also future houses, future construction works, construction works and houses that have been handed over by project owners and put into use but not yet granted land use rights certificates and house and land-attached asset ownership certificates in accordance with the law on housing and the law on real estate business) between the husband and wife, between the natural parent and natural child or between the adoptive parent and adopted child; between the parent-in-law and daughter-in-law; between the parent-in-law and son-in-law; between the grandparent and grandchild; and between siblings, a tax exemption dossier must comprise: a PIT declaration made according to Form No. 03/BDS-TNCN provided in Appendix II of this Circular and papers related to the identification of subjects eligible for tax exemption on a case-by-case basis, specifically as follows:

a/ For real estate transferred, inherited or presented as a gift between the husband and wife, one of the following papers is required: a copy of the household registration book or a copy of the marriage certificate or the court ruling on divorce and remarriage (in case of division of house due to divorce, or consolidation of ownership due to remarriage).

b/ For real estate transferred, inherited or presented as a gift between the natural parent and natural child, either of the following papers is required: a copy of the household registration book (if the two persons share the same household registration book) or a copy of the birth certificate. For a child born out of wedlock, there must be a copy of a competent agency’s decision on parent and child recognition.

c/ For real estate transferred, inherited or presented as a gift between the adoptive parent and adopted child, either of the following papers is required: a copy of household registration book (if the two persons share the same household registration book) or a copy of a competent authority’s decision on recognition of child adoption.

d/ For real estate transferred, inherited or presented as a gift between the paternal grandparent and grandchild, the following papers are required: a copy of the grandchild’s birth certificate and a copy of his/her father’s birth certificate; or a copy of the household registration book showing the relationship between the paternal grandparent and grandchild; or other papers, certified by a competent authority, proving the relationship between the paternal grandparent and grandchild.

dd/ For real estate transferred, inherited or presented as a gift between the maternal grandparent and grandchild, the following papers are required: a copy of the grandchild’s birth certificate and a copy of his/her mother’s birth certificate; or a copy of the household registration book showing the relationship between the maternal grandparent and grandchild; or other papers, certified by a competent authority, proving the relationship between the maternal grandparent and grandchild.

e/ For real estate transferred, inherited or presented as a gift between siblings, the following papers are required: a copy of the household registration book or copies of the birth certificates of the transferor and the transferee showing that they have the same parents or have the same father or mother, or other papers, certified by a competent authority, proving that they have a blood relationship.

g/ For real estate transferred, inherited or presented as a gift between the parent-in-law and daughter-in-law or between the parent-in-law and son-in-law, the following papers are required: a copy of the household registration book showing the relationship between the parent-in-law and daughter-in-law, or between the parent-in-law and son-in-law; or copies of the marriage certificate and birth certificate of the husband or wife for use as a basis for determining the relationship between the transferor being the parent-in-law and daughter-in-law or between the parent-in-law and son-in-law.

h/ In case of transfer, inheritance or presentation of gifts being real estate that is eligible for tax exemption under Clause 1 of this Article in which the transferor and the transferee, heir or gift recipient does not have a birth certificate or household registration book, there must be a competent authority’s written certification of the relationship between the transferor and the transferee, heir or gift recipient for use as a basis for determining income eligible for tax exemption.

2. In case an individual is allocated land by the State without payment, or is entitled to a reduction, of land use levy in accordance with law, a dossier must comprise a copy of the land allocation decision of a competent authority.

3. In case of exchange of agricultural land between households and individuals allocated land by the State for production, a dossier must comprise a written agreement on exchange of land or contract on exchange of agricultural land between the parties certified by a competent authority.

Copies of papers for cases of transfer of real estate or exchange of tax-exempt agricultural land mentioned in Clauses 1, 2 and 3 of this Article must be notarized or certified by a competent authority.

4. In case the transferor has only one house or rights to use only one residential land plot in Vietnam, which is exempt from PIT under regulations:

The transferor shall submit a tax declaration dossier specified at Point 9.3 of Appendix I on the Index of tax declaration dossiers to Decree No. 126/2020/ND-CP. In the tax declaration, made according to Form No. 03/BDS-TNCN provided in Appendix II to this Circular, the transferor shall declare his/her income exempt from tax and clearly state the eligibility for PIT exemption under regulations applicable to such house and land use rights and shall be held responsible before law for the declaration of having only one house or rights to use only one residential land plot in Vietnam.

Article 54. Procedures and dossiers for tax reduction specified at Point b, Clause 1, Article 52 of this Circular

1. For taxpayers facing difficulties due to natural disasters or fires, a dossier for tax reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A written record on determination of the extent and value of property damage, made by a competent agency and certified by the commune-level administration of the locality where the natural disaster or fire occurs, made according to Form No. 02/MGTH provided in the Appendix I to this Circular. The agency competent to determine the extent and value of damage is a financial agency or an assessment agency that determines the extent and value of property damage;

c/ In case of damage to goods, the taxpayer shall provide an assessment record (assessment certificate) on extent of the damage, made by an assessment agency that shall take legal responsibility for accuracy of the assessment certificate in accordance with law;

d/ In case of damage to land or crops, the extent of the damage shall be determined by a financial agency;

dd/ Papers on determination of compensation issued by an insurance agency or an agreement on payment of compensation by the person causing the fire (if any);

e/ Payment documents directly relating to the remediation of consequences of the natural disaster or fire;

g/ A PIT finalization declaration, made according to Form No. 02/QTT-TNCN provided in Appendix II to this Circular (if the taxpayer requests a reduction of PIT  on income from salaries or wages).

2. For taxpayers facing difficulties due to accidents, a dossier for tax reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A document or record of the accident, certified by a public security office or a certification of degree of the injury, made by a health agency;

c/ Papers on determination of compensation issued by an insurance agency or an agreement on payment of compensation by the person causing the accident (if any);

d/ Payment documents directly relating to the remediation of consequences of the accident;

dd/ The PIT finalization declaration, made according to Form No. 02/QTT-TNCN provided in Appendix II of this Circular (if the taxpayer requests reduction of PIT on income from salaries or wages).

3. For taxpayers suffering a fatal disease, the dossier for tax reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in  Appendix I to this Circular;

b/ A copy of the medical record or a summary of the medical record or medical examination book in accordance with the law on medical examination and treatment;

c/ Documents evidencing medical examination and treatment expenses, issued by a health agency; or a medical bill, enclosed with a doctor’s prescriptions;

d/ A PIT finalization declaration, made according to Form No. 02/QTT-TNCN provided in Appendix II to this Circular (if the taxpayer requests a reduction of PIT  on income from salaries or wages).

Article 55. Procedures and dossiers for reduction of excise tax specified at Point c, Clause 1, Article 52 of this Circular

1. For taxpayers facing difficulties due to natural disasters, a dossier for tax reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A written record on determination of the extent and value of property damage, issued by a competent agency and certified by the commune-level administration of the locality where the disaster occurs, made according to Form No. 02/MGTH provided in the Appendix I this Circular;

The agency competent to determine the extent and value of damage is a financial agency or an assessment agency that determines the extent and value of property damage.

In case of damage to goods, the taxpayer shall provide an assessment record (assessment certificate) on extent of the damage, made by an assessment agency that shall take legal responsibility for accuracy of the assessment certificate in accordance with law.

c/ The financial statement (if the taxpayer is an enterprise) together with a document explaining and analyzing the determination of the amount of damage and losses caused due to the damage.

2. For taxpayers facing difficulties due to an accident, a dossier for tax reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A document on or record of the accident, certified by a public security office, or a certification of extent of the injury, made by a health agency;

c/ Papers on the determination of compensation issued by an insurance agency or an agreement on payment of compensation by the person having caused the accident (if any);

d/ Payment documents directly relating to the remediation of consequences of the accident.

Article 56. Procedures and dossiers for royalty exemption or reduction specified at Point d, Clause 1, Article 52 of this Circular

1. For the case of royalty exemption or reduction due to natural disasters or fires causing damage to the volume of natural resources for which royalty has been declared and paid, a dossier for royalty exemption or reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular.

b/ A written record of determination of the extent and value of damage to natural resources, made by a competent agency and certified by the commune-level administration of the locality where the disaster or fire occurs, made according to Form No. 02/MGTH provided in Appendix I to this Circular.

The agency competent to determine the extent and value of damage is a financial agency or an assessment agency that determines the extent and value of property damage.

c/ In case of damage to goods: The taxpayer shall provide an assessment record (assessment certificate) on the extent of damage, made by an assessment agency that shall take legal responsibility for the accuracy of the assessment certificate in accordance with law.

2. For the case of royalty exemption or reduction due to an accident causing damage to the volume of natural resources for which royalty has been declared and paid, a dossier for royalty exemption or reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provide in Appendix I to this Circular;

b/ A document or written record of the accident, certified by a public security agency, or a certification of the degree of injury, made by a health agency;

c/ Papers on the determination of compensation issued by an insurance agency or an agreement on payment of compensation by the person having caused the accident (if any);

d/ Payment documents directly relating to the remediation of consequences of the accident.

Article 57. Procedures and dossiers for non-agricultural land use tax exemption or reduction specified at Point dd, Clause 1, Article 52 of this Circular

1. For cases of non-agricultural land use tax exemption or reduction, except cases of non-agricultural land use tax exemption for households and individuals with an annual payable tax amount of up to VND 50,000 (fifty thousand Vietnam dong), a dossier for tax exemption or reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ Copies of papers relating to the taxable land plot such as: certificate of land use rights, decision on land allocation, decision or contract on land lease, and decision on grant of permission for land repurposing;

c/ A copy of the proof of eligibility for non-agricultural land use tax exemption or reduction.

The head of the tax office (of the locality managing the land plot) shall base himself/herself on the dossier for tax exemption or reduction specified in this Clause to determine the exemptible or reducible non-agricultural land use tax amount and decide on the tax exemption or reduction for the taxpayer according to the
tax period.

For cases of non-agricultural land use tax exemption or reduction specified in Clauses 4, 5 and 6, Article 9 and Clauses 2 and 3, Article 10 of the Law on Non-Agricultural Land Use Tax, the head of the tax office (of the locality managing the land plot) shall issue a common decision based on the list proposed by the commune-level People’s Committee. Annually, the commune-level People’s Committee shall review and send a list of subjects eligible for tax exemption or reduction under regulations to the tax office for the latter to implement tax exemption and reduction according to its competence.

For cases of tax exemption or reduction specified in Clause 9, Article 9 and Clause 4, Article 10 of the Law on Non-Agricultural Land Use Tax, the head of the tax office (of the locality managing the land plot) shall issue a decision on tax exemption or reduction based on the taxpayer’s request dossier and certification of the commune-level People’s Committee of the locality where exists the land plot.

2. In case a household or an individual has an annual payable non-agricultural land use tax amount of up to VND 50,000 (fifty thousand Vietnam dong), it/he/she is not required to submit a dossier for non-agricultural land use tax exemption. The tax office shall, through the tax management system (TMS), sort out subjects eligible for tax exemption and send a list thereof to the commune-level People’s Committee where exist land plots of taxpayers for comparison and certification of each household’s and  individual’s eligibility for tax exemption. Based on such list, the tax office shall issue decisions on tax exemption according to its competence.

Article 58. Procedures and dossiers for agricultural land use tax exemption or reduction specified at Point e, Clause 1, Article 52 of this Circular

1. For taxpayers facing difficulties due to a natural disaster or fire, a dossier for tax exemption or reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A written record of determination of extent and value of property damage, made by a competent agency and certified by the commune-level administration of the locality where the natural disaster or fire occurs, made according to Form No. 02/MGTH provided in Appendix I of this Circular;

c/ A financial statement (if the taxpayer is an enterprise), enclosed with a document explaining and analyzing the amount of damage and losses caused due to the damage.

2. For taxpayers facing difficulties due to an accident, a dossier for tax exemption or reduction must comprise:

a/ A written request, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A document or written record of the accident, certified by a public security office or of degree of injury, certified by a health agency;

c/ Papers on determination of compensation issued by an insurance agency or an agreement on payment of compensation by the person having caused the accident (if any);

d/ Payment documents directly related to the remediation of consequences of the accident.

3. For cases of agricultural land use tax exemption or reduction in accordance with the Law on Agricultural Land Use Tax and guiding documents, the provisions of the Law on Agricultural Land Use Tax and guiding documents shall apply.

4. For cases of agricultural land use tax exemption under the National Assembly’s Resolution in each period, the provisions of the National Assembly’s Resolution and guiding documents shall apply.

Article 59. Procedures and dossiers for exemption from or reduction of land or water surface rentals under Point g, Clause 1, Article 52 of this Circular

1. A dossier of request for exemption from land or water surface rentals for the period of capital construction must comprise:

a/ A written request for exemption from land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment);

c/ A copy of the investment policy decision issued by a competent authority as prescribed by the law on investment (except cases not requiring grant of investment policy decisions as prescribed in the law on investment) or a written approval of investment policy as prescribed by the law on investment or a written approval of the project as prescribed by law;

d/ A copy of the decision on land or water surface lease, issued by a competent state agency.

2. A dossier of request for exemption from or reduction of land or water surface rentals under the law on investment must comprise:

a/ A written request for exemption from or reduction of land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment and cases in which taxpayers are allocated land by the State without collection of land use levy and now change to lease land or are leased land by the State and become eligible for exemption from or reduction of land rentals);

c/ A copy of the investment policy decision of a competent authority as prescribed by the law on investment (except cases not requiring grant of investment policy decisions as prescribed by the law on investment) or a written approval of investment policy as prescribed by the law on investment or a written approval of the project as prescribed by law;

d/ A copy of the decision on land or water surface lease of a competent state agency.

3. For cooperatives, a dossier of request for exemption from or reduction of land or water surface rentals must comprise:

a/ A written request for exemption from or reduction of land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment);

c/ A copy of the investment policy decision of a competent authority as prescribed by the law on investment (except cases not requiring grant of investment policy decisions as prescribed by the law on investment) or a written approval of investment policy as prescribed by the law on investment or a written approval of the project as prescribed by law;

d/ A copy of the decision on land or water surface lease of a competent state agency.

4. For taxpayers eligible for exemption from land or water surface rentals unassociated with new land lease, a dossier must comprise:

a/ A written request for exemption from land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the decision on land or water surface lease, issued by a competent state agency;

c/ Copies of papers proving the eligibility for exemption from or reduction of land or water surface rentals.

5. For farmer households or households being members of agricultural production farms or cooperatives entering into package contracts with enterprises or agricultural production cooperatives under the Government’s regulations, a dossier of request for exemption from land or water surface rentals must comprise:

a/ A written request for exemption from land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the decision on land or water surface lease or land or water surface lease contract as prescribed by the land law;

c/ Copies of papers proving the eligibility for exemption from or reduction of land or water surface rentals.

6. A dossier of request for exemption from land or water surface rentals for the period of suspension of operation in force majeure events must comprise:

a/  A written request for exemption from land or water surface rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A written certification of the project’s operation suspension period, made by the investment registration agency or a competent state management agency;

c/ A copy of the decision on land or water surface lease of a competent state agency.

7. For cases in which project owners implement projects on construction of houses for lease to workers on land leased from enterprises conducting commercial operation of industrial park and industrial complex infrastructure facilities, a dossier must comprise:

a/ A written request for exemption from land rentals for the area subleased to a secondary investor to implement a worker housing project, made according to Form No. 01/MGTH provided in Appendix I to this Circular by the enterprise conducting commercial operation of infrastructure facilities;

b/ A written request for exemption from land rentals for implementation of a worker housing project, made according to Form No. 01/MGTH provided in Appendix I to this Circular by the secondary investor subleased land by the enterprise conducting commercial operation of infrastructure facilities;

c/ A copy of the worker housing project formulated, appraised and approved in accordance with the investment and housing laws;

d/ A copy of the decision approving the worker housing project in accordance with law;

dd/ A copy of the land sublease contract signed between the worker housing project owner and the enterprise conducting commercial operation of industrial park and industrial complex infrastructure facilities.

8. A dossier of request for exemption from or reduction of land rentals for land used for construction of scientific research institutions must comprise:

a/ A written request for exemption from or reduction of land rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the certificate of hi-tech enterprise, science and technology enterprise or science and technology organization;

c/ A copy of the land lease decision of a competent state agency.

9. A dossier of request for exemption from or reduction of land rentals under other regulations of the Government must comprise:

a/ A written request for exemption from or reduction of land rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment and cases in which taxpayers are allocated land by the State without collection of land use levy and now change to lease land or are leased land by the State and become eligible for exemption from or reduction of land rentals);

c/ A copy of the investment policy decision of a competent authority as prescribed by the law on investment (except cases not requiring grant of investment policy decisions as specified by the law on investment) or written approval of investment policy as prescribed by the law on investment or written approval of the project as prescribed by law;

d/ A copy of the land lease decision of a competent state agency;

dd/ Copies of papers proving the eligibility for exemption from or reduction of land or water surface rentals.

10. A dossier of request for reduction of land rentals for land used for agricultural and forestry production, aquaculture or salt making suffering output damage due to natural disasters or fires must comprise:

a/ A written request for exemption from or reduction of land rentals, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ An output determination report made by a competent agency and certified by the commune-level administration of the locality where natural disasters or fires occur, made according to Form No. 02/MGTH provided in Appendix I to this Circular;

The agency competent to determine the degree and value of damage is a finance agency or an assessment agency determining the degree and value of property damage.

For goods damage, the taxpayer shall provide a record of assessment (assessment certificate) of the degree of damage, made by an assessment agency which shall take legal responsibility for the accuracy of the assessment certificate in accordance with law.

c/ A copy of the land lease decision of a competent state agency.

Article 60. Procedures and dossiers for exemption from or reduction of land use levy under Point g, Clause 1, Article 52 of this Circular

1. For land allocated within residential land allocation quotas to people with meritorious services to the revolution:

For land allocated within residential land allocation quotas for implementation of policies on houses and residential land for the people with meritorious services to the revolution, a dossier of request for exemption from or reduction of land use levy must comprise:

a/ A written request for exemption from or reduction of land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ Relevant papers proving the eligibility for exemption from or reduction of land use levy as prescribed by the law on people with meritorious services to the revolution;

c/ The decision or document on exemption from or reduction of land use levy as prescribed by law, issued by the provincial-level People’s Committee or an agency authorized or delegated by the provincial-level People’s Committee.

2. For land allocated within residential land allocation quotas to poor households, households of ethnic minorities living in areas with extremely difficult socio-economic conditions or border areas or on islands on the list of eligible communes issued by state competent agencies; a dossier of request for reduction of land use levy for land allocated within residential land allocation quotas to poor households, households of ethnic minorities not living in areas with extremely difficult socio-economic conditions or border areas or on islands on the list of eligible communes issued by state competent agencies, a dossier of request for exemption from land use levy must comprise:

a/ A written request for exemption from or reduction of land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ For households of ethnic minorities, the household registration book (if living in localities where they are granted household registration books) or written certification of the commune-level People’s Committee (if living in localities where they have not yet been granted household registration books);

c/ For poor households, the household registration book showing the requester’s permanent residence in the locality where exists the land plot eligible for land use levy exemption or reduction, enclosed with a written certification of the poor household status made by a competent agency as prescribed by the Ministry of Labor, Invalids and Social Affairs.

3. For cases of first-time grant of land use rights certificates for residential land repurposed from non-residential land upon splitting of households of ethnic minorities or poor households living in extremely difficult communes in ethnic minority-inhabited and mountainous areas, a dossier of request for exemption from land use levy within residential land allocation quotas must comprise:

a/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A written confirmation of a competent state agency on repurposing of non-residential land to residential land due to household splitting;

c/ For households of ethnic minorities or poor households living in extremely difficult communes in ethnic minority-inhabited and mountainous areas, a certified copy of the household registration book or a written certification of the commune-level People’s Committee (if living in localities where they have not yet been granted household registration books); particularly for poor households, a written certification of the poor household status made by a competent agency as prescribed by the Ministry of Labor, Invalids and Social Affairs is required.

4. For land areas allocated within residential land allocation quotas to fishing households and river people who move to settle in resettlement areas under approved master plans, plans or projects, a dossier of request for exemption from land use levy must comprise:

a/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the land allocation decision of a competent state agency;

c/ A copy of the document on implementation of the resettlement project of a competent state agency.

5. For land areas allocated within residential land allocation quotas for resettlement arrangement or allocation to households and individuals in resident clusters in flooded areas under approved projects, a dossier of request for exemption from land use levy must comprise:

a/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the decision on residential land allocation for resettlement arrangement of a competent state agency;

c/ A copy of the document on implementation of resettlement project of a competent state agency.

6. For investment projects in socialized fields that are allocated land by the State with collection of land use levy in accordance with law before the 2013 Land Law takes effect, a dossier of request for exemption from or reduction of land use levy must comprise:

a/ A written request for exemption from or reduction of land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment);

c/ A copy of the investment policy decision of a competent authority as prescribed by the law on investment (except cases not requiring grant of investment policy decisions as prescribed by the law on investment) or a written approval of investment policy under the law on investment or a written approval of the project prescribed by law;

d/ A copy of the decision on land allocation for project implementation of a competent state agency.

7. For investment projects on infrastructure of cemeteries and graveyards, a dossier of request for exemption from or reduction of land use levy must comprise:

a/ A written request for exemption from or reduction of land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment);

c/ A copy of the investment policy decision (except cases in which the investment license or investment registration certificate is not required under the law on investment);

d/ A copy of the decision on land allocation for project implementation of a competent state agency.

8. Dossiers of request for exemption from land use levy for owners of social housing projects:

a/ For social housing projects invested under Clause 1, Article 53 of the 2014 Housing Law, a dossier of request for exemption from land use levy must comprise:

a.1/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

a.2/ A copy of the decision on or a written approval of the investment policy or a written approval of the investment project of a competent authority as prescribed by law;

a.3/ A copy of the decision on land allocation of a competent state agency.

b/ For social housing projects invested under Clause 2, Article 53 of the 2014 Housing Law (except the case prescribed at Point c of this Clause), a dossier of request for exemption from land use levy must comprise:

b.1/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b.2/ A copy of the decision on or written approval of investment policy or written approval of the investment project of a competent authority prescribed by law;

b.3/ A copy of the land allocation decision of a competent state agency;

b.4/ The enterprise’s or cooperative’s commitment that the house rent rates are not higher than those set by the provincial-level People’s Committee in accordance with the housing law.

c/ A dossier of request for exemption from land levy for social housing projects invested under Clause 2, Article 53 of the 2014 Housing Law for lease to employees must comprise:

c.1/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

c.2/ A copy of the decision on or written approval of investment policy or written approval of the investment project of a competent authority as prescribed by law;

c.3/ A copy of the land allocation decision of a competent state agency;

c.4/ A copy of the list of employees who are leased houses, certified by a competent state agency in accordance with the housing law;

c.5/ The enterprise’s or cooperative’s commitment that the house rent rates are not higher than those set by a provincial-level People’s Committee in accordance with the housing law.

d/ For social housing projects invested under Clause 3, Article 53 of the 2014 Housing Law, a dossier of request for exemption from land use levy must comprise:

d.1/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

d.2/ A copy of the decision on or written approval of investment policy or written approval of the investment project of a competent authority prescribed by law;

d.3/ Copies of papers certifying the project owner’s lawful residential land area used for construction of social houses, issued by a state agency in charge of state management of land in accordance with the land law.

9. For other cases prescribed in the Prime Minister’s decisions, a dossier of request for exemption from land use levy must comprise:

a/ A written request for exemption from land use levy, made according to Form No. 01/MGTH provided in Appendix I to this Circular;

b/ A copy of the investment certificate or investment license or investment registration certificate (except cases in which such papers are not required under the law on investment); or the science and technology enterprise certificate, for science and technology enterprises;

c/ A copy of the investment policy decision (except cases in which the investment license or investment registration certificate is not required under the law on investment).

Article 61. Documents proving property ownership or property owner status in dossiers of request for registration fee exemption

1. For land allocated, leased or recognized by the State for use for agricultural and forestry production, aquaculture or salt making: The certification of a land use rights registration office of the requester’s eligibility for grant of a certificate of land use rights in the form of land allocation or lease or land use rights recognition by the State on the “information transfer slip for performance of land-related financial obligations”.

2. For land used for community purposes by religious organizations or belief institutions recognized or licensed by the State: Papers proving that organizations’ or institutions’ operations are licensed by the State.

3. For houses, land, special property, special-use property and property used for national defense and security purposes: A competent authority’s decision approving the allocation or procurement of special property, special-use property and property used for national defense and security purposes; or certification of a competent public security and national defense authority that such houses, land and property are special-use ones used for national defense and security purposes. 

4. For houses and land allocated as compensation or resettlement support:

a/ Competent state agencies’ decision on recovery of old houses and land and allocation of new houses and land.

b/ A land use rights and house and land-attached asset ownership certificate granted by a competent agency to the person subject to land recovery by the State, which states that the taxpayer does not have any unfulfilled financial obligations.

In case the person having land use rights has fulfilled his/her registration fee obligations but has not yet been granted or has lost the certificate: the receipt of registration fee payment of the owner with house and land recovered by the State; or a confirmation issued by a house and land record management agency, or a competent state agency’s decision on registration fee exemption.

c/ Invoices or lawful land use rights transfer contracts or house purchase and sale contracts in accordance with law, enclosed with original receipts of compensation or support money paid by the agency recovering houses and land (in case of monetary compensation and support).

5. For renewal of property ownership and use rights certificates: The renewed documents proving the ownership or use rights of the property.

6. For property of an equitized enterprise:

a/ Competent agencies’ decision on transformation of the enterprise into a joint-stock company or reorganization of the enterprise.

b/ A list of property transferred from the enterprise to the joint-stock company (for partially equitized enterprises, a decision on transfer of property is required) or to the new enterprise under a competent agency’s decision on enterprise reorganization; or table of inventory and revaluation of the enterprise’s property according to regulations, stating names of the property subject to registration fee declaration.

7. For property of an organization which are divided to or contributed by its institutional or individual members upon its division, splitting, consolidation or merger and for which registration fee has been paid:

a/ Papers proving that the persons having the registered property are members of such organization (the establishment decision or operation charter of the organization is inscribed with names of members having made capital contribution with property, or certificates proving the contribution of capital with property; or business registration papers showing the names of such persons, enclosed with papers proving their contribution of capital with property).

b/ Decision on dissolution, division, splitting, consolidation, or merger of the organization and division of property for capital-contributing members.

c/ Registration fee receipt (for cases subject to registration fee); or registration fee declaration in which the “Tax office’s conclusion” states: exempt from registration fee (for cases exempted from registration fee under regulations); or tax office’s notice of registration fee handed over by the property transferor to the property recipient; or certificate of property ownership and use rights under the name of the person making the capital contribution with property (in case the capital contribution-receiving organization  makes registration fee declaration); or certificate of property ownership and use rights under the name of the dissolved organization (in case the divided property recipients make registration fee declaration).

d/  Business cooperation contracts (in case of capital contribution), or competent agencies’ decision on division and transfer of property in the form of recording capital increase or decrease (for cases of transfer of property between member units or within a cost-estimating unit).

8. For gratitude houses and great unity houses, and houses given as humanitarian gifts: papers on transfer of land use rights and house ownership between the donor and the recipient.

9. For property for financial lease:

a/ A financial lease contract signed between the lessor and the lessee in accordance with the law on financial lease.

b/ A written record of liquidation of the financial lease contract between the lessor and the lessee.

c/ A certificate of property use rights and ownership of the finance leasing company.

10. For replacement bodies, frames and engine assemblies subject to re-registration during the warranty period:

a/ Property warranty certificate.

b/ Delivery notes of replacement property, enclosed with papers on recovery of old property issued by the seller to the purchaser.

11. In case of proving a family relationship, one of the following documents may be used, depending on the relationship: household registration book, marriage certificate, birth certificate, child adoption recognition decision issued by a competent state agency in accordance with law, or written confirmation on the relationship, made by a competent state agency.

12. For cars which have been registered and granted military registration number plates by the Ministry of National Defense and are now permitted to be repurposed as military vehicles for use in economic activities upon transformation of a state enterprise into a joint-stock company or application of other forms of reorganization of state enterprises in accordance with law:

a/ The Chief of General Staff’s decision on use of cars as military equipment (so as to identify that the property have been registered and granted military registration number plates by the Ministry of National Defense and not liable to, or exempt from, registration fee under regulations).

b/ A competent agency’s decision on transformation of the enterprise into a joint-stock company or reorganization of the state enterprise.

c/ A list of property being military vehicles for national defense purposes transferred to the joint-stock company or new enterprise under a competent agency’s decision on enterprise reorganization; or a table of results of inventory and revaluation of property of the enterprise under regulations.

13. For hi-speed passenger ships and boats and container ships and boats operating in inland waterways, the eligibility for registration fee exemption shall be determined based on their technical safety and environmental protection certificates granted by Vietnam registry offices, specifically as follows:

Technical safety and environmental protection certificates granted by Vietnam registry offices must be inscribed with:

a/ For “high-speed passenger ships ”:

a.1/ The phrase “passenger ship” in the section “utilities”; 

a.2/ The sign “VRH HSC” or “VRM HSC” in the section “certifies that the vehicle with technical specifications and environmental pollution prevention characteristics stated in this certificate has technical status satisfying the requirements of current norms and regulations and is classified as:” or a speed of at least 30 km/hour in the section “operational capacity”.

b/ For “container ships”, the phrase “container transportation”  in the section “utilities”.

Article 62. Procedures and dossiers for tax exemption or reduction under double taxation avoidance agreements (below referred to as tax agreements)

1. For a foreign contractor:

In addition to a tax declaration dossier, the foreign contractor shall make a dossier of request for tax exemption or reduction under a tax agreement.

a/ In case of applying the deduction method or declaration method:

a.1/ When temporarily calculating EIT, the taxpayer shall send a dossier of request for tax exemption or reduction under the tax agreement to the tax office at the time its/he/she makes temporary payment of monthly EIT. The dossier must comprise:

a.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

a.1.2/ The consularly legalized certificate of residence issued by the country of residence’s tax authority in the year preceding the year of announcement of eligibility for tax exemption or reduction under the tax agreement (or a certified copy thereof);

a.1.3/ The taxpayer’s self-certified copies of contracts signed with Vietnamese or overseas organizations or individuals;

a.1.4/ A power of attorney, in case the taxpayer authorizes its/his/her lawful representative to carry out procedures for application of the tax agreement.

a.2/ In case the taxpayer already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in the subsequent years, the taxpayer shall be required to send self-certified copies of contracts signed with Vietnamese or overseas organizations or individuals (if any).

a.3/ When making EIT finalization declaration, the taxpayer shall send a consularly legalized certificate of residence of that tax year and contractual parties’ confirmation of performance of contracts together with the EIT finalization declaration.

b/ In case of applying the direct method:

b.1/ For incomes from business activities and incomes of other types:

b.1.1/ Within 15 days before the time limit for making tax declaration expires, the foreign contractor or the Vietnam partner having signed the contract or paying incomes to the foreign contractor shall send to the Vietnamese partner-managing tax office a dossier of request for tax exemption or reduction under the tax agreement. Such dossier must comprise:

b.1.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

b.1.1.2/ The consularly legalized certificate of residence issued by the country of residence’s tax authority in the year preceding the year of announcement of the eligibility of tax exemption or reduction under the tax agreement (or a certified copy thereof);

b.1.1.3/ The taxpayer’s self-certified copies of the contracts signed with Vietnamese organizations or individuals;

b.1.1.4/ A power of attorney, in case the taxpayer authorizes its/his/her lawful representative to carry out procedures for application of the tax agreement.

b.1.2/ In case of carrying out securities trading without securities purchase and sale contracts, the taxpayer shall submit certificates of stock or bond depository accounts, certified by depository banks or securities companies, made according to Form No. 01/TNKDCK provided in Appendix I to this Circular.

b.1.3/ For incomes from capital transfer: The taxpayer shall also submit self-certified copies of capital transfer contracts; self-certified copies of investment certificates of Vietnamese companies to which foreign investor makes capital contribution.

b.1.4/ In case the taxpayer is a foreign governmental agency having income eligible for tax exemption under the tax agreement’s terms on loan interests: The taxpayer shall submit self-certified copies of its loan agreements signed with Vietnamese organizations or individuals.

b.1.5/ In case the taxpayer submitted a dossier of request for tax exemption or reduction under the tax agreement in a year, in subsequent years, it/he/she shall only be required to submit self-certified copies of new contracts signed with Vietnamese or overseas organizations or individuals (if any).

b.1.6/ Within 15 days before his/her working contract in Vietnam terminates or before a tax year ends (whichever comes first), the foreign contractor shall send the consularly legalized certificate of residence of that tax year (or a certified copy thereof)  to the Vietnamese partner that signs contracts with or pays incomes to the taxpayer. Within 3 working days after receiving the certificate, the Vietnamese partner shall submit it to the tax office.

b.1.7/ In case a certificate of residence remains unavailable at the above-mentioned time, the foreign contract shall make a commitment to send the consularly legalized certificate of residence (or a certified copy thereof) within the first quarter of the year following that tax year.

b.2/ For a foreign airline:

b.2.1/ Fifteen days before starting to conduct flight operations or before the first tax period of the year (whichever comes first), the foreign airline’s Vietnam-based office shall send to the relevant tax office a dossier of announcement of eligibility for tax exemption or reduction under a tax agreement. Such dossier must comprise:

b.2.1.1./ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

b.2.1.2/ The consularly legalized certificate of residence issued by the country of residence’s tax authority in the year preceding the year of announcement of eligibility of tax exemption or reduction under the tax agreement (or a certified copy thereof);

b.2.1.3/ The taxpayer’s self-certified copies of flight permits issued by the Civil Aviation Authority of Vietnam under the Law on Civil Aviation of Vietnam;

b.2.1.4/ A power of attorney, in case the taxpayer authorizes its lawful representative to carry out procedures for application of the tax agreement.

b.2.2/ In case the foreign airline already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in the subsequent years, it shall only be required to submit self-certified copies of new flight permits issued by the Civil Aviation Authority of Vietnam (if any).

b.2.3/ Fifteen days before its contract in Vietnam terminates or a tax year ends (whichever comes first), the foreign airline’s Vietnam-based office shall send to the tax office a consularly legalized certificate of residence of that tax year and a list of incomes from international transport made according to Form No. 01-1/HKNN, for cases of selling tickets in the Vietnamese market or a list of incomes from international transport made according to Form No. 01-2/HKNN, for cases of operating codeshare flights in international air transport, of the tax year for use as a basis for application of EIT exemption or reduction to the foreign airline’s international transport activities.

b.3/ For a foreign carrier:

b.3.1/ When making tax finalization, the foreign carrier or its agent shall send to the tax office a dossier of request for tax exemption or reduction under the tax agreement. Such dossier must comprise:

b.3.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

b.3.1.2/ The consularly legalized certificate of residence, granted by a tax authority of the foreign carrier’s country or territory of residence in the tax year preceding the year of requesting tax exemption or reduction under the tax agreement.

b.3.2/ The foreign carrier’s Vietnam-based agent or representative office shall keep dossiers and documents in accordance with the Accounting Law, the decree guiding the Accounting Law and the Maritime Code of Vietnam and produce them at the request of the tax office.

b.3.3/ In case the foreign carrier or its agent authorizes a lawful representative to carry out procedures for application of the tax agreement, the original power of attorney is required.

b.3.4/ At the year end, the foreign carrier or its agent shall send to the tax office the foreign carrier’s consularly legalized certificate of residence of that tax year.

b.3.5/ In case the foreign carrier or its agent already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in subsequent years, the foreign carrier or its agent shall be required to send a notice of any changes in the information previously declared in the Form No. 01/HTQT, and provide documents pertaining to such changes.

b.3.6/ In case the foreign carrier has agents in different localities in Vietnam or its agent has branches or representative offices (below collectively referred to as branches) in different localities in Vietnam, the foreign carrier or its agent shall submit the consularly legalized certificate of residence (or a certified copy thereof) to the Tax Department of the locality where the foreign carrier’s agent is headquartered; and send copies of the consularly legalized certificate of residence to Tax Departments of the localities where the foreign carrier’s branches are located and clearly inscribe the name of the Tax Department  to which the foreign carrier’s certificate of residence (or a certified copy thereof) in the written request for tax exemption or reduction under the tax agreement.

b.4/ For foreign reinsurance:

Foreign reinsurance providers shall themselves submit dossiers of request for application of tax agreements for each year for all reinsurance contracts they have signed or plan to sign in that year. Foreign reinsurance providers may authorize their Vietnam-based tax agents or representative offices or Vietnamese reinsurance companies to submit dossiers on their behalf. A foreign reinsurance provider shall submit to the tax office 2 sets of dossiers, including a tentative dossier and an official dossier, specifically as follows:

b.4.1/ Regarding the tentative dossier: Five days before concluding a contract or 5 days after performing a contract; or 5 days before making payment, whichever comes first, the concerned foreign reinsurance provider shall submit to the tax office a tentative dossier, enclosed with relevant documents. Foreign reinsurance providers having Vietnam-based representative offices shall submit dossiers to Tax Departments of the localities where their representative offices are based. For a foreign reinsurance provider that does not have Vietnam-based representative offices:

b.4.1.1/ If wishing to submit the dossier by itself, the foreign reinsurance provider shall submit it to the Tax Department of the locality where it plans to sign the its first contract with a Vietnamese reinsurance company;

b.4.1.2/ In case the foreign reinsurance provider authorizes its lawful representative in Vietnam (a tax agent, an audit firm or the Vietnamese reinsurance company with which the foreign reinsurance provider plans to sign its first contract, etc.) to submit the dossier, the latter shall submit the dossier to the Tax Department of the locality where it registers to make tax payment.

b.4.1.3/ A tentative dossier must comprise: a tentative request, made according to Form No. 01/TBH-TB provided in Appendix I to this Circular; the consularly legalized  certificate of residence granted by the country of residence’s tax authority (for the tax year preceding the year of submission of the tentative dossier) (or a certified copy thereof); a list of reinsurance contracts already signed or planned to be signed, made according to Form No. 01-1/TBH-TB provided in Appendix I to this Circular; a power of attorney, in case the taxpayer authorizes its lawful representative to carry out procedures for application of the tax agreement.

b.4.2/ Regarding the official dossier: In the first quarter of the subsequent year, the foreign reinsurance provider shall submit to the tax office the official dossier and relevant documents similar to the submission of tentative dossiers.

The official dossier must comprise: an official request, made according to Form No. 02/TBH-TB provided in Appendix I to this Circular; the consularly legalized certificate of residence issued by the country of residence’s tax authority for the tax year (or a certified thereof); the taxpayer’s self-certified copies of reinsurance contracts performed in the year (contracts included and not yet included in the plan submitted to the tax office) not yet submitted to the tax office; and the list of contracts classified by type, made according to Form No. 02-1/TBH-TB provided in Appendix I to this Circular. When submitting the official dossier, the taxpayer shall classify contracts by type and make a list of contracts of each type (with specific criteria) and for each type of contract, submit a self-certified copy of a contract for use a sample. The taxpayer shall take responsibility for the making of statistics on contracts; in case the taxpayer authorizes its lawful representative to carry out procedures for application of the tax agreement, a power of attorney is required.

c/ In case of applying the mixed method:

c.1/ At least 15 days before the time limit for tax declaration expires, a foreign contractor shall send a dossier of request for tax exemption or reduction under the tax agreement to the tax office of the place where it/he/she makes tax registration. Such dossier must comprise:

c.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

c.1.2/ The consularly legalized certificate of residence (or a certified copy thereof) granted by a tax authority of the taxpayer’s country of resident in the year preceding the year of requesting tax exemption or reduction under the tax agreement;

c.1.3/ The taxpayer’s self-certified copies of contracts signed with Vietnamese organizations or individuals;

c.1.4/ A power of attorney, in case the taxpayer authorizes its/his/her lawful representative to carry out procedures for application of the tax agreement.

c.2/ In case the foreign contractor already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in the subsequent years, it/he/she shall only be required to submit self-certified copies of economic contracts signed with Vietnamese or overseas organizations or individuals (if any).

c.3/ At least 15 days before its/his/her working contract in Vietnam terminates or before a tax year ends (whichever comes first), the foreign contractor shall send a consularly legalized certificate of residence of the tax year to the tax office of the place where it/he/she makes tax registration.

c.4/ In case the certificate of residence remains unavailable at the above-mentioned time, the foreign contractor shall make a commitment that it/he/she will send a consularly legalized certificate of residence within the first quarter of the year following the tax year.

2. For foreign individuals:

a/ For an individual being a foreign resident who earns income from salaries or wages, income from business activities, income from capital investment, income from copyright, income from real estate transfer, income from transfer of capital contributions or securities; income from independent practice, and other incomes subject to tax payment via Vietnamese partners having signed contracts or paying incomes

a.1/ At least 15 days before performing contracts with Vietnamese organizations or individuals, the foreign individual shall send to the Vietnamese partners having signed contracts or paying incomes a dossier of request for tax exemption or reduction under the tax agreement for the latter to submit it, together with the first-time tax declaration dossier, to the Vietnamese partners’ managing tax offices. The dossier must comprise:

a.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

a.1.2/ The consularly legalized certificate of residence (or a certified copy thereof), granted by a tax authority of the taxpayer’s country of residence in the year preceding the year of requesting tax exemption or reduction under the tax agreement.

a.1.3/ A copy of a labor contract signed with an overseas employer bearing the foreign individual’s signature as his/her commitment to bearing responsibility (if any);

a.1.4/ A copy of a labor contract signed with an employer in Vietnam (for income from salaries and wage and income from business activities) or copies of legal documents proving the sources of the incomes (for other incomes) bearing the foreign individual’s signature as his/her commitment to bearing responsibility;

a.1.5/ A copy of the taxpayer’s passport that has been used for carrying out procedures for entry into and exit from Vietnam, bearing the foreign individual’s signature as his/her commitment to bearing responsibility;

a.1.6/ A self-certified copy of the taxpayer’s business registration certificate or practice license and tax registration certificate, granted by the taxpayer’s country of residence, for individuals who earn incomes from independent practice (incomes of physicians, lawyers, engineers, architects, dentists, accountants);

a.1.7/ A self-certified copy of the taxpayer’s business registration certificate or practice license (for occupations requiring business registration or practice licenses under Vietnam’s law), for individuals who earn incomes from independent practice (incomes of physicians, lawyers, engineers, architects, dentists, accountants);

a.1.8/ Self-certified copies of the taxpayer’s contracts signed with organizations or individuals in Vietnam, specifically as follows:

a.1.8.1/ For real estate transfer: a copy of the real estate transfer contract.

a.1.8.2/ For capital transfer: a copy of the capital transfer contract and a self-certified copy of the investment certificate of the Vietnamese company to which the foreign investor contributes capital.

a.1.8.3/ For securities transfer: a copy of the securities purchase or sale contract. In case of securities trading without purchase or sale contracts, the taxpayer shall submit the certificate of his/her stock and bond depository account, certified by a depository bank or securities company, made according to Form No. 01/TNKDCK provided in Appendix I to this Circular.

a.1.9/ A power of attorney, in case the taxpayer authorizes his/her lawful representative to carry out procedures for application of the tax agreement.

a.2/ In case the taxpayer already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in the subsequent years, he/she shall only be required to submit copies of labor contracts signed with Vietnamese and overseas organizations or individuals (if any).

a.3/ At least 15 days before his/her working contract in Vietnam terminates or a tax year ends (whichever comes first), the taxpayer shall send the certificate of residence of that tax year and a copy of his/her passport to the Vietnamese partner having signed the contract or paying incomes. Within 3 working days after receiving the certificate of residence, the Vietnamese partner having signed the contract or paying incomes shall submit it to the tax office.

a.4/ In case the certificate of residence remains unavailable at the above-mentioned time, the foreign individual shall make a commitment to sending the certificate of residence within the first quarter  of the year following that tax year.

a.5/ In case the individual is a resident of a country or territory that has concluded a tax agreement with Vietnam but such agreement has no provisions on grant of certificates of residence, he/she shall provide a copy of his/her passport as replacement for the certificate of residence.

a.6/ In case it remains impossible to identify the country or territory of residence of the taxpayer at the prescribed time for submission of a copy of the passport, he/she shall make a commitment to sending the copy of his/her passport in the first quarter of the subsequent year.

b/ For a sport athlete or an artist being a foreign resident who earns incomes from cultural and physical training and sports performances in Vietnam

b.1/ At least 15 days before carrying out the contract (or the cultural and physical training and sports exchange program) signed with a Vietnamese organization or individual, the foreign individual shall send to the Vietnamese partner having signed the contract or paying incomes a dossier of request for tax exemption or reduction under the tax agreement for the latter to submit it, together with the first time tax declaration dossier, to the Vietnamese partner’s managing tax office. The dossier must comprise:

b.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

b.1.2/ The consularly legalized certificate of residence (or a certified copy thereof) granted by a tax authority of the taxpayer’s country of residence in the year preceding the year of requesting tax exemption or reduction under the tax agreement;

b.1.3/ The written certification by the agency representing Vietnam in the cultural exchange or physical training and sports program of the contents of this program, and incomes requested for tax exemption or reduction under the tax agreement;

b.1.4/ A power of attorney, in case the taxpayer authorizes his/her lawful representative to carry out procedures for application of the tax agreement.

b.2/ At least 15 days before his/her working contract in Vietnam (or the cultural exchange and physical training and sports program) terminates or the tax year ends (whichever comes first), the foreign individual shall send a certificate of residence of that tax year to the Vietnamese partner having signed the contract or paying incomes. Within 3 working days after receiving the certificate of residence, the Vietnamese partner shall submit it to the tax office.

b.3/ In case the certificate of residence remains unavailable at the above-mentioned time, the foreign individual shall make a commitment to sending the certificate of residence within the first quarter of the year following the tax year.

b.4/ In case the taxpayer has no labor contract signed with foreign employers or Vietnam-based employers, he/she may submit to the tax office an appointment letter or equivalent papers or papers of the same validity as labor contract.

b.5/ In case the taxpayer is a resident of a country or territory that has concluded a tax agreement with Vietnam but such agreement has no provisions on grant of certificates of residence, he/she shall provide a copy of his/her passport as replacement of the certificate of residence. The taxpayer shall make a commitment or bear responsibility for the non-existence of provisions on grant of certificate of residence stated at the written request for tax exemption or reduction under the tax agreement.

b.6/ In case it remains impossible to identify the taxpayer’s country or territory of residence at the prescribed time for submission of a copy of the passport, he/she shall make a  commitment to sending the copy of his/her passport in the first quarter of the subsequent year.

c/ For individuals being foreign residents who earn income from salaries or wages, income from business activities or income from inheritance or gifts, which incur in Vietnam and are paid by an overseas income payer (including also cases in which non-resident individuals who earn incomes in Vietnam but receive incomes from overseas)

c.1/ On the date of submission of the first-time tax declaration dossier, a foreign resident shall himself/herself or authorize another subject in Vietnam to submit a dossier of request for tax exemption or reduction under the tax agreement to the Tax Department managing the locality where he/she works or conducts business activities. Such dossier must comprise:

c.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

c.1.2/ The consularly legalized certificate of residence (or a certified copy thereof) granted by a tax authority of the taxpayer’s country of residence in the year preceding the year of requesting tax exemption or reduction under the tax agreement;

c.1.3/ A copy of the labor contract or copies of legal documents proving the sources of incomes or the right to receipt of the inheritance or gifts (for incomes from salaries, wages or incomes from inheritance or gifts) or copies of economic contracts signed with Vietnamese organizations or individuals (for incomes from business activities) bearing his/her signature as his/her commitment to bear responsibility;

c.1.4/ A copy of his/her passport that has been used for entry into and exit from Vietnam bearing his/her signature as his/her commitment to bear responsibility;

c.1.5/ A self-certified copy of the taxpayer’s business registration certificate or practice license and tax registration certificate, granted by the country of residence, for individuals earning incomes from independent practice (incomes of physicians, lawyers, engineers, architects, dentists, accountants);

c.1.6/ A power of attorney, in case the taxpayer authorizes his/her lawful representative to carry out procedures for application of the tax agreement.

c.2/ In case the foreign resident already submitted in a year a dossier of request for tax exemption or reduction under the tax agreement, in the subsequent years, he/she shall only be required to submit self-certified copies of labor contracts signed with new partners being Vietnamese or overseas organizations and individuals (if any).

c.3/ At least 15 days before his/her working contract in Vietnam terminates or a tax year ends (whichever comes first), the foreign resident shall himself/herself or authorize another subject in Vietnam to send a certificate of residence of that tax year and a copy of his/her passport to the tax office managing the locality where the he/she works or conducts business activities.

c.4/ In case the certificate of residence remains unavailable at the above-mentioned time, the foreign resident shall make a commitment to sending the certificate of residence  within the first quarter of the year following the tax year.

c.5/ In case the individual is a resident of a country or territory that has concluded a tax agreement with Vietnam and and such agreement no provisions on grant of a certificate of residence, he/she shall provide a copy of his/her passport as replacement for the certificate of residence.

c.6/ In case it remains impossible to identify the taxpayer’s country or territory of residence at the prescribed time for submission of a copy of the passport, he/she shall make a commitment to sending a copy of his/her passport in the first quarter of the subsequent year.

d/ For individuals being Vietnamese residents who are eligible for exemption from or reduction of income tax under terms on incomes from serving the Government, incomes of students and vocational education students and incomes of teachers, professors and researchers

d.1/ At least 15 days before performing his/her contract with a Vietnamese organization or individual, a foreign individual shall send a dossier of request for tax exemption or reduction under the tax agreement to the Vietnamese partner having signed the contract or paying incomes for the latter to submit it, together with the first-time tax declaration dossier, to the Vietnamese partner’s managing tax office. A dossier must comprise:

d.1.1/ A written request for tax exemption or reduction, made according to Form No. 01/HTQT provided in Appendix I to this Circular;

c.1.2/ The consularly legalized certificate of residence (or a certified copy thereof) granted by a tax office in the year preceding the year of announcement of eligibility for tax exemption or reduction under the tax agreement.

d.1.3/ A written certification of the agency representing Vietnam concerning activities generating the incomes requested for tax exemption under the tax agreement.

d.1.4/ A power of attorney, in case the taxpayer authorizes his/her lawful representative to carry out procedures for application of the tax agreement.

3. Deduction of tax amounts already paid abroad from payable tax amounts in Vietnam

In case an organization or individual being a Vietnamese resident has paid tax in a country entering into a tax agreement with Vietnam (below referred to as contracting country) and the paid tax amount is compliant with the law of that country and provisions of the tax agreement, it/he/she shall be entitled to deduction of the tax amount paid (or considered as having been paid) in that country from its/his/her payable tax amount in Vietnam. Procedures for deduction of the tax amount paid abroad from the payable tax amount in Vietnam are as follows:

a/ The taxpayer shall send a dossier of request for deduction of the tax amount paid (or considered as having been paid) abroad from the payable tax amount in Vietnam to the managing tax office. The dossier must comprise:

a.1/ A written request for deduction of the tax amount paid abroad from the payable tax amount in Vietnam under a tax agreement, made according to Form No. 02/HTQT provided in Appendix I to this Circular, which provides information on transactions related to the tax amount paid abroad requested for deduction from the payable tax amount in Vietnam under the tax agreement.

a.2/ Other documents depending on the form of request for tax deduction, specifically as follows:

a.2.1/ In case of direct deduction: The taxpayer has paid tax in the contracting country and is eligible for deduction of the tax amount paid abroad from the payable tax amount in Vietnam under the tax agreement.

a.2.1.1/ A self-certified copy of the taxpayer’s tax return made in the contracting country;

a.2.1.2/ Self-certified copies of the taxpayer’s tax payment documents in the contracting country;

a.2.1.3/ A written certification on the paid tax amount, made by a foreign tax authority;

a.2.2/ In case of deduction of the presumptive tax amount: The taxpayer has income and should have paid tax in the contracting country, but under the law of that country, is entitled to tax exemption or reduction as a special preferential treatment, will have the paid tax amount deducted from the payable tax amount in Vietnam in accordance with the tax agreement.

a.2.2.1/ A self-certified copy of the taxpayer’s tax return made in the contracting country;

a.2.2.2/ Self-certified copies of the taxpayer’s business registration certificate or legal documents certifying its/his/her business activities in the contracting country;

a.2.2.3/ A letter issued by the contracting country’s competent authority certifying the tax amount already exempted or reduced and confirming that the taxpayer’s request for deduction of the presumptive tax amount is compliant with the tax agreement and the law of the contracting country.

a.2.3/ In case of indirect deduction: The taxpayer has paid EIT for income before such income is distributed to it/him/her in the contracting country and is entitled to deduction of the paid tax amount from the payable tax amount in Vietnam under the tax agreement.

a.2.3.1/ Legal documents proving the relationship and capital contribution ratio of the subject requesting deduction;

a.2.3.2/ A copy of the income tax declaration of the company sharing dividends to the capital contributor, certified by the taxpayer;

a.2.3.3/ A copy of the declaration of tax deducted at source for dividends, certified by the taxpayer;

a.2.3.4/ A written certification issued by the contracting country’s foreign tax authority of the paid tax amount for dividends and the EIT  amount paid before distributing dividends.

a.3/ A power of attorney in case the taxpayer authorizes its/his/her lawful representative to carry out procedures for application of the tax agreement.

b/ The tax office shall base on the dossier to consider and settle the request for deduction of the tax amount paid abroad from the payable tax amount in Vietnam in accordance with the tax agreement and this Circular within 10 working days after receiving a complete dossier specified at Point a of this Clause. The time limit of 10 working days does not include the time for making supplements to and giving explanations about the dossier.

4. Request for application of bilateral agreement procedures under double taxation avoidance agreements

a/ Taxpayers being Vietnam’s residents may request the application of bilateral agreement procedures with Vietnamese tax offices when realizing that the settlement of tax procedures by foreign tax authorities has made or will make them pay tax in contravention with provisions of tax agreements. Taxpayers being foreign residents shall request the application of bilateral agreement procedures with tax authorities of the countries of which they are residents.

b/ Such guidance does not cover bilateral agreement procedures for advance pricing agreements (APAs).

c/ Taxpayers shall request the application of bilateral agreement procedures within the time limit specified in the Article on Bilateral Agreement Procedures of each tax agreement.

d/ Taxpayers shall send dossiers of request for application of bilateral agreement procedures to the General Department of Taxation. A dossier must comprise:

d.1/ A written request for application of bilateral agreement procedures, made according to Form No. 01/DTA-MAP provided in Appendix I to this Circular;

d.2/ The financial statement and tax returns relating to the request for application of bilateral agreement procedures;

d.3/ Documents relating to foreign tax authorities’ notification of determination of tax obligations;

d.4/ A dossier for determination of prices of related-party transactions of the taxpayer in tax period in which the application of bilateral agreement procedures is requested (for bilateral agreement procedures for determination of transfer prices);

d.5/ Information, documents, contracts, detailed descriptions of actual transactions and activities related to determination of tax obligations, grounds of arguments of the person requesting the application of bilateral agreement procedures on provisions of the tax agreement that have been applied by the foreign tax authority in contravention of the tax agreement, and the requester’s analysis related to the determination of tax obligations;

d.6/ Documents proving tax payment, in case the requester has paid tax amounts related to the request for application of bilateral agreement procedures;

d.7/ A copy of the written request for application of bilateral agreement procedures and enclosed documents, in case the requester has submitted or will submit a request for application of bilateral agreement procedures to the foreign tax authority;

d.8/ A copy of the written request for the complaint and enclosed documents, in case the requester has submitted or will submit a complaint under another complaint settlement mechanism in Vietnam or abroad and results of complaint settlement (if any).

dd/ The General Department of Taxation shall receive requests for application of bilateral agreement procedures from taxpayers being Vietnam’s residents and carry out bilateral agreement procedures with foreign tax authorities under provisions of tax agreements.

Article 63. Procedures and dossiers for tax exemption or reduction under treaties other than double taxation avoidance agreements

1. In case a foreign organization or individual registers to declare and directly pay tax with a tax office:

a/ Within 3 working days from the date of signing a contract with a Vietnamese partner, the foreign organization or individual shall send a dossier of request for tax exemption or reduction to the tax office where it/he/she makes tax registration. The dossier must comprise:

a.1/ A written request, made according to Form No. 01/DUQT provided in Appendix I to this Circular, certified by the agency proposing the conclusion of the treaty;

a.2/ A copy of the treaty;

a.3/ A copy of the contract concluded with the Vietnamese partner, certified by the foreign organization or individual or its/his/her authorized representative;

a.4/ A contract summary certified by the foreign organization or individual or its/his/her authorized representative with the following details: title of the contract and titles of contract terms, scope of contractual jobs, and tax obligations under the contract;

a.5/ A power of attorney, in case the foreign organization or individual authorizes a Vietnamese organization or individual to carry out procedures for requesting tax exemption or reduction. The power of attorney must be signed by representatives of both parties.

b/ In case the foreign organization or individual cannot provide the contract signed with the Vietnamese partner due to particular characteristics of the transaction, the foreign organization or individual shall submit documents of equivalent value and make detailed explanations in the written request, made according to Form No. 01/DUQT provided in Appendix I to this Circular, for the tax office to consider and decide.

2. In case a foreign organization or individual does not register to declare and directly pay tax with a tax office:

a/ The foreign organization or individual shall:

a.1/ On the date of signing a contract with a Vietnamese partner, send to the Vietnamese partner a dossier of request for tax exemption or reduction, comprising:

a.1.1/ A written request, made according to Form No. 01/DUQT provided in Appendix I to this Circular, certified by the agency proposing the conclusion of the treaty;

a.1.2/ A copy of the treaty;

a.1.3/ A copy of the contract signed with the Vietnamese partner, certified by the foreign organization or individual or its/his/her authorized representative;

a.1.4/ A contract summary certified by the foreign organization or individual or its/his/her authorized representative with the following details: title of the contract and titles of contract terms, scope of contractual jobs, and tax obligations under the contract;

a.1.5/ A power of attorney in case the foreign organization or individual authorizes a Vietnamese organization or individual to carry out procedures of request for tax exemption or reduction. The power of attorney must be signed by representatives of both parties.

a.2/ In case the foreign organization or individual cannot provide the contract signed with the Vietnamese partner due to particular characteristics of the transaction, the foreign organization or individual shall submit documents of equivalent value and make detailed explanations in the written request, made according to Form No. 01/DUQT provided in Appendix I to this Circular, for the tax office to consider and decide.

b/ The Vietnamese partner shall:

Within 3 working days after receiving a dossier of request for tax exemption or reduction from the foreign organization or individual, send the taxpayer’s dossier of request for tax exemption or reduction to the tax office where the Vietnamese partner makes tax registration.

Article 64. Time limit for, and notification of results of processing, tax exemption or reduction dossiers

1. Time limit for processing tax exemption or reduction dossiers

Within 30 days after receiving a complete dossier, the tax office receiving the dossier shall issue a decision on tax exemption or reduction; or notify in writing the taxpayer of reasons for ineligibility for tax exemption or reduction; and notify the taxpayer whether or not it/he/she is eligible for tax exemption or reduction under the concerned tax agreement or another treaty.

When necessary to conduct a physical inspection so as to obtain sufficient grounds for processing a tax exemption or reduction dossier, within 40 days after receiving a complete dossier, the tax office shall issue a decision on tax exemption or reduction; or notify in writing the taxpayer of reasons for ineligibility for tax exemption or reduction; notify the taxpayer whether or not it/he/she is eligible for tax exemption or reduction under the tax agreement or another treaty.

Particularly in case the tax office receives the tax exemption or reduction dossier together with the tax declaration dossier under the inter-agency single-window mechanism, within 5 working days after receiving the complete and valid tax exemption or reduction dossier from the dossier-receiving agency under the inter-agency single-window mechanism, the tax office shall determine the exemptible or reducible tax amount or notify in writing the taxpayer of reasons for ineligibility for tax exemption or reduction.

2. Notification of results of processing the tax exemption or reduction dossier

a/ In case the tax office directly receives the taxpayer’s tax exemption or reduction dossier:

a.1/ To issue a decision on tax exemption or reduction, made according to Form No. 03/MGTH provided in Appendix I to this Circular, for taxpayers eligible for tax exemption or reduction (except the case specified at Point a.3, Clause 2 of this Article);

a.2/ To issue a notice of ineligibility for tax exemption or reduction, made according to Form No. 04/MGTH provided in Appendix I to this Circular, clearly stating the reasons for ineligibility for tax exemption or reduction (except the case specified at Point a.3 Clause 2 of this Article);

a.3/ To issue a notice, made according to Form No. 03-1/MGTH provided in Appendix I to this Circular, to inform the taxpayer of whether or not it/he/she is eligible for tax exemption or reduction under the tax agreement or another treaty;

In the course of processing the tax exemption or reduction dossier, if detecting that the dossier lacks information and needs explanation or supplementation, the tax office shall send a notice to request the taxpayer to give explanation and supplementation of information (made according to Form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/ND-CP).

b/ In case the tax office receives the tax exemption or reduction dossier together with the tax declaration dossier under the inter-agency single-window mechanism

b.1/ The tax office shall determine the exemptible or reducible tax amount and inscribe such amount in a tax payment notice provided in Appendix II to Decree No. 126/2020/ND-CP, for taxpayers eligible for tax exemption or reduction.

b.2/ The tax office shall issue a notice of ineligibility for tax exemption or reduction, made according to Form No. 04/MGTH provided in Appendix I to this Circular, clearly stating the reason for ineligibility for tax exemption or reduction. In the course of processing the tax exemption or reduction dossier, if the dossier lacks information and needs to be explained or supplemented, the tax office shall send a request for explanation and supplementation of information, made according to Form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/ND-CP, to the agency receiving the dossier under the inter-agency single-window mechanism for the latter to request the taxpayer to explain and supplement information.

c/ In case of tax exemption specified at Point a, Clause 2, Article 79 of the Law on Tax Administration: The tax office shall issue a decision on the list of households and individuals eligible for tax exemption, made according to Form No. 05/MGTH provided in Appendix I to this Circular.

Article 65. Dossiers of request for write-off of tax arrears, late-payment interests and fines

1. Procedures for processing of dossiers of request for write-off of tax arrears, late-payment interests or fines

a/ Based on competence to write off tax arrears, late-payment interests and fines and cases of eligibility for write-off of tax arrears, late-payment interests or fines specified in Clause 1, Article 87 of the Law on Tax Administration, the tax office directly managing a taxpayer shall make a dossier of request for write-off of tax arrears, late-payment interests or fines, and send it to its superior office in the following order:

a.1/ In case the dossier is made and submitted by a Tax Branch, the concerned Tax Department shall appraise the dossier:

a.1.1/ In case the taxpayer is ineligible for write-off of tax arrears, late-payment interests and fines, the Tax Department shall notify thereof to the Tax Branch; such notice shall be made according to Form No. 02/XOANO provided in Appendix I to this Circular;

a.1.2/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines but the dossier is incomplete, the Tax Department shall notify thereof to the Tax Branch and request the latter to supplement the dossier; such a notice shall be made according to Form No. 03/XOANO provided in Appendix I to this Circular;

a.1.3/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines and the dossier is complete, the Tax Department shall make and send a written request and a draft decision on write-off of tax arrears, late-payment interests or fines, made according to Form No. 04/XOANO provided in Appendix I to this Circular, together with the dossier to the provincial-level People’s Committee for consideration and decision.

a.2/ In case the dossier is made by a Tax Department:

In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines and the dossier is complete, the Tax Department shall make and send a written request, a draft decision on write-off of tax arrears, late-payment interests or fines, made according to Form No. 04/XOANO provided in Appendix I to this Circular, together with the dossier to the provincial-level People’s Committee for consideration and decision.

b/ Based on competence to write off tax arrears, late-payment interests and fines and cases of eligibility for write-off of tax arrears, late-payment interests and fines specified in Clauses 2, 3 and 4, Article 87 of the Law on Tax Administration, the tax managing office shall make and send a dossier of request for write-off of tax arrears, late-payment interests and fines to its superior office according to the following order:

b.1/ For a dossier of request for write-off of a tax arrears, late-payment interest or fine amount of between VND 5 billion and under VND 10 billion:

b.1.1/ The Tax Branch shall make and send a dossier to the concerned Tax Department for appraisal under Point a.1 of this Clause. If the taxpayer is ineligible for write-off of tax arrears, late-payment interests and fines, the Tax Department shall notify the Tax Branch thereof; such notice shall be made according to Form No. 02/XOANO provided in Appendix I to this Circular. If the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines, the Tax Department shall make a request and send it, together with the dossier, to the General Department of Taxation.

b.1.2/ Tax Departments shall make dossiers for taxpayers under their direct management and send them to the General Department of Taxation for consideration and decision.

b.1.3/ The General Department of Taxation shall appraise a dossier as follows:

b.1.3.1/ In case the taxpayer is ineligible for write-off of tax arrears, late-payment interests and fines, the General Department of Taxation shall notify thereof to the Tax Department; such notice shall be made according to Form No. 02/XOANO provided in Appendix I to this Circular;

b.1.3.2/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines but the dossier is incomplete, the General Department of Taxation shall notify thereof to the Tax Department to request the latter to supplement dossier; such notice shall made according to Form No. 03/XOANO provided in Appendix I to this Circular;

b.1.3.3/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines and the dossier is complete, the General Department of Taxation shall issue a decision on write-off of tax arrears, late-payment interests or fines, made according to Form No. 05/XOANO provided in Appendix I to this Circular.

b.2/ For a dossier of request for write-off of a tax arrears, late-payment interest or fine amount of between VND 10 billion and under VND 15 billion:

b.2.1/ The Tax Branch and Tax Department shall make and send a dossier as specified at Point b.1 of this Clause;

b.2.2/ The General Department of Taxation shall appraise the dossier as follows:

b.2.2.1/ In case the taxpayer is ineligible for write-off of tax arrears, late-payment interests and fines or the dossier needs to be supplemented, the General Department of Taxation shall notify thereof to the Tax Department; such notice shall be made according to Point b.1 of this Clause;

b.2.2.2/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines and the dossier is complete, the General Department of Taxation shall make a draft decision on write-off of tax arrears, late-payment interests or fines according to Form No. 06/XOANO and submit it to the Ministry of Finance for consideration and decision.

b.3/ For a dossier of request for write-off of a tax arrears, late payment interest or fine amount of VND 15 billion and more:

b.3.1/ The Tax Branch, Tax Department and General Department of Taxation shall make and appraise the dossier under Point b.1 of this Clause;

b.3.2/ In case the taxpayer is eligible for write-off of tax arrears, late-payment interests and fines and the dossier is complete, the General Department of Taxation shall make a draft decision on write-off of tax arrears, late-payment interests and fines according to Form No. 07/XOANO provided in Appendix I to this Circular and submit it to the Ministry of Finance for subsequent submission to the Prime Minister for consideration and decision.

2. Dossiers of request for write-off of tax arrears, late-payment interests and fines

a/ In case an enterprise or a cooperative is declared bankrupt as specified in Clause 1, Article 85 of the Law on Tax Administration, a dossier must comprise:

a.1/ A written request, made according to Form No. 01/XOANO provided in Appendix I to this Circular;

a.2/ The bankruptcy declaration decision of the enterprise or cooperative (the original or a copy certified by the tax office);

a.3/ Documents on division of property, made by enforcement officers and showing recoverable or unrecoverable tax arrears amounts (the originals or a copies certified by the tax office);

a.4/ A decision on suspension of enforcement of bankruptcy declaration decision issued by a civil judgment enforcement agency (the original or a copy certified by the tax office);

a.5/ A notice of tax arrears at the time of request for write-off of tax arrears (the original or a copy certified by the tax office).

b/ For an individual who is dead or declared by court as dead, missing or having lost his/her civil act capacity as specified in Clause 2, Article 85 of the Law on Tax Administration, a dossier must comprise:

b.1/ For an individual who is dead or declared by court as dead:

b.1.1/ A written request made according to Form No. 01/XOANO provided in Appendix I to this Circular;

b.1.2/ A death certificate or death notice or a court ruling declaring a person as dead or a substitute of the death notice in accordance with the law on civil status registration and management (the original or a copy certified by the tax office);

b.1.3/ A written document containing the certification of the commune-level People’s Committee of the locality which is the last place of residence of the dead person that such person does not have any property, even inherited property (the original or a copy certified by the tax office);

b.1.4/ A notice of tax arrears at the time of request for write-off of tax arrears (the original or a copy certified by the tax office).

b.2/ For individuals who are considered by law to have lost their civil act capacity:

b.2.1/ A written request, made according to Form No. 01/XOANO provided in Appendix I to this Circular;

b.2.2/ A court ruling declaring the taxpayer’s loss of his/her civil act capacity (the original or a copy certified by the tax office);

b.2.3/ A document made by the guardian and certified by the commune-level People’s Committee of the locality where the individual resides, stating that the individual has no assets, even inherited assets (the original or a copy certified by the tax office);

b.2.4/ A notice of tax arrears at the time of request for write-off of tax arrears (the original or a copy certified by the tax office).

c/ For tax arrears, late-payment interest or fine amounts that remain irretrievable though more than 10 years have passed from the payment deadline as specified in Clause 3, Article 85 of the Law on Tax Administration, a dossier must comprise:

c.1/ A written request, made according to Form No. 01/XOANO provided in Appendix I to this Circular;

For write-off of tax arrears for individuals, business individuals, heads of households, heads of business households, owners of sole proprietorships or owners of single-member limited liability companies, the request must also contain the full name, number of citizen identity card or people’s identity card or passport or another lawful personal identification of such persons.

c.2/ A written request, issued by the managing tax office to request a business registration agency or a competent state agency to revoke the enterprise registration certificate or business registration certificate or cooperative registration certificate or investment registration certificate or establishment and operation license or practice license (the original or a copy certified by the tax office);

c.3/ The decision on revocation of the enterprise registration certificate or business registration certificate or cooperative registration certificate or investment registration certificate or establishment and operation license or practice license (the original or a copy certified by the tax office);

c.4/ A notice of tax arrears at the time of request for write-off of tax arrears (the original or a copy certified by the tax office);

c.5/ Decisions on enforcement of tax administration-related administrative decisions or documents proving the application of enforcement measures against the taxpayer (the originals or copies certified by the tax office);

c.6/ A document certified by the commune-level People’s Committee that the taxpayer has no assets and no longer conducts production and business activities in the locality (the original or a copy certified by the tax office).

Article 66. Installment payment of tax arrears

1. Procedures for processing dossiers of request for installment payment of tax arrears

a/ A taxpayer shall make a dossier of request for installment payment of tax arrears specified in Clause 2 of this Article and send it to the managing tax office.

b/ In case the dossier of request for installment payment of tax arrears is not complete as required, within 3 working days after receiving it, the tax office shall issue a notice, made according to Form No. 01/TB-BSTT-NNT to Decree No. 126/2020/ND-CP, to request the taxpayer to give explanation or supplement the dossier.

In case the dossier of request for installment payment of tax arrears is complete, within 10 working days after receiving it, the tax office shall issue:

b.1/ A notice of disapproval of installment payment of tax arrears, made according to Form No. 03/NDAN provided in Appendix I to this Circular, if detecting that the letter of guarantee shows signs of unlawfulness and, at the same time, the tax office shall issue a request for verification of the letter of guarantee, made according to Form No. 05/NDAN provided in Appendix I to this Circular, and send it to the guarantor for verification. The guarantor shall send verification results to the tax office within the time limit specified by law;

b.2/ A decision on approval of installment payment of tax arrears, made according to Form No. 04/NDAN provided in Appendix I of this Circular, for taxpayers eligible for installment payment of tax arrears.

2. A dossier of request for installment payment of tax arrears

a/ A written request, made according to Form No. 01/NDAN provided in Appendix I to this Circular;

b/ The letter of guarantee, made according to the regulations on guarantee, which must contain a commitment that the guarantor shall pay tax arrears on behalf of the taxpayer in case the latter fails to comply with the deadline for installment payment of tax arrears;

c/ The decision on enforcement of the tax administration-related administrative decision (if any).

3. Number of installments and amounts of tax arrears eligible for installment payment

a/ The tax arrears amount eligible for installment payment is the tax arrears amount counted to the time the taxpayer requests installment payment but not exceeding the tax arrears amount guaranteed by a credit institution.

b/ The taxpayer may make installment payment of tax arrears for no more than 12 months and within the effective period of the letter of guarantee.

c/ The taxpayer may make installment payment of tax arrears in each month, provided that the tax arrears amount to be paid in each installment is not smaller than the average tax arrears amount eligible for monthly installment payment. The taxpayer shall determine by itself/himself/herself the arising late-payment interest amount to pay it together with the tax arrears amount eligible for installment payment.

4. Deadline for installment payment of tax arrears

The deadline for installment payment of tax arrears is the last day of a month. Past the deadline for installment payment of the tax arrears amount committed to be paid on a monthly basis, if the taxpayer fails to pay such amount or pays an insufficient amount or if the guarantor fails to perform the obligation of payment on behalf of the taxpayer, within 5 working days after the deadline for installment payment of tax arrears as committed, the tax office shall make a request for performance of guarantee obligation according to Form No. 02/NDAN provided in Appendix I to this Circular and send it to the guarantor to request the latter to perform the guarantee obligation in accordance with law, and concurrently to the taxpayer.

Chapter VII

TAXPAYER INFORMATION

Article 67. Development of information technology infrastructure and software systems serving taxpayer information collection and processing and management of taxpayer information systems

1. Taxpayer information systems shall be developed and managed uniformly from the central to local levels to promptly serve tax administration and other management jobs of the State; meet socio-economic development requirements; ensure the safety, confidentiality and national security; and comply with standards and technical regulations on information technology.

2. Technical infrastructure facilities of taxpayer information systems include server equipment, workstations, data storage and backup devices, transmission lines, network devices, information security devices (or software), data synchronization equipment, peripheral and auxiliary equipment, intranet and wide area networks, and technical infrastructure management services.

3. The software system for collection, processing and management of taxpayer information includes the operating system, database management system, open source software, commercial software, and internal software.

Article 68. Taxpayer information collection and processing and management of taxpayer information systems

1. Collection of taxpayer information

Taxpayer information shall be collected and updated in a timely manner, ensuring the accuracy, truthfulness and objectivity, from taxpayers and related organizations and individuals within the ambit of their responsibilities for providing taxpayer information as specified in Articles 97 and 98 of the Law on Tax Administration, Articles 26, 27 and 28 of Decree No. 126 2020/ND-CP, and other relevant regulations.

2. Processing of taxpayer information

Tax offices shall process taxpayer information and data and store such information and data in the database in accordance with law. Information and data processing covers:

a/ Examination and evaluation of the compliance with regulations and processes in the collection of information and data;

b/ Examination and evaluation of legal grounds and reliability of information and data;

c/ Summarization, arrangement, classification and processing of information and data in accordance with law;

d/ For information and data updated from databases of related organizations and individuals, the information providers shall ensure the accuracy of information and data.

3. Management of taxpayer information systems

Tax offices shall manage taxpayer information systems under the following regulations:

a/ To manage, exploit and share taxpayer information in the electronic environment for proper purposes and in accordance with law;

b/ To connect and exchange taxpayer information with information systems and databases of related ministries, sectors, localities and organizations in accordance with law;

c/ To guide, inspect and supervise the updating, processing and exploitation of taxpayer information systems;

d/ To formulate and promulgate regulations on details of taxpayer data, and methods of data transmission with tax offices to develop uniform information technology systems;

dd/ To develop and issue professional processes for use as a basis for uniformly updating, processing, exploiting and using taxpayer information systems;

e/ To grant permissions for access to and use of taxpayer information systems; to manage the connection, sharing and provision of data with databases of ministries, sectors and central and local agencies.

Article 69. Provision of information, handling of errors, tracing, and modification of information

1. Provision of information for taxpayers

Managing tax offices shall notify the handling of tax obligations of taxpayers nationwide via taxpayers’ e-tax transaction accounts on the Portal of the General Department of Taxation, including the following information: handling of amounts payable, already paid, still to be paid, overpaid, eligible for exemption or reduction, write-off or refund, already refunded, or still to be refunded that arise in the previous month and amounts still to be paid, overpaid, or to be refunded and already included in the tax management application system.

2. Cases of detection of errors, tracing and modification of information on collection and payment of state budget revenues (below collectively referred to as tracing)

a/ Taxpayers detect that information periodically provided by tax offices to the tax sector’s tax management application system as specified in Clause 1 of this Article is different from taxpayer information.

b/ Taxpayers detect that information declared on documents on payment into the state budget is incorrect. Taxpayers may only request modification of documents on payment into the state budget in the following cases:

b.1/ In case documents on payment into the state budget are of the current year but the taxpayer requests modification in the subsequent year, the modification may only be made in the period of adjusting the finalization of budget funds.

b.2/ The taxpayer may not request modification of information on the total amounts and types of currency written in documents on payment into the state budget.

b.3/ The taxpayer does not fall in the case of sending a written request for clearing of the overpaid amount or a written request for tax refund as specified in Article 25 or 42 of this Circular.

c/ Tax offices and state agencies competent to issue tax notices and decisions detect errors, thus requiring modification of information on amounts already accounted as state budget revenues.

d/ State Treasury offices detect errors, requiring modification of information on amounts already accounted as state budget revenues, or carry out tracing for amounts already accounted into tax offices’ accounts pending the handling of revenues.

dd/ Commercial banks where State Treasury offices open accounts or commercial banks where taxpayers open accounts (in case of making payment into the state budget via the interbank system directly to the State Treasury offices) detect errors, requiring modification of information related to taxpayers’ documents on payment into the state budget that have been transmitted to the State Treasury offices.

e/ Commercial banks or intermediary payment service providers where taxpayers make payment into the state budget detect errors, requiring modification of information related to taxpayers’ documents on payment into the state budget that have been transmitted to commercial banks where State Treasury offices open accounts.

g/ Tax offices and competent state agencies detect errors, requiring modification of information already exchanged and provided between agencies.

3. A dossier of request for tracing must comprise:

a/ A written request for tracing, made according to Form No. 01/TS provided in Appendix I to this Circular.

b/ Supporting documents (if any): a copy of the taxpayer’s document on payment into the state budget or copies of relevant decisions, notices and documents.

4. Procedures for processing dossiers of request for tracing

a/ Processing of dossiers of request for tracing at tax offices

a.1/ In case a taxpayer detects errors in information specified at Point a, Clause 2 of this Article

a.1.1/ It/he/she shall submit a dossier of request for tracing to a tax office under Clause 5 of this Article.

a.1.2/ Within 3 working days after receiving a complete dossier of request for tracing from the taxpayer, the tax office shall collate the information requested for tracing with data on the tax administration application system.

In case the information on the taxpayer’s fulfillment of its/his/her tax liabilities on the tax administration application system contains errors compared with the bases for monitoring the taxpayer’s tax liabilities (the taxpayer’s tax declaration dossier accepted by a tax office, state budget remittance documents, notices, decisions or other documents of tax offices and competent state agencies), the tax office shall modify the information on the system in accordance with the bases for monitoring the taxpayer’s tax liabilities, and send to the taxpayer a notice of results of processing of the dossier of request for tracing, made according to Form No. 01/TB-TS provided in Appendix I to this Circular.

Particularly for information on accounting of state budget revenues containing errors compared with state budget remittance documents, within 1 working day after receiving a complete dossier of request for tracing from the taxpayer, the tax office shall make a written request for adjustment of state budget revenues (according to Form No. C1-07a/NS or  No. C1-07b/NS provided together with the Ministry of Finance’s Circular guiding state budget accounting regime and the State Treasury’s professional operations) and send it to the State Treasury office to request the adjustment. Based on the adjusted documents sent by the State Treasury office through the Portal of the General Department of Taxation, the tax office shall carry out the accounting in accordance with the adjusted information sent by the State Treasury office, and adjust the late-payment interests on the adjusted amounts (if any). The tax office shall concurrently send a notice of results of processing of the dossier of request for tracing, made according to Form No. 01/TB-TS provided in Appendix I to this Circular, to the taxpayer.

In case the information on the taxpayer’s fulfillment of its/his/her tax liabilities is accurate compared with the bases for monitoring the taxpayer’s tax liabilities (the taxpayer’s tax declaration dossier accepted by a tax office, state budget remittance documents, notices, decisions or other documents of tax offices and competent state agencies), the tax office shall send a written notice of refusal to make modification, made according to Form No. 01/TB-TS provided in Appendix I to this Circular, stating reasons for refusal to make modification, or in case the information is insufficient, the tax office shall send a written request, made according to Form No. 01/TB-BSTT-NNT provided together with Decree No. 126/2020/ND-CP, to the taxpayer for information and document explanation or addition. The period of information and document explanation or addition shall not be included in the time limit for dossier processing. After receiving the explanation or additional information from the taxpayer, in case the information on accounting of state budget revenues contains errors, the tax office shall modify information for the taxpayer.

a.2/ In case a taxpayer detects errors in information specified at Point b, Clause 2 of this Article

Within 5 working days after receiving a complete dossier of request for tracing from the taxpayer, the tax office shall review documents recorded in the tax administration application system and information requested for modification:

a.2.1/ In case the request for modification of documents of the taxpayer satisfies the conditions for modification of information specified at Point b, Clause 2 of this Article, within 2 working days after receiving a complete dossier of request for tracing from the taxpayer, the tax office shall make a written request for adjustment of state budget revenues (according to Form No. C1-07a/NS or No. C1-07b/NS provided together the Ministry of Finance’ Circular guiding state budget accounting regime and the State Treasury’s professional operations) and send it to the State Treasury office to request the adjustment. Based on the adjusted document information sent by the State Treasury office via the Portal of the General Department of Taxation, the tax office shall carry out the accounting in accordance with the adjusted information of the State Treasury office and adjust late-payment interests on the adjusted amounts (if any). The tax office shall send a notice of results of processing of the dossier of request for tracing, made according to Form No. 01/TB-TS provided in Appendix I to this Circular, to the taxpayer.

a.2.2/ In case the request for modification of documents of the taxpayer is disqualified, the tax office shall send a written notice of refusal to make modification, made according to Form No. 01/TB-TS provided in Appendix I to this Circular, stating reasons for refusal to make modification, or in case there are not enough grounds for modification of information, the tax office shall send a written request for information and document explanation or addition, made according to Form No. 01/TB-BSTT-NNT provided in Decree No. 126/2020/ND-CP, to the taxpayer. The period of information and document explanation or addition shall not be included in the time limit for dossier processing. After receiving the explanation or additional information from the taxpayer, in case the conditions for information modification specified at Point b, Clause 2 of this Article are satisfied, the tax office shall modify information for the taxpayer.

a.3/ In case of detecting errors specified at Point c, Clause 2 of this Article, the tax office shall make a written request for adjustment of state budget revenues (according to Form No. C1-07a/NS or No. C1-07b/NS provided together with the Ministry of Finance’s Circular guiding state budget accounting regime and the State Treasury’s professional operations) and send it to the State Treasury office for adjustment.

b/ Processing of dossiers of request for tracing at a State Treasury office

b.1/ In case a State Treasury office makes adjustment at the request of a tax office under Point a of this Clause: Within 2 working days after receiving the request for adjustment from the tax office, the State Treasury office shall review information on accounting of state budget revenues, modify such information as requested, and transmit the adjusted document to the tax office under regulations.

b.2/ In case a State Treasury office detects errors or needs to add information on accounting of state budget revenues under Point d, Clause 2 of this Article:

b.2.1/ It shall modify information and transmit the adjusted document to the tax office under regulations for adjustment of information on state budget revenues.

b.2.2/ It shall make a tracing letter for amounts that have been accounted into the account for settlement of revenues of the tax office and send it to the tax office for addition of information on accounting of state budget revenues.

b.3/ In case a State Treasury office receives a request for tracing from a bank where it opens its account or a bank where a taxpayer remits state budget revenues (in case of remitting state budget revenues via the interbank network to State Treasury offices) or a taxpayer (in case of remitting at State Treasury offices) for errors in the taxpayer’s state budget remittance documents transmitted by the taxpayer to the State Treasury office specified at Point dd, Clause 2 of this Article:

The State Treasury office shall modify information on the state budget remittance document containing errors under regulations. In case the information on state budget revenues has been transmitted to the tax office, the State Treasury office shall transmit the modified information to the tax office and notify such to the bank where the State Treasury office opens its account. Any excessive or deficient amount compared to the state budget remittance document of the taxpayer shall be handled under regulations on handling of errors in payment by banks or State Treasury offices.

c/ Processing of dossiers of request for tracing at a commercial bank where a State Treasury office opens its account:

Upon receiving an electronic request for tracing from a commercial bank or an intermediary payment service provider where a taxpayer remits state budget revenues specified at Point e, Clause 2 of this Article, the bank where the State Treasury office opens its account shall trace, and:

c.1/ Correct errors under regulations on handling of errors in payment, for state budget remittance documents that have not been transmitted to the State Treasury office.

c.2/ Send a request for tracing to the State Treasury office for correction of errors related to accounting of state budget revenues, for state budget remittance documents transmitted to the State Treasury office.

d/ Correction of errors at commercial banks or intermediary payment service providers where taxpayers remit state budget revenues:

When detecting an error, a commercial bank or an intermediary payment service provider where a taxpayer remits state budget revenues shall:

d.1/ Trace and correct the error under regulations on handling of errors in payment in case the money amount has not been transferred and information on budget remittance has not been transmitted to the bank where the State Treasury office opens its account or the State Treasury office (in case of remitting state budget revenues via the interbank network to State Treasury offices).

d.2/ Send an electronic request for tracing to the commercial bank where the State Treasury office opens its account or the State Treasury (in case of remitting state budget revenues via the interbank network to State Treasury offices) in case the money amount has been transferred and information on budget remittance has been transmitted to the bank where the State Treasury office opens its account or the State Treasury office (in case of remitting state budget revenues via the interbank network to State Treasury offices).

dd/ Correction of errors at tax offices or competent state agencies in the cases specified at Point g, Clause 2 of this Article:

dd.1/ When detecting an error, a tax office or competent state agency shall send a dossier of request for tracing specified in Clause 3 of this Article to a related agency via the inter-sectoral electronic information exchange system.

dd.2/ When receiving a dossier of request for tracing, the tax office or competent state agency shall handle contents requested tracing and send results of tracing to the tracing requester via the inter-sectoral electronic information exchange system.

5. Responsibility for receiving and processing dossiers of request for tracing

a/ Tax offices shall receive and process dossiers of request for tracing from taxpayers, specifically:

a.1/ Managing tax offices:

a.1.1/ To receive and process dossiers of request for tracing, for budget remittance documents on which managing tax offices are referred to as state budget revenue managing offices.

a.1.2/ To receive and processing dossiers of request for tracing, for tax declaration dossiers of taxpayers, state budget remittance documents, notices, decisions and other documents of tax offices and competent state agencies that have been received or issued by managing tax offices.

a.2/ Tax offices managing state budget revenues shall receive and process dossiers of request for tracing, for tax declaration dossiers of taxpayers, state budget remittance documents, notices, decisions and other documents of tax offices and competent state agencies that have been received or issued by tax offices managing state budget revenues.

 a.3/ Tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular shall coordinate with managing tax offices in processing dossiers of request for tracing related to distributed revenue amount in the cases specified at Point a.1 of this Clause.

b/ State Treasury offices shall receive dossiers of request for tracing of commercial banks where State Treasury offices open their accounts or bank where taxpayers remit state budget revenues (in case of remitting state budget revenues via the interbank network to State Treasury offices).

c/ Commercial banks where State Treasury offices open their accounts shall receive and processing dossiers of request for tracing of commercial banks or intermediary payment service providers where taxpayers remit state budget revenues.

d/ Commercial banks or intermediary payment service providers where taxpayers remit state budget revenues shall receive dossiers of request for tracing of taxpayers under their regulations.

Article 70. Certification of fulfillment of tax liabilities

1. Receipt and handling of requests for certification of fulfillment of tax liabilities toward the state budget or tax amounts paid into the state budget (below referred to as certification of fulfillment of tax liabilities toward the state budget).

a/ A taxpayer shall send a written request for certification of fulfillment of tax liabilities toward the state budget, made according to Form No. 01/DNXN provided in Appendix I to this Circular, to a tax office specified at Point c of this Clause.

In case foreign contractors do not directly declare and pay taxes to tax offices, and Vietnamese organizations and individuals withhold and pay taxes on behalf of such foreign contractors and Vietnamese partners have fulfilled foreign contractors’ tax liabilities: Foreign contractors or Vietnamese partners that withhold and pay taxes on behalf of foreign contractors shall send written requests for certification of fulfillment of tax liabilities toward the state budget to tax offices directly managing Vietnamese partners for certification of fulfillment of tax liabilities for foreign contractors.

b/ Handling of requests for certification of fulfillment of tax liabilities toward the state budget at tax offices managing state budget revenues

b.1/ To review data and information on fulfillment of tax liabilities of taxpayers.

Based on tax administration data on the tax administration application system, a tax office managing state budget revenues shall review its data on tax liabilities toward the state budget, including:

b.1.1/ Tax arrears, late payment interest and fine amounts that have been paid, are to be paid, remain unpaid or have been overpaid by taxpayers;

b.1.2/ Tax-related administrative violations of taxpayers (if any).

b.2/ In case requested information of the taxpayer is  consistent with information on the tax administration application system, the tax office shall send a notice of certification of fulfillment of tax liabilities toward the state budget, made according to Form No. 01/TB-XNNV provided in Appendix I to this Circular, to the taxpayer under Point b.4 of this Clause.

b.3/ In case requested information of the taxpayer and information on the tax administration application system is inadequate or inconsistent, the tax office shall send a request for information addition, made according to Form No. 01/TB-BSTT-NNT provided in Decree No. 126/2020/ND-CP, to the taxpayer for the latter to make explanations or add information under Point b.4 of this Clause.

The period of information addition by the taxpayer shall not be included in the time limit for handling the written request for certification of fulfillment of tax liabilities toward the state budget.

After receiving additional information of the taxpayer, in case the information is adequate, the tax office shall send a notice of certification of fulfillment of tax liabilities toward the state budget, made according to Form No. 01/TB-XNNV provided in Appendix I to this Circular, to the taxpayer under Point b.4 of this Clause. In case the tax office determines that the taxpayer is ineligible for certification of fulfillment of tax liabilities toward the state budget, the tax office shall send a notice, made according to Form No. 01/TB-XNNV provided in Appendix I to this Circular, stating reasons for refusal to give certification under Point b.4 of this Clause.

b.4/ Within 10 working days after receiving a written request for certification of fulfillment of tax liabilities toward the state budget, the tax office shall send a notice of certification of fulfillment of tax liabilities, made according to Form No. 01/TB-XNNV provided in Appendix I to this Circular to certify or refuse to certify or a request for information addition, made according to Form No. 01/TBBSTT-NNT provided together with Decree No. 126/2020/ND-CP, to the taxpayer for the latter to make explanations or add information.

c/ Responsibility for receiving and handling written requests for certification of fulfillment of tax liabilities toward the state budget:

c.1/ Managing tax offices:

c.1.1/ To receive and handle written requests for certification of fulfillment of tax liabilities toward the state budget of taxpayers under their management.

c.1.2/ To assume the prime responsibility for receiving and handling requests for certification of fulfillment of tax liabilities toward the state budget, for revenues managed by more than one tax office (including also revenues from tax offices managing state budget revenues and tax offices managing localities receiving distributed state budget revenues).

c.1.3/ In case foreign contractors do not directly declare and pay taxes to tax offices and their Vietnamese partners withhold and pay taxes on their behalf, tax offices directly managing Vietnamese partners shall make only certification for foreign contractors as soon as Vietnamese partners withhold and fully pay tax into the state budget on behalf of foreign contractors under regulations.

c.2/ Tax offices managing state budget revenues:

c.2.1/ To receive and handle written requests for certification of fulfillment of tax liabilities toward the state budget of taxpayers for revenues under their management.

c.2.2/ To coordinate with one another and take responsibility for tax liabilities regarding revenues under their management on the tax administration application system.

c.3/ Tax offices managing localities receiving distributed state budget revenues specified at Point b, Clause 6, Article 3 of this Circular:

c.3.1/ To receive and handle written requests for certification of fulfillment of tax liabilities toward the state budget of taxpayers, for distributed revenues under their management.

c.3.2/ To coordinate with one another and take responsibility for tax liabilities regarding revenues under their management on the tax administration application system.

2. Certification of tax amounts paid in Vietnam for residents of other countries:

In case a resident of a signatory state to a tax agreement with Vietnam who has to pay income tax in Vietnam under such tax agreement and Vietnam’s tax laws wishes to certify tax amounts paid in Vietnam to be credited from tax amounts payable in the country of residence, the following procedures shall be carried out:

a/ In case a taxpayer requesting certification of a tax amount paid in Vietnam submits a dossier of request for certification to a provincial-level Tax Department of the province or centrally run city where it/he/she has made tax payment registration, a dossier must comprise:

a.1/ A written request for certification of the tax amount paid in Vietnam under the tax agreement, made according to Form No. 03/HTQT provided in Appendix I to this Circular, stating information on transactions related to taxable income and tax amounts arising from such transactions within the scope of regulation of the tax agreement;

a.2/ The original (or a certified copy) of the certificate of residence issued by a tax authority of the country of residence (stating the resident and tax period) that has been consularly legalized;

a.3/ The written authorization in case the taxpayer authorizes a lawful representative to carry out procedures for application of the tax agreement.

Within 7 working days after receiving the dossier, the provincial-level Tax Department where tax registration is made shall issue a certificate of income tax paid in Vietnam according to Form No. 04/HTQT or No. 05/HTQT provided in Appendix I to this Circular. Form No. 04/HTQT shall be used to certify PIT and EIT; Form 05/HTQT shall be used to certify for income tax on dividends, loan interest, royalties or technical service charges.

In the course of processing the dossier, if there is a need for explanation or document addition, the tax office shall send a notice of request for information and document explanation or addition, made according to Form No. 01/TB-BSTT-NNT provided together with Decree No. 126/2020/ND-CP, to the taxpayer for making information and document explanation or addition.

Within 10 working days after the tax office issues the notice, the taxpayer shall send written explanations or add information and documents as requested.

b/ In case a taxpayer requests certification of a tax amount arising in Vietnam which is not payable due to entitlement to tax incentives and considered as a tax amount paid to credit the presumptive tax amount in the country of residence, it/he/she shall send a dossier of request for certification to the provincial-level Tax Department. Such a dossier must comprise:

b.1/ A written request for certification of a tax amount paid in Vietnam under a tax agreement, made according to Form No. 03/HTQT provided in Appendix I to this Circular, providing information on transactions related to taxable income, arising tax amounts and tax incentives for such transactions within the scope of regulation of the tax agreement;

b.2/ The original (or a certified copy) of the certificate of residence issued by a tax office of the country of residence (stating the resident and tax period) which has been consularly legalized;

b.3/ The written authorization in case the taxpayer authorizes a lawful representative to carry out procedures for application of the tax agreement.

Within 7 working days after receiving a complete dossier, the provincial-level Tax Department shall certify the tax amount arising in Vietnam which is not payable due to entitlement to tax incentives.

In the course of handling the dossier, if there is a need for explanation or document addition, the tax office shall send a notice of request for information and document explanation or addition, made according to Form No. 01/TB-BSTT-NNT provided together with Decree No. 126/2020/ND-CP, to the taxpayer for making information and document explanation or addition.

Within 10 working days after the tax office issues the notice, the taxpayer shall send written explanations or add information and documents as requested.

3. Certification of residents of Vietnam:

a/ Organizations and individuals requesting certification of their Vietnamese tax resident status in accordance with tax agreements shall carry out the following procedures:

a.1/ In case an applicant is currently a taxpayer, a written request for certification of Vietnamese resident status, made according to Form No. 06/HTQT provided in Appendix I to this Circular, and a written authorization (in case the taxpayer authorizes a lawful representative to carry out procedures for application of the tax agreement) shall be submitted to the provincial-level Tax Department where the tax registration has been made.

a.2/ In case an applicant is not subject to tax declaration and payment:

a.2.1/ A written request specified in Item a.1, Clause 3 of this Article shall be sent;

a.2.2/ A written certification of place of permanent residence or place of household registration by a management agency or local authority is required, for individuals, or the establishment registration certificate, for organizations.

a.2.3/ A written certification by an income-paying agency (if any). In case there is no such certification, the applicant shall make a written self-declaration and take responsibility before the law for its/his/her declaration;

a.2.4/ A written authorization in case the taxpayer authorizes a lawful representative to carry out procedures for application of the tax agreement.

b/ Within 7 working days after receiving a complete dossier, the provincial-level Tax Department shall, based on Article 4 of the tax agreement concerning the definition of resident, consider and issue a certificate of residence, made according to Form No. 07/HTQT provided in Appendix I to this Circular, to the applicant.

In case in order to apply the tax agreement in the partner country or territory to the tax agreement with Vietnam (below referred to as the tax agreement partner), a tax office of the tax agreement partner requires the resident of Vietnam to provide a certificate of residence issued by a Vietnam tax office according to a form provided by the tax office of the tax agreement partner: if such residence certificate contains criteria and information similar to those stated in Form No. 07/HTQT provided in Appendix I to this Circular, or provides additional criteria and information under the management of the tax office (information on nationality and business line of the resident), the provincial-level Tax Department shall give certification in this certificate of residence.

In the course of processing the dossier, if there is a need for explanation or document addition, the tax office shall send a notice of request for information and document explanation or addition, made according to Form No. 01/TB-BSTT-NNT provided together with Decree No. 126/2020/ND-CP, to the taxpayer for making explanations and adding information and documents.

Within 10 working days after the tax office issues the notice, the taxpayer shall send written explanations or add information and documents as requested.

Chapter VIII

TAX EXAMINATION

Article 71. Examination of tax dossiers at offices of tax offices

1. Classification of tax dossiers:

Tax dossiers shall be classified into three levels of risk: low risk, medium risk and high risk.

2. Tax offices shall propose plans on examination of tax dossiers at their offices or processing thereof under Clauses 3 and 4 of this Article, for high-risk dossiers.

3. Examination of tax dossiers

When examining, collating, comparing and analyzing tax dossiers, if a tax office detects that a dossier has inaccurate information, inadequate information or unclear contents related to payable, exempted or reduced tax amounts, refundable tax amounts, tax amounts to be credited and carried forward to the subsequent period, it shall issue a notice (first-time notice) according to Form No. 01/KTT of request for information and document explanation or addition.

Within 10 working days after the tax office issues a notice of request for information and document explanation or addition, the taxpayer shall make explanations or add information and documents. The information and document explanation or addition may be carried out at the tax office’s office or in writing (by the paper-based or electronic method).

In case the taxpayer provide explanation directly at the tax office’s office, the latter shall make working minutes according to Form No. 02/KTT provided in Appendix I to this Circular.

4. Handling of examination results  

a/ In case a taxpayer has made explanations and added information and documents (for the first time or second time) to prove accuracy of declared tax amounts, its/his/her tax dossier shall be accepted; the dossier providing explanations or added information shall be archived together with the tax dossier.

b/ In case a taxpayer has made explanations or added information and documents but there are not enough grounds to prove accuracy of its/his/her tax declarations or there remain unclear contents, the tax office shall issue a notice (the second-time notice) according to Form No. 03/KTT, stating that the taxpayer may continue to explain or additionally provide documents or voluntarily make additional declarations in its/his/her tax dossier  and shall take responsibility for additional declarations. The time limit for making explanations or adding documents or making additional declarations in the tax dossier is 10 working days after the tax office issues the notice. The tax office shall request the taxpayer to make explanations or add information and documents for no more than twice for each examination at its office.

c/ Past the time limit notified (for the second time) by the tax office, if a taxpayer still fails to explain unclear contents or add information and documents or make additional declarations in its/his/her tax dossier; or has explained unclear contents or added information and documents but still lack grounds for proving that the declared tax amount is accurate, a tax office shall assess a payable tax amount if there are adequate grounds for assessment. In case of lacking grounds to assess a payable tax amount, the tax office shall issue a decision on tax examination at the office of the taxpayer or formulate, on that basis, an inspection or examination plan on risk management principles.

d/ In case a taxpayer has explained unclear contents or added information and documents (for the second time) and a tax office has adequate grounds to determine its/his/her tax-related administrative violation, the latter shall make minutes of administrative violation and handle it under regulations.

Article 72. Examination at offices of taxpayers

1. Cases of examination at offices of taxpayers, frequency of examination, time of sending examination decisions must comply with Points a, b, d, dd, e and g, Clause 1, and Clauses 2 and 3, Article 110 of the Law on Tax Administration.

Cases of dissolution or termination of operation for which tax finalization is not required as specified at Point g, Clause 1, Article 110 of the Law on Tax Administration:

a/ Taxpayers pay EIT at the rate in percentage of turnover from the sale of goods and services under regulations on EIT for dissolution or termination of operation.

b/ Taxpayers dissolve or terminate their operation, but from the time of establishment to the time of dissolution or termination of operation, such enterprises have neither generated turnover nor used invoices.

2. Formulation, approval and modification of annual examination plans and subjects

a/ Annually, the General Department of Taxation shall guide the formulation of examination plans and subjects for the entire system of tax offices.

b/ Tax offices at all levels shall, based on guidance of the General Department of Taxation, formulate examination plans and subjects, specifically as follows:

b.1/ Tax Branches shall formulate and send annual examination plans and subjects to Tax Departments for consideration and approval.

b.2/ Tax Departments shall formulate and send annual examination plans and subjects to the General Department of Taxation for consideration and approval.

b.3/ The General Department of Taxation shall formulate and approve by itself examination plans and subjects, and send reports on approved plans to the Inspectorate of the Ministry of Finance.

c/ Annually, tax offices shall review and modify examination plans and subjects for the following cases:

c.1/ Upon requests of the Minister of Finance or heads of superior tax offices;

c.2/ Upon proposals of heads of tax office tasked to implement examination plans and subjects;

c.3/ Due to overlaps in examination activities.

When modifying plans or subjects, tax offices shall clearly state reasons for modification and report to agencies that have approved such plans and subjects for modification.

d/ In addition to annual examination plans and subjects as mentioned above, tax offices at all levels may formulate plans and subjects to be implemented in the year upon requests of heads of tax offices at the same level or as directed by superior tax offices. Plans and subjects shall be formulated according to risk management principles and approved by heads of tax offices at the same level and reported to superior tax offices.

3. Handling of overlaps in examination activities

a/ In case there are overlaps in examined subjects of subordinate tax offices and tax examination and inspection plans of state inspection agencies, state audit agencies and superior tax offices, plans of the latter shall prevail;

b/ In case of overlaps in examined subjects in examination plans of tax offices and other state agencies, heads of tax offices shall coordinate with heads of such state agencies in addressing the overlaps and report to agencies that have approved the plans when necessary.

4. Publicization of annual examination plans and subjects

Annual examination plans and subjects (including modified plans and subjects) shall be publicized on websites of tax offices or notified to taxpayers and tax offices directly managing taxpayers (in notices or by phone or via email) within 30 working days after decisions to approve or modify examination plans and subjects are issued.

5. Procedures for tax examination at offices of taxpayers

a/ Issuance of tax examination decisions

Tax offices shall issue tax examination decisions for cases specified in Article 110 of the Law on Tax Administration. Tax examination at the office of a taxpayer may be carried out as soon as a decision on tax examination at the office of the taxpayer is issued.

Tax offices shall issue tax examination decisions for contents and periods having risks, except tax refund examination. Tax examination decisions shall be made according to Form No. 04/KTT provided in Appendix I to this Circular.

The examination period shall be determined under Clause 4, Article 110 of the Law on Tax Administration. In case of extension of the examination period, heads of examination teams shall report to persons competent for issuing extension decisions according to Form No. 05/KTT provided in Appendix I to this Circular.

b/ The examination under a tax examination decision shall start within 10 working days after such decision is issued, except case of annulment thereof according to Form No. 06/KTT provided in Appendix I to this Circular or where the examination is postponed.

When starting a tax examination, the head of a tax examination team shall announce the tax examination decision, make a minutes  of announcement and explain contents of the examination decision so that the taxpayer understands and complies with the examination decision. The minutes of announcement of examination decisions shall be made according to Form No. 07/KTT provided in Appendix I to this Circular.

c/ In case a taxpayer has a written request for postponement of tax examination, such request must clearly state reasons and postponement period or in case the tax office has a force majeure reason to postpone the examination, it shall send a notice, made according to Form No. 08/KTT provided in Appendix I to this Circular, to the taxpayer before the deadline for announcing the examination decision expires.

In the course of examination, if a force majeure reason occurs, making it impossible to continue the examination, the head of the examination team shall report such to the person that has issued the examination decision for suspending the examination. The suspension period shall not be accounted into the examination period.

d/ In the course of tax examination, if the examination decision needs to be modified (replacement of the head or a member or addition of a member of the examination team, addition of contents, extension of the examination period, or reduction of the number of members of the examination team, examination contents and period), the head of the examination team shall report such to the competent person to issue a decision to modify the examination decision. Decisions to modify examination decisions shall be made according to Form No. 09/KTT, No.10/KTT or No.11/KTT provided in Appendix I to this Circular.

dd/ Minutes of tax examination

dd.1/ When completing a tax examination at the office of a taxpayer, an examination team shall make a draft minutes of examination according to Form No. 12/KTT provided in Appendix I to this Circular and announce it to the examination team and taxpayer for opinions and explanations. Opinions and explanations of the taxpayer shall be archived together with the draft minutes (if any). Minutes of announcement of the draft examination minutes shall be made according to Form No. 13/KTT provided in Appendix I to this Circular.

The explanation, completion and signing of examination minutes by the examination team and the taxpayer shall be carried out within 5 working days after the examination is completed. If the taxpayer still has opinions, its/his/her opinions shall be recorded in the examination minutes or achieved together with the signed minutes. The examination minutes shall be signed on every page by the head of the examination team and the taxpayer (or its/his/her lawful representative) and appended a seal by the taxpayer, for institutional taxpayers that have their own seals (including seal on each page and seal appended on adjoining pages of the minutes).

dd.2/ Any inquiries about mechanisms and policies that need consultation shall be stated in the minutes. After receiving a written response, the examination team or the section in charge of examination shall make an appendix to the minutes according Form No. 14/KTT provided in Appendix I to this Circular for handling in accordance with law.

dd.3/ In case a taxpayer refuses to sign the examination minutes within the specified time limit, the head of examination team shall make a minutes of administrative violation of failure to sign the minutes and report such to the person competent to issue a decision on sanctioning of administrative violation under regulations, and at the same time, require the taxpayer to sign the examination minutes.

e/ Handling of tax examination results

e.1/ Within 3 working days after signing an examination minutes, the head of examination team shall report examination results to the head of the section in charge of examination and the person that has issued the examination decision.

In case examination results lead to tax handling or sanctioning of an administrative violation, the head of the tax office shall issue a decision on handling of tax-related violation or transfer the dossier to the person competent for imposing a sanction. In case examination results does not lead to tax handling or sanctioning of an administrative violation, the person that has issued the examination decision shall issue a written examination conclusion according to Form No. 15/KTT provided in Appendix I to this Circular.

e.2/ If, through tax examination, a tax-related violation showing signs of tax evasion or tax fraud is detected, within 5 working days after the  examination is completed, the examination team shall report such to the head of the tax office for carrying out an inspection or transferring the examination dossier to an investigation body in accordance with law.

Procedures and time limit for issuing decisions on handling of tax-related violations, transferring dossiers to persons with sanctioning competence or transferring examination dossiers to investigation bodies must comply with the Law on Handling of Administrative Violations, Criminal Procedure Code, guiding documents and the Government’s Decree No. 125/2020/ND-CP of October 19, 2020, on sanctioning of tax- and invoice-administrative violations.

g/ The examination at offices of taxpayers shall be recorded in electronic diaries.

6. Supervision of examination teams

a/ The supervision of activities of tax examination teams at offices of taxpayers shall be carried out for all tax examination teams by self-supervision by persons that have issued examination decisions or assigned supervision.

In case persons that have issued examination decisions carry out self-supervision, such supervision shall be specified in examination decisions. In case the supervision is assigned, persons that have issued examination decisions shall issue supervision decisions.

b/ Supervision decisions shall be sent to tax examination teams, supervisors, examined subjects, related agencies, organizations and individuals, and announced simultaneously with decisions on examination at offices of taxpayers.

c/ The supervision of activities of teams of tax examination at offices of taxpayers shall be carried out from the date of announcement of examination decisions until the completion of the examination at offices of taxpayers and must comply with law, ensuring accuracy, objectivity, publicity, democracy and timeliness.

7. In case the database for carrying out procedures specified in Clause 5 of this Article has all conditions for application of information technology, it is unnecessary to carry out such procedures at offices of taxpayers.

Chapter IX

TAX ADMINISTRATION FOR E-COMMERCE AND DIGITAL PLATFORM-BASED BUSINESS ACTIVITIES AND OTHER SERVICES PROVIDED BY OVERSEAS SUPPLIERS WITHOUT VIETNAM-BASED PERMANENT ESTABLISHMENTS

Article 73. Organizations and individuals involved in tax administration for e-commerce and digital platform-based business activities and other services provided by overseas suppliers without Vietnam-based permanent establishments

1. Overseas suppliers without Vietnam-based permanent establishments that carry out e-commerce and digital platform-based business activities and provide other services with/to Vietnam-based organizations and individuals (below referred to as overseas suppliers).

2. Vietnam-based organizations and individuals that purchase goods or services from overseas suppliers.

3. Organizations and tax agents operating in accordance with Vietnam’s law that are authorized by overseas suppliers to make tax registration, declaration and payment in Vietnam.

4. Commercial banks, intermediary payment service providers, and organizations and individuals that have rights and obligations related to e-commerce and digital platform-based business activities and other services provided by overseas suppliers.

Article 74. Registration of electronic tax transactions

1. Overseas suppliers shall make electronic tax transaction registration simultaneously with first-time tax registration via the Portal of the General Department of Taxation when carrying out e-transaction registration, ensuring satisfaction of the following conditions: being able to access and use the internet; and having emails for making transactions with managing tax offices.

2. Each overseas supplier shall register one official email for receiving all notices in the process of making e-transactions with the managing tax office.

3. After the successful performance of the procedures for first-time tax registration, the Portal of the General Department of Taxation shall send information on the e-transaction account and tax identification number to the registered email of the taxpayer for the latter to carry out tax-related procedures on the Portal.

Article 75. Tax identification numbers

Tax identification numbers of overseas suppliers that directly make or authorize others to make tax registration, declaration and payment must comply with the Ministry of Finance’s Circular No. 105/2020/TT-BTC of December 3, 2020, guiding tax registration.

Article 76. Direct tax registration by overseas suppliers

1. Dossiers for first-time tax registration:

Overseas suppliers shall make a tax registration declaration according to Form No. 01/NCCNN provided in Appendix I to this Circular on the Portal of the General Department of Taxation.

2. Dossiers for change in tax registration information:

Overseas suppliers shall submit a declaration for change in tax registration information, made according to Form No. 01-1/NCCNN provided in Appendix I to this Circular, to managing tax offices via the Portal of the General Department of Taxation.

3. Overseas suppliers shall use e-transaction authentication codes granted by managing tax offices via the Portal of the General Department of Taxation for authentication upon tax registration.

Article 77. Direct tax declaration and calculation by overseas suppliers

1. Overseas suppliers shall make direct tax declaration on the Portal of the General Department of Taxation using e-transaction authentication codes granted by managing tax offices via the Portal and send e-dossiers of tax declaration to managing tax offices, specifically as follows:

a/ Overseas suppliers shall declare taxes subject to quarterly declaration and payment.

b/ Electronic tax declaration shall be made according to Form No. 02/NCCNN provided in Appendix I to this Circular.

c/ Overseas suppliers shall pay VAT and EIT calculated in ratio to turnover.

c.1. Turnover for VAT calculation is the turnover received by overseas suppliers.

c.2. Turnover for EIT calculation is the turnover received by overseas suppliers.

d/ The ratio used for calculating VAT to turnover must comply with Point b, Clause 2, Article 8 of the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding a number of articles of the Law on VAT.

dd/ The ratio used for calculating EIT to turnover must comply with Clause 3, Article 11 of the Government’s Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding a number of articles of the Law on EIT.

2. In case of detecting errors after completing the procedures for tax declaration and payment, the overseas supplier shall make a declaration of the adjusted payable tax amount in Vietnam according to Form No. 02/NCCNN provided in Appendix I to this Circular.

3. Principles of determination of turnover arising in Vietnam for tax declaration and calculation:

a/ Information items that may be used to determine transactions of an organization or individual purchasing goods and services in Vietnam (below referred to as purchaser), including:

a.1/ Information related to the purchaser’s payment in Vietnam, such as information on its/his/her credit card based on the bank identification number (BIN), bank account information or other similar information used by the purchaser to make payment to the overseas supplier.

a.2/ Information on the purchaser’s residential status in Vietnam (payment address, delivery address, house address or other similar information declared by the purchaser to the overseas supplier).

a.3/ Information on the purchaser’s access in Vietnam, such as country calling code of it/his/her SIM card, IP address, location of the fixed telephone line, or other similar information.

b/ When determining a transaction arising in Vietnam for tax declaration and calculation, an overseas supplier shall:

b.1/ Use 2 information items which are not contradictory to each other, including one related to the purchaser’s payment in Vietnam, and the other on residential status or access of the purchaser.

b.2/ In case an item of information on payment of the purchaser is uncollectible or contradictory to the other one, the overseas supplier may use 2 items of information which are not contradictory to each other, including one on the purchaser’s residential status and the other on the purchaser’s access in Vietnam.

4. Overseas suppliers shall use e-transaction authentication codes granted by managing tax offices for authentication when making tax declaration or changing tax declaration information.

5. After overseas suppliers make tax declaration or change tax declaration information (if any), managing tax offices shall grant and notify the former of the identification numbers of the amounts payable to the state budget to serve as a basis for the overseas suppliers to pay taxes.

6. Overseas suppliers shall retain information used for determination of transactions of goods and service purchasers in Vietnam under Clause 3 of this Article to serve the inspection and examination by tax offices. The retention of information must comply with relevant provisions of the Law on Tax Administration.

7. For an overseas supplier in a country or territory that has signed the Tax Agreement with Vietnam, the procedures for tax exemption and reduction must comply with the Double Taxation Avoidance Agreement specified in Article 62 of this Circular.

Article 78. Direct tax payment by overseas suppliers

1. After receiving the identification number of the amount payable to the state budget from the managing tax office, the overseas supplier shall pay taxes in a freely convertible currency into the state budget revenue account as notified on the Portal of the General Department of Taxation, ensuring that such identification number is exactly written.

2. In case an overseas supplier pays a tax amount larger than the payable tax amount stated in the tax declaration, it/he/she may clear the overpaid amount against the payable tax amount of the subsequent tax period.

Article 79. Overseas suppliers’ authorization for tax registration, declaration and payment in Vietnam

1. In case an overseas supplier authorizes an organization or a tax agent operating in accordance with Vietnam’s law (below referred to as the authorized party), the authorized party shall carry out tax-related procedures (tax registration, declaration and payment) under the contract signed with the overseas supplier. Based on the scope of authorization and responsibilities of each party referred to in the authorization contract, the authorized party shall carry out corresponding tax-related procedures specified in Articles 76, 77 and 78 of this Circular for the overseas supplier.

2. In case an overseas supplier that has already directly made tax registration, declaration and payment in Vietnam authorizes an organization or a tax agent to make tax declaration and payment on the former’s behalf, at least 5 working day prior to the effective date of the authorization contract, it/he/she shall notify such to the managing tax office by making a declaration of change in tax declaration information according Form No. 01-1/NCCNN provided in Appendix I to this Circular, enclosed with relevant documents.

a/ The overseas supplier shall sufficiently and accurately provide necessary papers, dossiers, documents and information related to the performance of tax-related procedures under the signed contract between the two parties.

b/ In case the overseas supplier signs an authorization contract with a tax agent, the tax agent’s at-law representative shall sign and append his/her seal in the section reserved for the taxpayer’s lawful representative in documents and dossiers of transactions with the tax office. The tax declaration must state the full name and practice certificate number of the tax agent’s officer. Documents and dossiers of transactions carried out by the tax agent must be within the scope of authorized jobs concerning tax-related procedures stated in the signed service contract on performance of tax-related procedures.

3. At the request of the tax office, the authorized party shall accurately and promptly provide documents and papers proving the accuracy of tax declaration and payment and requested exemptible or reducible tax amount (if any).

4. The managing tax office shall provide an account and password to the authorized party for accessing the Portal of the General Department of Taxation to carry out tax-related procedures as authorized and send notices related to such procedures in the course of making e-transactions to the authorized party’s email.

Article 80. Responsibilities of tax offices in tax administration for e-commerce and digital platform-based business activities and other services provided by overseas suppliers

1. As the tax office directly managing overseas suppliers, the General Department of Taxation is responsible for granting tax identification numbers to overseas suppliers under regulations, receiving tax declarations, and performing jobs related to tax declaration and payment of overseas suppliers.

2. The tax office shall update the list of overseas suppliers that directly make, or authorize others to make tax registration and declaration on the Portal of the General Department of Taxation.

3. The tax office shall coordinate with related agencies in identifying and announcing names and website addresses of overseas suppliers having not yet made tax registration, declaration and payment with which/whom goods and service purchasers make transactions in Vietnam.

4. Vietnam-based tax offices may coordinate with foreign tax authorities in exchanging information and urging overseas suppliers to make tax declaration and payment; retrospectively collect the unpaid tax amounts of overseas suppliers if being able to prove that overseas suppliers make untruthful tax declaration and payment; and coordinate with competent agencies in applying measures to handle violations in accordance with law in case overseas suppliers fail to comply with their tax obligations in Vietnam.

Article 81. Responsibilities of related Vietnam-based organizations and individuals in case of purchase of goods and services from overseas suppliers

1. Organizations established and operating in accordance with Vietnam’s law and organizations registered for operating in accordance with Vietnam’s law that purchase goods and services from overseas suppliers, or distribute goods and provide services on behalf of overseas suppliers while such overseas suppliers do not make tax registration, declaration and payment in Vietnam under Articles 76 thru 79 of this Circular, shall be obliged to make tax declaration and deduction and pay taxes on behalf of the suppliers under the Ministry of Finance’s Circular No. 103/2014/TT-BTC of August 6, 2014.

2. For individuals purchasing goods and services from overseas suppliers that do not make tax registration, declaration and payment in Vietnam under Articles 76 thru 79 of this Circular, commercial banks and intermediary payment service providers shall make tax deduction and pay taxes on behalf of them under Point a, Clause 3, Article 30 of Decree No. 126/2020/ND-CP.

The General Department of Taxation shall notify names and website addresses of overseas suppliers having not yet made tax registration, declaration and payment with which/whom goods and service purchasers make transactions to the head offices of banks or intermediary payment service providers. The head offices shall notify the lists of overseas suppliers to their branches for the latter to make tax declaration and deduction and pay taxes on behalf of the suppliers when making payments for transactions with them under the Government’s Decree No. 70/2014/ND-CP of July 17, 2014, detailing a number of articles of the Ordinance on Foreign Exchange and the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange. The tax amount which is declared, deducted or paid on behalf of an overseas supplier shall be determined based on its/his/her turnover and the ratio used for calculating VAT and EIT to turnover specified at Points d and dd, Clause 1, Article 77 of this Circular. In case it is impossible to determine the types of goods and services of each transaction, the highest ratio used for calculating VAT and EIT to turnover shall be applied.

3. On the 20^th every month at the latest, a commercial bank or an intermediary payment service provider shall make a declaration according to Form No. 03/NCCNN provided in Appendix I to this Circular and pay into the state budget the tax amount deducted or paid on behalf of the overseas supplier.

4. In case individuals who purchase goods or services from overseas suppliers make payment by cards or other modes which make commercial banks or intermediary payment service providers unable to deduct or pay taxes on behalf of the overseas suppliers, the commercial banks and intermediary payment service providers shall monitor money amounts transferred to overseas suppliers, and on the 10^th every month, make a list of money amounts transferred to overseas suppliers according to Form No. 04/NCCNN provided in Appendix I to this Circular and send it to the General Department of Taxation.

5. Commercial banks or intermediary payment service providers shall make tax declaration, deduction and payment on behalf of overseas suppliers, and monitor money amounts transferred to overseas suppliers specified in Clauses 2, 3 and 4, Article 81 of this Circular after the General Department of Taxation sends a notice thereof to the former’s head offices.

Chapter X

FUNDING FOR COLLECTION AUTHORIZATION

Article 82. Funding for collection authorization

1. Funding items for collection authorization

Tax offices shall authorize organizations or individuals to collect some tax amounts and other state budget revenues under their management, including:

a/ Agricultural land use tax for households and individuals;

b/ Non-agricultural land use tax for households and individuals;

c/ Taxes for business households and business individuals paying taxes by the tax presumption method;

d/ License fee and environmental protection charge for business households and business individuals paying taxes by the tax presumption method;

dd/ Other taxes and state budget revenues as permitted by the Minister of Finance.

2. Funding levels for collection authorization

Funding levels for collection authorization for the amounts specified in Clause 1 of this Article shall be determined in ratio to the total of tax amounts and other state budget revenues as stated in the collection authorization contract.

Tax offices shall formulate the funding levels for collection authorization to meet the requirement of tax collection management for each locality; the funding levels shall be decided by the General Director of Taxation after being approved by the Ministry of Finance. The funding items for collection authorization shall not be included in the administrative management expense norms and shall be included in the current expenditure estimates of the tax offices under regulations.

3. Estimation, management, use, payment, and finalization of funds for collection authorization

a/ Estimation: At the time of annual fund estimation, based on the funding items and levels specified by competent authorities, estimates of state budget revenues authorized for collection, the implementation of the previous year’s funding estimates, and the current year’s funding estimates, funding estimates for collection authorization shall be formulated and included in the state budget expenditure estimates of the General Department of Taxation, which shall be sent to the Ministry of Finance under regulations.

b/ Management and use: Funding estimates for collection authorization shall be included in the annual state budget current expenditure estimate of the General Department of Taxation. The use of the funds must be for the proper purposes, subjects, and funding items and levels and comply with collection authorization contracts under regulations. The allocated funds for collection authorization which are not used up at the year-end shall be carried forward to the subsequent year for further use.

c/ Accounting and finalization: The General Department of Taxation shall open accounting books for recording and accounting according to accounting accounts and the state budget index system, and summarize the finalization of funds for collection authorization in its annual budget finalization report under current regulations.

Chapter XI

OTHER ISSUES

Article 83. Coordination in tax administration for national defense and security enterprises

The General Department of Taxation shall coordinate with the Department of Finance under the Ministry of National Defense and the Department of Planning and Finance under the Ministry of Public Security in monitoring, examining, and urging national defense and security enterprises to make declaration, payment and finalization of EIT amounts arising from production of goods and provision of services for national defense and security purposes, and production of other products and goods and provision of other services under regulations.

Article 84. Use of the national database on population and national database on citizen identity cards

When papers on profiles, identities, and residence of citizens that are components required for the dossiers specified in this Circular are annulled in the national database on population, national database on residence and national database on citizen identity cards, tax offices shall use information in such national databases on the basis of information exchange and provision among state management agencies specified at Point c, Clause 2, Article 26 of Decree No. 126/2020/ND-CP for settling administrative procedures for taxpayers under regulations.

Article 85. Languages used in documents on transactions with tax offices

Language used in tax dossiers must be Vietnamese. Foreign-language documents must be translated into Vietnamese. Taxpayers shall sign, append their seals on, and be responsible before law for the contents of, the translations. In case a foreign-language document has more than 20 pages of A4 paper size, the taxpayer shall give written explanations and be requested to translate only the contents and terms related to its/his/her tax liability.

For a dossier of request for tax exemption and reduction under a Tax Agreement, depending on the nature of each contract and tax office’s requirement (if any), the taxpayer shall only translate such contents as name of the contract, names of terms in the contract, contract performance period or the actual period of presence of the foreign contractor’s experts (if any) in Vietnam, responsibilities and commitments of each contracting party; provisions on confidentiality and product ownership rights (if any), persons competent to sign the contract, contents related to the determination of tax liability, and other similar contents (if any); and at the same time, enclose the dossier with a copy of the contract bearing the taxpayer’s certification.

The consular legalization of papers and documents issued by foreign authorities is compulsory in the specific cases as guided in Articles 30, 62 and 70 of this Circular.

Article 86. Deadlines/time limits for submission of tax declaration dossiers and for tax payment

Deadlines/time limits for submission of tax declaration dossier must comply with Clauses 1 thru 5, Article 44 of the Law on Tax Administration, and Article 10 of Decree No. 126/2020/ND-CP. Deadlines/time limits for tax payment must comply with Clauses 1, 2 and 3, Article 55 of the Law on Tax Administration and Article 18 of Decree No. 126/2020/ND-CP. In case the deadline for submission of tax declaration dossiers or tax payment falls on a law-prescribed day-off, it will be the working day following such day-off in accordance with the Civil Code.  

Chapter XII

IMPLEMENTATION PROVISIONS

Article 87. Effect

1. This Circular takes effect on January 1, 2022.

2. Tax declaration forms specified in this Circular apply to tax periods from January 1, 2022, onward. For the declaration of tax finalization of the 2021 tax period, the tax declaration forms specified in this Circular shall also be used.

3. This Circular annuls:

a/ The Ministry of Finance’s Circular No. 156/2013/TT-BTC of November 6, 2013, guiding the implementation of a number of articles of the Law on Tax Administration; the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Government’s Decree No. 83/2013/ND-CP of July 22, 2013 (below referred to as Circular No. 156/2013/TT-BTC);

b/ The Ministry of Finance’s Circular No. 99/2016/TT-BTC of June 29, 2016, guiding the management of VAT refund (below referred to as Circular No. 99/2016/TT-BTC);

c/ The Ministry of Finance’s Circular No. 31/2017/TT-BTC of April 18, 2017, amending and supplementing a number of articles of Circular No. 99/2016/TT-BTC;

d/ The Ministry of Finance’s Circular No. 208/2015/TT-BTC of December 28, 2015, prescribing the operation of tax consultancy councils of communes, wards and townships;

dd/ The Ministry of Finance’s Circular No. 71/2010/TT-BTC of May 7, 2010, guiding tax assessment for automobile and motorbike trading establishments that record the selling prices of automobiles and motorbikes on invoices issued to consumers lower than normal market prices;

e/ The Ministry of Finance’s Circular No. 06/2017/TT-BTC of January 20, 2017, amending and supplementing Clause 1, Article 34a of Circular No. 156/2013/TT-BTC (which was supplemented under Clause 10, Article 2 of the Ministry of Finance’s Circular No. 26/2015/TT-BTC of February 27, 2015, providing guidance on VAT and tax administration specified in the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the Law Amending and Supplementing a Number of Articles of the Tax Laws, and amending and supplementing a number of articles of the decrees on taxes, and amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 39/2014/TT-BTC of March 31, 2014, on invoices for goods sale and service provision (below referred to as Circular No. 26/2015/TT-BTC));

g/ The Ministry of Finance’s Circular No. 79/2017/TT-BTC of August 1, 2017, amending and supplementing Item b1, Point b, Clause 4, Article 48 of Circular No. 156/2013/TT-BTC.

4. This Circular annuls:

a/ Article 1 of the Ministry of Finance’s Circular No. 119/2014/TT-BTC of August 25, 2014, amending Circular Nos. 156/2013/TT-BTC, No. 111/2013/TT-BTC, No. 219/2013/TT-BTC, No. 08/2013/TT-BTC, No. 85/2011/TT-BTC, No. 39/2014/TT-BTC, and No. 78/2014/TT-BTC, in order to reform and simplify tax-related administrative procedures;

b/ Articles 14 thru 21, Chapter IV of the Ministry of Finance’s Circular No. 151/2014/TT-BTC of October 10, 2014, guiding the implementation of the Government’s Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the decrees on taxes;

c/ Article 2 of Circular No. 26/2015/TT-BTC;

d/ Article 17, and Clause 3, Article 18, of the Ministry of Finance’s Circular No. 84/2016/TT-BTC of June 17, 2016, guiding procedures for collection and payment of taxes and domestic revenues into the state budget;

dd/ Article 3 of the Ministry of Finance’s Circular No. 130/2016/TT-BTC of August 12, 2016, guiding the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, detailing the Law Amending and Supplementing a Number of Articles of the Law on VAT, the Law on Excise Tax, and the Law on Tax Administration, and amending a number of articles of the circulars on taxes;

e/ Articles 3, 4, 12, 20 and 23 of the Ministry of Finance’s Circular No. 36/2016/TT-BTC of February 26, 2016, guiding the implementation of provisions on taxes applicable to organizations and individuals conducting oil and gas prospecting, exploration and exploitation activities in accordance with the Law on Petroleum;

g/ Articles 4, 25 and 26 of the Ministry of Finance’s Circular No. 176/2014/TT-BTC of November 17, 2014, guiding taxes applicable to prospecting, exploration, and development of oil and gas mines, and oil and gas exploitation of the Russia-Vietnam Joint Venture - “Vietsovpetro” from lot No. 09-1 under the 2010 Agreement and the 2013 Protocol;

h/ Articles 3 and 4, and Point b, Clause 1, and Point c, d and dd, Clause 2, Article 7, of the Ministry of Finance’s Circular No. 22/2010/TT-BTC of February 12, 2010, guiding the implementation of the Government’s Decree No. 100/2009/ND-CP of November 3, 2009, prescribing the collection of a surcharge on the volume of oil divided as profit to petroleum contractors upon increase in crude oil price;

i/ Clauses 2, 3 and 4, Section II, and Clauses 2, 3 and 4, Section IV, Part B of the Ministry of Finance’s Circular No. 56/2008/TT-BTC of June 23, 2008, guiding the declaration, payment and finalization of state revenues specified in Article 18 of the Financial Management Regulation of the parent company - the Vietnam Oil and Gas Group, promulgated together with the Government’s Decree No. 142/2007/ND-CP of September 5, 2007;

k/ Points a and b, Clause 1, Article 21 of the Ministry of Finance’s Circular No. 72/2014/TT-BTC of May 30, 2014, on refund of VAT on goods carried by foreigners and overseas Vietnamese upon exit (which was revised under Clause 15, Article 1 of the Ministry of Finance’s Circular No. 92/2014/TT-BTC of December 31, 2019) regarding dossiers of request for payment or refund for banks acting as VAT refund agents;

l/ Clause 2, Article 3 of Joint Circular No. 206/2014/TTLT/BTC-BQP of December 24, 2014, of the Ministry of Finance and Ministry of National Defense, guiding the declaration and payment of taxes and state budget revenues for units and enterprises under the Ministry of National Defense;

m/ Point b, Clause 2, Section II of Joint Circular No. 85/2005/TTLT-BTC-BCA of September 26, 2005, of the Ministry of Finance and Ministry of Public Security, guiding the implementation of tax policies and collection of state budget revenues for goods production and service provision activities of units under the Ministry of Public Security;

n/ Articles 5, 6 and 24; and Clause 1, Points a, b, c, d, dd, e.3, e.4, e.5, e.6, and e.7, Clause 2, and Clauses 7 and 8, Article 26 of the Ministry of Finance’s Circular No. 111/2013/TT-BTC of August 15, 2013, guiding the implementation of the Law on PIT, Law Amending and Supplementing a Number of Articles of the Law on PIT, and the Government’s Decree No. 65/2013/ND-CP, detailing a number of articles of the Law on PIT and Law Amending and Supplementing a Number of Articles of the Law on PIT.

o/ Clauses 1 and 2, Points a.1, a.2, a.3, a.4, b, c, d, and dd, Clause 3, Clause 4, and Points b, c, d, and dd, Clause 6, Article 21; Articles 22, 23 and 24; Appendix 02, and forms provided in Appendix 02 to the Ministry of Finance’s Circular No. 92/2015/TT-BTC of June 15, 2015, guiding the implementation of VAT and PIT incurred by resident individuals engaged in business activities, guiding amendments and supplementations on PIT under Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Tax Laws, and the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the Law Amending and Supplementing a Number of Articles of the Tax Laws, and amending and supplementing a number of articles of the decrees on taxes (below referred to as Circular No. 92/2015/TT-BTC).

5. The tax registration, declaration and payment for an overseas supplier specified in Articles 76 thru 79 of this Circular shall be made after the General Department of Taxation issues a notice of the commissioning of the system for tax registration, declaration and payment for overseas suppliers on its Portal.

6. When legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 88. Transitional provisions

1. Decisions on extension of tax payment time limits, decisions on payment of tax arrears in installments, and notices of acceptance of non-imposition of late-payment interests which are issued before the effective date of this Circular remain effective until their expiry dates.

2. For taxpayers’ overpaid amounts specified in Article 26 of this Circular (including also amounts arising before the effective date of this Circular), tax offices shall perform procedures for not refunding the overpaid tax, late-payment interest and fine amounts under Article 26 of this Circular.

3. For individuals who submit dossiers of PIT declaration for real estate transfer activities, the deadlines/time limits for submission of tax declaration dossiers must comply with Clause 11, Article 2 of the Government’s Decree No. 12/2015/ND-CP of January 12, 2015, and Clause 5, Article 21 of Circular No. 92/2015/TT-BTC.

4. For hydropower plants for which the Ministry of Finance provides guidance on the distribution of payable tax amounts before the effective date of this Circular,  such guidance shall continue to apply.

5. For taxpayers providing telecommunications services whose branches practicing dependent cost-accounting in the provinces where their offices are not based that jointly provide postpaid telecommunications services under Clause 4, Article 20 of the Ministry of Finance’s Circular No. 219/2013/TT-BTC of December 31, 2013, they shall submit tax declarations, made according to Form No. 01/GTGT, and the annex on table for distribution of payable VAT amounts to the localities entitled to state budget revenues, made according to Form No. 01-6/GTGT provided in Appendix II to this Circular to the managing tax offices.

Article 89. Implementation responsibility

1. Tax offices at all levels shall disseminate this Circular to and guide organizations, individuals and taxpayers to implement it.

2. Organizations, individuals and taxpayers regulated by this Circular shall fully comply with this Circular’s guidance.

Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for prompt settlement.-

For the Minister of Finance
Deputy Minister
TRAN XUAN HA

* The appendices to this Circular are not translated.