Decree 91/2022/ND-CP amending Decree 126/2020/ND-CP detailing Law on Tax Administration

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration.

Article 1. Amending and supplementing a number of articles of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration

1. To add Article 6a as follows:

“Article 6a. Expiry of the deadline

The deadlines for submission of the tax declaration dossiers, or tax payment, the deadlines for the tax administration offices to process dossiers, the validity period of the decision on enforcement of a tax administration-related administrative decision shall comply with the Law on Tax Administration and this Decree. If the last day of the deadline for submission of the tax declaration dossiers, the deadline for tax payment, the deadline for the tax administration offices to process dossiers, or the validity period of the decision on enforcement of a tax administration-related administrative decision falls on a public holiday as prescribed, then the last day of such deadline or period shall be the next working day.”

2. To add Point e Clause 3 Article 7 as follows:

“e) Personal income tax declarants are individual or institutional payers of incomes from salaries or wages subject to the monthly or quarterly declaration of personal income tax, and personal income tax withholding is applied to the income recipients in that month or quarter.”

3. To amend and supplement Point b Clause 6 Article 8 as follows:

“b) Enterprise income tax (except enterprise income tax from capital transfer of foreign contractors; enterprise income tax declared by the method of calculating tax to turnover upon arising of a tax liability or on a monthly basis as specified at Point dd Clause 4 of this Article). Taxpayers shall themselves determine enterprise income tax amounts to be temporarily paid on a quarterly basis (including also enterprise income tax amounts temporarily distributed for provincial-level localities where the taxpayers’ dependent units and business locations are based or where the transferred real estate is located but the taxpayers’ head offices are not based) and may have the temporarily paid tax amounts cleared against the payable tax amounts stated in annual tax finalization statements.

Based on quarterly financial statements and the tax laws, taxpayers required to make quarterly financial statements under the accounting law shall determine enterprise income tax amounts to be temporarily paid on a quarterly basis.

Based on quarterly production and business results and the tax laws, taxpayers not required to make quarterly financial statements under the accounting law shall determine enterprise income tax amounts to be temporarily paid on a quarterly basis.

The total enterprise income tax amount already temporarily paid for 4 quarters must not be lower than 80% of the payable enterprise income tax amount stated in the annual finalization statement. In case a taxpayer has paid an enterprise income tax amount smaller than the amount required to be temporarily paid for 4 quarters, it/he/she shall pay a late-payment interest on the deficit, which shall be calculated from the date following the last day of the time limit for temporary payment of enterprise income tax of the fourth quarter to the date preceding the date of actual payment of the deficit into the state budget.

Taxpayers implementing investment projects to build infrastructure facilities or houses for transfer or lease-purchase and collect advanced payments from customers according to the projects’ progress under law shall temporarily pay quarterly enterprise income tax amounts at the rate of 1% of the collected amounts. In case taxpayers have not yet handed over infrastructure facilities or houses and not yet included rentals in enterprise income tax-liable turnover of a year, instead of incorporating such rentals into annual enterprise income tax finalization declaration dossiers, they shall incorporate them in enterprise income tax finalization declaration dossiers when handing over part or the whole of the real estate projects”.

4. To amend and supplement Point c Clause 6 Article 8 as follows:

“c) After-tax profits left after setting up funds in enterprises with 100% charter capital held by the State, specifically as follows:

Taxpayers shall themselves determine after-tax profits left after temporary setting up of funds no later than the 30^th day of the quarter following the quarter in which a tax liability arises and may have such profits cleared against the payable amounts stated in annual finalization statements.

The total after-tax profit left after temporary setting up of funds of 4 quarters must not be lower than 80% of the after-tax profit left after setting up funds stated in annual finalization statements. In case a taxpayer has paid an amount smaller than the amount required to be temporarily paid for 4 quarters, it/he/she shall pay a late-payment interest on the deficit, which shall be calculated from the date following the last day of the time limit for temporary payment of after-tax profit left after setting up funds of the fourth quarter to the date preceding the date of actual payment of the deficit into the state budget.

For the increased amount of the after-tax profit left after setting up funds thanks to the additional declaration for the adjustment of the enterprise ranking as announced by the owner, an enterprise is not required to pay a late-payment interest arising from the date following the last day of the time limit for payment of the after-tax profit stated in the annual finalization statement to the time of the owner’s announcement of the enterprise ranking under regulations of a competent agency.

Representatives of capital amounts of enterprises with 100% charter capital held by the State having capital contributions at joint stock companies or limited liability companies with two or more members shall vote on payment of dividends or profits when all the conditions specified in the Law on Enterprises are met and, at the same time, request and urge those companies to pay the distributed dividends or profits to the capital contribution portions of enterprise with 100% State-owned charter capital.”

5. To amend and supplement Point g Clause 6 Article 8 as follows:

“g) Enterprise income tax applicable to foreign carriers that temporarily pay tax on a quarterly basis and make tax finalization declarations on an annual basis. The total enterprise income tax amount already temporarily paid for 4 quarters must not be lower than 80% of the payable enterprise income tax amount stated in the annual finalization statement. In case a taxpayer has paid an enterprise income tax amount smaller than the amount required to be temporarily paid for 4 quarters, it/he/she shall pay a late-payment interest on the deficit, which shall be calculated from the date following the last day of the time limit for temporary payment of enterprise income tax of the fourth quarter to the date preceding the date of actual payment of the deficit into the state budget.”

6. To amend and supplement Point b Clause 4 Article 11 as follows:

“b) For domestically exploited and sold coal:

For enterprises extracting and selling coal domestically in the form of management and assignment of their subsidiary companies or dependent units to extract, process and sell coal, the units in charge of selling coal shall make declarations for the whole environmental protection tax amount for exploited coal subject to tax, and submit tax declaration dossiers to their managing tax offices together with the statements for determination of payable tax amounts for localities where coal-extracting companies’ head offices are based, under the Minister of Finance’s regulations.”

7. To add Clause 8 Article 27 as follows:

“8. Organizations established and operating under Vietnamese laws that are owners of e-commerce exchanges shall be responsible for providing sufficient and accurate information about traders, organizations and individuals conducting a part or entire process of purchase and sale of goods and services on the e-commerce exchanges to the tax offices according to the prescribed time limits. Such information includes: the salesman’s name, tax identification number or personal identification number or identity card or citizen's identity card or passport number, address, telephone number; sales turnover gained through the function of online order of the exchange. The provision of information shall be carried out online on the General Department of Taxation’s portal according to the file format announced by the General Department of Taxation on a quarterly basis, no later than the last date of the first month of the next quarter.”

8. To add Clause 4 Article 43 as follows:

“4. Provisions of Point d.1 Clause 5 Article 7 of Decree No. 126/2020/ND-CP shall be implemented from January 01, 2023. For individuals receiving securities as dividends and existing individual shareholders receiving securities as bonuses, organizations that are recorded in the investors’ securities accounts until December 31, 2022, and have their taxes not yet declared or paid by securities companies, commercial banks where they open securities custody accounts, fund management companies to which individuals entrust their investment portfolios, organizations liable to make on-behalf tax declaration and payment, such individuals shall declare and pay personal income tax in accordance with the law on personal income tax and neither be administratively sanctioned for late submission of tax declaration dossiers nor subject to late-payment interests (if any) as prescribed in Clause 11 Article 16 of the Law on Tax Administration from December 05, 2020, to the end of December 31, 2022.”

9. To promulgate together with this Decree the Notice of suspension of use of invoices in Form No. 04-1/CC, replacing Form No. 04-1/CC provided in Appendix III to the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration.

Article 2. Implementation organization and effect

1. This Decree takes effect on the date of its signing. Provisions of Clauses 3, 4, 5 Article 1 of this Decree shall apply from the 2021 tax period. To be specific:

a) Up to the effective date of this Decree, if the taxpayers have the temporarily paid tax amount for the first 3 quarters of the 2021 tax period not lower than 75% of the payable tax amount stated in the annual finalization statement, the temporary tax rate for 4 quarters prescribed in Clauses 3, 4 and 5 Article 1 of this Decree shall not apply.

b) Up to the effective date of this Decree, if the taxpayers have the temporarily paid tax amount for the first 3 quarters of the 2021 tax period lower than 75% of the payable tax amount stated in the annual finalization statement, the temporary tax rate for 4 quarters prescribed in Clauses 3, 4 and 5 Article 1 of this Decree shall apply.

In case where the agencies competent to conduct the inspection and examination have already calculated the late-payment interests as prescribed at Points b, c, g Clause 6 Article 8 of Decree No. 126/2020/ND-CP, and the late-payment interests are deducted when the temporary rate for 4 quarters specified in Clauses 3, 4, 5 Article 1 of this Decree is applied, the taxpayers shall make a written request for reduction of late-payment interests according to the Form No. 01/GTCN provided in Appendix to this Decree, and send it to the tax offices where the late-payment interests arise (the managing tax offices or tax offices where activities entitled to enterprise income tax incentives are carried out).  After the reduction, the over-paid late-payment interest amount shall comply with Article 60 and Chapter VIII of the Law on Tax Administration No. 38/2019/QH14 and guiding documents.

2. The Ministry of Finance shall take responsibility for directing and organizing the implementation of this Decree.

3. Ministers, heads of ministerial-level agencies and government-attached agencies, Chairpersons of People’s Committees of provinces and centrally-run cities, and related enterprises, organizations, business households and individuals shall be responsible for the implementation of this Decree.

 * All Appendices are not translated herein.