Law Amending and Supplementing Certain Provisions of the Tax Administration Law No. 21/2012/QH13

LAW

Amending and Supplementing Certain Articles of the Law on Tax Administration

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 as amended and supplemented by Resolution No. 51/2001/QH10;

The National Assembly promulgates the Law Amending and Supplementing Certain Articles of the Law on Tax Administration No. 78/2006/QH11,

Article 1.

Amending and Supplementing Certain Articles of the Law on Tax Administration:

1. Adding Clauses 4, 5, and 6 to Article 4 as follows:

“4. Applying risk management mechanisms in tax administration:

a) The application of risk management mechanisms in tax administration includes: collecting information and data related to taxpayers; establishing tax management criteria; assessing compliance with laws by taxpayers; proposing and applying tax management measures;

b) The tax administration authority manages and applies the business information system to assess tax risks, the degree of compliance with laws by taxpayers, select audit targets, and support other business activities in tax administration.

5. Applying preferential measures when implementing tax procedures for exported and imported goods if the taxpayer meets the following criteria:

a) Not violating tax and customs laws for two consecutive years;

b) Implementing bank transactions as prescribed by law;

c) Implementing electronic customs and tax procedures;

d) Complying with accounting and statistical laws;

đ) Having annual export and import turnover at the level specified.

6. The Government shall provide detailed regulations for Clause 4 and Clause 5 of this Article.”

2. Adding Clauses 10, 11, and 12 to Article 5 as follows:

“10. Risk management in tax administration is the systematic application of legal provisions and business processes to identify, evaluate, and classify potential negative impacts on the effectiveness and efficiency of tax administration, serving as a basis for tax administration authorities to allocate resources reasonably and apply effective management measures.

11. Advance agreement on the method of determining taxable value is a written agreement between the tax authority and the taxpayer or between the tax authority and the taxpayer and tax authorities of countries or territories with which Vietnam has signed Double Taxation Avoidance Agreements and Measures to Prevent Tax Evasion for a specific period, specifying the bases for taxation, methods of determining the taxable value or market price. An advance agreement on the method of determining the taxable value must be established before the taxpayer submits the tax declaration form.

12. Pre-determining commodity codes, customs value, and pre-certifying origin of exported and imported goods is the issuance of a document by the customs authority to determine commodity codes, customs values, and certify the origin of exported and imported goods before customs procedures are carried out.”

3. Clause 1 and Clause 2 of Article 6 are amended and supplemented as follows:

“1. Being supported and guided in tax payment; provided with information and materials to fulfill tax obligations and rights.

2. Requesting the tax administration authority to explain the tax calculation and assessment; requesting the customs authority to pre-determine commodity codes, customs values, and pre-certify the origin of exported and imported goods before customs procedures according to the Government's regulations; requesting inspection bodies to verify the quantity, quality, and type of exported and imported goods.”

4. Adding Clause 10 to Article 7 as follows:

“10. In cases where taxpayers are businesses operating in areas with information technology infrastructure, they must declare taxes, make payments, and conduct transactions with the tax administration authority through electronic means as prescribed by law on electronic transactions.

The Government shall provide detailed regulations for this clause."

5. Clause 2 and Clause 3 of Article 8 are amended and supplemented as follows:

“2. Promoting, disseminating, and guiding tax laws; publicly displaying tax procedures at the headquarters, on the electronic information website of the tax administration authority, and on mass media.

3. The tax administration authority is responsible for explaining and providing information related to tax obligations to taxpayers; the tax authority is responsible for publicly disclosing the tax payable by households and individuals engaged in business within the commune, ward, town; the customs authority is responsible for pre-determining commodity codes, customs values, and pre-certifying the origin of exported and imported goods before customs procedures according to the Government's regulations.”

6. Adding Clause 9 to Article 9 as follows:

“9. The tax authority applies the advance agreement mechanism on the method of determining the taxable value with taxpayers and tax authorities of countries or territories with which Vietnam has signed Double Taxation Avoidance Agreements and Measures to Prevent Tax Evasion.”

7. Adding Clause 3 to Article 30 as follows:

“3. The application of the advance agreement mechanism on the method of determining the taxable value is based on the proposal of the taxpayer and the mutual agreement between the tax authority and the taxpayer under unilateral, bilateral, and multilateral agreements between the tax authority, the taxpayer, and tax authorities of relevant countries or territories.”

The Government shall provide detailed regulations for this clause."

8. Adding Clause 1a after Clause 1 of Article 31; amending and supplementing Clause 6 of Article 31 as follows:

“1a. The tax declaration form for quarterly declared and paid taxes includes:

a) Quarterly tax declaration form;

b) Sales invoice summary (if applicable);

c) Purchase invoice summary (if applicable);

d) Other relevant documents concerning the tax payable.”

“6. The Government shall specify types of monthly, quarterly, annual, provisional quarterly, and per-occurrence tax declarations; criteria for identifying taxpayers for quarterly tax declarations; and tax declaration forms for specific situations.”

9. Clauses 1, 2, 3, and 6 of Article 32 are amended and supplemented as follows:

For taxes managed by the tax authority:

For taxes managed by the customs authority:"

The deadline for payment of taxes for exported and imported goods shall be as follows:

"11. Article 42 shall be amended and supplemented as follows:

"Article 45. Order of Payment of Taxes, Late Payment Penalties, and Fines

As for the non-agricultural land use tax and land rent, the deadline for tax declaration shall be in accordance with the provisions of the Law on Non-Agricultural Land Use Tax and the Law on Land Rent.

b) The latest date for submitting provisional tax declaration forms quarterly is the thirtieth day of the quarter following the quarter in which the tax liability arises.

c) The latest date for submitting final tax return forms annually is ninety days from the end of the calendar year or fiscal year.

3. The latest date for submitting tax declaration forms for taxes declared and paid on a per-occurrence basis is the tenth day from the date the tax liability arises.

For land revenues and registration fees, the deadline for submitting tax declaration forms shall be in accordance with the Government's regulations and relevant laws.

“6. The place for submitting tax declaration forms is specified as follows:

a) The taxpayer submits the tax declaration form to the direct tax management agency;

b) In cases where the submission of tax declaration forms is made through a single-window interconnection mechanism, the place for submitting the tax declaration form shall be carried out in accordance with the provisions of that mechanism;

c) The place for submitting tax declaration forms for exported and imported goods shall be carried out in accordance with the provisions of the Customs Law;

d) The Government shall specify the place for submitting tax declaration forms in cases where taxpayers have multiple production and business activities, taxpayers conduct production and business activities in multiple areas, taxpayers have tax liabilities arising from various types of taxes declared and paid on a per-occurrence basis, taxpayers have tax liabilities arising from land revenues, taxpayers declare taxes through electronic transactions, and other necessary cases.”

10. Clause 2 and Clause 4 of Article 33 are amended and supplemented as follows:

“2. The extension period shall not exceed thirty days for monthly, quarterly, annual, provisional, and per-occurrence tax declaration submissions; sixty days for final tax declaration submissions, from the date the tax declaration submission deadline expires.”

“4. Within three working days from the date of receipt of the request for extension of the tax declaration submission deadline, the tax authority must respond in writing to the taxpayer regarding acceptance or rejection of the extension of the tax declaration submission deadline.”

11. Article 42 is amended and supplemented as follows:

“Article 42. Tax Payment Deadline

1. In cases where the taxpayer calculates the tax, the latest tax payment deadline is the last day of the tax declaration submission deadline.

2. In cases where the tax authority calculates or determines the tax, the tax payment deadline is the deadline recorded on the tax authority’s notification.

For land revenues and registration fees, the tax payment deadline shall be in accordance with the Government's regulations and relevant laws.

3. The tax payment deadline for exported and imported goods is specified as follows:

a) Raw materials and components imported for the production of exported goods, the maximum tax payment deadline is two hundred seventy-five days from the date of customs declaration if the enterprise meets the following conditions:

- Having a production base for exported goods within the territory of Vietnam;

- Engaging in export and import activities for at least two consecutive years up to the date of customs declaration without engaging in commercial fraud, tax evasion, overdue tax payments, late payment penalties, or fines;

- Complying with accounting and statistical laws;

- Implementing bank transfers in accordance with the law.

In cases where these conditions are not met but the tax payable is guaranteed by a financial institution, the tax payment deadline will be according to the guarantee period, but not exceeding two hundred seventy-five days from the date of customs declaration, and no late payment penalties will be required during the guarantee period.

In cases where these conditions are not met or there is no guarantee from a financial institution, the tax must be paid before clearance or release of the goods;

b) Goods temporarily imported for re-export must pay the tax before completing the temporary import customs procedures.

If the tax payable is guaranteed by a financial institution, the tax payment deadline will be according to the guarantee period, but not exceeding fifteen days from the expiration of the temporary import and re-export period, and no late payment penalties will be required during the guarantee period;

c) Goods not covered by points a and b of this clause must pay the tax before clearance or release of the goods.

If the tax payable is guaranteed by a financial institution, the goods can be cleared or released, but late payment penalties will be required from the date of clearance or release until the tax is paid as stipulated in Article 106 of this Law. The maximum guarantee period is thirty days from the date of customs declaration;

d) In cases where the guarantor organization has guaranteed the tax but the tax and late payment penalties (if any) have not been paid by the taxpayer after the guarantee period expires, the guarantor organization shall be responsible for paying the tax and late payment penalties on behalf of the taxpayer.”

12. Article 45 shall be amended and supplemented as follows:

“Article 45. Order of Payment for Taxes, Late Payment Penalties, and Fines

In cases where the taxpayer owes tax arrears, back taxes, newly generated taxes, late payment penalties, and fines, the payment shall be made in the following order:

1. For taxes managed by the tax authority:

a) Tax arrears;

b) Back taxes;

c) Late payment penalties;

d) Newly generated taxes;

đ) Fines;

2. For taxes managed by the customs authority:

a) Overdue tax arrears are subject to enforcement measures;

b) Late payment penalties are subject to enforcement measures;

c) Overdue tax arrears that are not subject to enforcement measures;

d) Late payment penalties that are not subject to enforcement measures;

đ) Newly generated taxes;

e) Penalties.”

13. Article 47 is amended and supplemented as follows:

"Article 47. Handling excess tax payments, late payment penalties, and fines

1. If a taxpayer has paid more than the amount of tax, late payment penalties, and fines due for each type of tax within ten years from the date of payment into the state budget, they may offset the excess tax payments, late payment penalties, and fines against the remaining tax, late payment penalties, and fines owed, including offsetting between different types of taxes; or deducting from the tax, late payment penalties, and fines due for the next tax payment; or refunding the excess tax payments, late payment penalties, and fines when the taxpayer no longer owes any tax, late payment penalties, or fines.

2. In cases where a taxpayer requests a refund of excess tax payments, late payment penalties, and fines, the tax management authority must issue a decision to refund the excess tax payments, late payment penalties, and fines or provide a written response stating the reasons for not refunding within five working days from the date of receipt of the request."

14. Clause 1 of Article 49 is amended and supplemented as follows:

"1. The extension of tax payment will be considered based on the taxpayer's proposal in one of the following situations:

a) Suffering material damage directly affecting production and business operations due to natural disasters, fires, or unexpected accidents;

b) Being required to cease operations due to relocation of the production and business premises at the request of competent state authorities, affecting production and business results;

c) Not yet being reimbursed for capital investment in basic construction projects included in the state budget estimate;

d) Being unable to pay taxes on time due to other special difficulties as prescribed by the Government."

15. Article 50 is amended and supplemented as follows:

"Article 50. Authority to extend tax payment

1. The Government extends tax payment in cases where such extension does not lead to adjustments in the state budget revenue estimates already decided by the National Assembly.

2. The head of the direct tax management authority bases the decision on the tax payment extension file to determine the amount of tax to be extended and the period of extension."

16. Clause 1 of Article 54 is amended and supplemented as follows:

"1. The completion of tax payment obligations in the case of enterprise dissolution shall be carried out in accordance with the laws on enterprises, credit institutions, insurance businesses, and other relevant laws."

17. Article 58 is amended and supplemented as follows:

"Article 58. Tax Refund File

1. The tax refund file includes:

a) A document requesting a tax refund;

b) Relevant documents related to the tax refund request.

2. The tax refund file is submitted in one copy to the direct tax management authority or the customs authority authorized to process the refund."

18. Article 60 is amended and supplemented as follows:

"Article 60. Responsibilities of the tax management authority in processing tax refund files

1. The classification of tax refund files is as follows:

a) Pre-refund, post-inspection files are those of taxpayers who have a good record of compliance with tax laws and transactions settled through banks as prescribed by law;

b) Pre-inspection, post-refund cases include:

- Tax refunds under international agreements to which the Socialist Republic of Vietnam is a party;

- First-time tax refund requests by taxpayers, except for individual income tax refund requests;

- Tax refund requests made within two years from the date of tax evasion or fraud;

- Goods and services not conducted through bank transactions as prescribed by law;

- Enterprises undergoing mergers, consolidations, divisions, dissolutions, bankruptcies, changes in ownership form, cessation of operations; transfers, sales, leases of state-owned enterprises;

- Exceeding the deadline specified in the written notification from the tax management authority without providing additional explanations or supplementary documents, or failing to prove the accuracy of the declared tax amount;

- Imported goods requiring pre-inspection, post-refund according to government regulations.

2. For pre-refund, post-inspection files, the tax management authority must decide on the refund within six working days from the date of receiving all necessary documents; if the conditions for pre-refund, post-inspection are not met, the authority must notify the taxpayer about transferring the file to the pre-inspection, post-refund category or provide the reasons for not refunding.

3. The post-inspection period for pre-refund, post-inspection files is as follows:

a) Post-refund inspections must be completed within one year from the date of the refund decision for the following cases:

- Business establishments reporting losses for two consecutive years or losses exceeding the owner's equity;

- Business establishments receiving tax refunds from real estate activities, trade, and service activities;

- Business establishments changing their headquarters location two or more times within twelve months before the refund decision;

- Business establishments showing unusual fluctuations between taxable revenue and refunded tax amounts within twelve months before the refund decision;

b) For cases not covered by point a of this clause, post-refund inspections will be conducted based on risk management principles within ten years from the date of the refund decision."

4. For tax refund files subject to pre-check and post-refund, the tax administration authority must decide on the tax refund or notify in writing to the taxpayer the reasons for not refunding the tax within forty days from the date of receiving all tax refund documents.

5. Beyond the time limit specified in Clause 2 and Clause 4 of this Article, if the delay in issuing the tax refund decision is due to the fault of the tax administration authority, in addition to the amount of tax to be refunded, the tax administration authority shall also pay interest according to the Government's regulations.

19. Clause 2 of Article 64 is amended and supplemented as follows:

“2. In cases where it is necessary to conduct an actual inspection to have sufficient grounds to resolve tax exemption and reduction files, within sixty days from the date of receiving all documents, the tax administration authority shall issue a decision on tax exemption and reduction or notify in writing to the taxpayer the reasons for not granting tax exemption and reduction.”

20. Clause 3 is added to Article 65 as follows:

“3. Tax debts, late payment penalties, and fines of taxpayers that do not fall under the provisions of Clause 1 and Clause 2 of this Article, where the tax administration authority has applied all administrative compulsory measures prescribed in Clause 1 of Article 93 of this Law, and these tax debts, late payment penalties, and fines have exceeded ten years from the deadline for tax payment but there is no possibility of recovery.”

21. Clause 2 of Article 66 is amended as follows:

“2. The decision declaring bankruptcy applies to cases where enterprises are declared bankrupt;”

22. Article 67 is amended and supplemented as follows:

“Article 67. Authority to write off tax debts, late payment penalties, and fines

1. For taxpayers who are enterprises declared bankrupt as stipulated in Clause 1 of Article 65, individuals as stipulated in Clause 2 and Clause 3 of Article 65, and households as stipulated in Clause 3 of Article 65 of this Law, the Chairman of the People's Committee of provinces and centrally governed cities shall write off tax debts, late payment penalties, and fines.

2. For taxpayers not falling under the cases stipulated in Clause 1 of this Article, the authority to write off debts is defined as follows:

a) The Prime Minister writes off debts for cases where taxpayers owe taxes, late payment penalties, and fines of ten billion VND or more;

b) The Minister of Finance writes off debts for cases where taxpayers owe taxes, late payment penalties, and fines from five billion VND to less than ten billion VND;

c) The Director of the General Department of Taxation, the Director of the General Department of Customs writes off debts for cases where taxpayers owe taxes, late payment penalties, and fines below five billion VND.

3. The Government reports to the National Assembly annually the amount of taxes, late payment penalties, and fines written off when submitting the state budget settlement for approval by the National Assembly.

4. The Government shall prescribe the organization and implementation of debt write-offs.”

23. Clause 2 of Article 70 is amended and supplemented as follows:

“2. The tax administration authority shall apply necessary business measures to collect, exchange, and process domestic and foreign information, official information from tax management agencies and competent authorities abroad under international treaties to which the Socialist Republic of Vietnam is a member, and documents signed between Vietnam and other countries related to the tax and customs sectors for use in tax management work.”

24. Article 78 is amended as follows:

“Article 78. Tax Inspection at the Premises of Taxpayers

1. Cases of tax inspection at the premises of taxpayers:

a) Cases stipulated in point c and point d of Clause 3 of Article 77 of this Law;

b) Post-clearance inspection cases, including planned inspections, sample inspections to assess compliance with tax laws, and inspections of exported and imported goods that have been cleared with signs of tax evasion;

When conducting post-clearance inspections, if signs of tax evasion or fraud are discovered, the Director of the Post-Clearance Inspection Department, the Director of the Customs Department, and the Director of the Post-Clearance Inspection Sub-department shall have the authority to decide to apply measures prescribed in Section 4 of Chapter X of this Law;

c) Cases where the inspection targets are determined based on risk assessment criteria through analysis and evaluation of taxpayers' compliance with the law, inspections of cases showing signs of law violations, and cases selected according to plans and special inspection topics decided by the head of the higher-level tax administration authority. For cases mentioned herein, the tax administration authority shall conduct inspections at the taxpayer's premises no more than once a year.

2. The tax inspection decision must be sent to the taxpayer within three working days from the date of issuance. Within five working days from the date of receipt of the tax inspection decision, if the taxpayer proves that the declared tax amount is correct or has paid the full tax amount owed, the tax administration authority shall revoke the tax inspection decision.

3. The procedures and formalities for tax inspections are prescribed as follows:

a) Announce the tax inspection decision at the start of the inspection;

b) Compare the declaration content with accounting books, accounting vouchers, financial statements, relevant documents, and actual conditions within the scope and content of the tax inspection decision;

c) The tax inspection period does not exceed five working days from the date of announcing the tax inspection decision; for planned inspections of exported and imported goods, the period does not exceed fifteen days;

d) If necessary, the tax inspection decision may be extended once, with the extension period not exceeding the time limit specified in point c of this clause;

đ) Prepare the tax inspection record within five working days from the end of the inspection period;

e) Handle according to authority or transfer to the competent authority for handling based on the inspection results.”

25. Clause 4 is added to Article 92 as follows:

"4. The tax enforcement authority shall not implement compulsory tax measures against taxpayers who have been permitted to gradually pay off their tax debts within a period not exceeding twelve months from the start date of the compulsory tax enforcement period. The gradual payment of tax debts shall be considered based on the taxpayer's request and must be guaranteed by a financial institution. The taxpayer must pay late payment interest at a rate of 0.05% per day on the amount of overdue taxes.

The Government shall provide detailed regulations for this clause."

26. Amend Clause 1 of Article 93; supplement Clause 3 to Article 93 as follows:

"1. Compulsory measures for enforcing administrative decisions on tax include:

a) Seizing funds from the account of the subject being enforced upon at the State Treasury, commercial banks, or other financial institutions; requesting the freezing of accounts;

b) Deducting part of the salary or income;

c) Suspending customs procedures for exported and imported goods;

d) Announcing invoices as invalid;

đ) Inventorying assets, auctioning seized assets in accordance with the provisions of the law;

e) Collecting money or other assets of the subject being enforced upon that are held by other organizations or individuals;

g) Revoking business registration certificates, enterprise registration certificates, establishment and operation licenses, and professional practice licenses."

"3. The application of the compulsory measures provided for in Clause 1 of this Article shall be implemented in accordance with the provisions of Articles 97, 98, 98a, 99, 100, 101, and 102 of this Law and other relevant legal documents. In cases where taxpayers abscond or dispose of assets, the authorized decision-maker under Article 94 of this Law shall decide on the appropriate compulsory measure to ensure timely recovery of tax arrears for the state budget.

27. Supplement Article 98a after Article 98 as follows:

"Article 98a. Compulsory Measure by Announcing Invoices as Invalid

1. The compulsory measure of announcing invoices as invalid shall be implemented when the tax administration authority cannot apply or has already applied the compulsory measures provided for in Points a, b, and c of Clause 1 of Article 93 of this Law but still has not collected the full amount of tax arrears, late payment interest, and penalties.

2. The head of the tax administration authority shall notify the subject being enforced upon of such action three working days before announcing the invoices as invalid.

3. When implementing the compulsory measure as prescribed in this Article, the tax administration authority shall publicly announce it through mass media."

28. Clause 1 of Article 99 shall be amended and supplemented as follows:

"1. The compulsory measure of inventorying assets and auctioning seized assets shall be applied when the tax administration authority cannot apply or has already applied the compulsory measures provided for in Points a, b, c, and d of Clause 1 of Article 93 of this Law but still has not collected the full amount of tax arrears, late payment interest, and penalties.

This measure shall not be applied in cases where the taxpayer is an individual undergoing treatment at a medical facility established in accordance with Vietnamese law."

29. Amend and supplement Point a of Clause 1 of Article 100; supplement Clause 4 to Article 100 as follows:

"a) The tax administration authority cannot apply or has already applied the compulsory measures provided for in Points a, b, c, d, and đ of Clause 1 of Article 93 of this Law but still has not collected the full amount of tax arrears, late payment interest, and penalties;"

"4. The Government shall stipulate the procedures and formalities for enforcing administrative decisions on tax by collecting money or other assets of the subject being enforced upon that are held by other organizations or individuals."

30. Amend the name of Article 101; amend Clause 1 of Article 101; supplement Clause 3 to Article 101 as follows:

"Article 101. Compulsory Measure by Suspending Customs Procedures for Exported and Imported Goods

1. The compulsory measure of suspending customs procedures for exported and imported goods shall be implemented when the customs authority cannot apply or has already applied the compulsory measures provided for in Points a and b of Clause 1 of Article 93 of this Law but still has not collected the full amount of tax arrears, late payment interest, and penalties."

"3. This measure shall not be applied in the following cases:

a) Exported goods that are exempt from export tax;

b) Exported and imported goods directly serving national security, defense, disaster prevention and control, epidemic prevention, and emergency relief; humanitarian aid and non-reimbursable aid."

31. Article 102 shall be amended and supplemented as follows:

"Article 102. Compulsory Measure by Revoking Business Registration Certificates, Enterprise Registration Certificates, Establishment and Operation Licenses, or Professional Practice Licenses

1. The compulsory measure of revoking business registration certificates, enterprise registration certificates, establishment and operation licenses, or professional practice licenses shall be implemented when the tax administration authority cannot apply or has already applied the compulsory measures provided for in Points a, b, c, d, đ, and e of Clause 1 of Article 93 of this Law but still has not collected the full amount of tax arrears, late payment interest, and penalties.

2. The head of the tax administration authority shall send a written request to the competent state management agency to revoke business registration certificates, enterprise registration certificates, establishment and operation licenses, or professional practice licenses.

3. When implementing the compulsory measure as prescribed in this Article, the competent state management agency shall publicly announce it through mass media."

32. Article 106 shall be amended and supplemented as follows:

"Article 106. Handling Late Payment of Taxes"

1. Where a taxpayer fails to pay taxes within the prescribed deadline, the extended payment deadline, the deadline specified in the notification of the tax administration agency, or the deadline set forth in the decision of the tax administration agency, such taxpayer shall pay the full amount of taxes owed and late payment interest at a progressive rate of 0.05% per day on the amount of overdue taxes for up to ninety days; and 0.07% per day on the amount of overdue taxes for periods exceeding ninety days.

2. If a taxpayer underreports taxes leading to underpayment of taxes but voluntarily rectifies the situation by paying the full amount of taxes due before the competent authority discovers it, such taxpayer shall pay late payment interest but shall not be subject to administrative penalties for tax procedures, underpayment, or tax evasion.

For exported and imported goods, if a taxpayer supplements their declaration within sixty days from the date of registering the customs declaration as stipulated in Point b, Clause 2, Article 34 of this Law and proactively pays the outstanding taxes into the State budget, they shall pay late payment interest on the amount of underpaid taxes as provided herein, but shall not be subject to administrative penalties for tax procedures, underpayment, or tax evasion.

3. A taxpayer shall determine the amount of late payment interest based on the amount of overdue taxes, the number of days of delay, and the rate of late payment interest as prescribed in Clause 1 of this Article.

In cases where a taxpayer does not self-determine or incorrectly determines the amount of late payment interest, the tax administration agency shall determine the amount of late payment interest and notify the taxpayer thereof.

4. After thirty days from the expiration of the tax payment deadline, if a taxpayer has not paid the taxes and late payment interest, the tax administration agency shall notify the taxpayer of the amount of overdue taxes and late payment interest.

5. An agency or organization entrusted by the tax administration agency to collect overdue taxes, late payment interest, and fines from taxpayers shall pay late payment interest on the delayed payments according to the provisions of Clause 1 of this Article.

33. Article 107 is amended and supplemented as follows:

"Article 107. Penalties for the act of underreporting leading to underpayment of taxes or overpayment of refunds

1. Where a taxpayer fully and truthfully reflects economic transactions that generate tax liabilities in accounting books, invoices, and supporting documents but underreports leading to underpayment of taxes or overpayment of refunds, such taxpayer shall pay the full amount of underreported taxes, refund the excess refunded amount, and be subject to a penalty of 20% of the underreported tax amount, the excess refunded amount, and late payment interest on the underpaid tax amount or the excess refunded amount.

2. For exported and imported goods, if a taxpayer underreports leading to underpayment of taxes or overpayment of exemptions, reductions, or refunds but does not fall under the circumstances specified in Clause 6 and Clause 7 of Article 108 of this Law, in addition to paying the full amount of taxes and late payment interest as prescribed, the taxpayer shall also be subject to the following penalties:

a) A fine of 10% of the underreported tax amount, the excess exempted, reduced, or refunded amount where the taxpayer discovers and supplements the declaration beyond sixty days from the registration date but before the customs authority conducts inspection or audit at the taxpayer's premises as stipulated in Clause 2 of Article 34 of this Law;

b) A fine of 20% of the underreported tax amount, the excess exempted, reduced, or refunded amount where the case does not fall under the provision of point a of this clause."

34. Clause 6 and Clause 9 of Article 108 are amended and supplemented as follows:

"6. Underreporting the actual exported or imported goods without supplementing the tax declaration form after clearance.

"9. Using goods subject to non-taxation, exemption, or conditional exemption without the correct purpose as required and failing to declare the change of use to the tax administration agency."

35. Article 110 is amended and supplemented as follows:

"Article 110. Statute of limitations for penalizing violations of tax laws

1. For procedural tax violations, the statute of limitations for punishment is two years, counted from the date of the violation.

2. For tax evasion, fraudulent tax practices not reaching the level of criminal prosecution, underreporting of tax amounts, or overreporting of tax refunds, the statute of limitations for punishment is five years, counted from the date of the violation.

3. Beyond the statute of limitations for penalizing violations of tax laws, the taxpayer shall not be punished but must still pay the full amount of underpaid taxes, evaded taxes, fraudulent taxes, and late payment interest into the State budget within ten years prior to the discovery of the violation; if the taxpayer did not register for taxes, they must pay the full amount of underpaid taxes, evaded taxes, fraudulent taxes, and late payment interest for the entire period prior to the discovery of the violation."

36. The phrase "late payment interest," shall be inserted before the phrase "penalty" in Articles 3, 5, 8, 65, 66, 68, 90, 92, 93, 98, 99, 100, 113, 114, and 118; the phrase "and not required to pay" shall be added after the phrase "not subject to penalty" in Clause 4 of Article 49; the word "penalty" in the phrase "late payment penalty" in Clause 3 of Article 56 of this Law shall be removed.

37. The phrase "or business registration certificate" shall be added after the phrase "business operation registration certificate" in Articles 20, 72, and 94 of this Law.

38. Point d of Clause 3 of Article 77 of this Law is abolished.

Article 2

1. This Law takes effect from July 1, 2013.

2. Provisions regarding tax inspections stipulated in the Tax Administration Law No. 78/2006/QH11 that differ from those in the Inspection Law shall be implemented according to the provisions of the Inspection Law.

3. With respect to tax arrears and outstanding fines that are not recoverable arising before July 1, 2007, the Government shall organize the cancellation of debts and report to the National Assembly the results for the following cases:

a) Tax arrears and fines owed by households and individuals facing difficulties and unable to pay their tax debts who have ceased operations;

b) Tax arrears and fines owed by state-owned enterprises that have been officially dissolved by competent authorities; tax arrears and fines owed by state-owned enterprises that have undergone shareholding reform or ownership transfer where the new legal entity does not assume responsibility for these tax debts.

4. The Government shall provide detailed regulations and guidance on implementing the provisions assigned in this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 13th term, fourth session, on November 20, 2012./.