Circular No. 51/1998/TT-BTC guides procedures for collecting and submitting taxes on business income and profit; procedures for handling disputes and tax exemptions and reductions; and settlement procedures for tax issues.

CIRCULAR

GUIDELINES ON PROCEDURES FOR TAX COLLECTION AND PAYMENT, AUTHORITY TO CONSIDER EXEMPTIONS AND REDUCTIONS, AND SETTLEMENT OF TAXES ISSUED BY THE MINISTRY OF FINANCE NUMBER 51/1998/TT-BTC ON APRIL 16, 1998
REGARDING BUSINESS INCOME TAX AND PROFIT TAX
PROCEDURES FOR HANDLING DIFFICULTIES AND COMPLAINTS ABOUT TAXES

Pursuant to the Law on Business Income Tax, the Law on Profit Tax, and the Law on Foreign Investment in Vietnam.

To implement Resolution No. 38/CP dated May 4, 1994 of the Government on reforming administrative procedures in handling citizens' and organizations' affairs, and Directive No. 342/TTg dated May 22, 1997 of the Prime Minister on accelerating administrative reform.

In order to simplify and expedite administrative procedures in the tax field, the Ministry of Finance hereby supplements and amends certain points regarding procedures for tax collection and payment, consideration of exemptions and reductions, and settlement of business income tax and profit tax; procedures for complaints and resolution of tax disputes as follows:

1. Tax Declaration and Payment:

Monthly, businesses prepare tax declaration forms for business income tax and profit tax and submit them to the tax authority within the prescribed time frame (except for households paying tax on a lump-sum basis). The tax authority receives the declarations, checks the reported figures, and issues a tax notification to the taxpayer. Periodically, the tax authority conducts tax inspections at enterprises; prior to conducting such inspections, the tax authority must issue a decision establishing an inspection team, clearly defining their tasks and deadlines for completing the inspection, to avoid prolonging the process which may affect the production and business activities of the enterprise.

2. Authority to Consider Exemptions and Reductions and Procedures for Considering Exemptions and Reductions:

a. The direct tax management agency has the authority to consider exemptions and reductions for businesses in the following cases:

- Exemption from business income tax and profit tax for production and business establishments exclusively for disabled workers as stipulated in Circular No. 23 TC/TCT dated April 26, 1996 of the Ministry of Finance.

- Consideration of exemption and reduction of business income tax and profit tax for vocational training establishments as stipulated in Circular No. 32 TC/TCT dated July 6, 1996 of the Ministry of Finance.

- Exemption from business income tax for elderly, disabled persons, and small-scale producers and traders as stipulated in Point 1, Section I, Part D of Circular No. 97 TC/TCT dated December 30, 1995 of the Ministry of Finance.

- Consideration of reduction of business income tax for businesses experiencing difficulties due to natural disasters, enemy attacks, or unexpected accidents as stipulated in Point 2, Section I, Part D of Circular No. 97 TC/TCT dated December 30, 1995 of the Ministry of Finance.

- Consideration of reduction of business income tax for businesses operating in mountainous areas, islands, marine fishing in coastal waters, scientific research, application of new technology... as stipulated in Point 3.a., Section I, Part D of Circular No. 97 TC/TCT dated December 30, 1995 of the Ministry of Finance.

- Consideration of reduction of business income tax for businesses producing goods that need to replace imported goods as stipulated in Point 3b, Section I, Part D of Circular No. 97 TC/TCT dated December 30, 1995 of the Ministry of Finance.

- Consideration of reduction of business income tax for newly established production units as stipulated in Point 3c, Section I, Part D of Circular No. 97 TC/TCT dated December 30, 1995 of the Ministry of Finance.

- Exemption from profit tax for elderly, disabled persons, and small-scale traders as stipulated in Point 1, Section A, Part IV of Circular No. 75A TC/TCT dated August 31, 1993 of the Ministry of Finance.

- Exemption from profit tax for transportation activities using primitive means in mountainous areas... as stipulated in Point 2, Section A, Part IV of Circular No. 75A TC/TCT dated August 31, 1993 of the Ministry of Finance.

- Exemption from profit tax for newly established production units as stipulated in Point 3, Section A, Part IV of Circular No. 75A TC/TCT dated August 31, 1993 of the Ministry of Finance.

- Exemption from profit tax for businesses relocating from lowland to mountainous areas, islands... as stipulated in Point 4, Section A, Part IV of Circular No. 75A TC/TCT dated August 31, 1993 of the Ministry of Finance.

- Reduction of profit tax for newly established production units as stipulated in Point 1, Section B, Part IV of Circular No. 75A TC/TCT dated August 31, 1993 of the Ministry of Finance.

For the above cases, after inspecting the actual situation of the enterprise, the direct tax management agency issues a notification on tax exemption and reduction to be sent to the taxpayer and simultaneously to the General Department of Taxation for reporting. This notification serves as the basis for annual tax settlement.

b. For other cases not mentioned in point (a) above, the direct tax management agency submits to the General Department of Taxation for consideration of tax exemption and reduction.

For investment forms encouraged under the Law on Domestic Investment Promotion, implementation shall be carried out according to Decree No. 07/1998/NĐ-CP dated January 15, 1998.

3. Tax Settlement Procedures:

At the end of the fiscal year, enterprises self-declare tax settlement and submit it to the tax authority, bearing full responsibility for the accuracy of the declared figures. The tax authority checks the items on the declaration form, issues a notification for the enterprise to adjust in case of errors. The tax authority prepares a plan to inspect certain units that require examination. Prior to conducting inspections, the tax authority must issue a decision establishing an inspection team, clearly defining their tasks and deadlines for completing the inspection at the enterprise.

4. Responding to Difficulties and Resolving Tax Complaints:

a. Responding to Tax Difficulties:

According to the provisions of the Tax Law and current Tax Ordinance, units and entities encountering tax difficulties have the right to reflect these issues in writing to the tax authority.

For tax difficulties of taxpayers as well as other agencies, tax authorities at all levels must respond seriously in writing and ensure the following response times:

For difficulties within the jurisdiction of tax authorities at all levels, the tax authority must respond within seven days from the date of receipt of the request letter.

For complex matters not within the jurisdiction of the tax authority, tax authorities at all levels must seek opinions from competent authorities and respond within fifteen days from the date of receipt of the request letter.

b. Resolving Tax Complaints:

The resolution of tax complaints is carried out in accordance with the provisions of the Tax Law and current Tax Ordinance.

This Circular takes effect fifteen days from the date of signature. All previous regulations contrary to this Circular are abolished.

During the implementation process, if any difficulties arise, organizations and individuals shall promptly report to the Ministry of Finance for resolution.