Circular No. 60 TC/CTN guiding the collection procedures for slaughter taxes

CIRCULAR

Guidelines for the collection of slaughter tax.

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 Pursuant to Resolution No. 37-NQ/TVQH dated November 20, 1964 and Resolution No. 1181-TVQH/K6 dated December 1, 1980 of the Standing Committee of the National Assembly on slaughter tax; Pursuant to Article 40 of the Tax Regulations for Commerce and Industry issued together with Decision No. 200-NQ/TVQH dated January 18, 1966 of the Standing Committee of the National Assembly and Article 10 of Decree No. 09-HĐBT dated January 30, 1988 of the Council of Ministers guiding the implementation of the Ordinance dated November 17, 1987 of the State Council supplementing and amending certain provisions on taxes for commerce and industry and goods:

In order to bring the management of the collection of slaughter tax into a regular system, ensuring correct implementation of policies and effectively preventing revenue loss; the Ministry of Finance provides guidelines for the collection of slaughter tax as follows:

I. RESPONSIBILITIES OF ANIMAL RAISING UNITS AND UNITS PURCHASING PIGS, CATTLE, BUFFALOES:

Slaughter tax is collected from pigs, cattle, buffaloes raised by collective and individual animal raisers for meat consumption.

To manage the collection of slaughter tax effectively, economic units raising pigs, cattle, buffaloes and units purchasing pigs, cattle, buffaloes for meat consumption must comply with the following regulations:

1. For collective and individual animal raisers:

- Assist tax authorities in inventorying the number of pigs, cattle, buffaloes raised.

- When selling pigs, cattle, buffaloes for slaughter, report to the tax authority or authorized tax collector at the commune or ward in a timely manner for the collection of slaughter tax.

- If a collective or individual animal raiser slaughters their own pigs, cattle, buffaloes, they must pay the slaughter tax. If sold to another unit (state-owned, collective, or individual), the animal raiser does not need to pay the slaughter tax but must inform the tax authority (or authorized tax collector at the commune or ward) so that the tax can be collected from the buyer and only deliver the animals to the buyer after receiving a tax receipt. Failure to comply with this regulation will result in the animal raiser paying the slaughter tax on behalf of the buyer, in addition to penalties for tax evasion according to current regulations.

- Individual animal raisers who have raised pigs, cattle, buffaloes for four months or more and slaughter them themselves are entitled to a 25% reduction in the slaughter tax.

- For injured pigs, cattle, buffaloes, if the animal raiser slaughters them themselves, they are exempt from the slaughter tax; if sold to others for slaughter, the buyer must still pay the slaughter tax.

To apply for a reduction or exemption of the slaughter tax, individuals who have raised animals for four months or more or those who have slaughtered injured animals themselves must submit an application for reduction or exemption of the tax, accompanied by confirmation from the People's Committee of the commune or ward.

- Units and individuals paying the slaughter tax must retain relevant tax payment receipts and documents related to the reduction or exemption of the slaughter tax, and present them to the tax authority upon request for inspection.

2. For units and individuals purchasing pigs, cattle, buffaloes from collective and individual animal raisers:

- State-owned, collective, and individual enterprises, as well as organizations and associations purchasing pigs, cattle, buffaloes for slaughter must fully pay the slaughter tax at the place of animal raising when purchasing, report to the tax authority or authorized tax collector at the commune or ward in a timely manner for the collection of the slaughter tax, and only transport the animals out of the locality after paying the full slaughter tax.

- When transporting pigs, cattle, buffaloes for slaughter, they must carry proof of payment of the slaughter tax. If such proof is not carried, it is considered that the tax has not been paid and must be paid, in addition to penalties for tax evasion.

- State-owned, collective, and individual enterprises purchasing pigs, cattle, buffaloes for breeding, production, plowing, milk production... are exempt from the slaughter tax, but must have confirmation from the superior management agency (if state-owned) or the People's Committee of the commune or ward (if collective or individual).

II. RESPONSIBILITIES OF THE TAX AUTHORITY.

The slaughter tax is collected by the tax authority primarily at the commune or ward where pigs, cattle, buffaloes are raised. To effectively manage the collection of the slaughter tax, the tax authority has the responsibility.

1. Organizing a network of authorized collectors:

According to Article 40 of the Tax Regulations for Commerce and Industry, the tax authority may authorize an organization or individual (referred to as an authorized collector) to collect the slaughter tax. Depending on specific characteristics and potential revenue in each area, the tax authority may directly assign tax officers to collect the tax or delegate it to authorized collectors. If delegated to authorized collectors, it must be done in accordance with the provisions in Section III of this Circular; simultaneously, the tax authority must guide the tax policy, management system for tax receipts and stamps, procedures, and deadlines for settlement of tax receipts and the slaughter tax rate so that the authorized collectors understand and implement correctly.

2.Grasping potential revenue and establishing tax collection records.

- To ensure the collection of the slaughter tax matches the number of pigs, cattle, buffaloes sold for slaughter, once every quarter, the tax authority collaborates with relevant departments (statistics, veterinary...) and the People's Committee of the commune or ward, and authorized collectors to inventory the current herd of pigs, cattle, buffaloes. The requirements of the inventory work are to grasp the total number of pigs, cattle, buffaloes currently raised, classify the inventory of pigs, cattle, buffaloes according to criteria: pigs, cattle, buffaloes for breeding; cattle, buffaloes for plowing; pigs, cattle, buffaloes for meat.

- Authorized collectors must confirm the inventory results with collective units or individual animal raisers according to the above requirements. The inventory results must be confirmed by the People's Committee of the commune or ward, the authorized collector, and other participants in the inventory.

- Based on the inventory results, the tax authority establishes a comprehensive and detailed record of the slaughter tax. The head and deputy head of the tax department must approve both the comprehensive and detailed records of the slaughter tax before handing over the detailed record to the authorized collector. The inventory and establishment of tax collection records must be completed by the end of the last day of the month at the end of the quarter, so that from the first day of the month at the beginning of the next quarter, the authorized collector has the tax collection record to collect the tax promptly.

3. Assigning staff to monitor market conditions, prices, and animal raising situations, and promptly propose adjustments to the slaughter tax rate to the higher-level tax authority to align with price fluctuations, average weight of pigs, cattle, buffaloes sold for slaughter, and policy requirements.

4. Each quarter, once, the tax authority must inspect the situation of tax collection, payment, issuance of receipts, and submission of tax payments by tax collectors and taxpayers. The results of the inspection must be recorded in a report to be submitted to the People's Committee of the commune or ward and the Head of the Tax Department for planning and measures to promptly correct policy violations and regulations, serving as a basis for evaluating the performance of tax collectors.

5. The tax authority needs to closely coordinate with financial and banking agencies to promptly settle remuneration for tax collectors and budget adjustment funds according to the prescribed regulations.

6. The collection of slaughter taxes mainly involves managing collections at the source. However, to support the management of slaughter tax collection at the commune or ward level, the tax authority needs to closely coordinate with tax control stations at markets and cargo loading/unloading points to check, detect, collect taxes, and strictly handle cases of tax evasion.

III. RESPONSIBILITIES AND RIGHTS OF TAX COLLECTORS.

A tax collector is an individual appointed by the tax authority to collect slaughter taxes at the commune or ward level. Slaughter tax collectors must be introduced by the People's Committee of the commune or ward and approved and contracted individually by the Head of the Tax Department.

1. Tax collectors have the following responsibilities:

a. Manage and collect taxes within the assigned area.

b. Collect taxes based on the actual number of pigs, cattle, and buffalo slaughtered.

c. When collecting taxes, issue slaughter tax receipts to taxpayers and record them accurately according to the receipt content. Taxes collected should be recorded in the slaughter tax ledger for easy inspection by the tax authority.

d. Adhere to the provisions on tax exemptions and reductions as guided by the tax authority.

e. Submit receipts and pay taxes according to the schedule set by the tax authority. Based on revenue potential, location, distance from the tax department or banking institution, the tax authority will specify the payment schedule to avoid large amounts of tax being held by tax collectors for extended periods. In remote areas, payments must be made at least once every month.

g. Facilitate conditions for the tax authority to inspect tax collection, receipt submission, and tax payment situations, and may not refuse or delay inspections.

h. Regularly participate in livestock inventory counts with the tax department, explain tax policies, and encourage livestock owners to pay taxes.

2Tax collectors are entitled to the following benefits::

- Receive remuneration equal to 10% of the collected slaughter taxes after fully submitting 100% of the required tax to the state budget.

- Be eligible for awards under the general system applicable to tax officials if they successfully complete their assigned tasks. If they fail to comply with the stipulated regulations, the tax authority may impose penalties ranging from criticism and warnings to suspension of tax collection duties. Serious violations such as embezzlement or misappropriation of tax funds will result in prosecution.

IV. HANDLING VIOLATIONS:

Units or individuals involved in breeding or purchasing pigs, cattle, and buffalo who violate slaughter tax policies will be subject to the penalties specified in Article 44 of the Business and Industry Tax Regulations.

During implementation, if any provisions are found to be unsuitable, the Departments of Finance and the Tax Bureaus shall compile reports to inform the Ministry for further guidance.