DECREE NO. 85/2007/ND-CP DETAILING IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON TAX ADMINISTRATION

DECREE

Detailed Implementation of Certain Provisions of the Law on Tax Administration

____________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006.

Considering the proposal of the Minister of Finance,

DECREE

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree provides detailed implementation of certain provisions of the Law on Tax Administration, applicable to the management of various types of taxes; fees and charges; land rental fees, water surface rental fees; land use fees; revenues from mineral resource exploitation; and other revenues under state budget managed by tax administration authorities as prescribed by law.

2. Policies on modernizing tax administration, building tax enforcement forces, handling violations of tax laws, and enforcing administrative decisions on taxes are stipulated in other regulatory legal documents.

Article 2. Taxpayer

The taxpayers referred to in this Decree include:

1. Organizations, households, individuals paying taxes, fees, charges, or other revenues under the state budget as prescribed by law.

2. Organizations entrusted with the task of collecting fees and charges under the state budget.

3. Organizations and individuals withholding taxes; organizations and individuals handling tax procedures on behalf of taxpayers including:

a) Organizations and individuals being Vietnamese parties signing contracts with foreign organizations and individuals conducting business in Vietnam not in accordance with the Law on Investment and not implementing Vietnamese accounting regulations;

b) Organizations and individuals withholding taxes when paying income to individuals subject to high-income personal income tax;

c) Organizations acting as ship agency for foreign shipping companies responsible for withholding corporate income tax on cargo transportation activities by sea from Vietnamese ports to overseas or between Vietnamese ports;

d) Organizations providing tax procedure services;

đ) Customs agents for export and import goods;

e) Organizations and individuals providing postal services, international express delivery services in cases where they pay taxes on behalf of taxpayers;

g) Credit institutions or other entities operating in accordance with the Law on Credit Institutions in cases where they guarantee tax payments for taxpayers.

Article 3. Delegation of Tax Collection

1. Tax administration authorities delegate to agencies, organizations, and individuals the collection of certain types of taxes as prescribed by the Ministry of Finance.

2. The delegation of tax collection must be carried out through a contract between the head of the tax administration authority and the agency, organization, or individual receiving the delegation.

3. The delegated tax collector has the responsibility to: notify and urge taxpayers to fulfill their tax payment obligations according to the tax collection delegation contract; issue receipts for tax payments to taxpayers upon receipt of tax payments; deposit collected tax funds into the account of the tax administration authority at the State Treasury; settle the amount of collected taxes and tax receipt vouchers with the tax administration authority; monitor and report to the tax administration authority new taxpayer cases or changes in the scale or business sector of taxpayers within the delegated collection area.

4. The tax administration authority has the responsibility to: publicly announce tax collection delegation cases so that taxpayers are aware and comply; provide tax collection receipts, guidance, inspection, and supervision of tax collection and payment situations by delegated agencies, organizations, and individuals.

5. Agencies, organizations, and individuals receiving tax collection delegation as stipulated in this Article shall be entitled to receive delegation fees deducted from the operational budget of the tax administration authority. The Ministry of Finance shall guide the deduction and utilization of such delegation fees as prescribed in this clause.

Chapter II

SPECIFIC PROVISIONS

Article 4. Principles for Tax Calculation, Declaration, and Payment

1. The taxpayer shall be responsible for calculating the amount of tax to be paid to the state budget based on their declaration, except in cases where the tax administration authority determines the tax or calculates the tax as prescribed in Articles 37, 38, and 39 of the Law on Tax Administration.

2. The taxpayer must accurately, honestly, and fully declare all contents in the tax declaration form and submit all required supporting documents and materials in the tax declaration dossier to the tax administration authority.

3. In cases where the taxpayer calculates the tax themselves, they must pay the full calculated amount of tax and declare it to the tax administration authority within the time limit for submitting the tax declaration dossier as stipulated in Articles 32 and 33 of the Law on Tax Administration.

4. In cases where the tax administration authority calculates the tax or determines the tax, the tax payment deadline is the date specified on the tax payment notice or the tax collection decision issued by the tax administration authority.

Article 5. Changes to Tax Registration Information

1. When there are changes in the information in the submitted tax registration dossier, the taxpayer must notify the direct tax management authority (as recorded on the Tax Registration Certificate) within 10 (ten) working days from the date of the information change.

2. In cases where the taxpayer's place of business changes leading to a change in the direct tax management authority, the taxpayer is responsible for paying the full declared tax amount before the change in the place of business and does not need to settle the annual tax (except when the change in the place of business coincides with the annual tax settlement period).

3. In cases where the information on the Tax Registration Certificate changes, the direct tax management authority will recall the previously issued Tax Registration Certificate and issue a new Tax Registration Certificate to the taxpayer.

Article 6. Tax Declaration Dossier

1. The tax declaration dossier includes the tax declaration form according to the model prescribed by the Ministry of Finance and related documents serving as the basis for the taxpayer to declare and calculate taxes.

2. The tax declaration form must include the following main contents:

a) Name and code of the tax declaration form;

b) Period of tax calculation or the time of occurrence of tax liability;

c) Information about the taxpayer: name, tax identification number, transaction address;

d) Information about the basis for calculating the amount of tax payable;

đ) Signature of the taxpayer or the authorized representative of the taxpayer.

Article 7. Value-Added Tax Declaration

1. Value-added tax declaration is as follows:

a) Monthly declaration, except in cases of declaration upon each occurrence as provided in point b of this clause and declaration under the turnover method as prescribed in Article 18 of this Decree.

b) Declaration upon each occurrence applies to:

- Exported and imported goods;

- Goods and services sold by taxpayers engaged in construction, installation, and out-of-town sales without establishing a branch in another province different from the headquarters location (hereinafter referred to as out-of-town business); in cases where the tax declaration occurs multiple times in one month, the taxpayer may register with the tax administration authority to switch to monthly value-added tax declaration.

c) Annual finalization declaration for cases where value-added tax is calculated directly on the value added.

2. Value-added tax declaration dossier:

a) Monthly value-added tax declaration dossier includes:

- Monthly value-added tax declaration form;

- Invoice list for goods and services sold;

- Invoice list for goods and services purchased.

b) Value-added tax declaration dossier upon each occurrence for out-of-town business is the value-added tax declaration form; for exported and imported goods, it is the customs declaration dossier.

c) Value-added tax finalization declaration dossier includes the value-added tax finalization declaration form and other related documents.

Article 8. Declaration of Corporate Income Tax

1. The declaration of corporate income tax shall be made as follows:

a) Quarterly provisional declaration, except for cases where the tax is declared under the turnover method prescribed in Article 18 of this Decree;

b) Declaration on a transaction-by-transaction basis for corporate income tax from land use rights transfer and land lease rights transfer activities;

c) Annual settlement declaration or declaration up to the time of cessation of business operations, termination of contracts, change in ownership form of enterprises, reorganization of enterprises.

2. Documents for declaring corporate income tax:

a) Documents for quarterly provisional declaration of corporate income tax include the quarterly corporate income tax declaration form;

b) Documents for declaring corporate income tax from land use rights transfer and land lease rights transfer activities include the corporate income tax declaration form for land use rights transfer and land lease rights transfer and related documents;

c) Documents for annual settlement declaration of corporate income tax include:

- Corporate income tax finalization declaration form;

- Annual financial report or financial report up to the time of cessation of business operations, termination of contracts, change in ownership form of enterprises, reorganization of enterprises;

- Other documents related to tax settlement.

3. Matters concerning the withholding at source declaration of corporate income tax on income from securities, agent commissions, and capital transfers shall be regulated by the Ministry of Finance.

Article 9. Declaration of Special Consumption Tax

1. The declaration of special consumption tax shall be made as follows:

a) Monthly declaration applies to goods (except imported goods as specified in point b of this clause) and services subject to special consumption tax;

b) Transaction-by-transaction declaration applies to imported goods subject to special consumption tax.

2. Documents for declaring special consumption tax:

a) Monthly special consumption tax declaration documents include:

- Monthly special consumption tax declaration form;

- Invoice list of goods and services subject to special consumption tax;

- Deductible special consumption tax statement (if applicable).

b) Declaration documents for special consumption tax on exported and imported goods are customs declaration documents.

Article 10. Declaration of Export Tax and Import Tax

1. The declaration of export tax and import tax shall be made on a transaction-by-transaction basis.

2. Documents for declaring export tax and import tax are customs declaration documents.

3. In cases of supplementary declaration of export tax and import tax, the declaration documents include:

a) Supplementary tax declaration form, specifying the reasons, contents to be supplemented, type of tax, amount of supplementary tax increase or decrease compared to the previously declared amount, and recommendations for handling;

b) Relevant documents related to the supplementary declaration.

Article 11. Declaration of Resource Tax

1. The declaration of resource tax shall be made as follows:

a) Monthly declaration applies to organizations and individuals exploiting resources, except for cases specified in point b of this clause;

b) Transaction-by-transaction declaration applies to cases where the buyer of resources pays the tax on behalf of the exploiter;

c) Annual settlement declaration or declaration up to the time of cessation of resource exploitation, change in ownership form of enterprises, reorganization of enterprises, cessation of enterprise operations.

2. Documents for declaring resource tax:

a) Monthly or transaction-by-transaction declaration documents for resource tax include the resource tax declaration form and purchase list of resources;

b) Settlement declaration documents for resource tax include the annual resource tax settlement declaration form and related documents.

Article 12. Tax Declaration for High-Income Individuals

1. The tax declaration for high-income individuals shall be as follows:

a) Monthly declaration applies to cases where income tax is withheld at source for regular income payments; lottery winnings, promotional prizes, and income temporarily subject to a 10% withholding tax.

In cases where the total monthly tax withheld is less than five million VND, the entity making the payment shall declare and pay the tax quarterly. Quarterly tax declarations are determined annually based on the total tax withheld in the first month of the tax declaration year.

b) Per-occurrence declaration applies to income from technology transfer and intellectual property rights transfer.

c) Annual settlement declaration or declaration at the time of termination of tax obligations applies to the following cases:

- Organizations or individuals who withhold and pay tax at source for regular income payments;

- Individuals with income from multiple sources who cannot settle taxes through a single organization or individual that withholds and pays taxes on their behalf;

- Individuals who directly declare and pay taxes to the tax authority.

2. Tax declaration documents for high-income individuals:

a) Monthly or quarterly tax declaration documents for high-income individuals include:

- Monthly or quarterly tax declaration form for high-income individuals;

- Withholding tax deduction schedule.

b) Per-occurrence tax declaration documents for high-income individuals consist of the per-occurrence tax declaration form and other related documents.

e) Annual settlement tax declaration documents for high-income individuals:

- In cases where organizations or individuals withhold and pay taxes on behalf of others, the annual settlement tax declaration documents include: annual settlement tax declaration form; detailed annual settlement tax summary by individual; relevant receipts, vouchers, and other documents;

- In cases where individuals have multiple sources of income and directly declare and pay taxes to the tax authority, the annual settlement tax declaration documents include: annual settlement tax declaration form; detailed income summary by different sources; income tax payment receipts or withholding tax vouchers; documents confirming deductible, exempted, or reduced tax amounts.

Article 13. Business License Tax Declaration

1. The business license tax declaration is made annually as follows:

a) The tax declaration must be submitted no later than January 30 of the tax declaration year, except as provided in point b of this clause;

b) For new taxpayers starting business operations, the tax declaration must be submitted no later than the last day of the month in which they start business operations. Subsequent years shall follow the provisions set out in point a of this clause.

2. The business license tax declaration document is the business license tax declaration form.

Article 14. Declaration of Taxes and State Budget Revenue Items Related to Land

1. The declaration of taxes and state budget revenue items related to land is as follows:

a) Annual declaration applies to:

- Real estate tax;

- Agricultural land use tax;

- Land rental fees and water surface rental fees.

b) Declaration upon each occurrence applies to:

- Land use fees;

- Land transfer tax.

2. Documents for declaring taxes and state budget revenue items related to land:

a) Real estate tax declaration documents are the real estate tax declaration form.

b) Agricultural land use tax declaration documents are the agricultural land use tax declaration form.

c) Land rental fee and water surface rental fee declaration documents include:

- Land rental fee and water surface rental fee declaration form;

- Decision on land leasing and water surface leasing issued by the competent state agency;

- Land lease and water surface lease contracts;

- Documentation and papers proving eligibility for investment incentives;

- Documentation and papers related to land compensation and support according to the law.

d) Land use fee declaration documents include:

- Land use fee declaration form;

- Documentation proving exemption or reduction from land use fees;

- Receipts for land rental fees paid when converting to land allocation with land use fees;

- Documentation and papers related to land compensation and support according to the law;

- Other related documents.

đ) Land transfer tax declaration documents include:

- Land transfer tax declaration form;

- Land use right certificate or other equivalent legal documents;

- Land transfer contract confirmed by the competent authority as prescribed by law;

- Documentation and papers proving exemption or reduction from land transfer tax.

Article 15. Declaration of Fees, Stamp Duties, and Other Revenue Belonging to the State Budget

1. The declaration of fees, stamp duties, and other revenue belonging to the State Budget shall be carried out as follows:

a) Monthly declaration applies to all types of fees and stamp duties except for cases specified in point b of this clause;

b) Declaration on each occurrence applies to stamp duties for real estate transactions and customs stamp duties;

c) Annual settlement declaration or settlement declaration up to the time of cessation of activities applies to cases specified in point a of this clause.

2. The declaration documents for fees, stamp duties, and other revenue belonging to the State Budget as stipulated in Clause 1 of this Article include the fee and stamp duty declaration form or the annual settlement declaration form for fees, stamp duties, and revenue belonging to the State Budget, along with related documents.

Article 16. Declaration of Value Added Tax and Corporate Income Tax for Foreign Contractors Not Implementing Vietnamese Accounting Standards the current accounting regime in Vietnam

1. The declaration of Value Added Tax and Corporate Income Tax for foreign contractors not implementing Vietnamese accounting standards (hereinafter referred to as tax for foreign contractors) shall be carried out as follows:

a) Declaration of tax for foreign contractors on each occurrence. In case of multiple declarations within a month, the taxpayer may register with the tax management agency to switch to monthly declaration;

b) Settlement declaration of tax for foreign contractors at the end of the contractor's contract.

2. The declaration documents for tax for foreign contractors shall be as follows:

a) Declaration documents for tax for foreign contractors on each occurrence or monthly declaration shall include:

- The tax declaration form for foreign contractors;

- Copies of the contractor's contract, subcontractor contracts, and summaries of the contracts in Vietnamese language related to the declared taxes (for the first declaration of the contractor's contract);

b) Settlement declaration documents for tax for foreign contractors shall include:

- The settlement tax declaration form;

- A list of contractors and subcontractors participating in the execution of the contractor's contract;

- A list of payment vouchers for tax payments according to each payment;

- The contract termination statement.

Article 17. Declaration of Tax for Oil Exploration and Export Activities

1. Declaration of tax for oil exploration and export activities shall be carried out as follows:

a) Declaration of export tax, natural resource tax, and corporate income tax on each oil export;

b) Annual settlement declaration or settlement declaration upon completion or termination of the oil exploration contract for natural resource tax and corporate income tax.

2. The Ministry of Finance shall specify the procedures for declaring and paying taxes for oil exploration and export activities in accordance with oil export transactions and settlements.

Article 18. Declaration of Tax for Cases Paying Tax Based on Tax Quotas

1. Monthly, quarterly, or annual declaration applies to regular business operations of individual businesses and individuals engaged in business.

2. Declaration on each occurrence applies to irregular business operations of individual businesses and individuals engaged in business.

3. The Ministry of Finance shall specify in detail the procedures for declaring taxes and determining the amount of tax payable for the cases stipulated in this Article, ensuring compatibility with the scale of business operations of individual businesses and individuals engaged in business during each period.

Article 19. Deadline for Submitting Tax Declaration Documents

1. The deadline for submitting tax declaration documents shall be implemented in accordance with Articles 32 and 33 of the Law on Tax Administration.

2. For property tax; agricultural land use tax; land lease and water surface lease fees, if there is a change in the taxable land area or lease area within a year, the taxpayer must submit supplementary declarations within 10 (ten) days from the date of the change.

Article 20. Place for Submitting Tax Declaration Forms

1. The taxpayer shall submit tax declaration forms, fee declaration forms, and other revenue declaration forms belonging to the state budget at the directly managing tax authority, except in cases stipulated in Clauses 2 and 3 of this Article.

2. Declaration forms for real estate tax, agricultural land use tax, land transfer tax, stamp duty, value-added tax on inter-provincial business activities, and tax declaration forms under the turnover tax method shall be submitted to the local tax branch managing such taxes.

3. Declaration forms for export and import goods tax shall be submitted to the customs office where the customs declaration is registered.

4. In cases where state management agencies in the same locality have regulations on coordination and handling administrative procedures, including tax declaration procedures under a single-window mechanism, the place for submitting tax declaration forms shall be carried out according to those regulations.

Article 21. Order of Payment for Taxes and Administrative Penalties

1. The order of payment for taxes and administrative penalties for violations of tax laws shall be implemented in accordance with Article 45 of the Law on Tax Administration.

2. Amounts of taxes and administrative penalties for violations of tax laws shall be deposited into the state budget account opened at the State Treasury.

The Ministry of Finance shall guide the opening of state budget accounts at the State Treasury, accounting for taxpayers' tax payments, and transferring tax payments already made into the state budget.

Article 22. Handling Overpaid Tax Payments

1. A tax payment is considered overpaid when:

a) The taxpayer has paid more than the amount of tax due;

b) The taxpayer is entitled to a refund of tax under the provisions of the Law on Value-Added Tax, Special Consumption Tax, Export Tax, Import Tax, High-Income Income Tax, and Fuel Oil Fee.

2. The taxpayer has the right to request the tax administration agency to handle the overpaid tax payment in the following ways:

a) Set off the overpaid tax against outstanding tax and penalty amounts, including setting off between different types of taxes;

b) Deduct from the tax payable in the next submission;

c) Refund the overpaid tax when the taxpayer has no outstanding tax or penalty.

3. The Ministry of Finance shall prescribe the procedures for offsetting tax as provided in Point a Clause 2 of this Article.

Article 23. Payment of Tax During the Period of Complaint Resolution and Litigation

1. During the period of resolving complaints or litigation initiated by taxpayers regarding the tax amount calculated or determined by the tax administration agency, the taxpayer must still pay the full amount of tax, except in cases where the competent authority decides to temporarily suspend the implementation of the tax calculation decision or the tax determination decision of the tax administration agency.

2. If the amount of tax paid exceeds the tax amount determined based on the resolution of the competent authority's complaint or the court's judgment, the taxpayer may set off against the tax payable in the subsequent period of that type of tax or be refunded the excess tax and interest calculated on the excess tax.

The interest payment period is calculated from the date the taxpayer pays the money until the date the tax administration agency issues the decision to refund the tax.

The interest rate for calculating interest is the basic interest rate published by the State Bank and effective at the time the tax administration agency issues the decision to refund the tax.

Article 24. Extension of Tax Payment

1. Cases Eligible for Extension:

The taxpayer may be granted an extension to pay taxes and penalties on outstanding tax and penalty amounts if they are unable to pay the taxes on time due to the following circumstances:

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

b) Relocating business premises at the request of a competent state agency, causing the enterprise to cease operations and impacting production and business results;

c) Changes in government policy directly affecting production and business results;

d) Encountering other special objective difficulties decided by the Prime Minister based on the proposal of the Minister of Finance.

2. Amount of Tax and Penalties Subject to Extension:

a) For the case mentioned in point a, Clause 1 of this Article, it is the total amount of outstanding tax and penalties owed by the taxpayer at the time of the natural disaster, fire, or unexpected accident, but not exceeding the value of the material damage suffered;

b) For the cases mentioned in points b, c, and d, Clause 1 of this Article, it is the amount of tax and penalties arising from those causes.

3. Duration of Extension for Tax Payment:

a) The maximum duration of the tax payment extension shall not exceed two years, starting from the date when the tax payment deadline expires for the case mentioned in point a, Clause 1 of this Article;

b) The maximum duration of the tax payment extension shall not exceed one year, starting from the date when the tax payment deadline expires for the cases mentioned in points b, c, and d, Clause 1 of this Article.

4. Other Provisions on Tax Payment Extensions Shall Be Implemented in Accordance with the Law on Tax Administration.

Article 25. Determination of Tax Amount Due

The taxpayer shall have their tax amount due determined in the following cases:

1. Failure to register for tax as prescribed in Article 22 of the Law on Tax Administration.

2. Failure to submit tax declaration forms within ten days from the expiration date of the tax declaration form submission deadline or the extended deadline for submitting tax declaration forms as stipulated.

3. Failure to supplement tax declaration forms upon request of the tax administration authority or having supplemented tax declaration forms but lacking sufficient, truthful, and accurate bases for calculating the tax payable.

4. Failure to present accounting records, invoices, vouchers, and related documents for determining tax calculation factors after the tax inspection or audit deadline at the taxpayer's premises.

5. During tax inspections or audits at the taxpayer's premises, there is evidence proving that the taxpayer has recorded accounting entries incorrectly, resulting in incomplete and inaccurate figures in the accounting books, leading to incorrect determination of tax calculation factors.

6. Indications of absconding or dispersing assets to avoid fulfilling tax obligations.

7. Submission of tax declaration forms to the tax administration authority but inability to calculate the tax payable independently.

Article 26. Determination of Factors Related to the Calculation of Tax Amount Due

The taxpayer shall have factors related to the calculation of the tax amount due determined in the following cases:

1. Upon reviewing tax declaration forms, the tax administration authority finds that the taxpayer has inadequately or inaccurately declared factors necessary for determining the tax payable, and has requested the taxpayer to supplement the declaration, but the taxpayer has failed to do so according to the tax administration authority's requirements.

2. Upon reviewing accounting books, invoices, and vouchers related to the determination of the tax payable, the tax administration authority has evidence proving that the taxpayer has inaccurately or untruthfully recorded factors related to the determination of the tax payable amount.

3. Recording sales prices of goods and services inaccurately compared to actual payment prices, reducing taxable revenue, or recording purchase prices of goods and raw materials for production and business activities not in accordance with market transaction prices, increasing costs, increasing deductible VAT, and reducing tax liabilities.

4. The taxpayer fails to explain or prove the truthfulness and accuracy of contents related to the determination of quantity, type, origin, taxable value, code, tax rate, or tax exemption, reduction, or refund amount of exported or imported goods.

5. The taxpayer submits tax declaration forms but cannot determine the factors necessary for calculating the tax basis or can determine such factors but cannot independently calculate the tax payable.

Article 27. Basis for Determining Tax

The tax administration authority shall determine tax for cases stipulated in Articles 25 and 26 of this Decree based on one of the following information sources:

1. The database of the tax administration authority collected from:

a) Tax declaration files and taxes paid in previous periods;

b) Information on economic transactions between taxpayers and related organizations or individuals;

c) Information provided by state management agencies;

d) Other information collected by the tax administration authority.

2. Information on:

a) Taxpayers operating in the same industry and scale in the locality;

b) Average tax payable of a number of businesses operating in the same industry and product category in the locality.

3. Tax inspection and audit documents of the tax administration authority.

Article 28. Deadline for Payment of Tax in Cases Where the Tax Administration Authority Calculates or Determines Tax

1. In cases where the tax authority calculates or determines tax, the deadline for payment of tax is the date specified in the tax authority's notification, specifically as follows:

a) For cases where tax is paid under the quota method, the deadline for payment of tax is prescribed by the Ministry of Finance;

b) For cases where the tax authority determines tax due to the taxpayer's late submission of tax declaration files, the deadline for payment of tax is 10 (ten) days, starting from the date the tax authority signs the decision to determine tax;

c) For cases where the tax authority determines tax based on the tax inspection or audit report, the deadline for payment of tax is 10 (ten) days, starting from the date the tax authority signs the decision to determine tax. If the amount of determined tax is 500,000,000 (five hundred million) VND or more, the maximum deadline for payment of tax is 30 (thirty) days, starting from the date the tax administration authority issues the decision to determine tax.

2. In cases where the customs authority determines tax, the deadline for payment of tax is as follows:

a) For the difference between the tax amount determined by the customs authority and the tax amount declared and calculated by the taxpayer in cases where goods have been cleared, the deadline for payment of tax is 10 (ten) days, starting from the date the customs authority signs the decision to determine tax;

b) For other cases, the deadline for payment of tax is implemented according to the provisions of Clauses 3, 4, and 5 of Article 42 of the Law on Tax Administration.

Article 29. Completion of Tax Obligation in Cases of Departure from Vietnam

1. Vietnamese citizens departing to settle abroad, Vietnamese citizens residing abroad, and foreigners before departing from Vietnam must complete their tax obligations.

2. The tax administration authority shall notify in writing the immigration management agency to stop departure when the taxpayer has not completed their tax obligation in the following cases:

a) Vietnamese citizens departing to settle abroad;

b) Vietnamese citizens residing abroad, foreigners who have exceeded their working period in Vietnam or have ended their independent business activities in Vietnam;

c) Individuals showing signs of fleeing Vietnam without completing their tax obligations.

3. Upon receiving the tax administration authority's notification, the immigration management agency shall be responsible for stopping the departure of individuals who have not completed their tax obligations until such individuals have fully completed their tax obligations or have taken other measures to ensure the completion of their tax obligations in accordance with Vietnamese law.

Article 30. Responsibilities of Tax Administration Authorities in Processing Tax Refund Applications

1. Tax administration authorities shall process tax refunds before conducting post-refund file inspections in accordance with tax laws, except for cases specified in Clause 2 of this Article.

2. Cases requiring pre-refund file inspection:

a) Tax refunds pursuant to international treaties to which the Socialist Republic of Vietnam is a party;

b) First-time tax refund requests from taxpayers;

c) Taxpayers who have engaged in tax evasion or fraudulent tax practices within two years prior to the date of the refund request;

d) Taxpayers who fail to conduct bank transactions as required;

đ) Mergers, consolidations, divisions, dissolutions, bankruptcies, changes in ownership form, cessation of operations of enterprises; transfer, sale, lease, or contracting out of state-owned enterprises;

e) Failure to provide explanations or supplementary documentation for tax refund applications within the time limit notified by the tax administration authority;

g) Imported goods subject to state control as prescribed by law.

3. The processing period for tax refund applications shall be carried out in accordance with Clauses 2 and 3 of Article 60 of the Law on Tax Administration. In cases where the processing of tax refund applications is delayed due to errors of the tax administration authority, in addition to the amount of tax refunded as stipulated, taxpayers shall also be paid interest on the delayed tax refund amount and the period of delay; the interest rate for calculating interest shall be implemented according to Clause 2 of Article 23 of this Decree. The source of funds for paying interest shall be drawn from the tax refund fund as prescribed by the Ministry of Finance.

Article 31. Determination of Tax Exemptions and Reductions

1. Taxpayers shall self-determine the amount of tax exempted or reduced in their tax declaration forms or tax exemption/reduction application forms submitted to the tax administration authority, except for cases specified in Clause 2 of this Article.

2. The tax administration authority shall determine and issue decisions on tax exemptions and reductions in the following cases:

a) Exemption or reduction of special consumption tax, natural resource tax, income tax for high-income individuals, real estate tax, agricultural land use tax, land rental fees, and water surface rental fees for taxpayers affected by natural disasters, fires, or unexpected accidents that prevent them from paying taxes as prescribed by law;

b) Exemption of corporate income tax for cooperatives whose average monthly income per laborer in a year is below the minimum wage set by the State for civil servants and government officials;

c) Exemption of taxes for household businesses and individual businesses paying taxes under the turnover tax method as prescribed by tax laws;

d) Exemption of natural resource tax for products derived from natural forests by residents in forested communes as permitted by natural resource tax laws;

đ) Cases eligible for export tax and import tax exemptions or reductions as prescribed by export tax and import tax laws or pursuant to international treaties to which the Socialist Republic of Vietnam is a party;

e) Other cases as prescribed by tax laws.

Article 32. Construction and Management of Information Systems on Taxpayers

1. Tax administration authorities shall be responsible for constructing information systems on taxpayers:

a) Establishing a set of information indicators and databases to be collected from taxpayers, tax administration authorities, and third parties; standardizing data collection forms and unifying these forms with those provided by organizations or individuals supplying or collecting information in their existing formats;

b) Developing and enhancing technical infrastructure and communication equipment to meet requirements for data collection, processing, storage, transmission, utilization, and control within the tax administration authority.

2. Tax administration authorities shall be responsible for managing information systems on taxpayers as follows:

a) Establishing mechanisms for using taxpayer information to support tax administration activities;

b) Establishing mechanisms for providing information to state management agencies to support state management needs;

c) Managing databases and ensuring the maintenance of taxpayer information systems.

Article 33. Obligation to Provide Information of State Agencies

State agencies have the obligation to provide information about taxpayers to tax management agencies as follows:

1. The agency issuing Business Registration Certificates, the agency issuing Licenses for Establishment and Operation shall be responsible for providing information on the contents of Business Registration Certificates, Licenses for Establishment and Operation, or Certificates of Change in Business Registration, decisions on mergers, divisions, spin-offs, dissolution, bankruptcy of taxpayers within seven working days from the date of issuance of Business Registration Certificates, Licenses for Establishment and Operation, Certificates of Change in Business Registration, decisions on mergers, divisions, spin-offs, dissolution, bankruptcy, and other information as requested by tax management agencies.

2. The State Treasury shall be responsible for providing information to tax management agencies regarding the amount of taxes paid and refunded by taxpayers.

3. State agencies managing real estate shall be responsible for providing information on changes in land use status and ownership of houses of organizations, households, and individuals related to tax management on a monthly basis or upon request of tax management agencies.

4. Police agencies shall be responsible for exchanging information with tax management agencies on combating economic crimes; information on individuals entering and exiting the country, temporary residence, temporary absence; information on hotel, guesthouse, and boarding house activities; information on vehicle registration and management according to requests of tax management agencies.

5. Inspection agencies shall provide information related to the compliance with tax laws of inspected entities which are taxpayers according to requests of tax management agencies.

6. State agencies managing trade shall be responsible for providing information on policies governing international goods trading activities, including exports, imports, temporary import for re-export, temporary export for re-import, transshipment, entrusted and entrusting exports and imports, agency purchase and sale, processing, and transit of goods of Vietnam and foreign countries.

7. Other state agencies shall be responsible for providing information according to requests of tax management agencies.

Article 34. Obligation to Provide Information of Organizations and Individuals Related to Tax Matters

1. Commercial banks and credit institutions shall be responsible for providing information according to requests of tax management agencies:

a) Bank account transaction records and information of taxpayers; bank guarantees for taxpayers;

b) Documentation, vouchers, account numbers, detailed accounting ledger copies, copies of international payment documentation, domestic payment documentation, border trade payment documentation of organizations and individuals;

c) Other information serving the collection, processing, inspection, and audit activities of tax management agencies.

2. Organizations providing tax procedure services and independent auditing companies shall be responsible for providing information according to requests of tax management agencies.

3. Organizations and individuals who are business partners or customers of taxpayers shall be responsible for providing information related to taxpayers according to requests of tax management agencies.

4. The Vietnam Chamber of Commerce and Industry shall be responsible for providing information related to the issuance of Export Origin Certificates for Vietnamese goods exported abroad; information on intellectual property registration and protection, technology transfer in Vietnam and abroad according to requests of tax management agencies.

5. Other organizations and individuals shall be responsible for providing information according to requests of tax management agencies.

6. Information exchange between tax management agencies and organizations and individuals shall be conducted in writing or through electronic data. Organizations and individuals providing information to tax management agencies are not required to inform taxpayers, except where otherwise provided by law.

Article 35. Disclosure of Taxpayer Information

The tax administration authority may disclose information about a taxpayer's violation of tax laws in the following cases:

1. Evading taxes, appropriating tax funds, illegally buying and selling invoices, losing invoices, violating tax laws and then fleeing from business premises, assisting in tax evasion, failing to pay taxes on time after the tax administration authority has applied penalties and enforced collection of overdue taxes.

2. Violations of tax laws by taxpayers that affect the rights and obligations of other organizations and individuals to pay taxes.

3. Refusing to comply with requests of the tax administration authority as prescribed by law, such as refusing to provide information and documents to the tax administration authority; failing to comply with inspection, audit decisions and other requests of the tax administration authority as prescribed by law.

4. Obstructing or hindering tax officials or customs officials in performing their duties.

5. Other information disclosed as prescribed by law.

Article 36. Cases for Tax Audit

1. The tax administration authority shall conduct tax audits in cases prescribed in Article 81 of the Law on Tax Administration.

2. Customs authorities shall conduct tax audits when they discover that taxpayers have one of the following signs of violating tax laws:

a) Taxpayers have repeatedly violated tax laws, committed violations in different areas, involved multiple organizations and individuals, or have signs of tax evasion;

b) During tax inspections at the taxpayer's premises, taxpayers show signs of disposing of evidence materials related to tax evasion or tax fraud;

c) After conducting tax inspections or extending the inspection period, customs authorities have grounds to believe that taxpayers have new signs of violations, or the inspection case is complex and serious.

Article 37. Inspection Plan

1. The head of the tax administration authority approves the annual inspection plan for cases prescribed in Clause 1 of Article 81 of the Law on Tax Administration.

2. The inspection plan includes the following main contents:

a) Inspection subjects;

b) Inspection period;

c) Types of taxes subject to inspection;

d) Anticipated time for conducting the inspection.

3. The inspection plan of subordinate tax administration authorities must be sent to superior tax administration authorities. In cases where there is overlap in inspection subjects, the superior tax authority will implement the inspection plan for those subjects.

4. If the State Inspectorate has an inspection plan concerning taxes that overlaps with the tax administration authority’s inspection plan, priority shall be given to the State Inspectorate’s tax inspection plan.

Article 38. Tax Inspectors

1. When conducting tax inspections, the tax inspection team must include at least one tax inspector.

2. Tax inspectors have the following responsibilities and powers:

a) Performing tasks and exercising powers as prescribed by laws on inspection and tax laws;

b) Imposing administrative penalties or recommending competent agencies or organizations to impose administrative penalties according to the law;

c) Having the right to use the tax inspector card to handle situations without needing authorization from a competent authority in urgent cases to promptly stop violations of tax laws, while immediately reporting the incident to the head of the tax administration authority.

3. Tax inspectors must meet the qualifications required for tax management work.

The Ministry of Finance, in coordination with the Ministry of Home Affairs and the Government Inspectorate, shall issue regulations on tax inspector qualifications.

4. When applying measures during tax inspections for cases of tax evasion or tax fraud, tax inspectors must fully follow the procedures and formalities prescribed by laws on inspection.

Article 39. Collection and Provision of Information Related to Tax Evasion and Fraud

1. The head of the tax administration agency has the right to request organizations and individuals to provide information in writing related to tax evasion and fraud:

a) The document requesting the provision of information must be directly sent to the organization or individual required to provide the information;

b) The time for calculating the deadline for providing information is the time when the document requesting the provision of information is sent to the person responsible for providing the information or to a third party responsible for transferring the document to the person responsible for providing the information;

c) In cases where the information provider is the representative of the tax-paying organization, the document providing the information must bear the signature, name, position of the information provider, and the stamp of the organization. In cases where the information provider is an individual, the document providing the information must bear the signature, name, identification number, or equivalent information of the information provider.

2. The head of the tax administration agency has the right to request organizations and individuals with information related to tax evasion and fraud to provide information through direct responses according to the following procedures:

a) The head of the tax administration agency issues a document requesting the provision of information, which includes the following main contents: the name of the organization or individual responsible for providing the information, the content of the information to be provided, documents to be brought along, time, and location to be present;

b) The tax inspector assigned to collect information must present their tax inspector card when collecting information;

c) The location for collecting information is the office of the tax administration agency;

d) When collecting information, the tax inspector must prepare a record, including the following main contents:

- Start time, end time, questions and answers, provided documents, audio and video recording, signatures of the information provider and the tax inspector conducting the information collection;

- The information provider may read or listen to the content of the record and make comments in the record;

- The information provider is entitled to keep a copy of the record.

đ) The person responsible for providing information is entitled to have travel and accommodation expenses covered by the tax administration agency according to the prescribed regulations;

e) The tax administration agency is responsible for keeping confidential the identity of the information provider, documents, materials, and evidence collected from the information provider.

Article 40. Temporary Seizure of Documents and Evidence Related to Tax Evasion and Fraud

1. The head of the tax administration agency and the leader of the tax inspection team have the right to decide on the temporary seizure of documents and evidence related to tax evasion and fraud.

The decision on the temporary seizure of evidence and documents must include the following main contents: the seized documents and evidence, the person executing the seizure, the method of seizure (sealing on-site or transferring to another place for temporary storage), and the duration of the seizure. The decision on the temporary seizure must be handed over to the person holding the seized documents and evidence.

2. The temporary seizure of documents and evidence related to tax evasion and fraud shall be applied when it is necessary to verify circumstances serving as grounds for issuing a decision on handling or immediately stopping tax evasion and fraud.

3. During the tax inspection process, if the inspected object shows signs of disposing of or destroying documents and evidence related to tax evasion and fraud, the tax inspector performing the duty may temporarily seize such documents and evidence.

Within twenty-four hours from the time of seizing the documents and evidence, the tax inspector must report to the head of the tax administration agency or the leader of the tax inspection team to issue a decision on the temporary seizure of the documents and evidence.

Within eight working hours from the time of receiving the report, the authorized person must review and issue a decision on the temporary seizure of the documents and evidence. If the authorized person disagrees with the temporary seizure, the tax inspector must return the documents and evidence within eight working hours.

4. When temporarily seizing documents and evidence related to tax evasion and fraud, the tax inspector must prepare a seizure record. The seizure record must clearly state the name, quantity, and type of seized documents and evidence; signatures of the person executing the seizure and the person currently managing the violating documents and evidence. The person issuing the decision on the temporary seizure is responsible for preserving the seized documents and evidence and will be held accountable under the law if they are lost, substituted, or damaged.

In cases where the documents and evidence need to be sealed, the sealing must be carried out in the presence of the person holding the documents and evidence; if the person is absent, the sealing must be carried out in the presence of a family representative or an organization's representative and a local government representative.

5. Evidence that is Vietnamese currency, foreign currency, gold, precious stones, precious metals, and items subject to special management must be preserved according to the provisions of the law; if the evidence is goods or items prone to damage, the person issuing the decision on the temporary seizure must organize an immediate sale to avoid losses; the proceeds from selling the goods or items must be deposited into a temporary account opened at the State Treasury to ensure the full payment of taxes and fines.

6. Within ten (10) working days from the date of temporary detention of documents and evidence, the person issuing the decision on temporary detention must handle the detained documents and evidence according to the measures set forth in the handling decision, or return them to individuals or organizations if confiscation penalties are not applied to the detained documents and evidence. For daily-use tax payer documents, the tax management agency may retain for a maximum of three (3) working days. For archival documents, the tax management agency may temporarily detain for a maximum of ten (10) working days. The period of temporary detention of documents and evidence may be extended for complex cases requiring verification, but not exceeding sixty (60) days from the date of temporary detention of documents and evidence. Any extension of the period of temporary detention of documents and evidence must be decided by the authorized person as stipulated in Clause 1 of this Article. Returning temporarily detained documents and evidence to the owner must be recorded in a handover protocol between the parties.

7. The tax management agency shall deliver one (1) copy of the decision and the temporary detention record of documents and evidence; deliver the handling decision and the record of returning documents and evidence to the organization or individual whose documents and evidence were temporarily detained.

8. In case documents and evidence are lost, stolen, damaged, or returned beyond the deadline, causing damage to the owner of the documents and evidence, the tax management agency shall bear responsibility for compensating the damage to the owner of the temporarily detained documents and evidence in accordance with the provisions of the law.

Article 41. Inspection of places concealing documents and evidence related to tax evasion and fraud

1. The inspection of places concealing documents and evidence shall be conducted when there is evidence of the concealment of documents and evidence related to tax evasion and fraud.

2. The head of the tax management agency has the authority to decide on inspecting places concealing documents and evidence related to tax evasion and fraud. If the place concealing documents and evidence related to tax evasion and fraud is a residence, it must have the written consent of the Chairman of the People's Committee of the district where the inspection takes place.

The decision to inspect places concealing documents and evidence includes the following main contents: location of inspection, composition of the inspection team, content of inspection, time of inspection, validity of the decision.

3. It is not allowed to inspect places concealing documents and evidence related to tax evasion and fraud at night, on holidays, or during funeral or wedding events of the owner of the inspected place, except in cases of immediate illegal acts and such reasons must be clearly stated in the record.

4. When inspecting places concealing documents and evidence, the owner of the inspected place and witnesses must be present. When inspecting at the premises of an organization, representatives of the organization must also be present. If the owner of the inspected place or the representative of the organization is absent and the inspection cannot be postponed, there must be a representative of the local government of the inspected area and two witnesses present.

5. Persons present at the inspection may not leave the inspection site until the inspection is completed and may not communicate with each other.

6. All inspections of places concealing documents and evidence related to tax evasion and fraud must be documented in writing and a record must be established. The inspection decision and record must be delivered to the owner of the inspected place.

7. The record of inspecting places concealing documents and evidence related to tax evasion and fraud includes the following main contents:

a) Reason for inspection, number of inspection decision or name of the head of the tax management agency who agreed to conduct the inspection;

b) Start time, end time;

c) Inspectors;

d) Location of inspection;

đ) Owner of the inspected place or manager of the inspected place;

e) Information and items discovered after the inspection;

g) Recommendations for handling information and items related to tax evasion and fraud.

Article 42. Complaint and accusation rights of taxpayers, organizations, and individuals

1. Taxpayers, organizations, and individuals have the right to file complaints with tax management agencies or state agencies with competent authority regarding the review of administrative decisions or administrative acts of tax management agencies or tax officials when there is evidence that such decisions or acts violate the law and infringe upon their legitimate rights and interests.

2. An administrative decision is a written decision issued by a tax management agency or a person with authority within a tax management agency applied once for one or several specific subjects concerning a specific issue in tax management activities. Administrative decisions of tax management agencies include:

a) Determination decision; notification of tax payment;

b) Exemption decision; reduction decision;

c) Refund decision;

d) Decision on administrative penalties for violations of tax laws;

đ) Enforcement decision for tax administrative decisions;

e) Other tax administrative decisions as prescribed by law.

3. An administrative act is an action or inaction taken while performing tax management tasks by tax management agencies, tax officials, or persons assigned tasks in tax management work.

4. Citizens have the right to report violations of tax laws by taxpayers, tax management agencies, tax officials, or other organizations and individuals as prescribed by law.

Article 43. Competence of tax management agencies at various levels to resolve complaints and accusations

1. The Director of the Tax Revenue Office, the Director of the Customs Office, the Director of the Post-Clearance Inspection Office, and the Head of the Anti-Smuggling Control Team have the competence to resolve complaints against their own administrative decisions and administrative acts, as well as those of directly managed responsible persons.

2. The Director of the Tax Department, the Director of the Customs Department, the Director of the Post-Clearance Inspection Department, and the Director of the Anti-Smuggling Investigation Department have the competence:

a) To resolve complaints against their own administrative decisions and administrative acts, as well as those of directly managed responsible persons;

b) To resolve complaints that have been resolved by the Director of the Tax Revenue Office, the Director of the Customs Office, the Director of the Post-Clearance Inspection Office, and the Head of the Anti-Smuggling Control Team but still have unresolved complaints.

3. The Director of the General Tax Department and the Director of the General Customs Department have the competence:

a) To resolve complaints against their own administrative decisions and administrative acts, as well as those of directly managed responsible persons;

b) To resolve complaints that have been initially resolved by the Director of the Tax Department, the Director of the Customs Department, the Director of the Post-Clearance Inspection Department, and the Director of the Anti-Smuggling Investigation Department but still have unresolved complaints.

4. The Minister of Finance has the competence:

a) To resolve complaints against their own administrative decisions and administrative acts, as well as those of directly managed responsible persons;

b) To resolve complaints that have been initially resolved by the Director of the General Tax Department and the Director of the General Customs Department but still have unresolved complaints.

5. The resolution of accusations shall be carried out according to the provisions of the law on accusations.

Article 44. Time limit and procedures for resolving complaints and accusations

The time limit and procedures for filing complaints and accusations, as well as resolving complaints and accusations, shall be implemented in accordance with the provisions of the law on complaints and accusations.

Article 45. Responsibilities and powers of tax management agencies in resolving complaints and accusations on tax

1. When receiving a complaint about taxes, tax management agencies must examine and resolve it within the time limit prescribed by the law on complaints and accusations.

2. Upon receipt of a complaint about taxes, tax management agencies may request the complainant to provide relevant files and documents related to the complaint; if the complainant refuses to provide the files and documents, the agency may refuse to examine and resolve the complaint.

3. Tax management agencies must refund the tax amount, the incorrectly collected fine amount, and pay interest at the rate specified in Clause 2, Article 23 of this Decree on the incorrectly collected tax and fine amounts of taxpayers and third parties within fifteen days from the date of issuing the decision to resolve the complaint or from the date of receiving the decision of the competent authority.

4. In cases where the tax payable determined in the decision to resolve the complaint is higher than the tax payable determined in the complained administrative decision, the taxpayer must pay the outstanding tax amount in full within ten days from the date of receiving the decision to resolve the complaint.

Article 46. Initiating a Lawsuit

Initiating a lawsuit against administrative decisions of tax management agencies and administrative acts of tax management officials shall be carried out in accordance with the laws on complaints and denunciations and the laws on procedures for handling administrative cases.

Chapter III

IMPLEMENTING PROVISIONS

Article 47. Effective Date

1. This Decree takes effect from July 1, 2007.

2. From the date this Decree takes effect until December 31, 2008, principal specialists and principal controllers of tax management agencies may conduct tax inspections.

Article 48. Implementation organization

1. The Ministry of Finance shall provide guidance on the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.