Legal regulations on tax cancellation, tax remission, tax chargeoff in Viet Nam

Viet Nam Law has regulations on tax cancellation, tax remission, tax chargeoff. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask how shall cancellation of tax on exports be carried out? What are cases of tax exemption? How can I apply for tax remission? Thanks for answering me!”

Legal grounds

Viet Nam Law on Tax Administration

Regulations on cancellation of tax on exports and imports

– Cancellation of export and import duties shall be carried out in accordance with regulations of law on export and import duties.

– The Minister of Finance shall provide for tax cancellation procedures.

Regulations on tax remission

– Tax remission shall comply with tax laws and Clause 2 of Article 79.

– Cases of tax exemption:

+ Households and individuals whose annual non-farming land levy is VND 50.000 or smaller;

+ Individuals whose annual personal income tax payable on salary or wage is VND 50.000 or smaller;

Regulations on application for tax remission

– In case the exempted or reduced tax eligible for remission is calculated by the taxpayer, the application for tax remission consists of:

• The tax return;
• Documents supporting the calculation of the exempted or reduced tax.

– In case the tax remission is decided by the tax authority, the application for tax remission consists of:

• A written request for tax exemption or tax reduction which specifies the tax, the reason for exemption or reduction, and the amount of tax exempted or reduced;
• Documents supporting the calculation of the exempted or reduced tax.

– The tax authority shall compile the list of households and individuals eligible for tax exemption in the cases specified in Point a Clause 2 Article 79 of Viet Nam Law on Tax Administration according to the tax books. The taxpayer shall calculate the amount of tax exempted in the cases specified in pt b Clause 2 Article 79 of Viet Nam Law on Tax Administration according to the annual personal income tax statement.

– The Ministry of Finance shall specify the composition of the application for tax remission mentioned in  Article 80, the cases in which the tax exempted or reduced is determined by taxpayers and by tax authorities.

Submission and receipt of tax remission applications

– In case the tax exempted or reduced is determined by the taxpayer, the tax remission application shall be submitted together with the tax declaration dossier mentioned in Chapter IV of Viet Nam Law on Tax Administration.

– In case the tax remission is decided by a tax authority, the tax remission application shall be submitted as follows:

• For export duties, import duties and other taxes relevant to exports and imports, the application shall be submitted to the customs authority in charge in accordance with regulations of the Government;
• Applications for remission of other taxes shall be submitted to supervisory tax authorities.

– Tax remission applications may be submitted:

• in person at tax authorities;
• by post;
• electronically through online portals or tax authorities.

– Receiving authorities shall send notices of receipt of tax remission applications; inform the taxpayer within 03 working days from the date of receipt if the application submitted is not legitimate, not adequate or not valid.

Time limits for processing tax remission applications in case the tax remission is decided by tax authorities

– Within 30 working days from the day on which the valid application is received, the tax authority issue a tax exemption or reduction decision or inform the taxpayer in writing if the application is rejected.

– In case an inspection visit is necessary to decide tax remission, the tax authority shall decide whether to grant tax remission and inform the taxpayer within 40 days from the receipt of the valid application.

What are cases of tax chargeoff?

– The taxpayer is dead or declared dead, missing or incapacitated by the court.

The chargeoff date is the issuance date of the death certificate or an equivalent document as prescribed by civil registration laws, or the court’s declaration that the taxpayer is dead, missing or incapacitated.

– The taxpayer submits a dissolution decision to the tax authority or business registration authority, the business registration authority has posted a notice on the national business registration portal but the taxpayer has not completed the dissolution procedures.

The chargeoff date is the day on which the business registration authority posts the aforementioned notice on the national business registration portal.

– The taxpayer has filed for bankruptcy or requested to file for bankruptcy in accordance with bankruptcy laws.

The chargeoff date is the day on which the court issues the notice of receipt of the bankruptcy filing or the day on which the taxpayer files for the bankruptcy to the tax authority in accordance with the Law on Bankruptcy.

– The taxpayer no longer does business at the registered address, the tax authority and the People’s Committee of the commune has confirmed that the taxpayer is no longer present in the area and made a nationwide announcement that the taxpayer or the taxpayer’s legal representative is not present at the registered address.

The chargeoff date is the day on which the aforesaid announcement is made.

– The taxpayer’s certificate of business registration, certificate of enterprise registration, certificate of cooperative registration, license for establishment and operation or practice certificates has been revoked by a competent authority, whether such revocation is requested by the tax authority or not.

The chargeoff date is the date on which the certificate of business registration, certificate of enterprise registration, certificate of cooperative registration, license for establishment and operation or practice certificates is revoked by a competent authority.

Chargeoff procedures, documents, time and power

– The Government shall provide for chargeoff procedures, documents, time.

– Heads of supervisory tax authorities of taxpayers shall decide the chargeoff cases.

– Tax authorities shall keep monitoring the charged-off tax debts and cooperate with relevant authorities in collecting the debts whenever the taxpayers are capable, or cancel the debts in accordance with Article 85 of Viet Nam Law on Tax Administration.

Related article:

• What types of businesses can issue securities in Vietnam?
• Conditions for foreign investors to establish securities companies

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