Duties and powers of the competent authorities in tax administration in Viet Nam

Tax administration is an important activity. Viet Nam law has regulations on duties and powers of the competent authorities in tax administration. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I would like to ask what are duties and powers of the Government and other competent state agencies in tax administration in Viet Nam? Thanks for answering me!”

Legal grounds

Viet Nam Law on Tax Administration

What are duties and powers of the Government?

– Unifying state management of tax administration, ensuring close cooperation between regulatory bodies and local governments in tax administration.

– Extending tax payment deadlines for business entities, sectors and professions in case of special difficulties in each specific period of time.

– Reporting the state of tax administration to the National Assembly, the Standing Committee of the National Assembly and the President upon request.

What are duties, powers and responsibilities of Ministries, Ministry-level agencies, Governmental agencies?

– The Ministry of Finance shall be the authority in charge of assisting the Government in unifying state management of tax administration and have the following duties and powers:

+ Promulgating as authorized or proposing legislative documents on tax administration to a competent authority;

+ Organizing tax administration in accordance with Law on Tax Administration and other relevant provisions;

+ Organizing the formulation and implementation of the collection of state budget revenue;

+ Organizing audits and inspections on compliance with tax regulations and other relevant provisions;

+ Acting against regulatory violations and settling complaints and denunciations related to the implementation of tax regulations as authorized;

+ Organizing tax-related international cooperation;

+ Cooperating with the Ministry of Planning and Investment and other relevant Ministries in providing guidance on independent appraisal of value of machinery, equipment and technological lines as prescribed in the Law on Investment.

– The Ministry of Public Security shall have the following responsibilities:

+ Sharing and receiving information from tax authorities on the fulfillment of tax liabilities incurred from registration of ownership and right to use of road vehicles as prescribed by law;

+ Organizing the receipt, processing and handling of crime reports and petitions to press charges; receipt of documents forwarded from tax authorities due to detection of tax violations; investigating and handling tax criminals as prescribed by law; in case no charge is brought against a case or investigation is suspended, the reasons shall be informed in writing to tax authorities and the documents shall be sent back to tax authorities for further handling as authorized.

– The Ministry of Industry and Trade shall have the following responsibilities:

+ Directing and providing guidelines to authorities on sharing and providing related information so as to cooperate with the Ministry of Finance in tax administration of enterprises and individuals involved in activities of e-commerce, commercial rights transfer and related activities.

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in conforming to regulations on the trading of commercial goods and services in the market and other fields as prescribed by law.

– The Ministry of Information and Communications shall have the following responsibilities:

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in tax administration for provision and use of Internet services, online information and online games;

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in sharing and providing information related to organizations and individuals directly participating or involving in management, provision and use of Internet services, online information and online games;

– The State Bank of Vietnam shall have the following responsibilities:

+ Directing and providing guidelines to credit institutions on sharing and providing information related to banking transactions made by organizations and/or individuals to tax authorities; cooperating with tax authorities in enforcing tax decisions as prescribed in Law on Tax Administration;

+ Building and developing systems for national e-commerce payment, integrated electronic payment utilities so as to widely implement e-commerce models.

+ Establishing managing and supervising mechanism for payment transactions, assisting tax administration for cross-border service provision in e-commerce.

– The Ministry of Planning and Investment shall have the following responsibilities:

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in granting and revoking certificates of enterprise registration, business registration, investment registration, taxpayer registration and other registrations of taxpayers via the interlinked single-window system;

+ Directing and providing guidelines to competent authorities on increasing the appraisal of investment projects so as to prevent price transfer and tax avoidance;

+ Directing and providing guidelines to competent authorities on increasing the inspection, audit and appraisal of quality and value of machinery, equipment and technology in service to operations of investment projects;

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in conforming to regulations on preferential rewards for investment appropriate to tax regulations.

– The Ministry of Natural Resources and Environment shall have the following responsibilities:

+ Directing and providing guidelines on the cooperation between competent authorities and tax authorities in managing revenues related to land, property attached to land and natural resources;

+ Providing taxpayer information managed by natural resources and environment authorities and related to tax administration per requests from tax authorities.

– The Ministry of Transport shall have the following responsibilities:

+ Directing and providing guidelines to competent authorities on sharing and providing information related to tax administration of enterprises and individuals operating in the field of cargo and/or passenger transport.

+ Sharing and providing information on technical criteria related to revenue administration for vehicles subject to registration of ownership and right to use.

– The Ministry of Labor – War Invalids and Social Affairs shall be responsible for directing and providing guidelines to competent authorities on sharing and providing information related to work permits of foreign workers working in Vietnam and Vietnamese workers working overseas to tax authorities.

– The Ministry of Health shall be responsible for directing and providing guidelines on the cooperation between competent authorities and tax authorities in sharing and providing information on pharmacies and healthcare establishments.

– Ministries, Ministry-level agencies, Governmental agencies shall be responsible for cooperating with the Ministry of Finance in performing the duties of state management of tax administration as prescribed by the Government’s regulations.

Duties of tax authorities

– Organize collection of tax and other amounts payable to the state budget in accordance with tax regulations and other relevant provisions.

– Disseminate and provide guidelines on tax regulations; publish tax procedures on tax authorities’ premises and websites and via mass media.

– Provide explanation and information related to the determination of tax liabilities to taxpayers; take responsibility for publicly announcing tax rates of household and individual businesses in communes.

– Protect confidentiality of information of taxpayers, except for information provided to competent authorities or publicly announced as prescribed by law.

– Consider tax exemption; tax reduction; cancellation of tax debts, late payment interest, penalties; late payment interest and penalty exemption; late payment interest cancellation; extension of tax payment deadline; tax payment by installments; tax debt freezing, tax cancellation; settlement of overly paid tax, late payment interest, penalties; tax refund as prescribed in Law on Tax Administration and other relevant provisions.

– Confirm tax liability fulfillment of taxpayers upon request as prescribed by law.

– Settle complaints and denunciations related to the implementation of tax regulations as authorized.

– Provide tax-related records, conclusions and/or tax decisions after tax audits/inspections for taxpayers and provide explanation upon request.

– Compensate taxpayers in accordance with provisions on the State’s compensation responsibilities.

– Carry out assessment to determine tax liabilities of taxpayers as requested by State authorities.

– Develop and organize the electronic information systems and apply information technology to e-transactions in taxation.

Powers of tax authorities

Tax authorities have the right to:

– Request taxpayers to provide information and/or materials related to the determination of tax liabilities, including information on investment value; transaction IDs and contents of accounts opened at commercial banks and/or other credit institutions and explaining tax calculation, tax declaration and/or tax payment.

– Request relevant organizations and/or individuals to provide information and/or materials related to the determination of tax liabilities and cooperate with tax authorities in implementing provisions on taxation.

– Conduct tax audits/inspections as prescribed by law.

– Impose fixed tax.

– Enforce tax decision.

– Impose penalties for administrative violations of tax administration as authorized; publish tax-related regulatory violations on mass media.

– Implement preventive measures and ensuring that actions are taken against tax-related administrative violations.

– Delegate collection of some taxes to agencies, organizations and/or individuals in accordance with the Government’s provisions.

– Apply advance pricing agreement to taxpayers and tax authorities of foreign countries and territories with whom Vietnam signed and acceded to agreements on prevention of double taxation and tax evasion for income tax.

– Purchase information, materials and data from domestic and foreign providers to serve tax administration; pay for delegation of tax collection from collected tax or from budget of tax authorities as prescribed in the Government’s provisions.

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