THE NATIONAL ASSEMBLY
——-

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
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No. 26/2012/QH13

Hanoi, November 22, 2012

LAW

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE LAW ON PERSONAL INCOME TAX

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented a number of articles  under the Resolution No. 51/2001/QH10;
The National Assembly promulgates the Law on amending and supplementing a number of articles of the Law on personal income tax No. 04/2007/QH12,
Article 1.
To amend and supplement a number of articles of the Law on personal income tax:
1. Clause 2 and clause 5 of Article 3 are amended and supplemented as follows:
“2. Incomes from salaries and wages, including:
a) Salaries, wages and amounts of similar nature;
b) Allowances, subsidies, except for amounts: Those paid under legal provisions on preferential treatment of persons with meritorious services; defense or security allowances; hazard or danger allowances for persons working in branches, occupations or jobs at places where exist hazardous or dangerous elements; allowances for attraction of laborers to work in certain branches or in certain regions specified by law; allowances for sudden difficulties, allowances for laborers having labor accident or suffering from occupational disease, lump-sum maternity or child adoption allowances; allowances for working capacity loss, lump-sum retirement allowances, monthly survivorship allowances and other allowances as prescribed by law on social insurance; , severance and job-loss allowances specified in the Labor Code; subsidies of social relief nature and other allowances, subsidies without nature of salaries, wages as prescribed by the Government.”
“5. Incomes from transfer of real estate, including:
a) Incomes from transfer of rights to use land and assets attached to land;
b) Incomes from transfer of right to own or use residential houses;
c) Incomes from transfer of right to lease land or water surface;
d) Other incomes earned from transfer of real estate under any form.”
2. Clause 10 Article 4 is amended and supplemented as follows:
“10. Retirement pensions paid by the Social Insurance Fund; retirement pensions paid monthly by the Voluntary Retirement Fund.”
3. Point c Clause 1 Article 7 is amended as follows:
“c. Tax period upon each transfer or annual tax period, which is applicable to Incomes from transfer of securities.”
4. Clause 1 Article 19 is amended and supplemented as follows:
“1. Reduction based on family circumstances means a sum of money deductible from pre-tax income from business, salary or wage of a resident taxpayer.  Reduction based on family circumstances consists of the following two parts:
a) Reduction for the taxpayer, which is VND 9 million/month (VND 108 million/year);
b) Reduction for each dependant of the taxpayer, which is VND 3.6 million/month.
In case the Consumer Price Index (CPI) changes over 20% compared to the effective time of the Law or the latest time point of adjusting the reduction based on family circumstances, the Government submits to the Standing committee of the National Assembly for adjustment of the reduction based on family circumstances specified in this clause in conformity with changes of price in order to apply for the next tax term.”
5. Clause 1 Article 21 is amended and supplemented as follows:
“1. A taxed income from business, salary or wage is the total of taxable incomes specified in Articles 10 and 11 of this Law minus premiums of social insurance, health insurance, unemployment insurance and professional liability insurance for some professions and jobs subject to compulsory insurance, the Voluntary Retirement Fund and reductions specified in Articles 19 and 20 of this Law.
The Government shall stipulate the maximum level permitted to minus for amounts of contribution in the Voluntary Retirement Fund specified in this clause.”
6. Article 24 is amended and supplemented as follows:
“Article 24. Responsibilities of income-paying organizations and individuals and responsibilities of resident taxpayers
1. Responsibility to make tax declaration, withholding, payment and finalization is specified as follows:
a) Income-paying organizations and individuals shall make tax declaration, withhold and remit tax into the state budget, and make tax finalization for all kinds of taxable income they pay to taxpayers;
b) Individuals who have taxable incomes shall make tax declaration, pay tax into the state budget and make tax finalization as prescribed by law.
2. Income-paying organizations and individuals shall supply information on incomes and dependants of taxpayers under their management as prescribed by law.
3. The Government shall specify tax withholding rates suitable to each kind of income specified at Point a, Clause 1 of this Article and the tax finalization specified in clause 1 of this Article.”
Article 2.
1. This Law takes effect on July 01, 2013.
2. The Government shall detail and guide the implementation of articles, clauses assigned in the Law.
This Law was passed on November 22, 2012, by the XIII^th National Assembly of the Socialist Republic of Vietnam at its 4^th session.
 

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LAW

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE LAW ON TAX ADMINISTRATION

Pursuant to the Constitution of the Socialist Republic of Vietnam 1992, amended and supplemented in the Resolution No. 51/2001/QH10;
The National Assembly promulgates the Law on amending and supplementing a number of articles of the Law on Tax administration No. 78/2006/QH11,
Article 1.
Amending and supplementing a number of articles of the Law on Tax administration:

1. Clause 4, 5 and 6 is added to Article 4 as follows:

“4. Applying the risk management mechanism to tax administration:

1. a) The application of risk management mechanism in tax administration includes: collecting information and data related to tax payers; establishing the tax administration criteria; assessing the compliance with law of tax payers; suggesting and applying tax administration measures;
2. b) The tax authority shall manage and use professional information systems to asses taxation risks, the compliance with law of tax payers, select objects of tax inspection, and support other activities in tax administration.
3. Giving priorities when carrying out taxation procedures applicable to exports and imports if the tax payer satisfy the following requirements:
4. a) Do not violate the laws on tax and customs within consecutive 02 years;
5. b) Make payments via banks as prescribed by law;
6. c) Carry out electronic customs procedures and taxation procedures;
7. d) Comply with the law on accounting and statistics;
8. dd) Reach the required rated of export and import turnover.
9. The Government shall specify Clause 4 and Clause 5 of this Article.”
10. Clause 10, 11 and 12 is added to Article 5 as follows:

“10. Risk management in tax administration is the systematic application of laws and professional processes to determine, assess, and classify the risks that might negatively affect the efficiency and legitimacy of tax administration, and to form the basis for the tax authority to reasonably allocate resources and efficiently take managerial measures.
1.1. Prior agreement on the method of calculating taxable prices is a written agreement between the tax authority and tax payers, or between the tax authority, tax payers and the tax authorities of the nations and territory with which Vietnam has signed the Agreements on double taxation and the prevention of tax evasion, applicable to income tax within a certain period, specifying the bases for tax calculation, the method of determining taxable prices or taxable prices according to market prices. The prior agreement on the method of determining taxable prices shall be made before the tax payer submit the tax declaration dossier.

12. The prior determination of customs value and codes, the prior certification of the origins of exports and imports are the customs’ issuing papers to determine customs value and codes, to determine the origins of exports and imports before carrying out customs procedures.”
13. Clause 1 and Clause 2 Article 6 is amended and supplemented as follows:

“1. Receive supports and instruction to pay tax; provide information and documents to fulfill the tax obligations and enjoy taxation benefits.

2. Request the tax authority to explain the tax calculation and tax imposition; request the customs to determine the customs value and codes, certify the origins of exports and imports before carrying out customs procedures as prescribed by the Government; request the verification of the quality, quantity, and category of exports and imports.”
3. Clause 10 is added to Article 7 as follows:

“10. In case the tax payer doing business in a locality with information technology infrastructure shall make declaration, pay tax, and make transactions with the tax authority via electronic instruments as prescribed by the laws on electronic transactions.
The Government shall specify this Clause .”

5. Clause 2 and Clause 3 Article 8 is amended and supplemented as follows:

“2. Disseminate and instruct the laws on tax; announce the taxation procedure at the offices and websites of the tax authority and on the mass media.

3. The tax authority must explain and provide information relevant to the determination of tax liability for tax payers; the tax authority must announce the tax being paid by local households and traders; the customs must determine the customs values and codes, certify the origins of exports and imports before carrying out customs procedures as prescribed by the Government.”
4. Clause 9 is added to Article 9 as follows:

“9. the tax authority shall apply the mechanism for prior agreement on the method of determining taxable prices to tax payers and tax authorities of the nations and territories with which Vietnam has signed the Agreements on prevention of double taxation and tax evasion applicable to income tax.”

7. Clause 3 is added to Article 30 as follows:

“3. The mechanism for prior agreement on the method of determining taxable prices is applied based on the request of the tax payer and the agreement between the tax authority and the tax payer under a unilateral agreement, bilateral agreement, and multilateral agreement between the tax authority, the tax payer and the tax authority of relevant nations and territories.
The Government shall specify this Clause .”

8. Clause 1a is added after Clause 1 Article 31; Clause 6 Article 31 is amended and supplemented as follows:

“1a.  The tax declaration dossier of taxes being declared and paid every quarter includes:

1. a) The quarterly tax declaration;
2. b) The list of invoices sold goods and services (if any);
3. c) The list of invoices of purchased goods and services (if any);
4. d) Other documents related to the tax payable.”

“6. The Government shall specify the taxes being declared every month, every quarter, every year, temporarily declared every quarter, declared every time the tax liability arises, the tax finalization declaration the criteria for determining tax payers making declaration every quarter, and the dossier of tax declaration of each case.”

9. Clause 1, 2, 3 and 6 Article 32 is amended and supplemented as follows:

“1. For the taxes being declared every month and every quarter:

1. a) On the 20^th of the month succeeding the month when the tax liability arises at the latest, applicable to the taxes declared and paid every month;
2. b) On the 30 of the month succeeding the month when the tax liability arises at the latest, applicable to the taxes declared and paid every quarter.
3. For annual taxes:
4. a) On the 30^th of the first month of the calendar year or the fiscal year at the latest, applicable to the annual tax declaration.

For taxes on the use of non-agricultural land and land rents, the time limit for making tax declaration is prescribed by the laws on taxes on the use of non-agricultural land and land rents;

1. b) On the 30^th of the quarter succeeding the quarter when the tax liability arises at the latest, applicable to the initial tax declaration every quarter;
2. a) On the 90^th as from the end of the calendar year or the fiscal year at the latest, applicable to the annual tax declaration.
3. a) On the 10^th as from the tax liability arises at the latest, applicable to the taxes declared every time the tax liability arises;

The time limit for submitting the declaration of taxes on land income and registration fee is specified by the Government and relevant laws.”
“6. The location for submitting tax declarations:

1. a) The tax payers shall submit the tax declarations at the authority in charge;
2. b) When submitting the tax declaration according to single-window system, the location for submitting the tax declaration is provided by that system;
3. c) The locations for submitting the tax declaration of exports and imports are specified by the Law on Customs;
4. d) The Government shall specify the location for submitting tax declarations in cases such as: the tax payer engages in multiple businesses; the tax payer conducts business or production in multiple localities; the tax payer having tax liabilities; the tax payer having tax on the incomes from land; the tax payer making electronic declaration, and other necessary cases.”
5. Clause 2 and Clause 4 Article 33 is amended and supplemented as follows:

“2. The extension does not exceed 30 days, applicable to the submission of monthly, quarterly, and annual tax declarations, initial tax declarations, occasional tax declarations; and does not exceed 60 days applicable to the submission of tax finalizations, as from the deadline for submitting tax declarations.”
“4. Within 03 working days as from the reception of the application for extending the tax declaration, the tax authority must issue the written approval or refusal to the tax payer.”

11. Article 42 is amended and supplemented as follows:

“Article 32. Deadlines for paying tax

1. In case the tax is calculated by the tax payer, the deadline for paying tax is the deadline for submitting the tax declaration.
2. In case the tax is calculated or imposed by the tax authority, the deadline for paying tax shall be written on the notice of the tax authority.

The deadlines for paying taxes on incomes from land and registration fee are specified by the Government and relevant laws.”

3. The deadlines for paying taxes on exports and imports:
4. a) The goods is materials imported for producing exports, the time limit for paying tax is two hundred and seventy five days as from the date of registration of the customs declaration sheet if the enterprise:

– Has a factory that produces exports in Vietnam;
– Engages in export and import for at least consecutive 02 years by the date of registration of the customs declaration sheet without committing any acts of trade fraud, tax evasion, overdue tax, late payment interest, fines;
– Comply with the laws on accounting and statistics;
– Make payments via banks as prescribed by law.
If the requirements above are not satisfied, but the tax payable is underwritten by a credit institution, then the time limit for paying tax is the period of underwriting, but must not exceed two hundred and seventy five days as from the date of registration of the customs declaration sheet, and the late payment interest is exempted during the underwriting period.
If the requirements above are not satisfied, but the tax payable is not underwritten by a credit institution, then the tax must be paid before the customs clearance is granted or before the goods are released;

1. b) Taxes on goods being temporarily imported for re-export must be paid before completing the customs procedures for temporarily importing goods.

If the tax payable is underwritten by a credit institution, then the time limit for paying tax is the underwriting period, but must not exceed fifteen days as from the deadline for temporary import for re-export, and the late payment interest is exempted during the underwriting period;

1. c) The taxes on goods not falling into the cases in Point a and Point b this Clause must be paid before the customs clearance is granted or before the goods are released.

If the tax payable is underwritten by a credit institution, then the customs clearance shall be granted or the goods shall be released, but the late payment interest must be paid as prescribed in Article 106 of this Law; The maximum underwriting period is 30 days as from the registration date of the customs declaration sheet;

1. d) If the tax payer underwritten by a credit institution has not paid tax and the late payment interest (if any) the underwriter shall pay tax and late payment interest on the tax payer’s behalf.”
2. Article 45 is amended and supplemented as follows:

“Article 45. The order for paying taxes, late payment interest, and fines
If the tax payer has to pay tax debt, tax arrears, new tax, late payment interest, and fines, then the payments shall be made in the following order:

1. For taxes managed by the tax authority:
2. a) Tax debt;
3. b) Tax arrears;
4. c) Late payment interest;
5. d) New tax;
6. dd) Fines;
7. For taxes managed by the customs:
8. a) The overdue tax debts subject to enforcing measures;
9. b) The late payment interest subject to enforcing measures;
10. c) The overdue tax debts subject to enforcing measures;
11. d) Late payment interest not subject to enforcing measures;
12. dd) New tax;
13. dd) Fines.”
14. Article 47 is amended and supplemented as follows:

“Article 47. Settling excess taxes, late payment interest, and fines

1. The tax payer of which the paid tax, late payment interest, and fine payable are bigger than the tax, late payment interest, and fines payable within 10 years as from they day of making payment to the State budget, shall have the excess tax, late payment interest, and fines offset against the outstanding amount, including the offset among the taxes; or against the tax, fines the next payment; or returned, if the tax payer has no tax debts, late payment interest, and fines.
2. If the tax payer request the return of the excess amount, the tax authority shall make a decision on return it, or issue a written explanation for not returning it within 05 working days as from receiving the written request.
3. Clause 1 Article 49 is amended and supplemented as follows:

“1. The tax deferral shall be considered based on the request of the tax payer in one of the following cases:

1. a) The tax payer suffer from material damage that directly affect the production and business by reason of natural disasters, fire, or unexpected accidents;
2. b) The operation is suspended by reason of moving the premises under the request of competent State agencies that affect the business;
3. c) The fundamental construction capital written in the State budget estimate is not paid;
4. d) The tax payer is not able to pay tax punctually due to other difficulties as prescribed by the Government.”
5. Article 50 is amended and supplemented as follows:

“Article 50. Authority to extend the deadline for tax payment

1. The Government shall extend the deadline for tax payment if such extension does not lead to a revision in the State budget revenue estimate decided by the National Assembly.
2. The head of the tax authority shall decide the tax amount being deferred, the deferral period based on the dossier of tax deferral.”
3. Clause 1 Article 54 is amended and supplemented as follows:

“1. The fulfillment of the tax liability when the enterprise is dissolve is prescribed by the laws on enterprises, credit institutions, insurers, and relevant laws.

17. Article 58 is amended and supplemented as follows:

“Article 58. The tax refund dossier

1. 1. The tax refund dossier includes:
2. a) The written request for tax refund;
3. b) The documents related to the request for tax refund.
4. The tax refund dossier shall be submitted at a tax authority or at a customs agency authorized to refund tax.”
5. Article 60 is amended and supplemented as follows:

“Article 60. Responsibility of the tax authority for settling tax refund dossiers

1. The classification of tax refund dossiers:
2. a) The tax shall be refunded before the inspection if the tax payer comply with the laws on tax, and the payments are made via banks as prescribed by law;
3. b) The tax shall be refund after the inspection if:

– The tax is refunded under an International Agreements to which the Socialist Republic of Vietnam is a signatory;
– The tax payer requests the tax refund for the first time, except for the request for the refund of personal income tax;
– The tax payer request the tax refund within two years as from the date of the penalty for tax evasion or tax fraud;
– The goods or services are not paid via banks as prescribed by law;
– The enterprise is consolidated, merged, divided, split, dissolved, bankrupt, shut down, or has its ownership converted; the state-owned enterprise is transferred, sold, or lease foreign enterprises
– The tax payer fails to explain or supplement the tax refund dossier after the period set by the tax authority, or the explanation and supplementation does not prove the accuracy of the tax declared;
– The imports must be inspected before the tax is refunded as prescribed by the Government.

2. If the dossier is eligible for tax refund before the inspection, within 06 working days as from receiving the complete tax refund dossier; the tax authority must decide the tax refund according to the request of the tax payer; if the conditions for refunding tax before the inspection, the tax authority shall notify the tax payer in writing of refunding tax after the inspection, or notify the reason for not refunding tax.
3. The time limit for inspection after the tax refund, applicable to the dossiers eligible for tax refund before inspection:
4. a) The inspection after the tax refund must be carried out within one year as from the date of issue of the decision on refunding tax in the following cases:

– The trading establishment reports a loss in consecutive two years, or the loss exceeds the equity capital;
– The trading establishment has its tax on the income from real estate, trading, and services refunded;
– The location of the trading establishment is changed at least twice in the previous twelve months from the date of the decision on tax refund;
– The there are unusual changes in the chargeable revenue and the refunded tax in the previous 12 months from the date of the decision on tax refund;

1. b) For the cases not prescribed in Point a this Clause , the inspection after tax refund shall be carried out according to the rule of risk management within ten years from the date of the decision on tax refund.
2. If the tax must be refunded after the inspection, within 40 days as from receiving the complete tax refund dossier; the tax authority must decide the tax refund, or notify the reason for not refunding tax to the tax payer.
3. After the period prescribed in Clause 2 and Clause 4 this Article, if the decision on tax refund is delayed by the tax authority, it must pay interests as prescribed by the Government, apart from the tax refunded.”
4. Clause 2 Article 64 is amended and supplemented as follows:

“2. If the actual inspection is necessary for settling the dossier of tax exemption or tax reduction, within 60 days as from receiving the complete dossier, the tax authority shall make the decision on tax exemption or tax reduction, or notify the reasons for not exempting or reducing tax to the tax payer.”

20. Clause 3 is added to Article 65 as follows:
21. The tax debts, late payment interest, and fines of the tax payer not falling in the cases prescribed in Clause 1 and Clause 2 this Article that the tax authority have taken all measures for enforcing the implementation of the administrative decisions on tax prescribed in Clause 1 Article 93 of this Law, and such tax debts, late payment interest, and fines have exceeded 10 years as from the deadline for paying tax, but are not able to be collected.”
22. Clause 2 Article 66 is amended as follows:

“2. The Decision on declaring the bankruptcy, in case the enterprise is declared bankrupt;”

22. Article 67 is amended and supplemented as follows:

“Article 67. The authority to write off tax debts, late payment interest, and fines

1. The Presidents of People’s Committees of central-affiliated cities and provinces shall write off the tax debt, late payment interest, and fines of tax payers being enterprises that are declared bankrupt prescribed in Clause 1 Article 65, the individuals prescribed in Clause 2 and Clause 3 Article 65, the households prescribed in Clause 3 Article 65 of this Law.
2. The authority to write off tax debts of the tax payers not falling into the cases prescribed in Clause 1 this Article:
3. a) The Prime Minister shall write off the tax debts, late payment interest, and fines of at least ten billion VND;
4. b) The Prime Minister shall write off the tax debts, late payment interest, and fines of from five billion VND to under ten billion VND;
5. c) The Director of the General Department of Taxation and Director of the General Department of Customs shall write off the tax debts, late payment interest, and fines of under five billion VND;
6. The Government shall report the cancelled tax debts, late payment interest, and fines to the National Assembly when submitting the State budget finalization to the National Assembly for approval.
7. The Government shall specify the tax cancellation.”
8. Clause 2 Article 70 is amended and supplemented as follows:

“2. The tax authority shall take necessary measures for collecting, exchanging, and processing information at home, overseas, official information from the competent agency and tax authority overseas in accordance with the International Agreements to which the Socialist Republic of Vietnam is a signatory, the documents signed by Vietnam and other countries about taxation and customs applicable to tax administration.”

24. Article 78 is amended as follows:

“Article 78. Tax inspection at the offices of tax payers

1. “The cases of tax inspection at the offices of tax payers:
2. a) The cases prescribed in Point c and Point d Clause 3 Article 77 of this Law;
3. b) The post-customs clearance inspections, including planned inspections, and sampling inspections for assessing the compliance to the laws on taxation, and inspections of passed exports and imports that are suspected of violating the laws on tax.

If there are signs of tax evasion and tax fraud during the post-customs clearance inspection, the Director of the Department of Post-customs clearance inspection, the Director of the Customs Department, the Director of the Sub-department of Post-customs clearance inspection are entitled to take the measures prescribed in Section 4 Chapter X of this Law;

1. c) When determining the subjects of inspection according to the risk assessment criteria by analyzing and assessing the compliance to law of the tax payers; inspecting the cases suspected of violating laws, and the cases selected as planned, the subject of inspection shall be decided by the director of the superior tax authority. In the cases prescribed I this Point, the tax authority shall carry out inspections at the tax payers’ office no more than once a year.
2. The decision on tax inspection must be sent to the tax payer within three working days as from the date of its signing. Within five working days as from receiving the decision on tax inspection, if the tax payer proves that the declared tax is correct, or the tax is completely paid, the tax authority shall annul the decision on tax inspection.
3. The order and procedure of tax inspection:
4. a) Announce the decision on tax inspection when starting the tax inspection;
5. b) Compared the declaration and accounting books, accounting documents, financial statements, relevant documents, and the actual conditions within the scope of the decision an tax inspection;
6. c) The tax inspection period does not exceed five working days as from the day of announcing the decision on inspection; if the scheduled inspection of exports and imports does not exceed fifteen days;
7. d) If necessary, the decision on tax inspection shall be extended once; the extension length does not exceed the periods prescribed in Point c this Clause;
8. dd) Made the tax inspection record within five working days as from the end of the inspection;
9. e) Handle the inspection result, or send the inspection result to competent authorities for handling.”
10. Clause 4 is added to Article 92 as follows:

“4. The tax enforcement shall be suspended if the tax authority allows the tax payer to pay the tax debt by instalments within 12 months as from the commencing day of the tax enforcement. The payment of tax debt by instalments shall be considered based on the request of the tax payer who is underwritten by a credit institution.  The tax payer must pay the late payment interest at the rate of 0.05% of the deferred tax amount.
The Government shall specify this Clause .”

26. Clause 1 Article 93 is amended and supplemented, and Clause 3 is added to Article 93 as follows:

“1. The measures for enforcing the administrative decisions on taxation:

1. a) Extract money from the account of the enforced subjects at the State Treasuries, commercial banks, or other credit institutions; request the account to be blocked;
2. b) Deduct part of the salary or income;
3. c) Suspend the customs procedures for exports and imports;
4. d) Invalidate invoices;
5. dd) Distrain assets, put the distrained assets up for auction as prescribed by law;
6. e) Collect money and other assets of the enforced subjects which are held by other organizations and individuals;
7. g) Revoke the Certificate of business registration, Certificate of Enterprise registration, License for establishment and operation, or practice certificate.”

“3. The employment of the enforcing measures prescribed in Clause 1 this Article must comply with Article 97, 98, 98a, 99, 100, 101 and 102 of this Law, and other relevant law documents. In case the tax payer flees or hides their assets, the person authorized to make the decision on enforcement prescribed in Article 94 of this law shall take appropriate enforcing measures in order to ensure the prompt recovery of tax debt for the State budget.”

27. Clause 98a is added to Article 98 as follows:

“Article 98a.  Enforcing by invalidating invoices

1. The invoices are invalidated when the tax authority fails to take the enforcing measures, or fails to completely recover the tax debt, late payment interest, or fines after taking the enforcing measures prescribed in Point a, b, and c Clause 1 Article 93 of this Law.
2. The director of the tax authority must notify the enforced subject within 03 working days before announcing the invalidation of invoices.
3. After taken the enforcing measures prescribed in this Article, the tax authority must announce it on the mass media.”
4. Clause 1 Article 99 is amended and supplemented as follows:

“1. The assets shall be distrain and the distrained assets shall be put up for auction when the tax authority fails to take the enforcing measures, or fails to completely recover the tax debt, late payment interest, or fines after taking the enforcing measures prescribed in Point a, b, c, and d Clause 1 Article 93 of this Law.
Do not distrain assets if the tax payer being a individual is under going treatment at a medical facility prescribed in accordance with Vietnam’s law.”

29. Clause 1 Article 100 is amended and supplemented, and Clause 4 is added to Article 100 as follows:

“a) The tax authority fails to take the enforcing measures, or fails to completely recover the tax debt, late payment interest, or fines after taking the enforcing measures prescribed in Point a, b, c, d, and dd  Clause 1 Article 93 of this Law.
“4. The Government shall specify the order and procedure for enforcing the administrative decisions on taxation by collecting money and other assets of the enforced subjects which are held by other organizations and individuals.”

30. The title of Article 101, Clause 1 Article 101 is amended, and Clause 3 is added to Article 101 as follows:

Article 101. Enforcing by suspending the customs procedures for exports and imports

1. The customs procedures for exports and imports shall be suspended when the tax authority fails to take the enforcing measures, or fails to completely recover the tax debt, late payment interest, or fines after taking the enforcing measures prescribed in Point a and b Clause 1 Article 93 of this Law.

“3. Do not suspend the customs procedures in the following cases:

1. a) The exports are exempted from export tax;
2. b) The exports and imports directly serve the National defense and security, the prevention of natural disaster, infections, urgent aids; humanitarian aid and non-refundable aid.”
3. Article 102 is amended and supplemented as follows:

“Article 120. Enforcing by revoking the Certificate of business registration, Certificate of Enterprise registration, License for establishment and operation, or practice certificate.”

1. The Certificate of business registration, Certificate of Enterprise registration, License for establishment and operation, or practice certificate shall be revoked when the tax authority fails to take the enforcing measures, or fails to completely recover the tax debt, late payment interest, or fines after taking the enforcing measures prescribed in Point a, b, c, d, đ and e Clause 1 Article 93 of this Law.
2. The director of the tax authority shall send written request to competent State management agencies for revoking the Certificate of business registration, Certificate of Enterprise registration, License for establishment and operation, or practice certificate.
3. When taking the enforcing measures prescribed in this Article, the competent State management agencies must announce them on the mass media.”
4. Article 106 is amended and supplemented as follows:

“Article 106. Resolve the late payment of tax

1. The tax payers that pay tax after the deadline, the tax deferral period, the period written in the notification of the tax authority, and the period in the decision of the tax authority, must pay the tax and the late payment interest at the progressive rate of 0.05% per day according to the deferred tax amount if the tax is paid within 90 days, and 0.07% if the tax is paid after 90 days.
2. The tax payers making incorrect declarations that make the amount payable inadequate must pay the late payment interest if the tax is completely paid before competent agencies discover, and shall be exempted from the penalties for violating the administrative procedures on taxation, insufficient tax payment, or tax evasion.

For exports and imports, if the tax payer makes additional declaration within 60 days as from the date of registration of the customs declaration sheet as prescribed in Point b Clause 2 Article 34 of this Law, and actively pay the tax arrears to the State budget, he or she must pay the late payment interest based on the tax arrears as prescribed in this Law, but shall be exempted from the penalties for violating the administrative procedures on taxation, insufficient tax payment, or tax evasion.

3. Tax payers shall calculate the late payment interest based on the deferred tax amount, the days of late payment, and the rate of late payment interest as prescribed in Clause 1 this Article.

If the tax payer fails to calculate or incorrectly calculates the late payment interest, the tax authority shall calculate the late payment interest and notify the tax payer.

4. After the 30^th day from the deadline for paying tax, if the tax payer fails to pay tax and the late payment interest, the tax authority shall notify the tax debt and the late payment interest to the tax payer.
5. The organization authorized to collect tax by the tax authority that fails to punctually collect and transfer the taxes, interests on late payment, and fines from tax payers to the State budget shall pay the interest on the late payment of the amount being transferred late at the rates prescribed in Clause 1 this Article.”
6. Article 107 is amended and supplemented as follows:

“Article 107. Penalties for incorrect declarations that leads to the inadequacy of the tax payable or the increase of the tax refund

1. The tax payer that has completely and accurately record the activities subject to tax on the accounting book, invoices, and documents, but makes incorrect declaration that leads to the inadequacy of the tax payable, or the increase of the tax refunded, he or she must pay the tax arrears, returned the excess amount of refunded tax, and pay 20% of the tax arrears or the excess amount of refunded tax, and the late payment interest based on the tax arrears or the excess amount of refunded tax.
2. For exports and imports, if the tax payer makes incorrect declaration that leads to the inadequacy of the tax payable, or the increase of the tax exemption or tax reduction, or tax refund, but does not fall into the cases prescribed in Clause 6 and Clause 7 Article 108 of this Law, apart from completely paying the tax and late payment interest, the tax payer is also penalized as follows:
3. a) Pay a fine of being 10% of the tax arrears or the excess amount of the tax exempted, reduced, or refunded, if the tax payer discovers and makes additional declaration after 60 days as from the date of registration of the declaration, but before the customs carries out tax inspection at their office as prescribed in Clause 2 Article 34 of this Law;
4. b) Pay a fine of being 20% of the tax arrears, the excess amount of the tax exempted, reduced, or refunded in other cases not being prescribed in Point a this Clause.”
5. Clause 6 and Clause 9 Article 108 is amended and supplemented as follows:

“6. Making incorrect declarations compared to the actual exports and imports, without making additional tax declaration after the goods is granted customs clearance.
“9. Using duty-free goods, goods eligible for tax exemption and tax reduction for improper purposes without notifying the change of the use purposes to the tax authority.”

35. Article 110 is amended and supplemented as follows:

“Article 110. The statute of limitations for handling violations of tax law

1. The statute of limitations for penalizing the violations of tax procedure is two years as from the date of committing the violations.
2. For the acts of tax evasion and tax fraud that are not liable to criminal prosecution, and acts of decreasing the tax payable or increasing the tax refund, the statute of limitations is five years as from the date of committing the violations.
3. The tax payer shall not be penalized after the statute of limitations for penalizing the violations of tax law, but he or she must pay the tax arrears and late payment interest to the State budget that arose in the previous ten years before the day of discovering the violations. The tax payer that fails to apply for a tax registration shall pay all the tax arrears and late payment interest that ever arose before the day of discovering the violations.
4. The phrase “late payment interest” is added before the phrase “fines” in Article 3, 5, 8, 65, 66, 68, 90, 92, 93, 98, 99, 100, 113, 114 and 118; and the phrase “and exempted from making payment” is added after the phrase “exempted from penalties” in Clause 4 Article 49; the phrase “fines for deferred payment” in Clause 3 Article 56 is replaced with the phrase “late payment interest”.
5. The phrase “or the Certificate of Enterprise registration” is added after the phrase “Certificate of business registration” in Article 20, 72 and 94  of this Law.
6. Annul Point dd Clause 3 Article 77 of this Law.

Article 2.  

1. This Law takes effect on July 01^st 2013.
2. For the contents about tax inspection prescribed in the Law on Tax administration No. 78/2006/QH11 that contradict the regulations in the Law on Inspection, the regulations in the Law on Inspection shall apply.
3. The Government shall write off the tax debts and outstanding fines that arose before July 01^st 2007 that are not able to be collected, and send reports on the following cases to the National Assembly:
4. a) The tax debts and fines of households and individuals that are suffering from difficulties and not able to pay off tax debts, or have stopped doing business;
5. b) The tax debts and fines of state-owned enterprises that have been dissolved by competent agencies; the tax debts and fines of state-owned enterprises that have been equitized or of which the ownership have been converted and the new legal persons are not liable for such tax debts.
6. The Government shall specify and guide the implementation of the Articles and Clauses in this Law.

This Law has been passed by the 8^th National Assembly of the Socialist Republic of Vietnam in the 4^th session on November 20^th 2012.
 

 
 
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THE MINISTRY OF FINANCE
——-

THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
—————

No. 80/2012/TT-BTC

Hanoi, May 22, 2012

CIRCULAR

GUIDING THE LAW ON TAX ADMINISTRATION WITH REGARD TO TAX REGISTRATION

Pursuant to the Law on Tax administration and its guiding documents;
Pursuant to the Law on Tax, the Ordinance on Fees and Charges and their guiding documents;
Pursuant to the Law on Enterprise and its guiding documents;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008 on defining the functions, tasks, powers and organizational structure of the Ministry of Finance.
At the proposal of the Director of the General Department of Taxation;
The Minister of Finance promulgate the Circular guiding the law on tax administration with regard to tax registration
Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation
This Circular guide the dossiers, the procedures for tax registration; for changing tax registration information, invalidating tax codes; the responsibilities for managing and using tax codes.
Article 2. Subjects of application
This Circular is applicable to the following organizations and individuals:
1. Organizations, households and individuals producing, trading, providing goods and services.
2. Individuals earning incomes subject to personal income tax.
3. Organizations and individuals responsible for deducting and paying tax to the State budget as prescribed by law.
4. Organizations authorized to collect fees and charges.
5. Foreign organizations without Vietnamese’s legal status, foreign individuals doing independent business in Vietnam in accordance with Vietnam’s law and earning incomes in Vietnam.
6. Other organizations and individuals related to tax issues such as: Project management board, non-business units, organizations and individuals without tax liability but eligible for tax refund or receiving aid from abroad.
7. Other organizations and individuals making payment to the State budget.
Article 3. Tax codes
1. Tax code is a serial of digits encrypted under a uniform principles and issued to tax payers as prescribed by the Law on Tax and the Ordinance on Fees and Charges (hereinafter referred to as law provisions on tax), including export tax payers and import tax payers. Tax codes are used for identifying tax payers and uniformly managed nationwide
2. The structured tax code is a serial of digits separated into the following groups:
N₁N₂ N₃N₄N₅N₆N₇N₈N₉ N₁₀ N₁₁N₁₂ N₁₃
Among which:
– The first two digits N₁N₂ indicate the province that issue the tax code specified in the list of provincial codes.
– Seven digits N₃N₄N₅N₆N₇N₈N₉ numbered from 0000001 to 9999999. The digit N₁₀ is for check
– Ten digits from N₁ to N₁₀ are issued to the primary unit and its associate enterprises.
– Three digits from N₁₁N₁₂N₁₃ are ordinal numbers from 001 to 999 issued to the units affiliated to the primary unit and the associate enterprises.
3. The principles of tax code issuance
a) An organization or individual specified in this Circular shall be issued with a sole tax code for the whole operation as from the tax registration until the shutdown, except for the cases specified in Point d, dd, e in this Clause. Tax codes are used for the declaration and payment of all kinds of tax payable by tax payers, including the tax payers doing various business or operate in various localities.
The issued tax codes must not be issued to other tax payers. When a business organization shuts down, its tax code shall be invalidated and must not be reused.
The tax code issued to a tax payer being a business household owner of an individual shall not be changed during their entire lives, including the case such individuals resume their business after an interval.
The tax code of an enterprise after the business transformation shall be retained.
For enterprises established under the Law on Enterprise, the tax codes are also the enterprise codes.
b) The 10-digit tax codes (N1N2 N3N4N5N6N7N8N9 N10) shall be issued to:
The organizations and individuals specified in Article 2, except for the cases specified in Point c Clause 3 this Article.
c) The 13-digit tax codes (N1N2 N3N4N5N6N7N8N9 N10 N11N12N13) shall be issued to:
– The branches, representative offices and business offices of enterprises having tax liability directly declared and paid to the tax authorities;
– Non-business units affiliated to general companies, affiliated to enterprises having tax liability.
The organizations and individuals specified in this Point are called “affiliated units”, the units having “affiliated units” are called “managing units” Before the affiliated units apply for the tax registration at the tax authorities in charge, their managing units must put them on the “List of affiliated units” in order for the tax authorities to issued the 13-digit tax codes.
d) Issuing tax codes to tax payers being contractors and investors that enter into petroleum contracts.
For petroleum exploration and extraction (hereinafter referred to as petroleum contracts), the 10-digit tax codes shall be issued to: The operator (joint companies) under each petroleum contract; the joint enterprises of petroleum contracts signed in form of joint contracts.
In case the petroleum contract requires that each contractor, investor must separately fulfill their own tax liability, the contractors, investors that sign the contract shall be issued with 13-digit tax codes (including contractors and investors being the operators and the contractors receiving the distributed profit) under the 10-digit tax code of the operator in order to declare, pay and settle tax on each petroleum contract.
dd) Issuing tax codes to foreign contractors applying for direct tax payment to the tax authorities
The foreign contractors and sub-contractors applying for direct tax payment to the tax authorities shall be issued with 10-digit tax codes in accordance with the signed contracts.
e) Issuing tax codes to the Vietnam party paying tax on the foreign contractor’s behalf
The Vietnam party signing contracts with foreign contractors and sub-contractors not applying for direct tax payment to the tax authorities are responsible for declaring and paying tax for the foreign party. The Vietnam party shall be issued with the 10-digit tax code for declaring and paying tax for foreign contractors and foreign sub-contractors.
Chapter II

SPECIFIC PROVISIONS

Section 1. DOSSIERS AND PROCEDURES FOR TAX REGISTRATION
Article 4. Tax registration dossier quantity and time limits for settlement.
1. Time limits for tax registration
a) Enterprises established and operated under the Law on Enterprise must comply with the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration.
b) The organizations and individuals engaging in business and production having tax liability that are eligible for tax refund must apply for tax registration within 10 working days as from:
– Being issued with the Certificate of operation, the License for establishment, operation or the Investment certificate;
– Starting the business with regard to organizations not subject to compulsory business registration, or households, individuals subject to compulsory business registration without being issued with the Certificate of business registration;
– Taking on the liability to deduct and pay tax on behalf of other organizations and individuals;
– Starting to collect fees and charges as prescribed by law;
– Taking on the income tax liability (the day when an individual earns income);
– Taking on the VAT refund as prescribed by law provisions on tax with regard to project owners (or the authorized representatives such as the management board), the foreign primary contractor;
– Taking on the tax liability on non-agricultural land.
2. The time for settling the dossiers: 03 (three) working days as from receiving the complete tax registration dossier as prescribed (applicable to the procedures for reorganizing enterprises and invalidating tax codes).
3. The tax payer shall submit 01 (one) dossier (applicable to the procedures for reorganizing enterprises and invalidating tax codes).
Article 5. Tax registration dossiers
1. The tax registration dossiers of tax payers being enterprises established under the Law on Enterprise (including their affiliated units)
Enterprises established and operated under the Law on Enterprise shall apply for tax registration as prescribed in Article 19, 20, 21, 22, 23 and 33 of the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration and its current guiding documents.
2. Tax registration dossiers of tax payers being production and trading organizations not being established under the Law on Enterprise and their affiliated units.
a) For production and trading organizations
The tax registration dossier includes:
– The tax registration declaration sheet under the form No. 01-DK-TCT promulgated together with of this Circular and the list enclosed with the tax registration declaration sheet (if any);
– The copy (no authentication required) of the Certificate of business registration; the Investment certificate or the Decision on establishment.
In case the production and trading organizations are the managing units with affiliated units, the affiliated units must be included in the “List of affiliated units”. The tax authorities in charge of the managing units shall issue tax codes to the managing units and the affiliated units in the “List of affiliated units”, including the affiliated units situated in other provinces. The managing units are responsible for notifying the tax codes (13-digit) to their affiliated units. The tax authorities in charge of the managing units is responsible for notifying the tax codes (13-digit) to tax authorities in charge of the affiliated units.
In case the managing units establish more affiliated units, they must send the application to the tax authorities in charge for the issuance of tax codes to the newly-established affiliated units, and put them on the “List of affiliated units”.
The tax code registration of the newly-established affiliated unit includes:
– The Notice of the establishment of the branch, representative office or business office under the form No. 07-MST promulgated together with this Circular;
– The copy (no authentication required) of the Decision on the establishment of the affiliated unit.
b) For affiliated units
– The tax registration declaration sheet under the form No. 02-DK-TCT promulgated together with of this Circular and the list enclosed with the tax registration declaration sheet (if any); The 13-digit tax code notified by the managing unit must be written on the tax registration declaration sheet;
– The copy (no authentication required) of the Certificate of business registration; the Investment certificate or the Establishment decision.
The local tax authorities in charge of the affiliated unit shall issue the Certificate of tax registration based on the tax registration dossier of affiliated units and the 13-digit tax code notified by the tax authorities in charge of the managing unit.
3. Tax registration dossiers of tax payers being business individuals and households.
– The tax registration declaration sheet under the form No. 03-DK-TCT promulgated together with of this Circular;
– The copy (no authentication required) of the Certificate of business registration (if any);
– The copy (no authentication required) of the ID card or passport.
The business households and business individuals are only allowed to apply for business registration at one location. In case business households or business individuals employ more than 10 employees, they must be transformed into enterprises and apply for enterprise registration as prescribed in the Government’s Decree No. 43/2010/ND-CP on April 15, 2010.
4. Tax registration dossiers of foreign contractors and foreign sub-contractors applying for direct tax payment to the tax authorities
a) Foreign contractors and foreign sub-contractors directly signing contracts with the investors
For foreign contractors being the general contractors or primary contractors signing contracts with the investors, the tax registration dossier comprises:
– The tax registration declaration sheet under the form No. 04-DK-TCT promulgated together with of this Circular;
– The copy (no authentication required) of the Contractor license (or the equivalent issued by competent agencies);
– The copy (no authentication required) of the Operation office certificate (or the equivalent issued by competent agencies, if any);
– The list of sub-contractors enclosed with the contract (if any).
Based on the tax registration dossier of the contractor, the local tax authorities shall issue the 10-digit tax code as prescribed.
b) For foreign contractors signing joint venture contracts in Vietnam.
In case the parties establish the Joint management board, the Joint management board shall be issued with the 10-digit tax code in order to declare, pay and settle tax as prescribed.
The tax registration dossier comprises:
– The tax registration declaration sheet under the form No. 04-DK-TCT promulgated together with of this Circular;
– The copy (no authentication required) of the Contractor license (or the equivalent issued by competent agencies);
– The copy (no authentication required) of the Operation office certificate (or the equivalent issued by competent agencies, if any);
– The list of sub-contractors and the parties participating in the joint venture enclosed with the contract (if any)
In case the parties take separate works and independently determine their receipts, they may apply for tax registration separately to declare, pay and settle tax as prescribed by current law provisions on tax.
5. The tax registration dossier of the Vietnam party paying tax on behalf of the foreign contractor, foreign sub-contractors
The tax registration dossier comprises:
– The tax registration declaration sheet under the form No. 04.1-DK-TCT promulgated together with of this Circular;
In case the Vietnam party needs to settle and verify the tax amount paid on behalf of the foreign contractor, the Vietnam party must provide the tax authorities in charge with 01 (one) dossier including: the copy (no authentication required) of the contract, the documents and materials related to the contract signed with foreign contractors in order to serve the tax settlement and certify the fulfillment of tax liability (if any).
6. Tax registration dossiers of tax payers being contractors and investors signing petroleum contracts.
a) For the Operator and the joint venture enterprise
The tax registration dossier comprises:
– The tax registration declaration sheet under the form No. 01-DK-TCT promulgated together with of this Circular and the list enclosed with the tax registration declaration sheet (if any);
– The copy (no authentication required) of the Investment certificate (if any);
The Operator shall enumerate the petroleum contractors and investors on the “List of foreign contractors and foreign sub-contractors”. The tax authorities in charge of the Operator shall issue the 10-digit tax code to the Operator and issue the 13-digit tax code to each contractor and investor in the “List of foreign contractors and foreign sub-contractors” made by the operator. The Operator is responsible for notifying the tax codes (13-digit) to their contractors and investors. The tax authorities in charge of the Operator shall issue the 13-digit tax code to the tax authorities in charge of the investors and contractors.
b) For contractors and investors (including the contractors that receive the distributed profit)
The tax registration dossier comprises:
– The tax registration declaration sheet under the form No. 02-DK-TCT promulgated together with of this Circular; The 13-digit tax code notified by the Operator must be written on the tax registration declaration sheet;
– The copy (no authentication required) of the Investment certificate;
The local tax authorities in charge of the area where the offices of the contractors, the investors are situated shall issue the Certificate of tax registration based on the tax registration dossier of petroleum contractors, investors and the tax code notified by the tax authorities in charge of the Operator.
7. The tax registration dossier of tax payers being individuals liable for personal income tax including:
– The tax registration declaration sheet under the form No. 05-DK-TCT promulgated together with of this Circular;
– The copy (no authentication required) of the ID card or passport (of foreigners).
8. Tax registration dossiers of tax payers being diplomatic missions, consular offices and representative bodies of international organizations in Vietnam (eligible for VAT refund)
Using the tax registration declaration sheet under the form No. 06-DK-TCT promulgated together with of this Circular;
9. Tax registration dossiers of tax payers being organizations authorized to collect tax, fees, charges and other revenues as prescribed by law; the project owners, the organizations eligible for personal income tax without activities of production, business or services.
Using the tax registration declaration sheet under the form No. 01-DK-TCT promulgated together with of this Circular (only declare the index 1, 3, 9, 14).
10. For some particular industries and professions licensed by Ministries and sectors (such as credit, lawyers, notarization, petroleum, medical insurance and other professional industries), such licenses may be used as the substitute of the Certificate of business registration, Establishment decision, Investment certificate in the tax registration dossiers.
11. For individuals paying non-agricultural land levies, tax authorities shall issue the tax code when receiving the dossier on non-agricultural land levies of the first year.
Article 6. Location of tax registration dossier submission
1. Enterprises and their affiliated units established under the Law on Enterprise shall submit the tax registration dossier at Business registration agencies as prescribed in the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration.
2. Other enterprises, organizations and their affiliated units shall apply for tax registration at the Department of Taxation in charge.
3. Organizations and individuals making tax deduction and tax payment on other’s behalf shall apply for tax registration at the tax authorities in charge of the area where their offices are situated. For individuals paying personal income tax via the paying agencies, the registration declaration sheet shall be submitted at the paying agencies and such agencies shall collect and submit the registration declaration sheet to the tax authorities in charge.
4. Individuals liable for personal income tax that pay tax directly shall apply for tax registration at the tax authorities in charge of the locality where the taxable incomes are earned, or where the permanent/temporary residence is registered
5. Cooperatives, artels, business households, business individuals shall apply for tax registration at local Sub-department of taxation of the district, town or provincial cities.
Article 7. Tax registration dossier receipt
1. For enterprises established and operated under the Law on Enterprise, tax authorities shall implement the procedures for enterprise registration information exchange between the tax authorities and the current business registration agencies.
2. The receipt of dossier from organizations and individuals not established under the Law on Enterprise is carried out as follows:
Tax official shall receive and append the receipt stamp, specifying the receipt time, the document quantity under the list of tax registration dossiers if the tax registration dossiers are directly submitted at the tax authorities. The tax official shall issue an appointment note specifying the date of returning the tax registration results. The time limit for returning the results must not exceed the time limit specified in this Circular.
For tax registration dossiers sent by post, tax officials shall append the date stamp specifying the date of receipt.
For electronic tax registration, the receipt of tax registration dossiers shall be made via the electronic transaction system.
Tax officials shall check the tax registration dossier. If the tax registration dossier needs to be supplemented, the tax authorities shall notify the submitter within 01 (one) working day (in case of direct submission) or within 02 (two) working days as from the dossier receipt (for dossiers sent by post or via electronic transaction).
Article 8. Issuing the tax registration certificate
The tax registration certificates are issued to the organizations and individuals specified in Point b, c, d, dd and e Clause 3 Article 3 of this Circular, excepted for that established and operated under the Law on Enterprise.
1. Time limits for issuing the tax registration certificate
The tax authorities must issue the tax registration certificate within 03 (three) working days as from receiving the complete tax registration dossier.
2. The tax registration certificate
a) The tax registration certificate: the tax payers that complete the procedures and tax registration dossiers shall be issued with the Tax registration certificate under the form No. 10-MST promulgated together with this Circular (except for individuals liable for personal income tax and the cases eligible for tax code notification).
b) The personal tax code card: individuals liable for personal income tax that complete the procedures and tax registration dossiers shall be issued with the personal tax code card under the form No. 12-MST promulgated together with this Circular
c) Notifying tax codes: The cases eligible for tax code notification under the form No. 11-MST promulgated together with of this Circular include:
– Tax payers engaged in new business activities or expanding the business to other localities without establishing new branches of affiliated units;
– Business individuals or group of business individuals without ID cards or Certificate of business registrations;
– Individuals paying non-agricultural land levies;
– The Vietnam party paying tax on behalf of the foreign contractors, foreign sub-contractors;
– Non-business units, armed forces;
– Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations.
– Other organizations and individuals having tax liability that are not eligible for tax registration certificates.
3. Reissuing the tax registration certificates
The reissuance of tax registration certificates and personal tax code cards (except for enterprises established under the Law on Enterprise) shall be carried out within 03 (three) working days as from being requested by tax payers.
The reissuance of the tax registration certificates and personal tax code card is specified as follows:
a) For tax registration certificates being lost or damaged, the tax payers must make the declaration to the tax authorities in charge for the reissuance of the tax registration certificates The dossier on the tax registration certificate reissuance includes the “Application for the tax registration certificate reissuance” under the form No. 13-MST.
b) Reissuing the tax registration certificate when the content is changed: when the content of the tax registration certificate is changed, the tax payer must implement the procedures as guided in Article 11 of this Circular in order to be reissued with the new tax registration certificate.
c) Reissuing the personal tax code cards: individuals of whom the personal tax code cards are damaged may submit the application for another the personal tax code card to the tax authorities under the form No. 13-MST. In the application, the following information must be specified: the tax code, the full name, the ID number or passport number (for foreigners), the previous place of application. When changing cards, the old cards must be returned to the tax authorities.
4. Reissuing the tax codes notification: the tax payers specified in Point c Clause 2 this Article wishing to be reissued with another tax codes notification shall submit the application to the tax authorities in charge under the form No. 13-MST. The following information must be specified in the application: the tax code previously notified, the full name and ID number (for individuals).
Article 9. Guidance on some specific cases
1. If a tax payer issued with the tax code engages in new business or production or expands the business engages in new business or production or expands the business to other provinces or cities (without establishing new branches or affiliated units), such tax payers must apply for tax registration at the tax authorities in charge of the area where new business activities or business expansion arise as prescribed by law provisions on tax. Tax payers being enterprises or organizations shall use the declaration form No. 01-DK-TCT, the affiliated units of enterprises or organizations shall use the declaration form No. 02-DK-TCT enclosed with the contract or the license for new business activities, license for business expansion to apply for tax registration at the Department of Taxation in charge of the province or city where the new business activities or business expansion arise. The tax payer must write the issued tax code on registration declaration sheet;
2. Business households, business individuals transferring the business from the husband to the wife, from the parent to the child (including the sale of business establishment) must notify the tax authorities for tax code reissuance In case the recipient has been issued with the personal tax code, such tax code shall be used for declaring and paying the arising tax.
3. Some provisions on personal tax codes
– Individuals paying personal income tax via multiple paying organizations shall apply for tax registration at one paying organizations for the tax code issuance. Individuals shall notify their tax codes to other paying organizations for them to make tax declaration and tax payment using those tax codes. If an individual simultaneously pays personal income tax and does business, the personal income tax code shall be used for declaring and paying tax on the business under the form No. 03-DK-TCT (the issued tax code shall be written in the tax code box of the sheet). If a business individual is already issued with the tax code, such tax code shall be used for declaring and paying personal income tax. Individuals shall implement the procedures for tax declaration and tax payment under the form No. 05-DK-TCT promulgated together with this Circular (Write the issued tax code on the tax code box)
– The tax authorities shall issue and notify the tax code to the tax payers after obtaining their complete personal information.
– In case the business household or business individual engages in new business activities or expands their business to other localities than that where the tax code is registered, the 10-digit tax code shall be used for declaring and paying tax. When the tax authorities find that one individual possess more than one 10-digit tax code, the 10-digit tax codes issued after the first one shall be revoked.
– Owners of private enterprises liable for personal income tax must use their personal tax codes to declare, pay and settle tax, not to use the tax codes of private enterprises to declare and deduct such personal income tax amount.
Section 2. CHANGING THE TAX REGISTRATION INFORMATION
Article 10. Responsibilities and time limits for notifying the change of registration information
1. The enterprises established under the Law on Enterprise shall notify the change of tax registration information as prescribed in Article 45 the Government’s Decree No.43/2010/ND-CP and its guiding documents.
2. Other organizations, households and individuals must notify the tax authorities in charge within 10 (ten) days as from the change occurs under the form No. 08-MST promulgated together with this Circular.
Article 11. Dossiers and procedures for changing information
1. Changing the name of the business establishment: when changing the name, the business establishment must make additional declaration to the tax authorities in charge. The dossier includes:
– The tax registration declaration sheet under the form No. 08-MST promulgated together with of this Circular;
– The tax registration certificate (original).
– The copy (no authentication required) of the Certificate of business registration adjusted in accordance with the new name;
Within 03 (three) working days as from receiving the complete additional declaration from the business establishment, the tax authorities shall reissue the tax registration certificate to the business establishment under the new name using the tax code previously issued and revoke the old tax registration certificate.
2. Changing the business location: when the business location is change, the tax payer must notify the tax authorities in charge for implementing the procedures for moving. The tax codes are retained in all cases of changing the business locations.
a) Changing the business location within the same province:
The dossier includes: the tax registration amendment sheet under the form No. 08-MST specifying the change of the business location.
For tax payers directly under the management of the Department of Taxation, the dossiers shall be sent to the Department of Taxation in order to adjust the information about the new address of the tax payers. The Department of Taxation in charge of the tax payers is responsible for updating the adjusted information on the tax registration data system within 02 (two) working days as from receiving the complete amendment dossier.
For the tax payer directly under the management of the Sub-department of Taxation, the dossier shall be made into 02 (two) set and sent to the Sub-department of Taxation where the tax payer moves out and the Sub-department of Taxation where the tax payer moves in. The Sub-department of Taxation where the tax payer moves out must notify the tax payment status of the tax payer under the form No. 09-MST and send it to the Sub-department of Taxation where the tax payer moves in and to the Department of Taxation within 03 (three) working days as from receiving the dossier requesting the change of the location.
b) Changing the business location to other provinces:
– Where the tax payer moves out. The dossier includes:
+ The location change notification;
+ The tax registration certificate (original);
+ The notification of the tax declaration and tax payment of the moving unit under the form No. 09-MST promulgated together with of this Circular.
Within 03 (three) working days as from receiving the dossier on the change of location from the tax payer, the tax authorities where the tax payer moves out shall revoke the tax registration certificate, make the notification of the tax payment status of the tax payer under the from No. 09-MST and send 01 (one) copy to the tax payers and 01 (one) copy to the tax authorities where the tax payer moves in.
– Where the tax payer moves in: Within 05 (five) working days as from being issued with the new Business license or Investment certificate… under the new address, the tax payer must apply for tax registration at the tax authorities where they move in.
The tax registration dossier comprises:
+ The tax registration declaration sheet (specifying the tax code previously issued);
+ The copy (no authentication required) of the Business license or the Investment certificate issued by competent agencies where they move in.
Within 03 (three) working days as from receiving the complete and accurate tax registration dossier, the tax authorities must issue the new tax registration certificate to the tax payer and retain the tax code previously issued.
3. Notifying other changes of the tax registration declaration sheet:
When changing the declared information, the tax payer must notify the tax registration information amendment under the “Tax registration amendment” form No. 08-MST promulgated together with this Circular within 05 (five) days as from the change is made.
The additional tax registration dossier comprises:
– The tax registration declaration amendment under the form No. 08-MST;
– The copy (no authentication required) of the additional business registration certificate, or the license for establishment and operation, or the Investment certificate for the changes of information that require the reissuance of the additional business registration certificate or the license for Establishment and operation or the Investment certificate;
– The list enclosed with the initial tax registration declaration sheet (if any).
Article 12. Location for submitting tax registration information amendment dossiers
1. Enterprises and their affiliated units established under the Law on Enterprise shall submit the tax registration information amendment dossiers at Business registration agencies as prescribed in the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration.
2. Other organizations and individuals shall submit the tax registration information amendment dossier at the tax authorities in charge.
Article 13. Receiving tax registration information amendment dossiers
The tax authorities are responsible for receiving the tax registration information amendment dossiers from tax payers and updating the amended information on the tax registration data system.
For the changes of the contents on the tax registration certificate, the tax authorities shall make the appointment note for the reissuance of the tax registration certificate within 03 (three) working days as from receiving the complete dossier on the information changes.
Section 3. TAX CODE INVALIDATION
Article 14. Tax code invalidation
Tax code invalidation is the procedures of the tax authorities for determining that the tax code is no longer valid in the tax registration data system. The tax authorities shall revoke the tax registration certificate and publicly announce the list of the invalidated tax codes.
The business organizations and business individuals that shut down or reorganize the enterprises must follow the procedures for tax code invalidation. For individuals dead, missing or incapable of civil acts as prescribed by law, the tax authorities in charge shall invalidate the tax codes as prescribed.
When an organization resumes their operation after their tax code is invalidated, they must apply for tax registration in order to be issued with the new tax code. When an individual takes on new tax liability after their tax code is invalidated, they must follow the procedures for tax registration at the tax authorities for reusing the tax code previously issued.
Article 15. Dossiers and procedures for tax code invalidation
1. For enterprises, business households, business individuals and their affiliated units
a) For enterprises, business households, business individuals
The dossier on tax code invalidation comprises:
– The tax registration certificate (original).
– The copy (no authentication required) of the Decision on the enterprise dissolution or the Decision on the implementation of bankruptcy procedures; or the shutdown announcement of the business household or business individual.
Within 02 (two) working days as from receiving the notification from the agency competent to issue the Certificate of business registration, Investment certificate, operation license, or from the tax payer on the dissolution, the shutdown or the reorganization of the enterprise, the tax authorities must announce the shutdown and the tax code invalidation of the enterprise.
After receiving the notification from the tax authorities, tax payers must submit the relevant documents and settle the tax liability with the tax authorities in charge as prescribed.
Within 10 (ten) working days as from receiving the documents related to the settlement of the tax liability from the tax payer, the tax authorities shall carry out tax settlement inspection as prescribed by the Law on Tax administration and its current guiding documents
b) For affiliated units:
When the tax code of the managing unit is invalidated, the tax codes of its affiliated units shall also be invalidated. The managing unit is responsible for notifying their shutdown to their affiliated units. The affiliated units are responsible for implementing the procedures for invalidating their tax codes within 10 (ten) days as from being notified by their managing units of the shutdown. The dossier comprises:
– The tax registration certificate (original).
– The notification of shutdown of the managing unit.
Within 05 (five) working days after invalidating the tax code of the managing unit, the tax authorities in charge of the managing units must notify the Departments of Taxation in the provinces and cities where the affiliated units are situated of the tax code invalidation of the managing unit so that the Departments of Taxation can inspect the implementation of the procedures for tax code invalidation of the affiliated units. If the tax codes of affiliated units are not invalidated, the tax authorities shall request them to implement the procedures for invalidating the tax codes as prescribed.
If an affiliated unit still operates after the managing unit is dissolved, bankrupt or shut down, they must implement the procedures for invalidating the affiliated tax code and apply for new tax registration with the tax authorities as an independent unit. In case the affiliated units still use the 13-digit tax codes under the tax code of the managing units after the managing unit has shut down, such tax codes are considered illegal.
2. For tax payers that stop declaring and paying tax without making statement to the tax authorities
If there is no feedback after the deadline for declaration submission and tax payment and 3 notifications requesting the submission of the tax declaration is sent to the tax payer, the tax authorities shall contact the local authorities to collect information about the actual existence of the tax payer.
a) In case the tax payer no longer does business but still resides in the locality, the tax authorities shall request them to implement the law provisions on tax or invalidate the tax code if they have no demand for doing business.
b) In case the tax payer no longer does business at the registered address and their trace is unidentifiable, the tax authorities shall cooperate with local authorities to make the written certification of the non-existence of the business at the registered address of the tax payer. The tax authorities shall update the information on the tax registration database, announce the tax payer’s status and cooperate with competent State agencies to implement the procedures for revoking the Certificate of business registration, enterprise registration and invalidate the tax code as prescribed by the Law on Enterprise, the Law on Tax administration and their guiding documents.
3. For individuals dead, missing or incapable of civil acts
For individuals dead, missing or incapable of civil acts as prescribed by law, the tax authorities in charge shall implement the procedures for tax code invalidation based on the relevant documents from competent agencies certifying the death, the missing or the civil act incapability of the individuals.
Section 4. TAX REGISTRATION WHEN REORGANIZING ENTERPRISES
Article 16. Dividing, separating, merging and consolidating enterprises
1. Dividing enterprises:
a) For divided enterprises:
The divided enterprises must implement the procedures for tax code invalidation at the tax authorities when the Decision on enterprise division is made.
The dossier includes:
– The written request for tax code invalidation
– The copy (no authentication required) of the Decision on enterprise division;
– The tax registration certificate (original).
Within 03 (three) working days as from receiving the complete dossier, the tax authorities must announce the shutdown and the tax code invalidation of the enterprise.
b) For new enterprises established from the divided enterprise:
The new enterprises established from the divided enterprise must apply for tax registration with the tax authorities within 10 (ten) days as from being issued with the Certificate of business registration. The dossiers and procedures shall comply with law provisions on new enterprise registration.
2. Separating enterprises:
a) For separated enterprises:
In case there are changes in the tax registration information after being separated, the separated enterprise must implement the procedures for changing the tax registration information within 10 (ten) days as from being issued with the Certificate of business registration. The dossier includes
– The copy (no authentication required) of the Decision on enterprise separation;
– The Certificate of business registration;
– The tax registration declaration amendment under the form No. 08-MST;
Within 03 (three) working days as from receiving the complete dossier, the tax authorities must implement the procedures for adjusting tax registration information of the separated enterprise in the tax code management system. The separated enterprise still uses the tax code and tax registration certificate previously issued to fulfill the tax liability.
In case the changes of the tax registration information cause changes of the tax registration certificate information, the tax authorities shall reissue the tax registration certificate to the tax payer as prescribed.
b) For new enterprises established from the separated enterprise:
The new enterprises established from the separated enterprise must apply for tax registration with the tax authorities within 10 (ten) days as from being issued with the Certificate of business registration.
The dossiers and procedures shall comply with law provisions on new enterprise registration.
3. Merging enterprises:
The acquirer company (the enterprise into which the companies merge) shall retain the tax code and bear responsibilities for the tax liability of the acquiree. The acquiree company (the companies that merge into the acquirer company) shall have their tax code invalidated.
a) The accquiree company:
When the Merger contract is made as prescribed by the Law on Enterprise, the acquiree company must implement the procedures for tax code invalidation at the tax authorities. The dossier includes:
– The written request for tax code invalidation
– The copy (no authentication required) of the Merger contract.
Within 03 (three) working days as from receiving the complete dossier, the tax authorities must announce the shutdown and the tax code invalidation of the acquiree companies.
b) The acquirer company:
Within 10 (ten) days as from being issued with the Certificate of business registration, the acquirer company must implement the procedures for tax registration information adjustment (in case the merger causes changes of the tax registration information). The dossier includes:
– The copy (no authentication required) of the Certificate of business registration;
– The tax registration declaration amendment under the form No. 08-MST;
4. Consolidating enterprises:
The consolidated enterprise (the transferee company) is the new enterprise that have every property, right, obligation and interest from the consolidating enterprises (the transferor companies) The transferor company shall have their tax code invalidated.
a) The transferor companies:
When the Consolidation contract is made as prescribed by the Law on Enterprise, the transferor companies must implement the procedures for tax code invalidation at the tax authorities. The dossier includes:
– The written request for tax code invalidation
– The copy (no authentication required) of the Consolidation contract.
Within 03 (three) working days as from receiving the complete dossier, the tax authorities must announce the shutdown and the tax code invalidation of the transferor company.
b) The transferee company:
Within 10 (ten) days as from being issued with the Certificate of business registration, the transferee company must implement the procedures for tax registration in order to be issued with the new tax registration certificate. The dossiers and procedures shall comply with law provisions on new enterprise registration.
Article 17. Selling enterprises:
1. Enterprises established and operated under the Law on Enterprise shall comply with the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration and its current guiding documents.
2. For enterprises not being established under the Law on Enterprise
When the enterprise sale contract, the sold company must send the written notification enclosed with the enterprise sale contract, the original Enterprise registration certificate and the tax settlement to the tax authorities.
Within 03 (ten) days as from being issued with the Certificate of business registration, the buyer must implement the procedures for tax registration at the tax authorities. The registration comprises:
– Tax registration declaration sheet;
– The copy (no authentication required) of the new Certificate of business registration;
– The copy (no authentication required) of the enterprise sale contract;
Within 03 (three) working days as from receiving the complete and valid tax registration dossier, the tax authorities must issue the tax registration certificate to the buyer.
The tax code of the enterprise shall be retained after the sale. In case an affiliated enterprise becomes an independent enterprise after being sold, or an enterprise becomes an affiliated enterprise of another enterprise, the Article 18 of this Circular shall apply.
Article 18. Converting an affiliated unit into an independent unit and vice versa
The affiliated unit wishing to be converted into an independent unit and vice versa must apply for another tax registration within 10 (ten) days as from being issued with the Certificate of business registration in order to be issued with the new tax code by the tax authorities. The tax settlement and the procedures for tax code invalidation at the tax authorities must be carried out before the conversion.
The registration comprises:
– The tax registration declaration under the form No. 01-DK-TCT;
– The copy (no authentication required) of the new Certificate of business registration;
An independent unit being converted into an affiliated unit of another independent unit shall be issued with the 13-digit tax code under the tax code of the new managing units. The converted unit must implement the procedures for tax code invalidation at the tax authorities before the conversion. The new managing unit must apply for additional tax registration, put one more affiliated unit on the List of affiliated units for the tax authorities to issue the 13-digit tax code. The new affiliated unit shall apply for tax registration at the tax authorities in charge as prescribed.
An affiliated unit of an independent unit being converted into an affiliated unit of another independent unit must implement the procedures for invalidating the old tax code. The new managing unit must add the tax registration on the List of affiliated units for the tax authorities to issue the 13-digit tax code to the new affiliated unit. The new affiliated unit shall apply for tax registration at the tax authorities in charge as prescribed.
Article 19. Business suspension
Organizations and individuals suspending their business must send written notification to the tax authorities in charge within 05 (five) day before the suspension. The notification must specify the reasons, the starting time and the ending time of the suspension. The suspension duration in the notification must not exceed 01 (one) year. After the duration written on the notification, if the business is still suspended, the organizations or individuals must notify the business registration agency or the tax authorities within 05 (five) days before the next suspension day. The total suspension duration must not exceed 02 (two) consecutive years as prescribed by the Law on Enterprise. Before the suspension, the organizations or individuals must pay off the tax arrears to the State budget.
Enterprises established and operated under the Law on Enterprise must submit the application for business suspension at the business registration agencies as prescribed by the Law on Enterprise and its current guiding documents.
Chapter III

RESPONSIBILITIES FOR MANAGING AND USING TAX CODES

Article 20. Responsibilities of tax payers
1. Tax payers are responsible for making declaration and applying for tax codes, making additional declaration of the tax registration information adjustment as prescribed in this Circular. When shutting down or suspending the business, the tax payers must notify the tax authorities and shall only use the tax code for fulfilling the tax liability.
2. The tax payers must write their tax codes on the transaction papers such as: invoices, sale receipts, accounting books, business contracts and other documents, materials related to the tax liability determination. The tax payers must use their tax codes when opening deposit accounts at banks or other credit institutions For papers, documents and receipts without the tax code section, the tax payers must write their tax codes on the upper-right corner of the first page of such materials. The units printing their own invoices or using printed invoices must have their tax codes printed on each invoice.
3. Tax payers are responsible for notify their information changes so that tax authorities shall issue the tax registration certificate accordingly. Enterprises established and operated under the Law on Enterprise shall comply with the Government’s Decree No. 43/2010/ND-CP on April 15, 2010 on enterprise registration and its current guiding documents. Tax payers are responsible for fulfilling the tax liability with the tax authorities and customs agencies (for export and import activities) before shutting down, suspending or reorganize the enterprises as prescribed.
4. If the tax registration certificate or the tax code is not issued after the time limit for issuing the tax codes expires, the tax payer may file complaints to the tax authorities in charge of tax code issuance. If there is no reply after 05 (five) working days as from the complaint is filed, the tax payer may file complaints to the superior tax authorities.
5. It is prohibited to lend, erase, damage or forge tax registration certificates and personal tax code cards.
Article 21. Responsibilities of tax authorities
1. The tax authorities shall provide form of tax registration declaration sheets, guide the procedures, issue the tax codes and the tax registration certificates punctually. In case the tax registration dossier of the tax payer is not complete or the information is not accurate, the tax authorities shall notify the tax payer within 03 (three) working days as from receiving the dossier, specify the insufficient or in accurate contents and request the supplement or amendment.
2. The tax authorities are responsible for using the tax codes in the management of tax payers and write the tax codes on every transaction papers with tax payers such as: the tax payment notice, the penalty notice, the collection order, the decision on administrative sanctions, the tax inspection record.
3. The tax authorities are responsible for handling and keeping the tax registration dossiers and issuing the tax registration certificates. The tax authorities shall develop and manage the tax code system of tax payers and update the changed tax registration information on the tax code management system of the computer network.
4. The tax authorities are responsible for cooperate with relevant Ministries and sectors to integrate the tax codes into the existing information system of the Ministries and sectors in charge of the tax payer management.
5. The General Department of Taxation is responsible for promptly and sufficiently providing functional agencies with the information about the tax payers to whom the tax codes have been issued as prescribed.
Article 22. Responsibilities of business registration agencies
Business registration agencies shall issue the enterprise code and cooperate in the tax code issuance with regard to business households, business individuals and other organizations and individuals as prescribed by current law provisions.
Article 23. Responsibilities of Ministries, sectors and relevant agencies
State Treasuries are responsible for updating the tax codes of all tax payers during the management of the tax amount being paid to the State Treasuries and performing the relevant tasks such as: tax refund, extracting and transferring money from deposit accounts of tax payers to the account of the State budget when receiving the tax collection orders, exchanging information about the tax amount paid by tax payers between the State Treasury and the tax authorities at the same level.
State Treasuries, commercial banks and credit institutions shall display their tax codes in the account opening dossier of the tax payer and the account transfer receipts
Ministries, sectors and line management agencies are responsible for providing information about the business status of tax payers when being requested in writing and notifying the changed information of tax payers (such as dissolution, bankruptcy, the revocation of the Certificate of business registration, the reorganization of enterprises); adding the tax code section in the forms and documents related to the tax payers under their management, updating the tax code information of the tax payer on their data system, cooperating in exchanging information with the Ministry of Finance, enhancing the management and facilitating the production and business of tax payers.
Chapter IV

HANDLING VIOLATIONS

Article 24. For tax payers
The tax payers committing violations of tax registration and incorrectly using tax codes shall handled as prescribed in the Law on Tax and legal documents on handling administrative violations of tax.
Article 25. For tax authorities and tax officials
The heads of the tax authorities are responsible for strictly implementing the provisions on tax code registration and issuance. The tax officials committing violations of tax registration shall be handled as prescribed by the Law on Tax administration, the Law of Officials and Officers and their guiding documents
Chapter V

ORGANIZING THE IMPLEMENTATION

Article 26. Effect
1. This Circular takes effect on July 01, 2012.
2. This Circular supersedes the Circular No. 85/2007/TT-BTC on July 18, 2007 of the Ministry of Finance guiding the implementation of the Law on Tax administration with regard to tax registration; annuls the form No. 01-DK-TNCN used for individuals paying personal income tax promulgated together with the Circular No. 175/2010/TT-BTC on November 05, 2010 of the Ministry of Finance on amending and supplementing the Circular No.84/2008/TT-BTC on September 30, 2008 of the Ministry of Finance guiding the implementation of a number of articles of the Law on personal income tax and the Government’s Decree No. 100/2008/ND-CP detailing a number of articles of the Law on Personal income tax.
Article 27. Implementation responsibilities
1. The tax payer issued with the tax codes under the Circular No. 79/1998/TT-BTC on June 12, 1998, the Circular No. 68/2003/TT-BTC on July 17, 2003; the Circular No. 80/2004/TT-BTC on August 13, 2004; the Circular No. 10/2006/TT-BTC on February 14, 2006 and the Circular No. 85/2007/TT-BTC on July 18, 2007 of the Ministry of Finance shall continue to use the issued tax codes.
2. The General Department of Taxation is responsible for organizing the tax registration, the tax code issuance, the tax registration certificate issuance and the tax code management.
During the course of implementation, organizations and individuals are recommended to send feedbacks on the difficulties to the Ministry of Finance for resolution./.
 

The post Circular No. 80/2012/TT-BTC of May 22, 2012, guiding the Law on Tax administration with regard to tax registration appeared first on MP Law Firm.

THE MINISTRY OF FINANCE
——-

THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
—————

No. 05/2012/TT-BTC

Hanoi, January 5, 2012

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE NO. 26/2009/ND-CP OF MARCH 16,2009, DETAILING A NUMBER OF ARTICLES OF THE LAW ON EXCISE TAX, AND DECREE NO. 113/2011/ND-CP OF DECEMBER 8, 2011, AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF DECREE NO. 26/ 2009/ND-CP

Pursuant to November 14, 2008 Law No. 27/2008/QH12 on Excise Tax;
Pursuant to November 29, 2006 Law No. 78/2006/QHU on Tax Administration;
Pursuant to the Government’s Decree. No. 26/2009/ND-CP of March 16. 2009. detailing a number of articles of the Law on Excise Tax, and Decree No. 113/2011/ND-CP of December 8, 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP of March 16, 2009;
Pursuant to the. Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance, guides the implementation of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, and Decree No. 113/2011/ND-CP of December 8, 2011, as follows:
Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation
This Circular guides the implementation of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on Excise Tax, and Decree No.113/2011/ND-CP of December 8. 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP.
Article 2. Taxable objects
Excise tax-liable objects are specified in Article 2 of Law No. 27/2008/QH12 on Excise Tax, Article 2 of the Government’s Decree No. 26/2009/ND-CP of March 16,2009, and Clause 1, Article 1 of the Government’s Decree No. 113/2011/ND-CP of December 8, 2011.
For excise tax-liable air conditioners of a capacity of 90,000 BTU or less: In case a producer sells or an importer imports outdoor units and indoor units separately, the sold or imported goods (outdoor units and indoor units) are also liable to excise tax like complete products (air conditioners in complete sets).
Article 3. Non-taxable objects
The goods specified in Article 2 of this Circular are not liable to excise tax in the following cases:
1. Goods directly exported by producers or processors or sold or entrusted to other business establishments for export, including:
1.1. Goods exported abroad directly by producers or processors, including goods sold to or processed for export-processing enterprises, except under-24-seat cars sold to export-processing enterprises.
Establishments possessing goods not liable lo excise tax specified at this Point must have dossiers comprising the following documents to prove that goods have actually been exported:
– Goods sale contract or contract on goods processing for a foreign party.
– Invoice on sale of exported goods or delivery of goods and payment of processing remuneration.
– Export declaration.
– Via-bank payment document.
Via-bank payment means the transfer of money from the importer’s account into a bank account under the exporter’s name in an appropriate form of payment as agreed in the contract under banking regulations. The payment document is the credit note of the exporter’s bank on the sum of money already received from the importer’s bank account. In case of deferred payment, such must be agreed in the export contract; upon the payment deadline, the business shall present via-bank payment documents. In case of entrusted export, the entrusted party shall make via-bank payment to the foreign parly.
1.2. Within the period during which import or export duty is not required to be paid under regulations, producers of excise tax-liable goods that temporarily export these goods for re-import under licenses are not obliged to pay excise tax when re-importing these goods but shall pay it when selling them.
1.3. Goods sold by producers or entrusted to exporters for export under economic contracts.
Producers possessing goods not liable to excise tax as specified at this Point must have dossiers comprising the following documents to prove that goods have been actually exported:
– Contract on sale and purchase of goods for export or export entrustment contract between the producer and the exporter, for case of entrusted export.
– Invoice on sale or delivery of goods for export entrustment.
– Record of liquidation (whole or partial liquidation) of the contract on sale of goods for export, or record of liquidation of the export entrustment contract, clearly indicating the following details:
Name, quantity, category and selling price of the actually exported goods; mode of payment; sum of money and serial number and date of the document on via-bank payment for exported goods by the foreign purchaser to the exporter; sum of money and serial number and dale of the document of payment between the producer and the exporter or the entrusted party; serial number and date of the export contract and copy of the customs declarations of exported goods.
For goods purchased by or entrusted to exporters for export and not exported but sold domestically, exporters shall declare and pay excise tax when selling them.
1.4. Goods brought abroad for sale at overseas fairs or exhibitions.
An establishment possessing goods which are brought for sale at an overseas fair or exhibition must have:
– Invitation to or written registration for participation in an overseas fair or exhibition.
– Export declaration, with the customs office’s certification that the goods have been exported.
– List of goods sold at the fair or exhibition.
– Cash payment documents for goods sold at the fair or exhibition. In case the value of goods sold in cash is higher than the prescribed level, such must be declared to the customs office and a remittance certificate is required according to current regulations.
2. Imported goods in the following cases:
2.1. Humanitarian and non-refundable aid; gifts and donations, including:
a/ Humanitarian and non-refundable aid, including also goods imported with non­refundable assistance funds as approved by competent agencies; goods provided as humanitarian assistance or emergency relief for remedying consequences of wars, natural disasters or epidemics;
b/ Gifts of overseas organizations or individuals for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or people’s armed forces units;
c/ Donations or gifts for individuals in Vietnam within law-prescribed quotas.
2.2. Goods transited or transported through Vietnam’s border gates or borders and goods in border-gate transfer, including:
a/ Goods transported from countries of exportation to countries of importation through Vietnam’s border gates without going through import and export procedures;
b/ Goods transported from countries of exportation to countries of importation through Vietnam’s border gates and brought into bonded warehouses without going through import and
export procedures;
c/ Goods transited or transported through Vietnam’s border gates or borders under agreements between the Vietnamese Government and foreign governments or between agencies and representatives authorized by the Vietnamese Government and foreign governments;
d/ Goods transported from countries of exportation to countries of importation not through Vietnamese border gates.
2.3. Goods temporarily imported for re-export and actually re-exported within the time limit during which import duty payment is not required under the law on import duty and export duly. In this case, payment of excise tax is not required for the volume of goods actually re-exported.
Goods temporarily exported for re-import and actually re-imported within the time limit during which export duty payment is not required under the law on import duty and export duty. In this case, payment of excise tax is not required for the volume of goods actually re-imported.
2.4. Goods temporarily imported for display at fairs or exhibitions which have actually been re-exported within the time limit during which import duty payment is not required under regulations.
After a fair or an exhibition closes, organizations or individuals that fail to re-export temporarily imported goods shall declare and pay excise tax. If being detected through inspection as failing to make declaration, they shall, apart from paying excise tax, be sanctioned under law.
2.5. Personal effects of foreign organizations and individuals within diplomatic immunity quotas under the law on diplomatic immunities.
2.6. Personal effects within import duty-free luggage quotas of Vietnamese and foreigners upon entry or exit via Vietnam’s border gates.
2.7. Goods imported for duty-free sale at duty-free shops under law.
3. Goods imported from abroad into non-tariff areas, goods sold from inland Vietnam into non-tariff areas and used only in these areas, and goods traded between non-tariff areas, except under-24-seat cars.
The dossier, order and competence for deciding on non-collection of excise tax in the cases specified in Clauses 2 and 3 of this Article are similar to those for deciding on import duty non-collection or exemption under the law on import duty and export duty.
If using goods not liable to excise tax upon importation specified in Clauses 2 and 3 of this Article for other purposes, importers shall declare and pay excise tax at the stage of importation to customs offices under the Ministry of Finance’s guidance on customs procedures; customs inspection and supervision; and import duty, export duty and tax administration of imports and exports.
4. Aircraft and yachts used for commercial cargo or passenger transportation or tourism business.
Aircraft or yachts not liable to excise tax which are used for purposes other than commercial cargo or passenger transportation or tourism business are liable to excise tax.
Businesses possessing imported aircraft or yachts used for other purposes as mentioned above shall declare and pay excise tax to customs offices under the Ministry of Finance’s guidance on customs procedures; customs inspection and supervision; and import duly, export duty and tax administration of imports and exports.
Businesses possessing domestically produced aircraft or yachts used for other purposes as mentioned above shall declare and pay excise tax to their managing tax agencies based on the residual value of such aircraft or yachts after making depreciation according to regulations.
5. Cars specified in Clause 4, Article 3 of the Law on Excise Tax include cars which are designed by manufacturers to be used as ambulances, prison vans or hearses; radio frequency inspection and control vehicles; armored vehicle mounted ramp systems; mobile television trucks; cars designed with both seats and standing places for transporting 24 or more people; cars operating within recreation, entertainment and sports centers which neither are registered for circulation nor move on roads, special-use vehicles and cars which neither are registered for circulation nor move on roads as guided by the Ministry of Finance in coordination with related ministries and sectors.
An importer of excise tax-free cars designed for operating within recreation, entertainment or sports centers which neither are registered for circulation nor move on roads specified in Clause 5 of this Article shall:
– Produce to the custom office at which the import declaration is opened a copy of its business registration certificate indicating its business in recreation, entertainment or sports centers (containing the importer’s signature and seal).
– Write on the import declaration: “cars designed and manufactured for operating only within recreation, entertainment or sports centers which neither are registered for circulation nor move on roads.” The importer shall take responsibility for the accuracy of its import dossier.
The customs office with which the importer registers the import declaration shall check the goods and neither collect excise tax nor issue a declaration of origin of imported cars to the importer.
In case an importer has carried out import procedures under Clause 5 of this Article for cars designed for operating only within recreation, entertainment or sports centers which neither are registered for circulation nor move on roads but later changes the use purpose of such excise tax-liable cars against that declared upon importation and does not use them in recreation, entertainment or sports centers, the importer shall declare and pay excise tax to the customs office according to the Ministry of Finance’s guidance on customs procedures; customs inspection and supervision; and import duty, export duty and tax administration of imports and exports. In case the importer fails to make declaration with the customs office which has carried out import procedures to pay the excise tax amount arising due to change of the use purpose against that declared upon importation, it shall be sanctioned under the Law on Tax Administration and guiding documents.
6. Naphtha, condensate, reformade components and other components used as production raw materials (except gasoline production) imported directly by production establishments:
Naphtha, condensate, reformade components and other components directly sold by their producers to other production establishments for use as production raw materials (except gasoline production).
Excise tax-free goods specified in this Clause must comply with the following provisions on their dossiers and procedures:
a/ In case a producer directly imports goods, it shall produce to customs offices dossiers according to the Ministry of Finance’s guidance on customs procedures; customs inspection and supervision; and import duty, export duty and tax administration of imports and exports (in case of entrusted import, import enmeshment contract is required); a copy of the business registration certificate (containing the producer-cum-importer’s seal and signature) and a written commitment stating that naphtha, condensate, refonnade components or other components are imported for use as production raw materials (except gasoline production), made by the producer-cum-importer’s lawful representative;
In case goods are sold directly by its domestic producer to another producer for use as production raw materials (except gasoline production), the following papers are required: the goods sale and purchase contract; a copy of the goods buyer’s business registration certificate (containing the buyer’s signature and seal) and a written commitment stating that naphtha, condensate, refonnade components and other components are bought for use as production raw material (except gasoline production), made by the buyer’s lawful representative;
b/ Via-bank payment documents.
If using the excise tax-free goods specified in Clause 6 of this Article for other purposes, producers-cum-importers shall declare and pay excise tax at the stage of importation to customs offices under the Ministry of Finance’s guidance on customs procedures, customs inspection and supervision; and import duty, export duty and tax administration of imports and exports.
In case naphtha, condensate, refonnade component and other components are sold directly by their domestic producers to other establishments for use as production raw materials (except gasoline production), goods sale invoices must clearly indicate that the goods are not liable to excise tax.
After buying excise tax-free naphtha, condensate, refonnade component and other components specified in Clause 6 of this Article directly from their producers, if selling them in the domestic market or using them for other purposes, buyers shall declare and pay excise tax for these goods.
Particularly, in case a producer imports or buys from other domestic producers naphtha, condensate, reformade component and other components for use as raw materials for production of gasoline, oil and other petrochemical solvents, it shall declare and pay excise tax when buying them. The excise tax amount which the producer has paid shall be refunded under Article 8 of this Circular.
Example 1: Refining and Petrochemical Joint-Stock Company A imports condensate for use as raw material for producing gasoline, fuel oil and some other petrochemical solvents. Company A shall pay excise tax when importing condensate. The excise tax amount paid by Company A condensate shall be deducted under Article 8 of this Circular.
Example 2: Refining and Petrochemical Joint-stock Company B buys condensate from its producer, Petroleum Company C, for use as raw material for producing gasoline, fuel oil and some other petrochemical solvents. Company B shall make payment to Company C at the excise tax-inclusive price. The excise tax amount paid by Company B to Company C shall be deducted under Article 8 of this Circular.
7. Air conditioners of a capacity of 90,000 BTU or less which are designed by manufacturers only to be fitted on means of transport, including cars, train carriages, ships, boats or aircraft.
In case a business imports, entrusts the import of, or signs with a domestic contractor a contract on the supply of a central air-conditioning system of over 90,000 BTU which will be delivered according to work construction schedule (this air-conditioning system is imported in many shipments), in order to not be required to calculate and pay excise tax upon each importation of the imported equipment’s components such as the outdoor or indoor unit, the business shall produce to the customs office a dossier comprising:
– The original or a copy containing the importer’s seal of the import contract (in case of entrusted import, the import entrustment contract is required) or the contract on the sale and purchase of the central air-conditioning system signed with a domestic construction contractor, clearly stating that such system is a synchronous equipment of a capacity of over 90,000 BTU which is imported in complete set under the producer’s standards, enclosed with a list of the imported equipment’s components.
– The air-conditioning system’s connection diagram, certified by the importer and the construction contractor (if any).
– A certificate of inspection of the capacity and synchronicity of the imported equipment as well as the inability to operate independently of its detachable parts (outdoor and indoor units) or groups of detachable parts, issued by a competent inspection agency according to law.
In case each detachable part is, or some detachable parts are assembled into, a complete air conditioner of 90,000 BTU or less which can operate independently without connection to the entire system, each part will be liable to excise tax.
– The business’s written commitment to using the imported goods for the proper purpose and taking responsibility before law for its commitments.
Based on the dossier produced by the business establishment, the customs office shall make a reconciliation slip according to Appendix 1 to this Circular {not printed herein) for monitoring and management.
Article 4. Taxpayers
1. Excise taxpayers are producers and importers of goods and providers of services liable to excise lax, including:
Business organizations established and making business registration under the Law on Enterprises, the Law on State Enterprises (now the Law on Enterprises) or the Law on Cooperatives.
1.2. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, politico-socio-professional organizations, people’s armed forces units, non-business organizations or other organizations.
1.3. Foreign-invested enterprises and foreign parties to business cooperation contracts under the Law on Foreign Investment in Vietnam (now the Investment Law); foreign organizations and individuals doing business in Vietnam without establishing legal entities in Vietnam.
1.4. Individuals, households, independent business groups and other producers, traders and importers.
2. In case a business purchases excise tax-liable goods from producers for export and do not export but sell these goods domestically, this business is taxpayer. When selling these goods, the business shall declare and fully pay excise tax.
Chapter II

TAX BASES

Article 5. Excise tax calculation prices
The excise tax calculation price of a goods or service is the goods selling price or the service charge rate, exclusive of excise tax, environmental protection tax (if any) and value-added tax, set by the producer or business, specifically as follows:
1. For domestically produced goods, the taxed price is determined as follows:

Of which, the selling price exclusive of value-added tax is determined under the law on value-added tax and the environmental production tax is determined under the law on environmental protection tax.
a/ In case an excise tax-liable goods producer sells goods via its dependent cost-accounting establishments, the price as a basis for detennining the taxed price is the selling price exclusive of value-added tax and environmental protection tax (if any) of those dependent cost-accounting establishments. For a producer that sells goods via agents selling goods at the producer’s prices for commission only, the price as a basis for determining the taxed price is that producer’s commission-inclusive selling price exclusive of value-added tax and environmental protection tax (if any);
b/ In case an excise tax-liable goods producer sells goods via traders, the price as a basis for excise tax calculation is that producer’s selling price exclusive of value-added lax and environmental protection tax (if any), which must not be 10% lower than the average selling price applied by these traders. Particularly, the average selling price of cars applied by traders which is used for comparison is the selling price announced by the manufacturer for a car according to its quality standards, excluding equipment and accessories which are further installed by traders at customers’ request.
If a producer’s selling price is more than 10% lower than the selling price applied by traders, the taxed price shall be assessed by tax agencies under the Law on Tax Administration and its guiding documents.
2. For imports, the taxed price is determined as follows:
Excise tax calculation price = Import duty calculation price + Import duty.
The import duty calculation price is determined under the Law on Import Duty and Export Duty. For imports eligible for duty exemption or reduction, the taxed price is exclusive of the exempted or reduced import duty amount.
3. For excise tax-liable goods, the taxed price is the price exclusive of value-added tax, environmental protection tax (if any) and excise tax and inclusive of the tare value.
For bottled beer, if a deposit is made for empty bottles and producers and customers make quarterly finalization of such deposit, the deposit amount equivalent to the value of lost empty bottles must be included in excise tax calculation turnover.
Example 3: For canned beer, in 2012, the value-added tax-exclusive selling price of 1 liter of canned beer is VND 20,000, and the excise tax rate for beer (applicable from January 1, 2010, through December 31,2012) is 45%, then the excise tax calculation price is determined as follows:

Example 4: In the second quarter of 2012, the value-added tax-exclusive selling price of one box of Hanoi bottled beer is VND 120,000, then the excise tax calculation price is determined as follows:

Example 5: In the third quarter of 2012, Beer Company A sells 1,000 beer bottles to customer B and collects a total deposit for empty bottles of VND 1,200,000 (VND 1,200/bottle). At the end of the quarter. Company A and customer B make finalization: the number of recovered empty bottles is 800 and the number of lost bottles is 200. Based on the number of recovered bottles. Company A returns to customer B a sum of VND 960,000 and shall include in excise tax calculation turnover the deposit amount for lost bottles which is VND 240,000 (200 bottles x VND 1,200/bottle).
4. For processed goods, the taxed price is that of sold goods set by the processing-ordering establishment or the selling price of products of the same or similar kind at the time of goods sale, exclusive of value-added lax, environ­mental protection tax (if any) and excise tax.
5. For goods produced in the form of business cooperation between a producer and an user or owner of goods trademarks (brands) or production technologies, the price as a basis for excise tax calculation is the selling price exclusive of value-added tax and environmental protection tax (if any) set by that user or owner. In case an establishment produces goods under a franchising license and transfers goods to Vietnam-based branches or representatives of the foreign company concerned for sale, the excise tax calculation price is the selling price of those branches or representatives.
6. For goods sold on installment or deferred payment, the excise tax calculation price is the one-off selling price of such goods, exclusive of value-added tax, environmental protection tax (if any), excise tax and the installment or deferred payment interest.
7. For goods and services used for barter, internal consumption, donation or sales promotion, the taxed price is that of goods or services of the same or similar kind at the time of barter, internal consumption, donation or sales promotion.
8. In case an exporter purchases excise tax-liable goods from producers for export then does not export but sells them domestically, the taxed price is the selling price exclusive of excise tax, environmental protection tax (if any) and value-added tax and shall be determined as follows:

 
In case an exporter declares a selling price (inclusive of value-added tax, environmental protection tax (if any) and excise tax) which is 10% lower than the market price as a basis for determining the taxed price, the taxed price shall be assessed by tax agencies under the Law on Tax Administration and its guiding documents.
9. For services, the taxed price is the service charge rate, exclusive of value-added tax and excise tax, set by the service provider, specifically as follows:

For some services, the service charge rate exclusive of value-added tax serving as a basis for determining the taxed price is specified as follows:
a/ For golf business (including dealing in golf training grounds), it is the value-added tax-exclusive sales of membership cards or golf-playing tickets, inclusive of proceeds from the sale of golf-training tickets, collection of ground maintenance fees, buggy and caddy hire, deposits (if any) and other golf-related revenues paid by golf players or golf club members to a golf business. In case such deposits are returned to depositors, the paid tax amount shall be refunded to the business by deducting from the payable tax amount of the subsequent period. If no deduction is made, the business will have tax refunded under regulations. In case a golf business deals in other goods or services not liable to excise tax such as hotel, catering, goods sale or game services, such goods or services are not liable to excise tax.
Example 6: For a golf business also deals in hotel, catering, goods sale or game business activities not liable to excise tax, these goods or services are not liable to excise tax.
b/ For casino or prized video game business, it is turnover from such business minus prizes paid to customers, i.e., the collected amount of money (exclusive of value-added tax) from the exchange of money at exchange counters or card tables or slot machines minus the amount of money exchanged back to customers;
c/ For betting business, it is sales of betting tickets minus (-) prizes paid to customers (exclusive of value-added lax), exclusive of sales of entry tickets to entertainment events associated with betting business;
d/ For dance hall, massage parlor and karaoke bar business, it is the value-added tax-exclusive turnover from such business, inclusive of the turnover from catering services and other associated services (e.g., bath and sauna in massage service establishments).
Example 7: Value-added tax-exclusive turnover from dance hall business (inclusive of turnover from catering services) of establishment A in a tax period is VND 100 million.

e/ For lottery business, it is sales (exclusive of value-added tax) of tickets of licensed lotteries under law.
10. Taxed prices of goods and services specified in Clauses 1 thru 9 of this Article arc inclusive of additional revenues (if any) collected by production and business establishments together with goods selling prices or service charges.
Taxed prices arc calculated in Vietnam dong. In case a taxpayer has foreign-currency turnover, such turnover must be converted into Vietnam dong at the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of turnover generation.
For imports, the conversion of Vietnam dong into a foreign currency used for determining the taxed value complies with the law on import duty and export duty.
11. In case production and business establishments fail to comply with or improperly comply with regulations on invoices and documents, tax agencies shall, based on production and business realities, assess turnover under the Law on Tax Administration and determine the payable excise tax amount.
12. The time of determining excise tax is specified as follows:
– For goods, the time of turnover generation is the time of transfer of the right to own or use the goods to the purchaser, regardless of whether or not money has been collected;
– For services, the time of turnover generation is the time of completing service provision or the time of making a service provision invoice, regardless of whether or not money has been collected;
– For imports, the time of turnover generation is the time of customs declaration registration.
13. When trading in goods, providing services and transporting goods, producers and importers of excise tax-liable goods and providers of excise tax-liable services shall comply with regulations on accounting, invoices and documents.
When selling or delivering goods to their branches, dependent establishments or agents, producers shall issue invoices. In case of selling or delivering goods to branches or shops in the same province or centrally run city or when consigning goods from one to another warehouse, producers may use the ex-warchousing-cum-internal transportation bill enclosed with the internal transfer order.
Producers of excise tax-liable trademarked goods shall register trademarks under regulations.
Article 6. Excise tax rates
1. Excise tax rates comply with Article 7 of Law No. 27/2008/QH 12 on Excise Tax, Article 5 of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, and Clause 4, Article 1 of the Government’s Decree No. 113/2011/ND-CP of December 8,2011.
2. In case an establishment produces different kinds of goods or provides different kinds of services liable to excise tax at different tax rates, it shall declare and pay excise tax according to the tax rate prescribed for each kind of goods or service. If the establishment cannot determine tax according to each tax rate, it shall calculate and pay tax at the highest tax rate applicable to the goods it produces or the services it provides.
Chapter III

EXCISE TAX REFUND, DEDUCTION AND REDUCTION

Article 7. Tax refund
Excise taxpayers may have the paid tax amounts refunded in the following cases:
1. Goods temporarily imported for re-export, including:
a/ Imports for which excise tax has been paid but which are still kept in warehouses or yards at border gates under customs supervision and will be re-exported abroad;
b/ Imports for which excise tax has been paid for delivery or sale abroad through Vietnam-based agents; goods imported for sale to foreign firms’ vehicles operating on international routes via Vietnamese ports or to Vietnamese vehicles operating on international routes under the Government’s regulations;
c/ Goods temporarily imported for re-export by the mode of temporary import for re-export. When they are re-exported, the excise tax amount already paid on the volume of actually re-exported goods will be refunded;
d/ Imports for which excise tax has been paid but re-exported abroad. When they are exported abroad, the excise tax amount already paid on the volume of re-exported goods will be refunded;
e/ Goods temporarily imported for display at fairs, exhibitions or showrooms or for other purposes in a certain period for which excise tax has been paid. When they are re-exported, the paid excise tax amount will be refunded.
f/ Imports for which excise tax has been paid as declared but the volume of actually imported goods is smaller than declared; imports damaged or lost in the course of importation for plausible reasons for which excise tax has been paid.
g/ For imports failing to meet quality or category requirements under contracts or import licenses (at the fault of foreign goods owners) which have been inspected by competent, testing agencies and certified by foreign goods owners and are permitted for import, customs offices shall inspect and re-certify the payable excise tax amount. The overpaid tax amount, if any, will be refunded, and the insufficient tax amount, if any, will be added.
In case goods are permitted for re-export abroad, the excise tax amount already paid on the volume of re-exported goods will be refunded.
In case goods are returned to foreign parties within the time limit during which import duty payment is not required under regulations, customs offices shall conduct documentary examination and will not collect excise tax on the volume of imports returned to foreign parties.
2. For goods which are raw materials imported for export production and processing, the excise tax amount already paid on the volume of raw materials used for producing actually exported goods will be refunded.
The excise tax refund under Clauses 1 and 2 of this Article applies only to actually exported goods, and the procedures, dossiers, order and competence for refunding excise tax on imports are similar to those for import duty refund under the law on import duty and export duty.
3. When making tax finalization upon merger, separation, split-up, dissolution, bankruptcy, ownership transformation. assignment, sale, contracting or lease of state enterprises, production and business establishments that have overpaid excise tax amounts may request tax agencies to refund such amounts.
4. Excise tax will be refunded in the following cases:
a/ Tax refund under competent agencies’ decisions according to law;
b/ Tax refund under treaties to which the Socialist Republic of Vietnam is a contracting party;
c/ Tax refund in case the paid excise tax amount is larger than the payable excise tax amount under regulations.
The procedures, dossiers, order and competence for excise tax refund under Clauses 3 and 4 of this Article comply with the Law on
Tax Administration and its guiding documents.
Article 8. Tax deduction
For a taxpayer that produces excise tax-liable goods from excise tax-liable raw materials, the excise tax amount already paid on imported raw materials or for raw materials directly bought from domestic producers may be deducted when determining the payable excise tax amount. The deductible excise tax amount is equivalent to the excise tax amount on raw materials used for producing goods sold.
For a taxpayer that concurrently produces gasoline, oil and petrochemical solvents from excise tax-liable raw materials, the excise tax amount already paid on imported raw materials or for raw materials bought from domestic producers may be deducted when determining the payable excise tax amount. The deductible excise tax amount is equivalent to the excise tax amount on raw materials used for producing goods sold.
Conditions for excise tax deduction are specified as follows:
– For cases of importing excise tax-liable raw materials for producing excise tax-liable goods, documents as a basis for excise tax deduction arc those on payment of excise tax at the stage of importation.
– For cases of purchasing raw materials directly from domestic producers:
+ Goods sale and purchase contract, clearly indicating that the goods are produced directly by the seller, copy of the seller’s business registration certificate (containing the seller’s signature and seal);
+ Via-bank payment documents;
+ Documents as a basis for excise tax deduction are value-added invoices issued upon goods purchase. The excise tax amount already paid by the buyer when buying raw material shall be determined to be the excise tax calculation price multiplied (x) by the excise tax rate; of which:

The deductible excise tax amount is equal to the excise tax amount already paid for raw material used for producing the goods sold.
Excise tax shall be deducted upon tax declaration. The payable excise tax amount is determined according to the following formula:

Example 8:
In a tax declaration period, establishment A has the following operations:
+ Importing 10,000 liters of liquor and paying an excise tax amount of VND 250 million upon importation (based on the receipt of excise tax payment at the stage of importation).
+ Ex-warehousing 8,000 liters for producing 12,000 bottles of liquor.
+ Selling 9,000 bottles of liquor; the excise tax amount payable for these 9,000 bottles is VND 350 million.
+ The excise tax amount already paid at the stage of importation of liquid liquor for 9,000 sold bottles of liquor is VND 150 million.
So, the excise tax amount payable by establishment A is this period will be:
VND 350 million – VND 150 million = VND 200 million.
In case the excise tax amount already paid for raw materials equivalent to products sold in the period cannot yet be accurately determined, the previous period’s data may be used to temporarily calculate the deductible excise tax amount which shall be re-determined based on the actual data at the end of the quarter or year. In all cases, the deductible excise tax amount must not exceed the excise tax amount calculated for raw materials according to techno-economic norms of products. Producers shall register products’ techno-economic norms with their managing tax agencies.
Article 9. Tax reduction
Excise tax reduction complies with Article 9 of Law No. 27/2008/QH12 on Excise Tax.
Excise tax reduction procedures and dossiers comply with the Law on Tax Administration and its guiding documents.
Chapter IV

IMPLEMENTATION PROVISIONS

Article 10. Effect
1. This Circular takes effect on the effective date of Decree No. 113/2011/ND-CP (February 1,2012).
2. This Circular replaces the Ministry of Finance’s Circular No. 64/2009/ND-CP of March 27, 2009, detailing the implementation of Decree No. 26/2009/ND-CP of March 16, 2009, which details a number of articles of the Law on Excise Tax.
Article 11. Organization of implementation
1. Tax agencies shall manage excise tax collection, refund and reduction for businesses.
2. Customs offices shall manage excise tax collection and refund for imported goods.
3. Any difficulties and problems arising in the course of implementation should be reported to the Ministry of Finance for timely settlement.-
 

ANNEX No. 1
(To the Ministry of Finance‘s Circular No. 05/2012/TT-BTC of January 5, 2012,  guiding the implementation of the Government’s No. 26/2009/ND-CP of March 16, 2009, and Decree No.113/2011/NĐ-CP of December 08, 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP  of March 16, 2009, detailing a number of articles of the Law on Excise Tax)
RECONCILIATION MONITORING CARD FOR IMPORTED DETAILS OF IMPORTED CENTRAL AIR-CONDITIONING SYSTEMS OF OVER 90.000 BTU
Number of sheets ……
Sheet No. ……………
1. Enclosed with the list of quantities of imported details of imported central air-conditioning systems of over 90.000 BTU under contract No. … , date  … month … year……….
2. Name of organization/individual:…………………………………..; Code ………………………..
3. Head office address of organization/individual:……………………………….
 

 Notes:
– The items Number of sheets and Sheet No. 1, 2, 3 and 4 are filled in by the card-issuing customs office. When issuing this card with many sheets, the customs office shall append its stamp on all sheets.
– Columns 1 to 9 of the card are filled in by the customs office carrying out import procedures.
– When an enterprise has imported all goods according to the registered list, the last district-level Customs Department shall keep the list and the reconciliation monitoring card of the enterprise for sending to the customs office with which the enterprise has originally registered.

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