SUMMARY OF TAX ADMINSTRATION:
Chapter I – General Provisions
This chapter concludes:
- Defines scope: tax administration and other revenues belonging to the state budget.
- Subjects of application: taxpayers, tax authorities, customs, related organizations/individuals.
- Key terms explained: “tax,” “other revenues,” “tax administration information system,” “related-party transactions,” “tax risk,” etc.
- Principles: transparency, self-declaration & self-payment, risk management, independent transactions.
- Confidentiality of taxpayer information and cases of disclosure.
- Prohibited acts: collusion, tax evasion, illegal invoices, data system sabotage.
- Building a modern, professional tax administration force.
Article 8. Prohibited Acts in Tax Administration
1. Collusion and abuse of authority
Collusion, connivance, or cover-up between taxpayers and tax officials/tax authorities to engage in transfer pricing, tax evasion, avoidance of other revenues, fraud, or misappropriation of tax and state budget funds.
Abuse of position or authority to unlawfully disclose or leak taxpayer information.
Falsifying inspection results or handling of tax law violations.
Harassing or causing trouble for taxpayers.
Misappropriating or unlawfully using tax funds or other revenues.
2. False or incomplete declarations
Deliberately failing to declare, or declaring incompletely, untimely, or inaccurately the amount of tax or other revenues payable, exempted, reduced, refunded, or not collected.
Obstructing tax officials in the performance of their duties.
Resisting, delaying, or failing to provide information and documents necessary for tax inspection and supervision.
3. Misuse of tax identification numbers
Using another taxpayer’s tax identification number to commit unlawful acts.
Allowing others to use one’s own tax identification number contrary to legal regulations.
4. Invoice and document violations
Selling goods or providing services without issuing invoices as required by law.
Using illegal invoices/documents, unlawfully using invoices/documents, or forging invoices/documents to commit unlawful acts.
Illegally creating electronic invoices/documents or using them to commit violations in tax administration.
5. Information system violations
Distorting, misusing, unauthorized access to, or destroying taxpayer information systems.
Providing or disseminating false information that harms the reputation or operations of tax authorities, taxpayers, or the tax administration information system.
Chapter II – Tax Administration Functions
This chapter concludes:
- Full tax administration process: registration, declaration–calculation–payment, refund, exemption/reduction, debt handling, enforcement.
- Tax registration via one-stop mechanism.
- Detailed rules on declaration, deduction, substitution, supplementary declaration within 5 years.
- Special rules for household businesses, individual businesses (especially e-commerce).
- Electronic tax payment; payment reference codes.
- Handling overpaid tax, late payment interest (0.03%/day).
- Fulfillment of tax obligations in cases of dissolution, bankruptcy, death, disappearance, capital transfer.
- Tax refund, exemption, non-collection.
- Debt rescheduling, debt cancellation.
- Tax inspection, re-inspection, related-party transaction audit.
- Tax assessment when taxpayers fail to declare, misdeclare, or fail to provide documents.
Chapter III – Electronic Invoices and Documents
This chapter concludes:
- Rules on e-invoices: with code, without code, POS invoices.
- Entities required to use e-invoices; responsibilities for issuance, management, storage.
- Centralized invoice data management, connected to state agencies.
- Rules on electronic documents: tax receipts, deduction vouchers.
Chapter IV – International Tax Cooperation and Administration
This chapter concludes:
- Implementation of tax treaties, double taxation agreements.
- MAP (Mutual Agreement Procedure) and APA (Advance Pricing Agreement).
- Exchange of tax information with foreign countries.
- Tax administration for cross-border related-party transactions, global minimum tax.
Chapter V – Risk Management, Compliance, Technology and Digital Transformation
This chapter concludes:
- Application of risk management across tax activities.
- Building taxpayer compliance evaluation systems.
- Tax transactions conducted electronically.
- Tax administration information system integrated with national data, automated processes.
- Ensuring information security, handling technical incidents.
Chapter VI – Rights and Obligations of Taxpayers and Related Parties
This chapter concludes:
- Taxpayer rights: support, data access, explanation, complaint, confidentiality.
- Obligations: tax registration, timely declaration/payment, information provision, proper invoice use.
- Tax authority powers: request information, inspect, assess, enforce.
- Responsibilities of ministries, People’s Committees, State Audit, Inspectorate, Fatherland Front, credit institutions, tax agents.
Chapter VII – Complaints, Denunciations, Dispute Resolution
This chapter concludes:
- Taxpayer rights to complain and denounce.
- Complaint resolution procedures under the Law on Complaints.
- Tax disputes with foreign elements resolved via complaints, litigation, or treaty mechanisms.
Chapter VIII – Administrative Violations and Enforcement
- Principles of sanctioning; cases exempt from sanction.
- Penalties: 10%, 20%, 1–3 times evaded tax depending on act.
- Detailed violations: misdeclaration, tax evasion, illegal invoices.
- Handling violations by banks, payment institutions, guarantors.
- Enforcement measures: account deduction, income withholding, customs suspension, invoice suspension, asset seizure, license revocation.
Chapter IX – Implementation Provisions
This chapter concludes:
- Effective from July 1, 2026; household businesses must use e-invoices from January 1, 2026.
- Law on Tax Administration No. 38/2019 ceases effect (except transitional provisions).
- Transitional rules on exemption/reduction, tax debt, tax inspection.
- Roadmap to complete electronic transaction system before January 1, 2027.