General provisions on tax declaration and calculation
Taxpayers shall calculate tax amounts payable into the state budget by themselves, except the case in which tax agencies assess or calculate tax under Articles 37 and 38 of the Law on Tax Administration
1. Principles for tax calculation and declaration
a/ Taxpayers shall calculate tax amounts payable into the state budget by themselves, except the case in which tax agencies assess or calculate tax under Articles 37 and 38 of the Law on Tax Administration.
b/ Taxpayers shall accurately, honestly and fully fill in tax returns to be submitted to tax agencies according to forms set by the Ministry of Finance and submit all documents required for tax declaration dossiers.
c/ For taxes to be declared on a monthly, quarterly or yearly basis, if no tax obligation arises in a tax period or taxpayers are currently eligible for tax incentives, exemption or reduction, taxpayers shall still submit tax declaration dossiers to tax agencies within the set time limit, except for cases in which activities that give rise to the tax obligation have terminated and cases in which business operations are suspended under Point e, Clause 1 of this Article.
d/ For taxes to be declared on a monthly or quarterly basis, the first tax period is counted from the date of commencement of activities that give rise to the tax obligation to the last day of the month or quarter, and the last tax period is counted from the first day of a month or quarter to the date of termination of activities that give rise to the tax obligation. The annual tax period for enterprise income tax or royalty is counted according to the calendar year or the fiscal year applied by taxpayers. The annual tax period for other taxes is the calendar year.
e/ Taxpayers are not required to submit tax declaration dossiers for the period in which business operations are suspended and no tax obligation arises.
Within 5 days before suspending their business operations, taxpayers shall send a written notice to their managing tax agencies. Such a notice must contain the following details:
- The taxpayer's name, office address and tax identification number;
- The duration of business suspension, the first day and last day of the suspension period;
- Reasons for business suspension;
- The full name and signature of the enterprise's at-law representative, representative of the group of business individuals or head of the business household.
Upon expiration of the business suspension period, the taxpayer shall declare tax according to regulations. In case a taxpayer resumes its business operations before the expiration of the notified business suspension period, it shall send a written notice thereon to its managing tax agency and, at the same time, submit a tax declaration dossier under regulations.
2. Tax declaration dossiers:
A tax declaration dossier comprises a tax return and relevant documents serving as grounds for the taxpayer to declare and calculate tax with a tax agency.
Taxpayers shall use the proper form of tax return and attached annexes set by the Ministry of Finance and may not change the format or add, put out or change the position of, any item in the tax return. Those kinds of paper in the tax dossier, of which forms are not set by the Ministry of Finance, must comply with relevant laws.
3. Deadlines for submission of tax declaration dossiers
a/ The deadline for submission of a monthly tax declaration dossier is the 20th of the month following the month in which the tax obligation arises.
b/ The deadline for submission of a quarterly tax declaration dossier is the 30th of the quarter following the quarter in which the tax obligation arises.
c/ The deadline for submission of an annual tax declaration dossier is the 30th of the first month of the calendar year or fiscal year.
d/ The time limit for submission of a tax declaration dossier for each time of arising of a tax obligation is 10 days from the date the tax obligation arises.
e/ The time limit for submission of an annual tax finalization dossier is 90 days from the end of the calendar year or fiscal year.
f/ The time limit for submission of a tax finalization dossier in case of termination of operation, expiration of contract, enterprise ownership transformation or reorganization is 45 days from the date of termination, expiration, transformation or reorganization.
g/ The time limit for submission of dossiers for declaration of taxes or other levies on land use under the one-stop-shop mechanism is the time limit set in inter-disciplinary documents guiding this one-stop-shop mechanism.
4. Extension of time limits for submission of tax declaration dossiers:
a/ Taxpayers who are unable to submit their tax declaration dossiers on time due to natural disasters, fires or accidents may enjoy an extension of the time limit for submission of tax declaration dossiers given by heads of tax agencies directly managing them.
b/ An extension must not exceed 30 days from the original deadline for submission of tax declaration dossiers, for the submission of dossiers for monthly or annual tax declaration, quarterly declaration of temporarily calculated tax or tax declaration for each time of arising of a tax obligation; or 60 days from the original deadline for submission of tax finalization declaration dossiers.
c/ Before the expiration of a time limit for submission of tax declaration dossiers, taxpayers shall send written requests for extension of the time limit to tax agencies that have received tax declaration dossiers, clearly stating the reason for extension, which are certified by People's Committees or police offices of communes, wards or townships in which the events that necessitate the extension occur.
d/ Within 5 working days after receiving written requests for extension of the time limit for submission of tax declaration dossiers, tax agencies shall reply in writing taxpayers whether they approve the extension. If tax agencies make no written reply, taxpayers' requests are considered approved.
5. Making additional declarations to tax declaration dossiers:
a/ Past the time limit for submission of tax declaration dossiers, if taxpayers detect errors in tax declaration dossiers already submitted to tax agencies which affect the payable tax amount, they may make additional declarations to these tax declaration dossiers. Additional tax declaration dossiers may be submitted to tax agencies on any working day, not depending on the time limit for submission of subsequent tax declaration dossiers, but must be submitted before tax agencies or competent agencies announce decisions on tax examination or inspection at taxpayers' offices.
b/ Forms of additional declaration dossiers:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular;
- A supplemented or modified tax return for the tax period for which supplementations or modifications must be made (this tax return shall serve as a basis for making the written explanation of additional declarations or modifications according to form No. 01/KHBS);
- Enclosed documents explaining figures in the written explanation of additional declarations or modifications, corresponding to documents in a tax dossier guided in specific sections of this Circular.
c/ If additional declarations to tax declaration dossiers lead to an increase in the payable tax amount or a decrease in the refunded tax amount, taxpayers shall, based on the dossiers of additional declarations or modifications, pay the increased tax amount or repay the refunded tax amount and, at the same time, determine by themselves the fine amount for late tax payment based on the lately paid tax amount or the refunded tax amount, the number of days of late payment and fine level specified in Article 106 of the Law on Tax Administration and Article 12 of Decree No. 98/2007/ND-CP.
If taxpayers cannot determine by themselves or incorrectly determine fine amounts for late tax payment, tax agencies shall determine and notify these fine amounts to taxpayers for payment.
Example 1:
In August 2011, Company A makes additional declarations or modifications to the VAT declaration dossier of January 2011, leading to an increase of VND 100 million in the payable VAT amount, it shall pay the tax amount of VND 100 million and, at the same time, determine by itself the amount of fines for late tax payment into the state budget.
The dossier to be submitted by Company A to the tax agency comprises:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to an increase of VND 100 million in the payable VAT amount of January 2011;
- The VAT return of January 2011, in which the payable VAT amount has been increased by VND 100 million;
- Enclosed documents explaining figures in the additional declarations or modifications (if any).
Example 2:
In August 2011, Company B makes additional declarations or modifications to its EIT finafization declaration dossier of 2010, leading to an increase of VND 100 million in the payable EIT amount. In this case, Company B shall pay the tax amount of VND 100 million and, at the same time, determine by itself the fine amount for late payment based on the lately paid tax amount, the number of days of late payment and the prescribed fine level and pay this fine amount into the state budget.
The dossier to be submitted by Company B to the tax agency comprises:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to an increase of VND 100 million in the payable EIT amount of 2010;
- The EIT finafization return of 2010, in which the payable EIT amount has been increased by VND 100 million;
- Enclosed documents explaining figures in the written explanation of additional declarations or modifications (if any).
d/ If taxpayers' additional declarations or modifications to tax declaration dossiers lead to a decrease in their payable tax amount in the tax period for which additional declarations or modifications are made, taxpayers may clear the decreased tax amount against the payable tax amount of the subsequent tax period or carry out procedures for tax refund.
Example 1:
In August 2011, Company C makes additional declarations or modifications to the VAT declaration dossier of January 2011, leading to a decrease of VND 100 million to the payable VAT amount. In this case. Company C shall declare the decreased VAT amount of VND 100 million of January 2011 in the item -Decrease in payable VAT amounts of previous periods - of the VAT return of August 2011 (the month in which additional declarations or modifications are made) or compile a dossier for refund of the overpaid VAT amount.
The dossier to be submitted by Company C to the tax agency comprises:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 100 million in the payable VAT amount of January 2011;
- The VAT return of January 2011, in which the payable VAT amount has been decreased by VND 100 million;
- Enclosed documents explaining figures in the written explanation of additional declarations or modifications (if any).
Example 2:
In August 2011, Company D makes additional declarations or modifications to the excise tax declaration dossier of January 2011, leading to a decrease of VND 100 million in the payable excise tax amount. In this case, the taxpayer shall consider it an overpaid tax amount of January 2011 and may clear it against the payable excise tax amounts of subsequent tax periods or carry out procedures for tax refund.
The dossier to be submitted by Company D to the tax agency comprises:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 100 million in the payable excise tax amount of January 2011;
- The excise tax return of January 2011, in which the payable excise tax amount has been decreased by VND 100 million;
- Enclosed documents explaining figures in the written explanation of additional declarations or modifications (if any).
e/ The additional VAT declaration or modification in some specific cases are made as follows:
Case 1: In case taxpayers' additional declarations or modifications only lead to a decrease in the creditable value-added tax amount (without giving rise to any payable VAT amount), after making additional declarations or modifications, taxpayers are not required to additionally pay tax and fines for late tax payment. The uncreditable VAT amount of the period for which additional declarations or modifications are made shall be declared in the item - Increase in payable VAT amounts of previous periods - of the VAT return of the tax period during which additional declarations or modifications are made.
Example 1:
In August 2011, Company E makes additional declarations or modifications to its VAT declaration dossier of January 2011, leading to a decrease in the creditable VAT amount from VND 200 million to VND 100 million (a decrease of VND 100 million in the credited tax amount). In this case, the taxpayer is not required to pay the VAT amount of VND 100 million and calculate fines for late tax payment but it shall declare the uncreditable VAT amount of January 2011 in the VAT return of August 2011, the month when additional declarations or modifications are made (making additional declarations or modifications in item - Increase in the VAT amounts of previous periods).
The dossier to be submitted by Company E to the tax agency comprises:
- A written explanation of additional declarations or modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 100 million in the creditable VAT amount of January 2011;
- The VAT return of January 2011, in which the creditable VAT amount has been decreased by VND 100 million;
- Enclosed documents explaining figures in the explanation of additional declarations or modifications (if any).
Case 2: In case taxpayers' additional declarations or modifications only lead to a decrease in the creditable VAT amount for which the taxpayers have compiled a dossier of application for tax refund and the tax agency has issued a tax refund decision. In this case, taxpayers shall base on dossiers of additional declarations or modifications to repay the refunded tax amount and, at same time, determine the fine amount for late tax payment on the basis of the lately paid tax amount, the number of days of late payment (the duration for calculation of fines for late payment shall be counted from the date the tax agency issues the tax refund decision till the date the enterprise repays the. refunded tax amount) as prescribed in Article 106 of the Law on Tax Administration.
Example 2:
On the VAT return of March 2011, Company F requests to halt the credit of the negative accumulative VAT amount of VND 500 million of 3 consecutive months (from January to March 2011) to make a VAT refund dossier and the tax agency has made a decision to refund the VAT amount of 500 million. In August 2011, Company F makes a dossier of additional declarations or modifications to the VAT declaration dossier of January 2011, leading to a decrease of VND 200 million in the creditable VAT amount to be cleared against the payable tax amount of the subsequent period. In this case, Company F shall repay the refunded tax amount of VND 200 million and calculate and pay fines for late tax payment according to Article 106 of the Law on Tax Administration.
The dossier to be submitted by Company F to the tax agency comprises:
- A written explanation of additional declarations and modifications, made according to form No. 01/KHBS provided in this Circular, leading to a decrease of VND 200 million in the creditable VAT amount of the January 2011 tax period which is to be cleared against the payable tax amount of the subsequent period;
- The VAT return of January 2011, in which the creditable VAT amount to be cleared against the payable tax amount of the subsequent period has been decreased to VND 2(X) million;
- Enclosed documents explaining figures in the explanation of additional declarations or modifications (if any).
Case 3: If taxpayers' additional declarations or modifications lead to a decrease in the creditable VAT amount and an increase in the payable VAT amount, taxpayers shall pay the increased tax amount and, at the same time, determine the fine amount for late tax payment on the basis of the lately paid tax amount, the number of days of late payment and me fine level as prescribed. After making additional declarations or modifications, taxpayers are not required to additionally pay the creditable VAT amount which is decreased and calculate and pay fine for late tax payment. The uncreditable VAT amount shall be declared in item - Increase in VAT amounts of previous periods - in the VAT return of the period during which additional declarations or modifications are made.
Example 3:
In August 2011, Company G makes additional declarations or modifications to its VAT declaration dossier of January 2011, leading to a decrease of VND 200 million in the creditable VAT amount to be cleared against the payable tax amount of the subsequent period and an increase of VND 100 million in the payable VAT amount (under the VAT return of January 2011, the VAT amount not yet credited and cleared against the subsequent period is VND 200 million, now the uncreditable VAT amount decreases to VND 300 million, giving rise to a payable VAT amount of VND 100 million under the VAT return of January 2011). In this case, the taxpayer shall pay the increased VAT amount of VND 100 million and calculate and pay fines for late tax payment. The uncreditable VAT amount of VND 200 million shall be declared in the VAT return of August 2011, the month of making additional declarations or modifications (in item - Increase in VAT amounts of previous periods).
The dossier to be submitted by Company G to the tax agency comprises:
- For modifications which lead to an increase of VND 100 million in the payable VAT amount of January 2011: When detecting errors, Company G shall make additional declarations or modifications to pay the increased tax amount of VND 100 million and a fine for late payment. The dossier of additional declarations or modifications to be submitted to the tax agency comprises:
+ A written explanation of additional declarations or modifications to the VAT return of January 2011, made according to form No. 01/KHBS;
+ The VAT return of January 2011, in which the payable VAT amount is increased by VND 100 million;
+ Enclosed documents explaining figures in the written explanation of additional declarations or modifications (if any).
- For modifications which lead to a decrease of VND 200 million in the creditable VAT amount of January 2011: Company G shall make modifications in the VAT return of August 2011 and enclose to the VAT declaration dossier of August 2011 submitted to the tax agency copies of the written explanation of additional declarations or modifications to the VAT return of 2011, made according to form No. 01/KHBS, and the modified VAT return of January 2011 already submitted.
Example 4: After submitting VAT dossiers to tax agencies, if taxpayers detect errors which should be additionally declared or modified but additional declarations or modifications do not lead to any increase or decrease of the payable VAT amount (errors in turnover of goods and services sold or purchased, etc.), they shall make a written explanation and a new VAT return for submission as replacement but are not required to make a dossier of additional declarations or modifications according to form No. 01/KDBS.
Tax agencies shall base themselves on taxpayers' written explanations to modify the figures according to taxpayers' additional declarations or modifications.
6. Places of submission of tax declaration dossiers:
Taxpayers shall submit tax declaration dossiers; dossiers of declaration of charges, fees and other state budget revenues at their managing tax agencies. The places of submission of tax declaration dossiers in some cases are specified as follows:
a/ Dossiers of declaration of house and land tax, agricultural land use tax, land use levy and land rent; dossiers of declaration of registration fee; dossiers of declaration of VAT on extra-provincial business operations and dossiers of presumptive tax declaration shall be submitted at district-level Tax Departments of localities in which such taxes arise.
b/ For royalty declaration dossiers, enterprises exploiting natural resources in provinces or cities in which they are headquartered shall submit dossiers at their managing tax agencies (provincial- or district-level Tax Departments). Taxpayers based in provinces or cities different from the localities in which they exploit natural resources shall submit dossiers at the provincial-level Tax Departments of the localities in which natural resources exploitation activities are carried out or district-level Tax Departments designated by directors of such provincial-level Tax Departments.
c/ For dossiers of enterprise income tax on real estate transfer, enterprises headquartered in the provinces or cities in which they carry out real estate transfer activities shall submit dossiers at their managing tax agencies (provincial- or district-level Tax Departments). Taxpayers that carry out real estate transfer activities in provinces and cities other than the localities in which they are headquartered shall submit dossiers at the provincial-level Tax Departments of the localities in which real estate transfer activities are carried out or district-level Tax Departments designated by the directors of such provincial-level Tax Departments.
d/ For excise tax declaration dossiers, taxpayers whose establishments producing goods liable to excise tax are located in provinces or cities other than the localities in which they are headquartered shall submit dossiers in the localities in which their production establishments are located.
e/ In case state management agencies in a locality have stipulated the coordination in the settlement of administrative procedures, providing for the application of the one-stop-shop mechanism to tax procedures and declaration dossiers, the places of submission of tax declaration dossiers comply with the prescribed order and procedures.
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