Chapter V
RESPONSIBILITY TO FULFILL TAX LIABILITY
Article 40. Fulfillment of tax liability before leaving Vietnam
1. The Vietnamese people that emigrate to reside overseas, Vietnamese people residing overseas, foreigners must fulfill their tax liability before leaving Vietnam.
2. The taxpayers mentioned in Clause 1 of this Article must obtain certifications of fulfillment of tax liability before departure. Tax authority shall issue written certifications of fulfillment of tax liability at the taxpayer’s request.
3. The immigration agency must stop an individual from leaving Vietnam when receiving a written or electronic notification from a tax authority that the person has not fulfilled their tax liability.
Article 41. Fulfillment of tax liability upon dissolution, bankruptcy, shutdown
1. Fulfillment of tax liability upon dissolution or bankruptcy must comply with Article 54 of the Law on Tax administration and Clause 16 Article 1 of the Law on the amendments to the Law on Tax administration, laws on companies, cooperatives, and bankruptcy.
The owner of the private company, the board of members or owner of the limited liability company, the Executive Board of the joint-stock company, or the organization in charge of liquidation is responsible for the fulfillment of tax liability of the company when it is dissolved.
The cooperative dissolution council is responsible for the fulfillment of tax liability of the cooperative when it is dissolved.
The asset management and liquidation board is responsible for the fulfillment of tax liability of the company when it is dissolved.
2. Responsibility to fulfill tax liability when the company is shut down without following the dissolution or bankruptcy procedure.
a) If the company is shut down without following the dissolution or bankruptcy procedure, the owner of the private company, the president of the board of members or owner of the limited liability company, the president of Executive Board of the joint-stock company, or the head of the cooperative shall pay the outstanding tax.
b) If a household or individual that shuts down the business without fulfilling tax liability, the householder shall pay the outstanding tax.
c) When an artel is shut down without fulfilling tax liability, the householder shall pay the outstanding tax.
d) The persons responsible for fulfilling tax liability mentioned in Point a, Point b, and Point c of this Clause are entitled to request the joint obligors to fulfill their liability.
Article 42. Fulfillment of tax liability upon restructuring
1. The divided company must fulfill tax liability before the decision. If the divided company has not fulfilled tax liability, the new companies derived from the divided company shall fulfill tax liability.
2. The split, amalgamated, or merged company must fulfill tax liability before the split, amalgamation, or merger. Otherwise, the new companies derived from the old company must fulfill tax liability.
3. When a company is converted, tax liability must be fulfilled before the conversion. Otherwise the new company derived from the conversion shall fulfill tax liability.
4. The restructuring of a company does not affect the deadline for paying tax. Any company that is restructured or a new company established without paying tax by the deadline shall face the penalties prescribed by law.
5. The tax authority is entitled to request one of the companies that are jointly responsible to fulfill tax liability. When a company has fulfilled tax liability, it is entitled to request the companies that are jointly responsible to fulfill their obligations in accordance with civil laws.
Article 43. Inheritance of tax liability of a person that is dead, incapable of civil acts, or missing according to civil laws
1. The tax liability of a person that is considered dead shall be fulfilled by his inheritor within the value of inheritance left by the dead person.
If the inheritance has not been divided, the inheritance manager shall fulfill tax liability.
If the inheritance has been divided, the inheritors shall fulfill tax liability according to the proportion of inheritance they receive, unless otherwise agreed.
If the government or an organization is also an inheritor according to the will, they must fulfill the tax liability left by the dead person as if they are an individual.
If no inheritor is available according to the will or law, or the inheritor refuses the inheritance, the dead person’s tax liability shall be fulfilled in accordance with civil laws.
2. Tax liability of a person declared missing or incapable of civil acts shall be fulfilled by the person assigned by the court to keep the former’s property within the inheritance left by the former.
3. If the declaration that a person is dead, missing, or incapable of civil acts is revoked by a competent authority, the decision on cancellation of outstanding tax shall also be revoked according to Article 65 of the Law on Tax administration and Clause 20 Article 1 of the Law on the amendments to the Law on Tax administration, but no late payment interest shall be charged on the period over which the taxpayer is declared dead, missing, or incapable of civil acts.
Article 44. Certification of tax liability fulfillment
1. The taxpayer is entitled to request the supervisory tax authority to certify the fulfillment of their tax liability (except for the taxes incurred during exportation or importation), or request the supervisory tax authority to certify the amount of tax, late payment interest and fines payable hitherto.
The individual or foreign contractor that pays tax at source (via the income payer) shall request the supervisory tax authority of their income payer to certify the fulfillment of tax liability.
2. The certification of tax liability fulfillment must contain:
- Name and TIN of the taxpayer;
- The taxes incurred, including those stated in the declarations submitted to the tax authority, flat tax and imposed tax;
- Fines for tax offences;
- Paid tax and fines;
- Outstanding tax and fines (if any).
3. Within 05 working days from the receipt of the request for certification from the taxpayer, the tax authority shall issue the certification. If information about the fulfillment of tax liability needs verifying, the tax authority shall notify the taxpayer of the reasons for delaying the certification.
4. Deducting foreign tax from tax payable in Vietnam
The organizations and individuals that are Vietnamese residents and have paid tax in a country that signs a tax treaty with Vietnam in accordance with that country’s law and the treaty shall have the paid tax deducted from the tax payable in Vietnam. Tax shall be deducted as follows:
a) The taxpayer shall submit an application for deduction of paid tax from the tax payable in Vietnam to the tax authority of the province where tax is registered. The application consists of:
a.1) A written request for deduction of paid tax against the tax payable in Vietnam (form 02/HTQT enclosed herewith), providing information about the transactions related to the paid tax which is deduct from tax payable in Vietnam.
If the taxpayer fails to provide sufficient information or documents as prescribed in Point a Clause 4 of this Article, explanation must be provided in the written request.
a.2) Other documents: - For direct deduction:
+ A photocopy of the declaration of overseas income, which is certified by the taxpayer;
+ Photocopies of overseas tax receipts, which are certified by the taxpayer;
+ The original certification of the paid tax issued by the foreign tax authority.
- For deduction of flat tax:
+ A photocopy (certified by the taxpayer) of the declaration of overseas income;
+ A photocopy (certified by the taxpayer) of the of the Certificate of Business registration or documents certifying the overseas business;
+ A certification issued by a foreign authority of the tax exemption or reduction, and the conformity of tax deduction with the treaty and laws of contracting countries.
- For indirect deduction:
+ The documents proving the relationship with and contribution ratio of the applicant for deduction;
+ A photocopy (certified by the taxpayer) of the declaration of overseas income earned by the dividend payer to which capital is contributed;
+ A photocopy (certified by the taxpayer) of the declaration of tax deducted at source from dividends;
+ A certification issued by the foreign tax authority of the payment of tax on dividends and income tax paid made by the company before paying dividends.
a.3) A letter of attorney if the taxpayer authorizes a legal representative to follow the procedure.
b) The tax authority shall consider allowing tax deduction according to the treaty and this Circular within 10 working days from the receipt of all the documents mentioned in Point a of this Clause. The aforesaid 10-day period does not include the time for providing additional documents and explanation.
5. Procedure for certifying tax paid in Vietnam by foreign residents
When a resident of a contracting country has to pay income tax in Vietnam according to the treaty and Vietnam’s tax laws, and wishes to have the tax paid in Vietnam certified so that it could be deducted from the tax payable in his home country, the following procedure shall be followed:
a) The taxpayer that wishes to have the tax paid in Vietnam certified shall submit an application to the Department of Taxation of the province where tax is registered. The application consists of:
a.1) A written request for certification of tax paid in Vietnam (form 03/HTQT enclosed herewith), specifying information about the transactions related to the taxable income and the tax incurred under the treaty.
a.2) The original copy (or certified true copy) of the Certificate of residence (consularly legalized) issued by the tax authority of the home country (specifying the tax period).
a.3) A letter of attorney if the taxpayer authorizes a legal representative to follow the procedure.
If the taxpayer fails to provide sufficient information or documents as prescribed in Point a Clause 5 of this Article, explanation must be provided in form 03/HTQT mentioned above.
Within 07 working days from the receipt of sufficient documents, the Department of Taxation shall issue a certification of tax paid in Vietnam (form 04/HTQT or 05/HTQT enclosed herewith). Form 04/HTQT shall be used for certifying the payment of personal income tax and corporate income tax; form 05/HTQT shall be used for certifying the payment of tax on dividends, loan interest, payment for copyright or technical services. The aforesaid 7-day period does not include the time for providing additional documents and explanation.
b) The taxpayer incurs a tax in Vietnam but is not required to pay it because of eligible for tax incentives. This tax is considered paid and may be deducted from the flat tax in the home country. In this case an application shall be sent to the Department of Taxation, which consists of:
b.1) A written request for certification of tax paid in Vietnam (form 03/HTQT enclosed herewith), specifying information about the transactions related to the taxable income and the tax incurred, and the tax incentives under the treaty.
b.2) The consularly legalized Certificate of residence issued by a tax authority of the home country, specifying the tax period;
b.3) A letter of attorney if the taxpayer authorizes a legal representative to follow the procedure.
If the taxpayer fails to provide sufficient information or documents as prescribed in Point b Clause 5 of this Article, explanation must be provided in form 03/HTQT mentioned above.
Within 07 working days from the receipt of sufficient documents, the Department of Taxation shall issue a certification of tax incurred in Vietnam that is exempted because of tax incentive. The aforesaid 7-day period does not include the time for providing additional documents and explanation.
6. Procedure for certifying residents of Vietnam
a) The applicant for the certification of residence in Vietnam under the treaty shall follow the procedure below:
a.1) If the applicant is a taxpayer, the request for certification of residence in Vietnam (form 06/HTQTenclosed herewith) and a letter of attorney (if the taxpayer authorizes a legal representative to follow the procedure) shall be submitted to the Department of Taxation of the province where tax registration is applied for.
a.2) If the application is not a taxpayer:
- A written request mentioned in Point a.1 Clause 6 of this Article;
- A certification issued by the local authority of the permanent residence (for individuals) or the registered address (for organizations);
- A certification issued by the income payer (if any). If this certification is not available, the applicant shall make a declaration in the request and take responsibility for it;
- A letter of attorney if the taxpayer authorizes a legal representative to follow the procedure.
b) Within 07 working days from the receipt of the application, the Department of Taxation shall consider issuing the certificate of residence (form 07/HTQT enclosed herewith) to the applicant in accordance with the definitions of residents in the treaty. The aforesaid 7-day period does not include the time for providing additional documents and explanation.
If the tax authority of the contracting country requests a resident of Vietnam to provide a certificate of residence issued by a Vietnamese tax authority using the form provided in the treaty in order to apply the treaty in that contracting country, the Department of Taxation shall add a certification to the form if it contain similar information to the form 07/HTQT mentioned above.
Tìm kiếm
Thông tư 156/2013/TT-BTC (Bản Word)
Thông tư 156/2013/TT-BTC (Bản Pdf)