Decree No. 91/2022/ND-CP dated October 30, 2022 on amendments to some articles of the Decree No. 126/2020/ND-CP elaborating the Law on tax administration

DECREE

AMENDMENTS TO SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 126/2020/ND-CP DATED OCTOBER 19, 2020 ELABORATING THE LAW ON TAX ADMINISTRATION

Pursuant to the Law on Government Organization dated June 19, 2015; the Law dated November 22, 2019 on Amendments to some Articles of the Law on Government Organization dated June 19, 2015 and the Law on Local Government Organization;

Pursuant to the Law on Tax Administration dated June 13, 2019;

At the request of the Minister of Finance;

The Government promulgates a Decree on amendments to some Articles of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020 elaborating the Law on Tax Administration.

Article 1. Amendments to some Articles of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020 elaborating the Law on Tax Administration

1. Addition of Article 6a:

"Article 6a. Expiration of time limits

The time limits for submission of tax declaration dossiers, time limits for payment of tax, time limits for tax authorities to process applications, effective periods of decisions on enforcing the implementation of tax decisions shall comply with regulations of the Law on Tax Administration and this Decree. In case the expiration date of any of these time limits is a statutory day off, the expiration date will be the working day succeeding the day off."

2. Addition of Point e to Clause 3 of Article 7:

"e) The declarant of personal income tax is the income payer, declares personal income tax monthly or quarterly, and does not deduct personal income tax in the same month or quarter."

3. Amendments to Point b Clause 6 of Article 8:

"b) Corporate income tax (except corporate income tax on transfer of foreign contractor's capital; monthly or separately declared corporate income tax on revenue specified in Point dd Clause 4 of this Article).  The taxpayer shall calculate the provisional corporate income tax every quarter (including distribution of corporate income tax among dependent units, business locations and other real estate in provinces other than the province in which the enterprise is headquartered) and may deduct the provisional tax payable under the annual tax finalization dossier.

Taxpayers that have to prepare quarterly financial statements under accounting laws shall calculate provisional corporate income tax quarterly according to the quarterly financial statements and tax laws.

Taxpayers that are not required to prepare quarter financial statements under accounting laws shall calculate provisional corporate income tax quarterly according to their quarterly business performance and tax laws.

The total amount of provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If the provisional corporate income tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.

In case the taxpayer executes a project of investment in infrastructure or housing for transfer or lease purchase and collect progress payments from customers, provisional corporate income tax shall be paid quarterly at the rate of 1% of the amount collected. In case the project is yet to be transferred and not included in the revenue subject to corporate income tax in the year, it shall be included in the tax finalization dossier when the project is partially or fully transferred instead of the annual tax finalization dossier".

4. Amendments to Point c Clause 6 of Article 8:

"c) Post-tax profit that remains after making contributions to funds of wholly state-owned enterprises. To be specific:

The taxpayer shall determine the post-tax profit within the first 30 days of the quarter succeeding the quarter in which the liability is incurred and may deduct the post-tax profit that remains after fund contributions from the tax payable under the annual tax finalization dossier.

The total post-tax profit that remains after making fund contributions of 04 quarters must be at least 80% of that under the annual tax finalization dossier. In case of underpayment, late payment interest shall be charged on the arrears over the period from the date succeeding the deadline for paying the remaining post-tax profit of the fourth quarter to the date preceding the day on which the arrears are paid to state budget.

Late payment interest will not be charged on the increase in remaining post-tax profit due to adjustment to enterprise classification announced by the owner for the period from the day succeeding the deadline for paying the remaining post-tax profit to the deadline for announcing enterprise classification imposed by a competent authority.

The representative of capital of a wholly state-owned enterprise that has stakes in another joint stock company or multiple-member limited liability company shall vote on payment of dividends or profits upon fulfillment of the conditions specified in the Law on Enterprises and request the joint stock company or limited liability company to transfer the distributed dividends or profits to the wholly state-owned enterprise.

5. Amendments to Point g Clause 6 of Article 8:

"g) Corporate income tax of foreign transport companies shall be provisionally paid quarterly and finalized annually. The total provisional corporate income tax paid in 04 quarters shall be at least 80% of the corporate income tax payable under the annual tax finalization dossier. If provisional tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget."

6. Amendments to Point b Clause 4 of Article 11:

"b) For coal extracted and sold domestically:

If an enterprise authorizes its subsidiary companies or dependent units to extract and sell coal domestically, the units assigned to sell coal shall declare the environment protection tax on the coal that is extracted and subject to tax, and submit tax declaration dossiers to their supervisory tax authorities together with the document specifying tax paid in each province where the extracting companies are located in accordance with regulations of the Minister of Finance."

7. Addition of Clause 8 to Article 27:

"8. Organizations that are established and operating under Vietnam's law and own e-commerce platforms shall provide tax authorities with full, accurate and timely information about traders, organizations and individuals whose goods or services are entirely or partially traded on their e-commerce platforms, including: sellers' names, taxpayer identification numbers, ID numbers or passport numbers, addresses, phone numbers; revenue from online orders. Information shall be provided electronically every quarter by the last day of the first month of the succeeding quarter via the web portal of General Department of Taxation in the format announced by General Department of Taxation."

8. Addition of Clause 4 to Article 43:

"4. Regulations of Point d.1 Clause 5 Article 7 of Decree No. 126/2020/ND-CP shall be effective from jan01, 2023. Individuals who receive dividends in the form of securities, individuals who are existing shareholders receiving bonuses in the form of securities that are recorded in securities accounts of investors up until December 31, 2022 and have not had their tax declared and paid on their behalf by the securities companies or commercial banks where their depository accounts are opened, fund management companies where their investment portfolios are managed, or securities-issuing organizations shall declare and pay personal income tax themselves in accordance with personal income tax laws, be exempted from incur administrative penalties for late submission of tax declaration dossiers and imposition of late payment interest (if any) according to Clause 11 Article 16 of the Law on Tax Administration from December 05, 2020 to the end of December 31, 2022."

9. Form No. 04-1/CC (notice of invoice suspension) enclosed hereof replaces Form No. 04-1/CC in Appendix III of the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020 elaborating the Law on Tax Administration.

Article 2. Effect and implementation

1. This Decree comes into force from the day on which it is signed. Regulations of Clauses 3, 4, 5 Article 1 of this Decree shall be effective from the tax period of 2021 as follows:

a) By the effective date of this Decree, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is not smaller than 75% of the tax payable under the annual finalization dossier, regulations of Clauses 3, 4, 5 Article 1 of this Decree on the minimum ratio of provisional corporate income tax of 04 quarters shall not apply.

b) By the effective date of this Decree, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is smaller than 75% of the tax payable under the annual finalization dossier, the minimum ratio of provisional tax of 04 quarters specified in Clauses 3, 4, 5 Article 1 of this Decree may be applied if it does not lead to an increase in late payment interest.

In case late payment interest has been charged by competent authorities according to Point b, Point c, Point g Clause 6 Article 8 of Decree No. 126/2020/ND-CP and the late payment interest is reduced when the minimum ratio of provisional tax of 04 quarters specified in Clauses 3, 4, 5 Article 1 of this Decree is applied, the taxpayer may submit a written request for late payment interest reduction according to Form No. 01/GTCN in the Appendix hereof to the tax authority where late payment interest is charged (the supervisory tax authority or the tax authority having operations eligible for corporate income tax incentives). If late payment interest is found to be overpaid after reduction, regulations of Article 60 and Chapter VIII of the Law on Tax Administration No. 38/2019/QH14 and its guiding documents shall apply.

2. The Ministry of Finance shall provide guidance and organize the implementation of this Decree.

3. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces, relevant enterprises, organizations, household businesses and individual businesses are responsible for the implementation of this Decree.