Circular 60/2007/TT-BTC

CIRCULAR Guiding the implementation of a number of articles of the Law on tax administration and guiding the implementation of the Government's Decree no. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on tax administration THE MINISTRY OF FINANCE Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration; Pursuant to the laws, ordinances and decrees on taxes, charges, fees and other revenues of the state budget; Pursuant to the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration; Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance, The Minister of Finance guides the implementation of a number of articles of the Law on Tax Administration and the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration as follows: Part A GENERAL PROVISIONS This Circular guides the implementation of tax administrative procedures specified in 2006 Law No. 78/2006/QH11 on Tax Administration and the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration. I. Scope of regulation This Circular applies to the administration of various taxes according to the provisions of tax law; charges and fees belonging to the state budget according to the provisions of law on charges and fees; and other revenues of the state budget, the collection of which is managed by tax agencies (below collectively referred to as taxes). II. Subjects of application 1. Taxpayers defined in Article 2 of the Government's Decree No. 85/2007/ND-CP include: 1.1. Organizations, households and individuals that pay taxes, charges, fees or other revenues of the state budget according to law. 1.2. Organizations that are tasked to collect charges and fees belonging to the state budget. 1.3. Organizations and individuals that withhold tax, including: 1.3.1 Organizations and individuals being Vietnamese parties to contracts with foreign organizations and individuals that conduct business in Vietnam not under the investment law and do not apply the Vietnamese accounting system; 1.3.2. Organizations and individuals withholding tax when paying incomes to persons who have incomes liable to income tax on high-income earners; 1.3.3. Organizations acting as shipping agents or foreign carriers' agents and responsible for withholding enterprise income tax on the shipping of cargoes from Vietnamese seaports to overseas seaports or between Vietnamese seaports; 1.3.4. Organizations providing tax procedure services; 2. Tax agencies include the General Department of Taxation, provincial-level tax departments and district-level tax departments; 3. Tax officers; 4. Other state agencies, organizations and individuals involved in the implementation of tax law. III. Contents of tax administration guided in this Circular include: 1. Tax declaration, tax calculation; 2. Tax assessment; 3. Tax payment; 4. Tax collection mandate; 5. Responsibility to fulfill the tax obligation; 6. Procedures for tax exemption or tax reduction; remission of tax and fine arrears; 7. Procedures for tax refund or tax clearing; 8. Tax examination and tax inspection; 9. Settlement of complaints, denunciations and legal actions related to the implementation of tax law. IV. Scope and contents of tax administration not covered by this Circular: 1. Provisions on administration of taxes on exports and imports; administration of taxes on exploitation and export of crude oil. 2. Tax administration contents regarding tax registration and enforcement of tax-related administrative decisions and handling of tax law violations. V. Documents for transaction with tax agencies 1. Documents for transaction with tax agencies include documents enclosed with tax dossiers; official letters, applications, requests and other documents sent by taxpayers, organizations mandated to collect taxes and other organizations and individuals to tax agencies. 2. Documents for transaction with tax agencies must be compiled, signed and issued by competent persons; the format of, signatures and seals appended on documents must comply with the provisions of law on paperwork. 3. Documents for transaction with tax agencies that are transmitted electronically must comply with the provisions of law on e-transactions. 4. When detecting that documents for transaction with tax agencies fail to satisfy aforesaid requirements, tax agencies shall request persons who make those documents to correct errors and send replacements. The time a tax agency receives a replacement is considered the time of submission of a document for transaction. 5. The language used in tax dossier documents is Vietnamese. Foreign-language documents must be translated into Vietnamese and certified by district-level People's Committees or overseas diplomatic missions or consular offices of the Socialist Republic of Vietnam according to their respective competence. Consular legalization of papers and documents issued by competent foreign authorities is only compulsory in specific cases guided in this Circular. VI. Receipt of tax dossiers sent to tax agencies 1. If dossiers are submitted directly at tax agencies, tax officers shall receive and append seals of dossier receipt and record the time of dossier receipt and number of documents in dossiers. 2. If dossiers are sent by post, tax officers shall append seals showing the date of dossier receipt and record them in incoming-mail books of tax agencies. 3. If tax declaration dossiers are submitted electronically, tax agencies shall receive, check and accept them through the electronic data processing system. 4. In case of necessity to supplement dossiers, tax agencies shall notify such to taxpayers on the date of receipt of dossiers which are directly submitted to them, or within three working days from the date of receipt of dossiers sent by post or electronically. VII. Method of counting time limits for completing tax administrative procedures 1. If a time limit is counted in days, those days are counted consecutively according to the calendar year, including weekends and holidays. 2. If a time limit is counted in working days, those days are working days of state administrative agencies in the calendar year as provided by law, excluding weekends, public holidays and lunar new year holidays (collectively referred to as holidays). 3. If a time limit is counted from a given day, the starting date of the time limit is the day following the given day. 4. If the last day of the time limit for completing administrative procedures falls on a holiday provided by law, it is the day following that holiday. 5. The date on which a tax dossier is regarded as having been submitted for counting a time limit for performing tax-related administrative jobs is the date a tax agency receives a valid dossier with all required papers and documents. Part B TAX DECLARATION AND TAX CALCULATION I. General provisions on tax declaration and tax calculation 1. Principles for tax calculation and tax declaration 1.1. Taxpayers shall calculate tax amounts payable into the state budget, except when tax agencies assess or calculate tax under the provisions of Articles 37 and 38 of the Law on Tax Administration. 1.2. Taxpayers shall fill in tax returns to be submitted to tax agencies according to forms set by the Ministry of Finance and in an accurate, honest and adequate manner, and submit all required documents of tax declaration dossiers. 1.3. For taxes to be declared on a monthly, quarterly or yearly basis, if no tax liability arises in a tax period or taxpayers are currently eligible for tax relief, exemption or reduction, these taxpayers shall still submit tax declaration dossiers to tax agencies within set time limit, except for cases in which activities that give rise to tax liability have been terminated. 1.4. 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 tax liability to the last day of a 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 tax liability. The annual tax period for business income tax or royalties tax is counted according to the fiscal year used by taxpayers. The annual taxation period for other taxes is the calendar year. 2. Tax declaration dossiers: A tax declaration dossier consists of a tax return and relevant documents used by a taxpayer to declare and calculate tax to a tax agency. Taxpayers shall use the set form of tax return and forms of annexes to the tax return set by the Ministry of Finance, may not change the format, add, put out or change the position of, any element 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 provisions of law. 3. Deadlines for submission of tax declaration dossiers 3.1. Deadline for submission of monthly tax declaration dossiers is the twentieth day of the month following the month in which the tax liability arises. 3.2. Deadline for submission of quarterly tax declaration dossiers is the thirtieth day of the quarter following the quarter in which the tax liability arises. 3.3. Deadline for submission of annual tax declaration dossiers is the thirtieth day of the first month of the calendar year or fiscal year. 3.4. Deadline for submission of tax declaration dossiers for each time of arising of tax liability is the tenth day from the date the tax liability arises. 3.5. Deadline for submission of annual tax finalization dossiers is the ninetieth day from the end of the calendar year or fiscal year. 3.6. Deadline for submission of tax finalization dossiers in the case of termination of operation, expiration of contracts, corporate ownership transformation or reorganization is the forty fifth day from the date of termination, expiration, transformation or reorganization. 3.7. Deadline for submission of dossiers for declaration of taxes or other levies on land use under the inter-agency one-stop shop mechanism is the deadline set in inter-branch guiding documents on the inter-agency one-stop shop mechanism. 4. Extension of time limit for submission of tax declaration dossiers: 4.1. Taxpayers who are unable to submit their tax declaration dossiers on time due to natural disasters, fires or accidents will enjoy an extension of the time limit for submission of tax declaration dossiers given by heads of tax agencies directly managing them. 4.2. An extension must not exceed thirty days for the submission of dossiers for monthly or annual tax declaration, temporarily calculated tax declaration or tax declaration for each time of arising of tax liability; or sixty days for the submission of dossiers for declaration for tax finalization, from the original deadline for submission of tax declaration dossiers. 4.3. Before the submission deadline, taxpayers shall send written requests for extension of the time limit for submission of tax declaration dossiers to tax agencies that receive tax declaration dossiers, clearly stating the extension reason certified by People's Committees or police offices of communes, wards or townships where occurred the events that necessitate the extension. 4.4. Within five 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 in tax declaration dossiers: 5.1. If taxpayers detect errors in their tax declaration dossiers already submitted to tax agencies which affect their payable tax amounts, they may make additional declarations in these tax declaration dossiers. Tax declaration dossiers with additional declarations may be submitted to tax agencies on any working day, not depending on the time limit for submission of subsequent tax declaration dossiers, before tax agencies announce their decisions on tax examination or inspection at taxpayers' offices. 5.2. If additional declarations in tax declaration dossiers lead to an increase in their payable tax amounts, taxpayers shall determine by themselves fine amounts for late tax payment based on the late paid tax amount, number of days of late payment and fine level specified in Article 106 of the Law on Tax Administration. 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 information and payment. 5.3. If additional declarations in tax declaration dossiers lead to a decrease in their payable tax amounts, taxpayers may reduce tax and fine amounts (if any) on the last day of the month of submission of additionally declared dossiers, or clear decreased tax amounts against tax amounts arising in the next tax declaration. 5.4. Dossier forms for additional declaration: - Tax return corresponding to the tax return that needs additional declaration or changes in declared information; - Written explanation of additional declarations and changes, made according to form No. 01/KHBS enclosed with this Circular; - Enclosed documents explaining figures in the written explanation of additional declarations and changes, corresponding to documents in a tax dossier guided in specific sections of this Circular. II. Declaration of value-added tax 1. Responsibility to submit value-added tax declaration dossiers to tax agencies: 1.1. Taxpayers shall submit value-added tax declaration dossiers to tax agencies directly managing them. 1.2. For taxpayers that have subsidiary units conducting business in the province or city where taxpayers' head offices are located: If these subsidiary units conduct independent accounting, they shall submit value-added tax declaration dossiers to tax agencies directly managing them. If these subsidiary units conduct dependent accounting, taxpayers shall make a common value-added tax declaration for both themselves and their subsidiary units. If subsidiary units that conduct dependent accounting but have their own seals and bank deposit account, directly sell goods or services, declare fully input and output value-added tax, wish to make separate tax declaration and payment, they shall make separate tax registration, get dependent tax identification numbers and use separate invoices. 1.3. For taxpayers that have subsidiary units conducting business outside the province or city where taxpayers' head offices are located, these subsidiary units shall submit value-added tax declaration dossiers to tax agencies directly managing them. If these subsidiary units do not directly sell goods and have no sale turnover, they shall all make tax declaration at taxpayers' head offices. 1.4. If taxpayers conduct business activities of construction, installation or goods sale without establishing subsidiary units outside the province or city where their head offices are located (below referred to as extra-provincial mobile construction, installation or goods sale business), they shall submit tax declaration dossiers to district-level tax departments of the localities where such construction, installation or goods sale activities are conducted. 1.5. For extra-provincial construction and installation work, which are carried out in many localities, such as roads, power transmission lines, water or petroleum pipelines, etc., thus making it impossible to determine the turnover of each work in each locality, taxpayers shall declare value-added tax on extra-provincial construction and installation turnover in value-added tax declaration dossiers at their head offices. 2. Value-added tax declaration is made on a monthly basis and the following cases: - Annual finalization declaration for value-added tax calculated directly on the basis of added value; - Declaration of temporarily calculated value-added tax for each time of arising of tax liability for extra-provincial mobile construction, installation or goods sale business activities; - Declaration of value-added tax for each time of arising of tax liability for value-added tax calculated directly on the basis of sale turnover of persons engaged in irregular business. 3. Declaration of value-added tax calculated by the credit method: 3.1. Taxpayers that calculate value-added tax by the tax credit method include enterprises, economic organizations and their subsidiary units conducting accounting and using invoices and documents according to regulations, except those applying the method of calculating tax directly on the basis of added value defined in Clause 4 of this Section. 3.2. A dossier of monthly declaration of value-added tax calculated by the tax credit method comprises: - A value-added tax return, made according to form No. 01/GTGT enclosed with this Circular; - A list of invoices and vouchers of sold goods and services, made according to form No. 01-1/GTGT enclosed with this Circular; - A list of invoices and vouchers of purchased goods and services, made according to form No. 01-2/GTGT enclosed with this Circular; - An explanation of additional declarations and information changes, made according to form No. 01-3/GTGT enclosed with this Circular (applicable to taxpayers that make, in the tax declaration period, additional declarations or changes in the tax declaration dossier of the previous tax declaration period); - A table of allocation of value-added tax amounts of purchased goods and services creditable in the month, made according to form No. 01-4/GTGT enclosed with this Circular (applicable to taxpayers that allocate value-added tax amounts creditable in the month according to the ratio (%) of turnover of sold value-added tax-liable goods and service to total turnover of sold goods and services in the tax month); - A list of adjustments to allocated input value-added tax amounts creditable in the year, made according to form No. 01-4/GTGT enclosed with this Circular (applicable to taxpayers that re-allocate value-added tax amounts creditable in the year according to ratio (%) of turnover of sold value-added tax-liable goods and service to total turnover of sold goods and services in the year). Adjusted (increased or decreased) figures of creditable allocated value-added tax amounts shall be reflected in monthly value-added tax returns of three subsequent years. - A list of paid value-added tax amounts for turnover from extra-provincial mobile construction, installation or goods sale, made according to form No. 01-5/GTGT enclosed with this Circular. 3.3. Taxpayers that have new investment projects for which only input tax arises shall make separate tax declaration dossiers for these investment projects. A dossier of monthly declaration of value-added tax for an investment project comprises: - A value-added tax return for the investment project, made according to form No. 02/GTGT enclosed with this Circular. - A list of invoices and vouchers of purchased goods and services, made according to form No. 01-2/GTGT enclosed with this Circular. 4. Declaration of value-added tax calculated directly on the basis of added value: 4.1. Business households and individuals and taxpayers trading in gold, silver, gems or foreign currencies and keeping adequate purchase and sale invoices for added value determination may declare value-added tax calculated directly on the basis of added value. 4.2. Dossiers of monthly declaration of value-added tax calculated directly on the basis of added value are value-added tax r