Amendments and additions to tax administration
Question:Law No. 71/2014/QH13 amending and supplementing the Laws on Taxation, effective from January 1, 2015, includes many amendments and additions to tax policy and tax administration. Could the Tax Department please provide information on the amendments and additions regarding tax administration?
Reply:Law No. 71/2014/QH13 amending and supplementing a number of articles of the Laws on taxation, passed by the 13th National Assembly on November 26, 2014. The Law came into effect on January 1, 2015. Some amendments regarding tax management are stipulated as follows:
1/To simplify tax filing procedures and reduce the time spent on tax payment, the Law stipulates that, from January 1, 2015, the list of invoices and supporting documents for goods and services sold (Form No. 01-1/GTGT) and the list of invoices and supporting documents for goods and services purchased (Form No. 01-2/GTGT) will be removed from monthly and quarterly tax filing documents.
2/ Regarding the currency used to determine revenue, expenses, taxable value, and taxes payable to the State budget.
In cases where taxpayers generate revenue, expenses, or taxable value in foreign currency, or where taxpayers are obligated to pay in foreign currency but are permitted by competent state authorities to pay in Vietnamese Dong, the foreign currency must be converted into Vietnamese Dong according to the actual exchange rate at the time of the transaction. (Currently: conversion must be based on the average interbank exchange rate published by the State Bank of Vietnam at the time of the transaction).
3/ Reduce the late payment penalty rate:
In the context of stable and low bank interest rates, and increased compliance with tax laws by businesses, the law stipulates a late payment penalty of 0.05% per day for the period of delayed tax payment to alleviate difficulties for businesses.
4/ No coercive measures or late payment penalties will be applied to taxpayers who supply goods or services that are paid for with state budget funds but have not yet received payment, resulting in late tax payments and tax arrears. This is to ensure fairness in the rights and obligations of the State and businesses.
Nghe An Tax Department
