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New points in Law on Tax Administration No. 38/2019/QH14 on June 13th ,2019 took effect from July 1st ,2020

06/08/2020 Newest Editor

On June 13th ,2019, The XIV National Assembly Of Socialist Republic Of Vietnam has approved the Law on Tax Administration No. 38/2019/QH14. The Law on Tax Administration took effect from July 1st ,2020 with some new points:

  1. Extend the deadline for submission of tax declaration dossiers as prescribed in Article 44 of the Law on Tax Administration 2019:
  2. The deadline for submission shall be the last day of the 3rdmonth from the end of the calendar year or fiscal year for Tax finalization dossiers; the deadline for submission shall be the last day of of the first month from the end of the calendar year or fiscal year for annual tax declaration dossiers;
  3. The deadline for submission shall be the last day of the 4th month from the end of the calendar year for annual personal income tax statements prepared by income earners;
  4. The deadline for submission shall be on December 15th of the preceding year for fixed tax declarations prepared by household businesses and individual businesses. For new household businesses and individual businesses: within 10 days from the date of commencement of the business
  5. Tax administration provisions on e-commerce activities:

Clause 4 Article 42 Law on Tax Administration 2019 on tax declaration has stipulated: Regarding electronic commerce, digital business and other services provided by overseas providers without permanent establishments in Vietnam, the overseas providers shall directly or authorize representatives to apply for taxpayer registration, declare and pay tax in Vietnam in accordance with regulations of the Minister of Finance.

  1. Tighten on the management of the transfer pricing activities

Clause 5 Article 42 Law on Tax Administration 2019 has stipulated on rules for tax declaration and calculation as follows:

  • Values of related-party transactions shall be determined and declared by analyzing and comparing with independent transactions, the nature of operation and nature of the transaction, in order to determine tax liability in the same manner as that of transactions between independent parties;
  • Values of related-party transactions shall be adjusted according to independent transactions to declare tax so that in taxable income is not decreased;
  1. Legalizing regulations on e-invoices:

Heretofore, regulations on e-invoices have already prescribed under legal documents, Decree No. 119/2018/ND-CP dated September 12th ,2018 is a typical example. Currently, regulations on e-invoices have been stipulated in Law on Tax Administration 2019 took effect from July 1st ,2020; regulations on e- invoices and records shall take effect from July 1st ,2022.