Some new points of Decree No. 126/2020 / ND-CP regulating the Law on Tax Administration

On the afternoon of December 1, 2020, the General Department of Taxation held a press conference to introduce some notable new points of Decree No. 126/2020/ NĐ-CP dated October 19, 2020 of the Government (Decree Decree No. 126) detailing a number of articles of the Law on Tax Administration No. 38/2019 / QH14 (Law on Tax Administration No. 38).

On 19 October 2020, the Government officially issued Decree No. 126/2020/NĐ-CP regulating the implementation of the Law on Tax Administration 2019, applied for the management of taxes and other payables to State Budget, except for the provisions on tax administration for enterprises having associated transactions, applying invoices and documents, penalty of administrative violations in the field of tax, invoices and customs. This Decree officially takes effect from 5 December 2020. However, the policies of tax exemption, reduction, and cancellation in this Decree will be applied from 01 July 2020.

Accordingly, some notable points in Decree 126 are as follows:

Some cases are exempted from tax returns submission, such as entities that only operate non-taxable businesses, individuals having exempted income; the entities suspend their business, having closed the tax code, the EPEs only operate in the export business, are not required to submit VAT declaration.

- Taxpayers might submit supplement return for each incorrect tax declaration dossier:

In case the supplementary declaration does not change the tax liability: Only submit the explanation minute for supplementary declaration, without the requirement of supplementary return.

In case the annual tax finalization declaration has not been submitted: supplement declarations monthly and quarterly.

In case the annual tax finalization declaration has been submitted: only submit supplementary the annual tax finalization declaration (except for supplementing PIT finalization declaration for the income payer, it is required to submit supplementary declarations of the month or quarter having errors accordingly).

In case the supplementary declaration only increases or decreases the amount of creditable VAT carrying forward to the next period must be declared in the current tax period.

Taxpayers are only allowed to supplement declarations to increase the amount of VAT requested for refund when they have not yet submitted the tax declaration dossier for the next tax period and have not yet submitted the application for tax refund.

- Decree 126 also specifies the declaration period for each type of taxes and applicable conditions. Accordingly, taxpayers who meet the quarterly tax declaration criteria can choose to declare tax monthly or quarterly stable for the whole calendar year.