Newsletter

Tax policy

On 24 April 2023, the General Department of Taxation issued Official Letter No. 1482/TCT-KK and Official Letter No. 1483/TCT-KK on implementation of tax collection using tax payable identifier (ID). Details are as follows:

1. Issuance and notification of payable ID code to taxpayers

a) Issuing an ID for each amount payable of a taxpayer that has been recorded in the centralized Tax management systems (TMS), asset/real estate registration fee management applications, according to Section I of Appendix 1 of Official Letter No. 1483.

b) Sending a notification of the IDs to the taxpayer.

2. Sharing the tax payable IDs with the collection institutions

The Portal of the General Department of Taxation shall share the IDs of the (tax) payables with the State’s Budget, the National Public Service Portal, and other banks, depending on the progress of IT infrastructure upgrade and technical connection of said institutions.

3. Using the tax payable IDs

a) The taxpayer may use the payable ID to look up his or her tax liability, make payment to the State’s Budget, review and adjust information on state budget collection/tax payment at the Portal of the General Department of Taxation, according to the instructions in Appendix 02 of Official Letter No. 1483.

b) The State’s Budget, the National Public Service Portal, and banks may query the payable ID at the Portal of the General Department of Taxation, according to point 2 of Official Letter No. 1483, or use the payable ID on payment notices provided by the taxpayer, or Payment statement/Pay slip declared by the taxpayer to support the taxpayer to make payment to the State’s Budget (or make payment electronically using services provided by the State’s Budget/National Public Service Portal/the banks) as prescribed at Point a, Clause 5 and Clause 7, Article 1 of Circular No. 72/2021/TT-BTC dated 17 August 2021 of the Ministry of Finance amending and supplementing Circular No. 328/2016/TT-BTC dated 26 December 2016 of the Ministry of Finance guiding collections and management of collections through the State’s Budget.

c) Tax authorities may use the payable ID to monitor and manage taxpayers’ tax obligations according to Section II, Appendix 01 of Official Letter No. 1483. Details are as follows:

– Receipt of payment voucher to the State’s Budget with payable IDs, offsetting tax payables with already paid amounts using the IDs.

– Processing remittance review/information (payment/collection through the State’s Budget) adjustment requests using the IDs.

Scope of application and implementation

– Tax payable IDs/electronic tax payment services using payable IDs at the Portal of the General Department of Taxation/application system upgrade for tax obligation management by ID at Point 1 and 3, Section I of Official Letter No. 1483 are available from 10 May 2023.

– Regarding payment using payable ID through the State’s Budget, the National Public Service Portal, and banks: the General Department of Taxation shall provide further instructions to organizations cooperating in the collection process, so that the organizations may finalize its process/application of payable ID before notifying the tax authorities/taxpayers.

Value-added Tax (“VAT”)

Declaration of VAT invoices of which invoice date and digital signing date are different

On 4 May 2023, the General Department of Taxation issued Official Letter No. 1586/TCT-CS on VAT declaration of e-invoice as follows:

In case an e-invoice having different invoice date and digital signing date: if the date of digital signing is the same or later than the invoice date, the e-invoice shall be considered valid.

– The seller shall declare VAT based on the invoice date;

– The buyer shall declare VAT at the time of receiving a valid invoice (complete in form and content) according to Article 10 of Decree 123/2020/ND-CP of the Government.

Personal Income Tax (“PIT”)

PIT withholding (at the tax rate of 10%) of income from winning prizes of which value exceeding VND 10 million, excluding any expenses

Official Letter No. 24601/CTHN-TTHT dated 19 April 2023 by the Hanoi Tax Department guiding PIT of employee who win sweepstakes as follows:

In case an employee receives a reward-in-kind from participating in prize-winning contests or other forms of lottery organized by a company, the reward is considered income from lottery winning according to Clause 6, Article 2 of Circular No. 111/2013/TT-BTC dated 15 August 2013 of the Ministry of Finance; if the prize’s value exceeds VND 10 million, the company must withhold PIT before giving the prize to the winning individual, the withheld tax amount is determined according to Article 15 of Circular No. 111/2013/TT-BTC dated 15 August 2013.

PIT declaration of organization paying income in form of prize-winning to individuals shall follow the Forms specified in Appendix II of Circular No. 80/2021/TT-BTC dated 29 September 2021 by the Ministry of Finance.