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Amendments to tax administration and personal income tax law — Orbitax Tax News & Alerts

In November 2012, the National Assembly adopted amendments to the tax administration and personal income tax laws which will take effect from 1 July 2013.

Tax administration law
The key amendments to the tax administration law are briefly summarized as follows:

-   The advance pricing agreement (APA) mechanism is introduced. APAs may be concluded between the Vietnamese tax authority and the taxpayer, as well as with the tax authorities of a treaty country. They may also be unilateral, bilateral or multilateral. Further details are expected to be provided via decrees or other official regulations.
-   Taxpayers will be able to offset taxes, penalties or interest overpaid in the past 10 years against future taxes due.
-   The time provided for tax refunds is reduced.
-   The interest payable on late tax payments is 0.05% per day for overdue settlements made within 90 days and 0.07% per day for periods more than 90 days.
-   Wrongful tax declarations resulting in underpayment of tax or an excessive tax refund will be subject to a penalty of 20% on the tax payable and corresponding interest.
-   A 10% penalty (on the tax payable and interest) will be imposed on wrongful customs declarations if the adjustment is voluntarily made within 60 days of the declaration, otherwise a 20% penalty will apply.
-   The statute of limitation for tax assessment is 10 years.