TAX EXEMPTION
1.What is tax exemption?
Tax exemption means not applying tax obligations to taxpayers due to satisfying the conditions prescribed by law. Tax-exempt subjects are organizations and individuals who have the obligation to pay taxes but satisfy the conditions for tax exemption.
2. Cases of tax exemption and tax reduction
The Law on Tax Administration 2019 stipulates the following cases of tax exemption and tax reduction:
– Households and individuals who pay tax on non-agricultural land use with an annual tax payment of 50,000 VND or less. In this case, the tax authority will use the tax book to notify the list of households and individuals eligible for tax exemption.
– Individuals whose tax amount must be paid annually after finalizing personal income tax from salary or wages of 50,000 VND or less. In this case, the taxpayer determines the tax amount to be exempted on the basis of the personal income tax finalization declaration.
– Cases of tax exemption and tax reduction according to the provisions of each specific tax law: Corporate income tax exemption and reduction; Reduce export and import taxes; Reduce special consumption tax,...
3. Tax exemption and tax reduction documents
Tax exemption and tax reduction documents include:
In cases where taxpayers determine the amount of tax to be exempted or reduced by themselves
- Tax return
– Documents related to determining the amount of tax exempted or reduced
4. In cases where the tax authority decides on tax exemption or tax reduction
– Document requesting tax exemption or tax reduction, clearly stating the type of tax requested for exemption or reduction; Reasons for tax exemption or tax reduction; Tax amount proposed for exemption or reduction
– Documents related to determining the tax amount requested for exemption or reduction.
5. Submit, receive and process tax exemption and tax reduction applications
5.1 Submit tax exemption or tax reduction application
In cases where taxpayers self-determine the tax amount to be exempted or reduced, the submission and receipt of tax exemption or reduction documents are carried out simultaneously with the declaration, submission and receipt of tax declaration documents.
In cases where the tax administration agency decides on tax exemption or tax reduction according to the provisions of tax law, the submission of tax exemption or tax reduction documents is prescribed as follows:
– For export tax, import tax and other taxes related to exported and imported goods, the documents are submitted to the competent customs authority.
– For other types of taxes, documents are submitted to the directly managing tax agency.
Forms of submitting tax exemption and tax reduction applications include:
– Submit documents directly to the tax authority
– Send documents by post
– Submit electronic records via the tax authority's electronic transaction portal.
5.2 Notice of receipt of tax exemption and tax reduction applications
The tax administration agency receiving the tax exemption or tax reduction application shall notify about the receipt of the tax exemption and tax reduction application; In case the dossier is not legal, incomplete, or does not conform to the prescribed form, within 03 working days from the date of receiving the dossier, the tax administration agency must notify the taxpayer in writing.
Time limit for processing tax exemption and tax reduction applications
Within 30 days from the date of receiving complete documents, the tax administration agency shall decide to exempt or reduce taxes or notify the taxpayer in writing of the reason for not being eligible for tax exemption or reduction.
In case an actual inspection is needed to have sufficient grounds to resolve a tax exemption or tax reduction application, within 40 days from the date of receipt of complete documents, the tax administration agency shall issue a decision on tax exemption or tax reduction or Notify taxpayers in writing of the reasons for not being eligible for tax exemption or tax reduction.
