At the draft, the Ministry proposes new regulations on the cases of tax deduction, tax filing on behalf, and tax payment on behalf.
According to the Ministry of
Finance, the cases of tax deduction, filing on behalf, and payment on behalf (Article 22 of the draft) include two basic provisions inherited from Clause 4a of Article 42 of the Tax Administration Law No. 38/2019/QH14 (as amended by Law No. 56/2024/QH15) as amended to follow Article 7 of Decree No. 126/2020/ND-CP, including:
New content: The recipient of collateral or purchaser of collateral assets under civil law as provided in point g, clause 2, Article 40 of the Tax Administration Law; An auction organization is responsible for withholding and paying on behalf under point l, clause 3, Article 40 of the Tax Administration Law; Cases that must complete tax obligations as prescribed in Article 27 of this Decree; A credit institution in cases where imported goods are tax-exempt or not taxed, the taxpayer who mortgaged assets to secure loans but has not declared or paid taxes to the customs office; the credit institution must handle the mortgaged assets to recover the debt.
Content of amendments: The organizer of an e-commerce platform, foreign digital platforms, or domestic businesses operating in Vietnam using the value-added tax (VAT) calculation by deducting the tax on services purchased from foreign entities via e-commerce or digital platforms shall apply VAT in accordance with the VAT Law.
Content inherited: cases of filing on behalf and paying on behalf under Clause 5 Article 7 of Decree No. 126/2020/ND-CP.
Cases of deduction and remittance of tax already deducted: Tax-withholding organizations must remit to the tax authorities as required by tax law.
The organizer of an e-commerce platform, foreign digital platform, or domestic business applying the VAT deduction method shall withhold and remit tax for services purchased from foreign entities via platforms; An auction organization is responsible for withholding and remitting on behalf for collateral assets.
Organizations signing contracts with business households or individuals acting as agents for lottery, insurance, or multi-level marketing must declare taxes on behalf of the individuals and remit taxes on their behalf.
Cases of filing on behalf and remittance on behalf: Organizations or individuals filing taxes on behalf of taxpayers must comply with tax law.
If a business partner engages in business with an individual, the organization shall declare VAT on the total revenue of the activity without regard to profit-sharing form, and shall also declare and remit personal income tax for individuals involved in the venture.
The recipient of collateral or the buyer of collateral assets shall declare and remit on behalf as provided in point g, clause 2, Article 40 of the Tax Administration Law.
Organizations leasing assets to individuals where the lease contract designates the organization as the taxpayer for the lease shall declare on behalf and remit on behalf for the individual.
The buyer of real estate where the contract provides that the buyer pays the tax on behalf of the seller (except where exempt or not required to pay) and related third parties may sell the individual’s assets under law; in such cases the buyer and related third party shall declare on behalf and remit on behalf for the individual.
Cases that must fulfill tax obligations as prescribed in Article 27 of this Decree.
Credit institutions paying tax and late payments on behalf of taxpayers in cases where imported goods are tax-exempt or not taxed, or where the taxpayer mortgaged assets to secure loans but has not declared or paid taxes to customs; credit institutions must dispose of the collateral to recover the debt.
Auction organizations must declare and remit on behalf in relation to collateral assets that are imported goods exempt from tax or not taxed, under point l, clause 3 Article 40 of the Tax Administration Law.
