Tax exemption and reduction dossier preparation service in Vietnam

Discover how our professional tax exemption and reduction dossier preparation service can help businesses navigate complex tax regulations and maximize their financial benefits. Taxation is an important concept in a country’s financial system. It plays an extremely important role in gathering financial resources so that the government can provide public services and develop the country. A tax is a sum of money that must be contributed by individuals, organizations, or businesses to the state budget, and it is a legal element that people and businesses must comply with. Tax exemption is a regime applied to reduce or completely eliminate the taxes that individuals, organizations or businesses have to pay to the state budget. This means that taxpayers will not have to contribute taxes to specific taxes or enjoy certain tax exemptions. Tax exemptions are usually set up to achieve key objectives such as encouraging investment, facilitating businesses, and promoting economic development. Viet An Tax Agent will provide you with useful information related to the preparation of tax exemption and reduction dossiers with the latest regulations.

Cases in which tax authorities notify or decide on tax exemption or reduction

Pursuant to Clause 1, Article 52 of Circular 80/2021/TT-BTC stipulating the cases in which tax authorities notify and decide on tax exemption or reduction as follows:

• Personal income tax exemption for incomes specified in Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Article 4 of the Law on Personal Income Tax;
• Tax reduction according to regulations for individuals, business households and business individuals facing difficulties due to natural disasters, fires, accidents and critical illnesses affecting the ability to pay tax;
• Reduction of excise tax on taxpayers producing goods subject to excise tax who face difficulties due to natural disasters or unexpected accidents according to the law on excise tax;
• Exemption or reduction of severance tax for natural resource taxpayers who encounter natural disasters, fires or accidents that cause losses to the declared and paid natural resources;
• Tax exemption and reduction for non-agricultural land use tax;
• Exemption and reduction of agricultural land use tax in accordance with the Law on Agricultural Land Use Tax and Resolutions of the National Assembly;
• Exemption or reduction of land rent, water surface rent, land use levy;
• Registration fee waiver.

Regulations on submission and receipt of tax exemption and reduction dossiers

Regulations on submission and receipt of tax exemption and reduction dossiers according to Article 81 the Law on Tax Administration 2019 are as follows:

• In case the taxpayer determines the tax amount eligible for exemption or reduction by himself/herself, the submission and receipt of tax exemption;
• In case the tax administration agency decides on tax exemption or redon or reduction dossiers shall be carried out simultaneously with the declaration, submission and receipt of tax declaration dossiers specified in Chapter IV of the Law on Tax Administration 2019uction in accordance with the tax law, the submission of tax exemption or reduction dossiers is prescribed as follows:

• Taxpayers shall submit tax exemption or reduction dossiers through the following forms:
  • Submit documents directly to the tax authority;
  • Send the documents through the postal service;
  • Submit electronic documents through the tax authority’s electronic transaction portal

The tax administration agency receiving the tax exemption or reduction dossier shall notify the receipt of the tax exemption or reduction dossier; In case the dossier is not lawful, incomplete or in accordance with the prescribed form, within 03 working days from the date of receipt of the dossier, the tax administration agency must notify the taxpayer in writing.

Tax exemption and reduction dossiers

The dossier of tax exemption and reduction according to Article the Law on Tax Administration 2019 is as follows:

• A dossier of tax exemption or reduction in case the taxpayer determines the tax amount to be exempted or reduced by himself or herself includes:
• Tax returns;
• Documents related to the determination of tax amounts to be exempted or reduced.
• A dossier of tax exemption or reduction for cases where the tax administration agency decides on tax exemption or reduction comprises:
• A written request for tax exemption or reduction, clearly stating the type of tax to be exempted or reduced; reasons for tax exemption or reduction; the tax amount proposed for exemption or reduction;
• Documents related to the determination of the tax amount to be exempted or reduced.

In case of tax exemption specified at Point a, Clause 2, Article 79 the Law on Tax Administration 2019, the tax authority shall base itself on the tax book to notify the list of households and individuals eligible for tax exemption. In case of tax exemption specified at Point b, Clause 2, Article 79 the Law on Tax Administration 2019, the taxpayer shall determine the exempted tax amount on the basis of the personal income tax finalization return.

The Minister of Finance shall detail tax exemption and reduction dossiers specified in Article 80 the Law on Tax Administration 2019; stipulate cases in which taxpayers determine the exempted or reduced tax amounts by themselves and cases where tax administration agencies determine exempted tax amounts,  diminish.

Order and procedures for receiving and returning results of electronic tax exemption or reduction dossiers to tax authorities

Pursuant to Article 29 of Circular 80/2021/TT-BTC stipulating the receipt and return of results of settlement of electronic tax exemption and reduction dossiers sent to tax authorities as follows:

• Taxpayers shall make and send dossiers of application for tax exemption or reduction to tax authorities as follows:
• In case the dossier of application for tax exemption or reduction is a document/application for exemption or reduction and attached documents, the taxpayer shall make and send the dossier of tax exemption or reduction to the tax authority as prescribed at Point a, Clause 5, Article 4 of Circular 80/2021/TT-BTC
• In case the taxpayer requests tax exemption or reduction on the tax declaration dossier and does not have to send the document/application for exemption or reduction, the preparation and submission of the electronic tax exemption or reduction dossier shall be carried out simultaneously with the preparation and sending of the electronic tax declaration dossier as prescribed in Article 16 of Circular 80/2021/TT-BTC 16
• Notice of receipt of electronic tax exemption and reduction dossiers
• In case the dossier of application for tax exemption or reduction is a document/application for exemption or reduction and enclosed documents: Within 15 minutes after receiving the taxpayer’s electronic tax exemption or reduction dossier, the website of the General Department of Taxation shall send a notice of receipt of the exemption dossier, electronic tax reduction (according to form No. 01-1/TB-TDT issued together with Circular 80/2021/TT-BTC) for taxpayers according to the provisions of Clause 2, Article 5 of Circular 80/2021/TT-BTC.
• In case the taxpayer requests tax exemption or reduction and is also a tax declaration dossier: The web portal of the General Department of Taxation receives tax declaration dossiers according to the provisions of Article 16 of Circular 80/2021/TT-BTC. Immediately after sending the Notice of acceptance of electronic tax declaration dossiers, the web portal of the General Department of Taxation shall send the Notice of receipt of electronic tax exemption and reduction dossiers (according to form No. 01-1/TB-TDT issued together with of Circular 80/2021/TT-BTC) to taxpayers electronically.
• Processing of tax exemption or reduction dossiers: Notice of acceptance of tax exemption or reduction dossiers
• In case the dossier of application for tax exemption or reduction is a document/application for exemption or reduction and enclosed documents: Within 03 (three) working days from the date stated in the notice of receipt and submission of electronic tax exemption or reduction dossiers, the tax authority shall send a notice of acceptance/rejection of the electronic tax exemption or reduction dossier (according to form No. 01-2/TB-TDT issued together with this Circular) to taxpayers as prescribed in Clause 2, Article 5 of Circular 80/2021/TT-BTC
• In case the taxpayer requests tax exemption or reduction and is also a tax declaration dossier: The web portal of the General Department of Taxation shall send a Notice of acceptance/rejection of the electronic tax declaration dossier as prescribed in Article 16 of this Circular and a Notice of acceptance/rejection of the exemption dossier, e-tax reduction shall comply with the provisions of Point a.1 of this Clause.
• The time limit for processing electronic tax exemption and reduction dossiers is calculated from the date written on the Notice of acceptance of electronic tax exemption and reduction dossiers (according to form No. 01-2/TB-TDT issued together with Circular 80/2021/TT-BTC).
• Tax authorities shall be responsible for settling dossiers of application for tax exemption or reduction of taxpayers received electronically in accordance with the Law on Tax Administration and documents guiding the implementation of the Law on Tax Administration.
• In the process of settling tax exemption or reduction dossiers, the tax authority shall send a notice of explanation and supplementation of information and documents (according to form No. 01/TB-BSTT-NNT issued together with Decree 126/2020/ND-CP) to the taxpayer as prescribed in Clause 2, Article 5 Circular 80/2021/TT-BTC
• The web portal of the General Department of Taxation shall receive written explanations, supplements of information and documents of taxpayers for dossiers of application for exemption or reduction received electronically.
• Return of results of settlement of tax exemption or reduction dossiers electronically: Tax authorities shall send the results of settlement of tax exemption or reduction dossiers of taxpayers received electronically (which are notices and decisions related to the process of settlement of tax exemption or reduction, results of settlement of tax exemption, tax reduction of tax authorities) for taxpayers according to the provisions of Clause 2, Article 5 of Circular 80/2021/TT-BTC.

Time limit for processing tax exemption or reduction dossiers in case the tax administration agency decides on the tax amount to be exempted or reduced

The time limit for processing tax exemption or reduction dossiers in case the tax administration agency decides on the tax amount to be exempted or reduced according to Article 82 of the Law on Tax Administration 2019 is as follows:

• Within 30 days from the date of receipt of a complete dossier, the tax administration agency shall decide on tax exemption or reduction or notify the taxpayer in writing of the reason for not being eligible for tax exemption or reduction.
• In case it is necessary to conduct physical inspection in order to have sufficient grounds for settling tax exemption or reduction dossiers, within 40 days from the date of receipt of a complete dossier, the tax administration agency shall issue a decision on tax exemption or reduction or notify the taxpayer in writing of the reason for not being eligible for tax exemption. tax reduction.

If you have any difficulties or questions related to tax exemption and reduction dossier preparation services, please contact Viet An Tax Agent for the most specific advice.