Decree 106/2010/ND-CP amending and supplementing Decree 85/2007/ND-CP of May 25, 2007 detailing the Tax Administration Law and Decree 100/2008/ND-CP of September 8, 2008 detailing the Personal Income Tax Law

Decree 106/2010/ND-CP (28 October 2010) amends and supplements Decree 85/2007/ND-CP, which detailed the Law on Tax Administration, and Decree 100/2008/ND-CP, which detailed the Law on Personal Income Tax. On tax administration, it revises the rules on authorized tax collection, requiring a contract between the tax authority head and the authorized collector except for certain non-recurring income types specified by the Ministry of Finance. A new provision lets a taxpayer that temporarily suspends business, after sending written notice to its managing tax authority, skip filing tax returns during the suspension period. When registered tax information changes, the taxpayer must notify the directly managing tax authority within ten working days; one-stop-shop procedures under business-registration law may be followed instead. If a change of head office shifts the taxpayer to a tax authority in another province, the taxpayer must pay all declared tax or request a refund of overpaid tax before relocating and need not finalize tax, unless the relocation coincides with the annual finalization. For value-added tax, filing is generally monthly, except filing per arising occurrence for construction, installation, and itinerant sales conducted in a province other than the head-office province (out-of-province business), and except for the presumptive method; frequent within-month filers may register to switch to monthly VAT filing. Monthly VAT dossiers comprise the monthly VAT return plus lists of sales and purchase invoices, while per-occurrence out-of-province dossiers contain only the VAT return. Special consumption tax is filed monthly for goods and services subject to it (other than exports and imports), with a dossier of the monthly return, a list of sales invoices for taxable goods and services, and a list of deductible special consumption tax if any. For exported and imported goods, VAT, special consumption tax, export tax, and import tax are filed per arising occurrence at the time of customs procedures; the customs dossier serves as the tax dossier. Where goods were not subject to tax or were exempt but later change in status or purpose, the taxpayer must file within ten days of the change. Business license tax is filed once when a taxpayer newly begins operating, by the last day of the starting month, or within thirty days of receiving the business-registration and tax-registration certificate if operations have not yet begun, and annually only when the payable license-tax level changes. The Decree also adds customs-fee declaration rules and revises filing for foreign contractors not applying Vietnamese accounting (foreign contractor tax), withholding and payment on behalf of foreign transport firms, and declaration for crude oil extraction and export and hydropower production.