Summary of new points in the Law amending the Law on Tax Administration 2024

1/3/2025

1. Revised Tax Administration Principles

According to Clause 2, Article 5 of the Law No. 56/2024/QH15, the Law has added tax administration principles in Clause 2, Article 5 of the Law on Tax Administration 2019:

- Tax officials must handle dossiers based on:

  • Records, documents, information provided by taxpayers.
  • Database of tax administration agencies.
  • Information provided by competent state agencies related to taxpayers
  • Results of applying risk management in tax administration

- Ensure proper performance of duties and legal regulations.

2. Supplementing the taxpayer's responsibility to provide information

According to Clause 4, Article 6 of the Law No. 56/2024/QH15, the Law amending and supplementing Clause 2, Article 17 of the Law on Tax Administration 2019:

  • Accurately, honestly, and fully declare and submit tax filings on time;
  •  Be legally responsible for the accuracy, honesty, and completeness of tax filings and documents provided to tax authorities during tax processing.

3. Obligations of foreign suppliers to register, declare, and pay taxes

According to Point a, Clause 5, Article 6 of the Law No. 56/2024/QH15, the Law supplemented Clause 4, Article 42 of the Law on Tax Administration 2019:

- For e-commerce, digital platform-based business, and other services provided by foreign suppliers, foreign suppliers must directly or authorize tax registration, declaration, and payment in Vietnam, according to the regulations of the Minister of Finance.

4. Regulations on e-commerce platforms

According to Point b, Clause 5, Article 6 of the Law No. 56/2024/QH15, the Law supplemented Clause 4a, Article 42 of the Law on Tax Administration 2019:

- From April 1, 2025, e-commerce platforms, digital platforms with payment functions and organizations with other digital economic activities must:

  • Deduct
  • Declare and pay taxes on behalf of the seller (business household, individual business).

- If business households and individuals on e-commerce or digital platforms are not eligible for tax deduction or cannot declare and pay taxes on behalf of sellers, they must directly register, declare, and pay taxes.

5. Amending cases of supplementary tax declarations

According to Clause 6, Article 6 of Law No. 56/2024/QH15, tax declarations can be supplemented within 10 years from the deadline for submission, with the following conditions:

- Taxpayers are allowed to supplement tax declarations within 10 years from the deadline for submitting tax declarations of the tax period with errors or omissions, provided that:

  • Before the tax authority announces the decision to inspect or examine.
  • The dossier is not subject to inspection or examination.

- From December 18, 2024, taxpayers are no longer allowed to supplement tax declarations if the tax authority or competent authority has:

  • Announced the decision to inspect or examine at the taxpayer's headquarters.
  • Issue a conclusion or decision on tax settlement after inspection and examination.

6. Amending the method of calculating late tax payment

According to Clause 7, Article 6 of the Law No. 56/2024/QH15, the Law stipulates the amendment and supplementation of the method for calculating late tax payment time at Point b, Clause 2, Article 59 of the Law on Tax Administration 2019 as follows:

- The late tax payment period will be continuously calculated from the day after the tax payment deadline or extension date, or the deadline in the notice/tax determination/handling decision, to the day immediately preceding the payment of late tax to the state budget

7. Abolish the right to request interest on overpaid tax

According to Clause 8, Article 6 of the Law No. 56/2024/QH15:

- Taxpayers no longer have the right to request the tax authority to pay interest on the amount of tax, late payment, and fines paid in excess of the amount payable.

8. Authority to decide on tax refund

According to Clause 11, Article 6 of the Law No. 56/2024/QH15, the Law has amended Clause 1, Article 76 of the Law on Tax Administration 2019 on the authority to decide on tax refund.

From January 1, 2025, in addition to the Director General of the General Department of Taxation and the Director of the Tax Department, the Director of the Tax Sub-Department and the Director of the Regional Tax Sub-Department will also have the authority to decide on tax refunds in cases of tax refunds according to the provisions of the law on tax.

9. Supplementing Regulations on the Receipt and Feedback of Tax Refund Application Information by the Tax Authority.

The tax authority directly manages taxpayers by receiving tax refund applications in cases eligible for refunds according to tax laws. It applies risk management, issues internal procedures, and implements information technology applications to classify tax refund applications that fall under pre-refund or pre-audit categories, and to resolve tax refund applications as prescribed. The tax authority manages the revenue from receiving applications for the refund of overpaid taxes; in cases of refunding overpaid taxes related to corporate income tax or personal income tax settlements, the tax authority receives the tax settlement applications from taxpayers who submit overpayment refund requests.

This law takes effect from January 1, 2025.