Nội dung toàn văn Official Dispatch No. 1723/TCHQ-KTTT of April 16, 2008 Ref: Solving some difficulties when performing the tax control law and instruction documents
THE MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIET NAM |
No.: 1723/TCHQ-KTTT | Hanoi, April 16, 2008 |
To: Customs Department in provinces, cities
Customs general department has just received the official document of some Customs Department in provinces and cities reporting on some difficulties when performing Tax Control Law. Next to the official correspondence no. 5124/TCHQ-KTTT dated 06/09/2007, no. 5742/TCHQ-KTTT dated 10/10/2007, Customs General Department would like to give some ideas as follows:
1. After studying the question of units asked, Customs General Department recognizes that most of the matters are stipulated clearly in involved law normative act. We would like all units to self-research strictly and perform the regulation properly, avoid sending official documents to Customs General Department, extending the solving time, making troubles for enterprises. For some potential cases which are out of authority of the local Customs Department, the Department will submit to General Department to consider and instruct the way to solve.
2. Customs General Department based on Tax Control Law; Decree No. 85/2007/ND-CP dated 25/5/2007 of the government on stipulating in details the performance of some articles of Tax Control Law; Decree No. 97/2007/ND-CP dated 07/6/2007 of the Government on stipulating the settlement of administrative violation and coercion of the performance of administrative decision in customs field; Circular No. 59/2007/TT-BTC dated 14/6/2007 of Ministry of Finance on instructing the performance of import tax, export tax, tax control of imported, exported goods and some difficult cases which are mentioned to summarize and instruct specifically (attached appendix). We would like all units to check against each specific record, each case with regulations of current law to perform properly and identically.
This offical letter replaces The Customs General Department document No 949/TCHQ-KTTT of March 6, 2008 related to solving some questions during implementing the tax Law and instruction documents.
Customs General Department would like to let all units know and follow.
Receiving place: | pp. DIRECTOR OF GENERAL DEPARTMENT |
DIFFICULTIES
in performing the Tax Control Law and Instruction Documents
(Issued together with the official correspondence no. 1723/TCHQ-KTTT dated 16th April 2008)
No. | Difficulties | Answers of Customs General Department |
Tax declaration | ||
1 | In case, the declaration form consists of many appendices, there are many products need supplementary declaration, so what is the supplementary declaration form? In case, supplementary declaration arising the penalty of late tax payment, how is declaration? (Lao Cai Customs) | The supplementary form based on Appendix 2 of Circular 59/2007/TT-BTC in which mentioned clearly the product belongs to which appendix of which declaration form. With the current declaration form: each supplementary declaration document can apply to many products but it must belong to one declaration form to avoid the mistake. In case of supplementing the declaration which cause the late tax payment, the confirmation of penalty amount will be done based on the instruction at the first dash (-) of point 4.2.2 section I, Part C, Circular 59/2007/TT-BTC. |
2 | Point 4, Section I, Part C Circular 59/2007/TT-BTC on instructing the supplementary declaration for the tax declaration documents of im-exported products is performed based on item 2, article 34 of Tax Control Law but it does not instruct some cases which the goods exempted from practice inspection, customs office finds out some mistakes in declaration of the enterprise which affects the affirmation of the exact tax amount (affirming the value to count the tax). Please instruct the supplementary declaration for tax record in the case above or hand over to post Customs Clearance section(Hai Phong Customs)
| The question has unclear content about difficulties in supplementary declaration, defining tax or assigning the function and responsibility to perform these regulations. Tax Control Law mentioned clearly the subject finds out the mistake in supplementary declaration, tax defining, and it does not stipulate to distinguish products exempted from practice inspection. Please report it specifically, send the document of batch of goods and mention clearly the suggestion of the unit about the instruction of supplementary declaration for tax documents or hand over to post Customs Clearance section to be accordance with the reality. |
3 | Supplementary declaration for tax declaration documents: According to item 4.4, point 4, section I, part C Circular 59, customs office where customs procedure of the batch of goods is done is responsible for receiving, checking the supplementary declaration documents and informing the result to the payer. So, which form is used to inform the result to the payer? In case of accepting the supplementary declaration of the enterprise, how can the customs office update the tax data (increase or decrease) into program KT559? (Can Tho Customs) | Customs General Department will take note this question to design an announcement form. In the short term, all units can write the acceptance or disagreement of supplementary declaration on the supplementary declaration document of the payer and inform the tax payer. Updating tax data (increase or decrease) into program KT559 in case of accepting the supplementary declaration of the enterprise: using function of entering the decision of adjusting tax to update the supplementary declaration documents of the enterprise. At the part of reason: write “enterprise supplements the declaration for tax documents” |
Tax Calculation | ||
4 | Declaring special preferred tax but C/O debt, so we calculate temporary tax based on MFN tax rate, after that, if the enterprise supplements the C/O, then calculate tax based on special preferred tax rate. After checking, C/O is legal and the enterprise has not paid tax yet, however, according to Circular 59/2007/TT-BTC this case which has a decreasing difference is not belonged to tax defining or arrears collecting. Or when the enterprise supplements a legal C/O, paid tax, what is the procedure of counting tax and collecting tax? (based on Circular 59/2007/TT-BTC this case is not considered to refund the tax) Please instruct this case. (Dong Nai, An Giang, Ha Noi, Binh Phuoc Customs) | - Customs General Department will submit to Ministry to have supplementary instruction. In the short term, please follow the instruction of Customs General Department at official correspondence no. 4880/TCHQ-KTTT dated 24/8/2007. |
Tax Defining | ||
5 | 1. After customs clearance, the goods has got a result of inspecting the goods code, the tax amount is lower than the one which the enterprise counted in tax declaration, if the enterprise has not paid tax yet, which form of tax defining is used? 2. Customs office has to re-count the tax because the enterprise declared wrong, missing tax or re-count tax after inspecting, so can we consider it as tax defining? (Lao Cao Customs) | Wrong declaration, missing declaration is one of the tax defining case which was mentioned clearly in article 39 of Tax Control Law. Re-counting tax after inspection needs confirming the reason of inspection, after that, determine this is supplementary declaration or tax defining based on regulation. In case, the unit has some difficulties which are out of authority, they need to report specifically and send the documents of involved batch of goods to Customs General Department to consider and instruct. |
6 | Please instruct the performance “tax defining” authority based on Tax Control Law and Decree 85, Circular 59. At present, the unit is rejecting the value, questioning and re-affirming the tax cost based on Circular 113 and Decision 640 (Quang Binh Customs) | Tax defining, foundation, step and procedure of tax defining have stipulated clearly in Tax Control Law, Decree 85/2007/ND-CP Circular 59/2007/TT-Ministry of Finance. According to item 8, article 15, Decree 40/2007/ND-CP on affirming the customs cost, customs office has to perform the tax defining based on the price stipulated by customs office. Please follow the regulation about the customs cost, tax control, involved documents. |
Time for paying tax | ||
7 | Tax Control Law, Circular 59/2007/TT-BTC stipulats the time for paying export tax, is 30 days since the customs declaration register date, not distinguish the payer who follows law of tax well or badly. However, in case that the payer does not follow the law of tax well, the system of risk control does not allow the enterprise to enjoy above days for tax payment, so it is opposite with Tax Control Law (Lao Cai Customs) | Customs General Department will change the software of risk control, the software KTTT59. Please follow strictly the regulation of Tax Control Law in reality, Circular 59/2007/TT-BTC |
8 | Decree 149/2005/ND-CP and Circular 59/2007/TT-BTC do not unify the object that follow the law of tax well, suggest General Department to instruct uniformly. Namely: according to Decree 149/2005/ND-CP: “the object follows law of tax well … not owe tax and penalty for overdue payment …” Based on Circular 59/2007/TT-BTC: “the object follow law of tax well … not owe overdue tax and penalty, not owe for late payment at the time of customs declaration register” (Dong Nai Customs) | Please follow the regulation of Tax Control Law, Circular 59/2007/TT-BTC (regulation on the object who follows the law of tax well in Article 14 Decree 149/2005/ND-CP was replaced with Article 119 Tax Control Law. |
9 | Importing raw materials of producing export goods is applied 275 days for paying tax, but after customs clearance, customs office find out the mistake which leads to the increase of tax, so what is the time for paying tax for the increased tax? (Da Nang Customs) | To affirm the time of tax payment for this case, we need to determine whether it belongs to supplementary declaration or tax defining, then affirm the time of tax payment based on regulations of Tax Control Law, Decree 85/2007/NĐ_CP dated 25/5/2007, circular 59/2007/TT_BTC dated 14/6/2007 |
Paying Tax, Penalty | ||
10 | According to regulation of point 1, article 46 Tax Control Law, the confirmed date is the date of State Treasury, commercial bank, etc, confirmed on documents of paying tax of the payer. However, in case, the payer pays within 30 days according to the regulation of STATE TREASURY, commercial bank at the place of business register outside the province, documents of paying customs tax by opening an account to pay for State Budget will be later than the date of STATE TREASURY, commercial bank confirms the object who pays tax, so it makes late payment. Suggest to General Department to instruct this case (Lao Cai Customs) | Based on regulations of Tax Control Law, the date of paying tax is confirmed to be date of STATE TREASURY, commercial bank, etc, confirmed on the document of paying tax of payer. In case, the payer has some transferring documents from the province, please base on bank documents. Treasury transfers the money of the payer to confirm the time of paying tax of the enterprise. In case, documents of the treasury are received later than the date the enterprise transfers the money, please base on documents of transferring money from the bank, State Treasury to make a basis in which the penalty due to late payment of the enterprise is not calculated. |
11 | In fact, many batches of import goods of the enterprise is guaranteed by the Bank at the same time for a certain period, so in the guarantee document, it is not mentioned the number of declaration forms, number of contract, invoice, bill of lading when paying to Customs office (Binh Duong Customs) | Customs General Department will report the ministry to instruct and supplement. When there is no more other regulation, please perform the guarantee based on the current regulations. |
12 | Tax adjustment because the payer pays with disorder of tax payment articles makes the time treating tax debt last longer, leading to overdue dedt of declarations and affect the customs procedure. Suggest the Customs General Department to instruct and solve (HCM City Customs) | Need to strengthen the propaganda, instruction, so that the payer can understand and declare, pay tax in the proper order of tax payment, avoid affecting the benefit of the payer. |
Tax exemption | ||
13 | According to regulation section II, Part D, Circular 59/2007/TT-BTC some objects who belong to tax exemption from point 1.6 to point 1.17 of this section have to register the list of goods of im-export tax exemption for the first time. Suggest the General Department to instruct after the enterprise registers the catalogue of goods of tax exemption for the first time, they continue to register catalogue of goods of import tax exemption, how does Customs office solve this matter? | Customs General Department issued the official correspondence no. 5112/TCHQ-GSQL dated 06/9/2007 on instructing customs procedure for import goods to make fixed assets. Any questions please send the specific documents to General Department to instruct the next steps. |
Refunding tax | ||
14 | Point 3.2.1, section IV, Part E, Circulation 59/2007/TT-BTC stipulates the document which will be checked before refunding tax after customs office check documents, accounts, delivery/receive note, etc. This instruction is difficult to perform because the document of refunding tax does not require these files, so Customs office cannot check them. Besides, the checking can’t be done because there is not enough officers, officers can’t have enough skills to do if they have to check all documents of refunding tax. (Binh Duong Customs) | Documents of refunding tax is papers which payers have to submit/present when sending documents to customs office to refund the tax; checking before refunding or refunding before checking is just the way of performance which is stipulated/instructed, among them is method of comparing with documents, accounts at enterprises to verify if the documents of refunding tax of the enterprise is right or wrong. Therefore, the unit must distinguish clearly and please perform the current regulation. If there is anything wrong about the organization, people, the unit needs to arrange personnel to refund tax, who have skill, abilities of finance, accounting, meet the requirement of the regulation. |
15 | Point 15, Section I, Part E, Circular 59/2007/TT-BTC stipulated: “Some objects in the refunded case, instructed in this section with an amount of refunding lower than 50.000VND, customs office will not refund this amount”. This matter will not be a problem if the personal or enterprise does the procedure by themselves. However, in Post Customs Branch – HCM City Customs Department, Postal Service company on behalf of the owner of bonded goods to make the customs document, paying tax, refunding tax (if any), cases in which the amount of refunding tax is lower than 50.000VND of each batch of goods of each enterprise are too many. Therefore, if we do refund these cases above, it will cause troubles for Postal and Telecom Service Company. (HCM City Customs) | Customs General Department feedback this problem to Tax Policy Affair (Ministry of Finance) to research, report to the Ministry to solve based on the authority and will have documents to answer later when receiving the answer from the Ministry. |
16 | Point 7.2.2 section IV Part E Circulation 59/2007/TT-BCT stipulated: “If the payer does not export the goods in the period of paying tax, they have to declare the import tax and value added tax (if any) since the expiry date of paying tax. Customs office checks, collect import tax, value added tax based on the regulation. The payer is refunded the tax amount based on the regulation when the export products produced from import goods were collected tax. The time to submit the refunding tax documents is not later than 45 days since the register date of Export Customs Declaration”. Suggest the General Department to instruct specifically: 1. When the enterprise declare to pay import tax and value added tax, which form will they use to declare? 2. In case, the payer is not self-aware to declare, is customs office responsible for informing? What is the solution to some case that the payer is not self-aware to declare? 3. In this case, if the enterprise pays tax, does customs office put the penalty from the 31st day (since the declaration register date)? Because in this case, the enterprise pays tax but sometimes they don’t export the product. 4. Is this regulation applied to declaration form registered since the effected date of Circular 59 (14/07/07) or applied for all declaration forms registered before 14/07/07? 5. This regulation is applied only to goods which are in Point 5 Section I Part E Circular 59, so is it applied to the case of importing temporary to re-export, goods with tax exemption, after that, they are changed the using purpose? (Binh Duong Customs, HCM City Customs, Dong Nai Customs) | Almost questions which localities asked are stipulated clearly in current documents and performed in reality before Tax Control Law is valid – suggest to perform based on regulation, for example: 1. import tax and value added tax declaration form: Perform based on the current regulation. General department will report to Ministry to instruct specifically. 2. Responsibility of customs office for informing in case that the enterprise is not self-aware to pay tax when the time of tax payment is expiry. Responsibility of customs office for informing was stipulated clearly in item 2, article 34, Decree 97/2007/ND-CP dated 07/6/2007 of the government. 3. Tax for the case of importing raw materials which should have been used for producing export goods or these products are exported beyond to time of paying tax. The case that raw materials, materials imported are used for producing products, but these products are not exported or exported beyond the time of paying tax is solved by the instruction in Point 2.2.1.2, section III Part C Circular 59/2007/TT-BTC Besides, need to strengthen to check, find out the raw materials, materials which have 275 days of preferencial tax (or more than 275 days for some extended cases) but it is not used for producing export goods to solve based on current regulation. 4. Valid applied to the contents instructed in Circular 59/2007/TT-Ministry of Finance: this matter was instructed in Point 7, Part P Circulation 59/2007/TT-BTC 5. Question 6: Title of Point 7.2 Section IV Part E, Circular 59/2007/TT-BTC showed clearly the applying scale; please perform based on current regulation. Besides, please research, perform the regulation of collecting arrears in case of tax-exemption goods or changing the using purpose. |
17 | There has not been instruction about tax control in the case that the enterprise does not export the import products based on the form of producing export products, when it is expiry but the enterprise has not paid tax yet. (Dong nai Customs) | For the import raw materials, materials used for producing products, but these products are not exported or exported beyond the time of paying tax, it will be treated based on Point 2.2.1.2 Section III Part C Circular 59/2007/TT-BTC Besides, strengthening to check, find out the raw materials, materials which have 275 days of preferencial tax(or more than 275 days for some extended cases) but they are not used for producing export products to treat based on current regulations. According to regulations of Tax Control Law and instruction documents: the case of overdue time of paying tax but the enterprise does not pay, it is considered as late tax payment, tax debt and will be treated based on current regulation. Suggest the unit to notice and research carefully, sufficiently the system of current documents to perform the regulation properly. |
18 | Time of sending the refunding tax documents: based on regulation in Point 7.2.1 section IV part E TT59 “if the payer export the products in the time of tax payment, the time of sending refunding tax documents is not later than 45 days since the date of customs declaration register for final export products belonging to raw materials, materials import declaration which are asked to be refunded” In the case of 45 days overdue since the export declaration register but the enterprise has not exported products (export products in CFS warehouse), so declaration form has not confirmed the export, and the enterprise has not been liquidated. When the product is exported, it is over 45 days since the date of export declaration, so as the regulation above, if it is liquidated, the enterprise will have the administrative violation. (Dong Nai Customs) | Suggest to follow the current regulation. |
19 | Documents for tax refund in Point 3, Section I, Part E, Circular 59/2007/TT-BTC (the goods which are paid export and import tax but the actual export or import is smaller) stipulated the export or import customs declaration form which is finished customs procedure (01 photocopy) but did not stipulate the customs confirmation about the actual export or import quantity which is less. Please let us know the basis to perform the tax refund in this case, legal basis to know the quantity of actual export or import quantity which is less (especially in case the goods are exempted from inspection in reality) (Hai Phong Customs) | This regulation is not different from that in Circular 113/2005/TT-BTC Considering the tax refunding, tax refunding documents can not be separated with customs documents, results of performing regulations of customs procedure, customs inspection, customs supervision, etc. All units “approving” the tax refunding must consider the proper object based on legal basis with enough documents in accordance with regulation. |
20 | Point 4, Section IV Part E, Circular 59/2007/TT-BTC stipulated the liquidity of tax amount which is refunded on the declaration form and the stamp of liquidity is done on the customs copy and customs declarant’s copy (before, it was done on customs declarant’s copy only), increasing more jobs, In addition declaration form of importing to produce export products to refund tax many times, whenever refunding tax, we must find the filed document to stamp. Suggest the Customs General Department provide the new form and consider the stamp of liquidity on both of customs declaration copies. (Binh Duong Customs) | Suggest to research the official correspondence no. 5190/TCHQ-GSQL dated 11/9/2007 on stamping “liquidated” “not collect tax” on the declaration form of importing to produce the export products with many liquidity times to perform the regulation properly. |
21 | According to regulation in Point 7.2.1 Section IV Part E, Circular 59/2007/TT-BTC: if the payer exports the goods in the time of paying tax, the time of sending tax refunding documents is not later than 45 (forty five) days since the final export customs declaration register belonging to raw materials, materials customs declaration form asked for refunding tax. However, in section IV Part II Decision 929/QD-TCHC dated 25/05/2006 stipulated the rule of liquidity: “- All declaration form of exporting, importing used in the liquidity must be in order of time, “first in first out”. In case, imported raw materials have not been sent to production line or put in practice but have not liquidated yet, the enterprise must explain the customs office when doing the liquidity procedure. The declaration form of importing raw materials must be existed before the one of exporting products; One declaration form of importing raw materials can be liquidated many times; One declaration form of exporting products can be used only one time;” Therefore, according to Circular 59/2007/TT-BTC can we understand that actual export in the time of paying tax is not necessary to liquidate all former declaration forms of exporting, or just liquidate the final declaration form? According to Decision 929/QD-TCHQ liquidity is done for potential declaration form? In Point 7.2.1, “final customs declaration form of exporting is belonged to customs declaration form of importing raw materials to refund tax” is understood that the final declaration form of exporting in the time of tax grace of declaration form of importing or exporting the final quantity of raw materials of the declaration form of importing? (Binh Phuoc Customs) | The unit needs to distinguish the two things to organize the regulation properly: Point 7.2.1, section IV Part E, Circular 59/2007/TT-BTC stipulated the time of sending the tax refunding documents. Section IV, Part II, the procedure is issued together with Decision 929/QD-TCHQ on rule and order of liquidity when the enterprise sent the liquidity documents already; It instructed specifically the liquidity regulation for some liquidity documents included many declaration forms of importing and exporting. |
Collect the arrears of tax | ||
22 | Circular 59/2007/TT-BTC has just instructed some cases in which tax is exempted or considered to be exempted after changing the using purpose, they are collected the arrears of tax, in some cases of exporting out the country, there is no instruction about collecting the arrears of tax. (Dong nai Customs) | This question is not clear as it did not mention that before exporting, is purpose of exempting or considering to be exempted used improperly? Does customs office have enough legal bases to confirm that the exported products are the one of import tax exemption? Please consider the case specifically, if any difficulties out of authority of the Customs Department, please report (attach the involved copies of file) to General Department to study and instruct. |
Late Tax Payment | ||
23 | 1. In case, the enterprise has overdue debt but not later than 30 days since deadline, the enterprise pays tax but they do not count the rate and pay the penalty of late payment by themselves, will customs office have to count and inform the enterprise? 2. Suggest the General Department to stipulate the time of grace of penalty of late payment? 3. In case, the enterprise pay tax after the date customs office inform the tax amount and penalty of late payment, will we continue to count the penalty of late payment? (Dong Nai Customs) | 1. The case which the unit asked is stipulated in Article 34 Decree 97/2007/ND-CP dated 07/6/2007 (asking the enterprise to count and pay penalty of late payment by themselves. In case, the enterprise does not count or count improperly, customs office will count and inform the enterprise) 2. Each day of late payment is fined 0.05% of the late payment amount. Tax Law and Tax Control Law do not stipulate the time of grace of penalty of late payment. 3. The question is not clear, please make clear and give a specific file, so that General Department can study and instruct. |
24 | In Dong Nai Customs, there is a case that the enterprise imports raw materials, materials to produce exported products. The declaration form of importing is 275 days overdue, the enterprise asks for re-export, in this case, will we count the penalty of late payment from 31st or 276th day to the date of exporting? (Dong nai Customs) | Re-exporting or not, the way to re-export must be done based on current regulations If the goods is allowed to re-export, it is not considered as raw materials imported to produce the exported products, so imported products can belong to catalogue of consuming goods or other kinds of goods, so we have to count again the time of paying import tax and fine the late tax payment, treat the administrative violation (if any) based on current regulation. |
Other Problems | ||
25 | Point 2 Article 23 Decree 85 stipulated the interest rate for the surplus of tax amount of the payer, so where is the interest rate come from? (Hai phong customs) | Ministry of Finance is finishing the instruction documents |
26 | In Point 3.4 Section III, Part C Circular 59/2007/TT-BTC stipulated: all expenses involved in assessing will be paid by customs office, in case the assessing result is different from the conclusion of customs office, the compensation amount for the enterprise due to wrong tax defining or late tax refunding, where are the expense and compensation amount come from? It has not stipulated in Circular yet. (HCM City Customs) | Customs General Department will report to Ministry of Finance to finish the circular on instructing the compensation. |
27 | Keeping track of controlling the decision of collecting arrears of tax | |
1. Input the virtual declaration form | ||
For importing for processing and importing raw materials to produce the exported products, the decision of collecting arrears of tax is counted in details for each contract and appendix of contract. Therefore, there is no declaration form number to input into the computer. If inputting into virtual declaration form, it is very difficult to follow and control the tax debt, it does not ensure to provide the exact information of the debt amount of the enterprise on network. | When performing the contract and appendix of contract about processing and importing raw materials to produce the exported products, etc, the enterprise has to declare the customs, being checked, and inspected by Customs. The enterprise and Customs office file all documents of customs declaration forms involved in imported goods to perform the contract and appendix of the contract. Therefore, deciding to collect the arrears of tax in the case above needs performing to collect the arrears of tax based on the declaration form and when inputting into the program KT 559, we are allowed to input in detail the amount of collecting the arrears of tax based on the actual declaration form number. Therefore, it is convenient to follow and control the tax debt, make sure to provide the exact information of the debt amount of the enterprise on network with details of declaration form. | |
2. Decision of collecting the arrears of tax in case of increasing tax due to price reference. | ||
In case, the goods finished customs clearance, the enterprise paid the tax. | ||
In case the goods was custom clearance and the enterprise paid duties by its declaration. The custom officers rejected such declared price and built a higher price after they carried out the price check and question, which results in an increase in the tax payable. However, it is not defined that the enterprise has a cheating manner in trade. In this case, if a decision collecting arrears is issued in accordance with the point 4.2, Clause VII, Part C of the Circular No. 59/2007/TT-BTC dated 14/06/2007, this decision is not applied for cases which are collected taxes in accordance with the Clause I, Part H of the Circular No. 59/2007/TT-BTC dated 14/06/2007. | In case the goods was customs clearance and the enterprise paid duties by its declaration but the additional tax amount is arisen due to price questioning (it is not defined that the enterprise has a cheating manner in trade), the custom officers define the price in accordance with laws and regulations. This is a case in which there has been a fixation in tax after the goods was custom clearance, therefore, relevant responsible units are requested to issue the decision for tax collection in accordance with the point 4.2, Clause VII, Part C of the Circular No. 59/2007/TT-BTC dated 14/06/2007. | |
28 | Regarding to tax collection grace period and the tax payment order for arisen tax amount | |
1 The tax payment order for arisen tax amount | ||
The order is complied with point 3 in the official letter No. 5742/TCHQ-KTTT dated 10/10/2007: For cases at the custom declaration date, arisen tax including the outstanding tax and the additional tax of the tax pay-cash-down batch of goods. Some departments organize to collect the outstanding tax and the additional tax of the tax pay-cash-down batch of goods before the goods are custom clearance. | Organizing the tax collection is made as follows: -Collect the additional tax of the tax pay-cash-down batch of goods. -For outstanding taxes which fail to become due, the enterprise continues to enjoy the tax grace period in accordance with the laws. They are not necessary to pay such taxes in the tax grace period before the tax pay-cash-down batch of goods is custom clearance. -In case the enterprise bears many tax payables in the tax grace period, if the enterprise makes tax payments in this period, they are entitled to pay any tax at their option without taking account of the time order as follows: firstly arisen tax payable is paid first, late arisen tax payable is paid later. | |
2. Regarding to the tax grace period | ||
Point 2, Clause 28 of the Decree No. 85/2007/ND-CP dated 25/05/2007 of the Government regulates: “For differences between the tax amount fixed by the custom officers and the tax amount declared and paid by the enterprise after the goods had been custom clearance for 10 days from the date over which the custom office issued the decision for tax fixation.” Meanwhile: Clause 3 of the Decree No. 40/2007/ND-CP dated 16/03/2007 of the Government regulates: In 10 business days period at the latest from the date over which the custom office issued the decision for tax fixation based on the price defined by the custom office, the tax declarer must fulfill the tax obligations. | According to the point 3, clause 80 of the Law on Normative Acts: In case normative acts issued by the same authorized agency about the same case providing inconsistent and different guidelines, the latest issued normative act is priority. Request authorized agencies to apply regulations as provided in the point 2, clause 28 of the Decree No. 85/2007/ND-CP dated 25/05/2007 of the Government. | |
29 | Implementation of coercion | |
1. Have customs subdepartments authorities to issue decisions for coercion in any case? What are authorities of Departments and subdepartments for coercion solutions in accordance with the clause 93 of the Law on Tax Control and the clause 43 of the Decree No. 97/2007/ND-CP dated 07/06/2007 of the Government? | 1. Request units to research and comply with the clause 6, Item I, Part II of the Circular No. 62/2007/TT-BTC dated 14/06/2007 of the Ministry of Finance and the point 2.2 of the official letter No. 5742/TCHQ-KTTT dated 10/10/2007 of the Custom General Department. | |
2. There is a deputy director as an acting director at the custom office, has he fully authorities as the director to sign decision for coercion or authorize his subordinates to issue decision for coercion? -Is assigned deputy director (in accordance with the Decree No. 110/2004/ND-CP dated 08/04/2004 of the Government) authorized to issue decision for coercion? -Has the deputy director fully authorities to sign decision for coercion or authorize his subordinates to issue decision for coercion as his director has? | 2. According to the point 1, clause 10 of the Decree No. 110/2004/ND-CP dated 08/04/2004 of the Government: -Customs is an agency whose organization is under the leader regime. The director has authorities to sign all documents of his office. There is currently no official who is in chare of the director in the office but are only deputy directors and one deputy director as an acting director (by the decision of the authorities), the deputy director as an acting director has fully authorities as the director to sign decision for tax coercion or authorize his subordinates to issue decision for tax coercion. -The director can assign his deputy directors to sign documents under their controls. The assigned deputy directors have fully authorities to issue decision for coercion in accordance with the clause 94 of the Law on tax control and the clause 43 of the Decree No. 97/2007/ND-CP dated 07/06/2007 of the Government. | |
30 | Use of Form QD-31 and Form C4-HQ | |
In which case the Form QD-31 is used: Decision regarding to applying coercion solutions to deduct from deposits to pay for tax in accordance with the Circular No. 62/2007/TT-BTC dated 14/06/2007 sent to banks or the State Treasury. In which case the Form C4-HQ is used: Tax collection order or penalty collection order issued in accordance with the Circular No. 121/2007/TT-BTC dated 17/10/2007 sent to banks or the State Treasury. | The Form QD-31 is used in cases: the decision for coercion must be used in accordance with the clause 93 of the Law on Tax Control and the clause 43 of the Decree No. 97/2007/ND-CP dated 07/06/2007 of the Government. -The Form C4-HQ is used in cases: the enterprise enjoys the tax grace at the guarantee in accordance with laws but fails to pay tax on time, which causes to an overdue tax payable over the guaranteed tax amount. | |
31 | Settlement of the paid tax of the payer | |
1.Settlement of VAT and other import export duties because enterprise paid wrongly or overpaid. | ||
In practice, there are still surplus in tax payment (in negative figures), although: -VAT is defined to be overpaid or paid wrongly by the customs office in accordance with the point 5.3, item IV, Part E of the Circular No. 59/2007/TT-BTC dated 14/06/2007 and it is possible that the enterprise collected it or deducted it at the local tax authorities. -For export import duties as provided in the point 11, Item IV, Part E of the Circular No. 59/2007/TT-BTC dated 14/06/2007, the enterprise fails to come to the custom office to prepare procedures for tax reimbursement although the 365 days settlement period is over. -The Circular No. 32/2006/TT-BTC dated 10/04/2006 and the Circular No. 121/2007/TT-BTC dated 17/10/2007 fail to provide guidelines for accounting posting in these cases? | Request enterprises to keep following up in the KT 559 accounting program for VAT and other import export duties due to the wrong payment of enterprises. -Particularly, for other wrongly paid or overpaid import export duties, the custom office should inform the tax payers so that they can come to the custom office to prepare procedures for tax reimbursement. -Custom General Department records and reports to the Ministry of Finance so as to consider and provide guidelines on accounting posting and settlement of the above wrongly paid or overpaid VAT and import export duties | |
2. Settling and transferring the paid tax arrears from the temporary deposit account to the state budget collection account | ||
Pursuant to the point 3a, item II, Part B of the Circular No. 114/2005/TT-BTC dated 15/12/2005, the customs office provides guidelines to the tax payers so that they can pay the tax arrears due to after-custom clearance check into the temporary deposit account. -Appealing or complaining validity expired, the customs office transferred the collected tax arrears from the temporary deposit account of the customs office to the state budget collection account but there is no guideline for recording this transaction in the KT 559 accounting program? This transaction is made manually and this program fails to post to the account 333 automatically. | Currently, the Law on Tax Control No. 78/2006/QH11 dated 29/11/2006; The Circular No. 32/2006/TT-BTC dated 10/04/2006; The Circular No. 59/2007/TT-BTC dated 14/06/2007 of the Ministry of Finance providing regulations on the collected tax arrears, according to it, the collected tax arrears must be paid into the state budget collection account, not into the temporary deposit account. The reimbursing for collected tax arrears by the decision for appealing settlement issued by the authorized officials is made in accordance with regulations as provided in the Part E of the Circular No. 59/2007/TT-BTC dated 14/06/2007 of the Ministry of Finance. In case the collected tax arrears are transferred from the temporary deposit account to the state budget collection account, the custom office uses the deposit into the state budget by transfer slip credited by the state treasury to record in the KT 559 accounting program. -Enter the menu: Data Input-input the tax payment slip relating to custom declaration-Select. Reason for tax payment is “Pay in transfer into the state budget”. The KT 559 accounting program will automatically post and balance relevant accounts. | |
32 | Difficulties in accounting tasks | |
1. Update the non-trade tax arrears collection | ||
KT 559 program fails to allow to input any journal voucher being irrelevant to customs declaration into accounts 314 and 315, which cause to the fact that the journal vouchers being irrelevant to the custom declaration cannot be used for posting: Dr. 314/Cr. 717 to update the non-trade tax arrears collection into the KT 559 program as provided in the point 6.4.2 in the annex attached to the official letter No. 5742/TCHQ-KTTT dated 10/10/2007 of the Custom General Department. | This fact relates to regulations as provided in the point 3-General regulations of the account 314 “Payment for tax payers” as provided in the annex 2-the Circular 32/2006/TT-BTC dated 10/04/2006 and the point 1, item II, the Circular No. 121/2007/TT-BTC dated 17/10/2007 of the Ministry of Finance. The Customs General Department records and reports to the Ministry of Finance for considering and allowing to input into the account 314 for non-trade import, export duties collections and import, export duties collections of inhabitants residing in the border zones. | |
2. Deducting the non-trade tax using account 336 | ||
The Circular 32/2006/TT-BTC dated 10/04/2006 of the Ministry of Finance regulates that the account 336 must follow up each tax payer. However, point 3, item II of the Circular No. 121/2007/TT-BTC dated 17/10/2007 of the Ministry of Finance providing guidelines on accounting for non-trade tax deduction is to use account 336. Therefore, tax reimbursement or deduction for non-trade tax payers (without tax code, failing to be reflected in the account 314) shall be hardly followed up, which easily causes to mistakes. | The Custom General Department records and reports to the Ministry of Finance to consider for using account 336 in accounting on non-trade tax deduction. In the short term, in order to follow up easily and avoid mistakes occurring, in accounting on non-trade tax deduction, for non-trade tax payer (without tax code), in case of occurring the non-trade tax reimbursement, the custom office makes the tax reimbursement in accordance with regulations as provided in the Circular No. 59/2007/TT-BTC dated 14/06/2007 of the Ministry of Finance. For the next non-trade batches of goods, the tax payer is responsible for paying tax in full before the goods is customs clearance. | |
3. Accounting for tax temporary collection and other collections on behalf of other custom offices | ||
Point 6.1, item II of the Circular No. 121/2007/TT-BTC dated 17/10/2007 of the Ministry of Finance regulates: in case the enterprise wrongly pays for tax, the enterprise makes the entry: Dr. 111 (112)/Cr. 338. In practice, this entry is just suitable for cases when the enterprise pays for tax in cash or deposits the tax into the temporary deposit account of the customs office. In case the enterprise pays for tax by transfer, this entry cannot be made because the wrongly paid tax amount is followed up on the account ‘state budget collection’ (account 333) but not reflected on the account 112. | The Custom General Department will report the Ministry of Finance to consider the point 6.1, item II of the Circular No. 121/2007/TT-BTC dated 17/10/2007. In the short term, enterprises apply the entry Dr. 111 (112)/Cr. 338 when they collect in advance taxes and other collections on behalf of other customs office in cash or the enterprises pay for tax into the temporary deposit account of the custom office. -The tax collection and other collections in advance on behalf of other custom offices that tax payer made into the account 741-state budget collection, it is necessary to carry out with the combination of the State Treasury. The customs office must check the accuracy of the application of the tax payment subsequence in accordance with the clause 45 of the Law on Tax Control before sending the State Treasury Form C25-HQ attached the annex No. 01 of the Circular No. 121/2007/TT-BTC dated 17/10/2007 of the Ministry of Finance. -The custom office will record the tax collection in advance and other collections on behalf of other customs offices based on the credit advice of the state treasury. | |
4. The appropriateness of some forms under the Circular No. 121/2007/TT-BTC dated 17/10/2007 | ||
-Form C6b-HQ, C24b-HQ: The person who undertakes to issue the decision is Director of the Custom Department and the person who is authorized to sign this decision is Director of the Custom General Department. -Form C8b-HQ, C19b-HQ, C20b-HQ, C22b-HQ, C23b-HQ: The person who is authorized to issue and sign the decision is Director of the Custom Department. Can it be understood that decisions of the Custom Department are signed and stamped by the Director of the Custom Department? | The Custom General Department provided specific guidelines at the official letter No. 40/TCHQ-KTTT dated 04/01/2008 and the amended official letter No. 288/ TCHQ-KTTT dated 18/01/2008. |
