Terminologies under the Law on Tax Administration are defined as follows:
Tax means a compulsory payment to the State budget made by organizations, households, business households, and individuals in accordance with tax laws.
Other revenues belonging to the State budget administered and collected by tax authorities include:
a) Fees and charges in accordance with the Law on Fees and Charges;
b) Land use levies payable to the State budget;
c) Land rental, water surface rental;
d) Proceeds from the grant of mineral mining rights;
đ) Proceeds from the grant of water resource exploitation rights;
e) Revenues from the sale of property on land and transfer of land use rights into the State budget in accordance with the Law on Management and Use of Public Property;
g) Revenues from administrative sanctions in the field of taxation and customs;
h) Late payment interest and other revenues as prescribed by law.
Other revenues belonging to the State budget not administered and collected by tax authorities include:
a) Revenues from the use of maritime areas for sea dumping in accordance with laws on marine resources and environment;
b) Revenues for protection and development of wet rice land in accordance with the law on land;
c) Revenues from administrative sanctions as prescribed by law, except in the field of taxation and customs;
d) Revenues into the State budget under the Law on Management and Use of Public Property from the management, use, and exploitation of public property for business, lease, joint venture, or association purposes, after fulfilling tax, fee, and charge obligations;
đ) Aid revenues;
e) Other revenues as prescribed by law.
Taxpayer’s head office means the location where the taxpayer conducts part or all of its business activities, including head office, branches, shops, production sites, warehouses, and storage places for assets used for business; place of residence or place where tax obligations arise.
Tax identification number (TIN) means a sequence of 10 or 13 digits and other characters issued by the tax authority to a taxpayer for tax administration purposes.
Tax period means the period of time used to determine the amount of tax payable to the State budget under tax laws.
Tax return means a standardized form prescribed by the Minister of Finance, used by taxpayers to declare information to determine tax payable.
Customs declaration means a standardized form prescribed by the Minister of Finance, used as a tax return for exported and imported goods.
Tax dossier includes dossiers on tax registration, tax declaration, tax refund, tax exemption, tax reduction, exemption from late payment interest, non-calculation of late payment interest, extension of tax payment deadline, installment payment of tax arrears, tax non-collection; customs dossiers; dossiers on classification of tax arrears; dossiers on cancellation of tax, late payment interest, and fines.
Tax finalization declaration means determining the amount of tax payable for a tax year, or for the period from the beginning of the tax year until termination of activities giving rise to tax obligations, or from the time tax obligations arise until termination of such activities, in accordance with law.
Tax year means the calendar year from January 1 to December 31; if the fiscal year differs from the calendar year, the tax year follows the fiscal year.
Fulfillment of tax obligation means full payment of tax payable, late payment interest, fines for violations of tax laws, and other revenues belonging to the State budget.
Tax enforcement means applying measures under this Law and other relevant laws to compel taxpayers to fulfill their tax obligations.
Tax risk means the possibility of non-compliance with laws by taxpayers, resulting in loss of State budget revenue.
Risk management in tax administration means the systematic application of laws and professional processes to identify, assess, and classify risks that may negatively affect the effectiveness and efficiency of tax administration, serving as the basis for tax authorities to allocate resources and apply effective management measures.
Advance Pricing Agreement (APA) means a written agreement between the tax authority and a taxpayer, or between the tax authority, the taxpayer, and a foreign tax authority/territory with which Vietnam has concluded an agreement on avoidance of double taxation and prevention of tax evasion, for a defined period, specifying the tax bases, methods of determining taxable prices, or arm’s length prices. An APA must be concluded before the taxpayer files its tax return.
Tax arrears means taxes and other revenues belonging to the State budget administered and collected by tax authorities which remain unpaid upon the expiry of the statutory deadline.
Commercial database means a system of financial information and enterprise data organized, structured, and updated by business organizations and provided to tax authorities in accordance with law.
Taxpayer information means information about taxpayers and information relating to their tax obligations, provided by taxpayers or collected by tax authorities during tax administration.
Tax administration information system includes statistical information, tax accounting information, and other information serving tax administration.
Related parties means parties directly or indirectly participating in the management, control, or capital contribution of an enterprise; parties subject to common management or control by an organization or individual; parties sharing a common contributor; or enterprises controlled by individuals having close family relationships.
Related-party transaction means a transaction between related parties.
Independent transaction means a transaction between unrelated parties.
Arm’s length principle means the principle applied in declaring and determining taxable prices for taxpayers engaging in related-party transactions, so that the conditions of such transactions reflect those in comparable independent transactions.
Substance-over-form principle means the principle applied in tax administration to analyze transactions and business activities of taxpayers in order to determine tax obligations corresponding to the value created by the substance of such transactions and activities.
Ultimate parent company of a multinational group means the legal entity having direct or indirect ownership over other legal entities within a multinational enterprise group, not owned by any other entity, whose consolidated financial statements are not consolidated into those of any other entity worldwide.
Force majeure events include:
a) Taxpayers suffering material damage due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents;
b) Other force majeure cases as prescribed by the Government.
Legal basis: Article 3, Law on Tax Administration 2019.
