Key takeaways

Decree 91 provides the following notable changes to the current tax administration under Decree 126:

• 75% rule on provisional quarterly corporate income tax (CIT) payments
• Deadline for tax declaration and tax payment if the deadline falls on a statutory off day
• Information reporting obligation of local e-commerce platforms
• Tax declaration and payment obligations of securities companies, commercial banks and fund management companies on behalf of individuals who receive dividends and bonuses in the form of shares

In more detail

1. 75% rule on provisional quarterly CIT payments

According to Decree 126, the total provisional CIT payments for the first three quarters must not be lower than 75% of the annual tax finalization payable. Taxpayers would be subject to late payment interests if the total tax paid for the first three quarters does not meet this threshold. This rule posed significant problems for companies whose revenues significantly increase in the fourth quarter. Decree 91 now resumes the prior threshold before Decree 126 that the total provisional quarterly CIT payments for four quarters must not be lower than 80% of the annual tax finalization payable. Foreign carriers that pay provisional CIT on a quarterly basis and conduct CIT finalization on an annual basis are also subject to this rule.

This change retrospectively applies from the 2021 tax period under the following scenarios:

• If the provisional tax payable for the first three quarters of the tax period of 2021 was not less than 75% of the annual CIT finalization for 2021, the threshold of 80% under Decree 91 would not be applied.
• If the provisional tax payable for the first three quarters of the tax period of 2021 was less than 75% of the annual CIT finalization for 2021, the threshold of 80% under Decree 91 would be applied if this rule would not result in an increase in late payment interest.
• Taxpayers are allowed to request a decrease adjustment of the late payment interest paid according to Decree 126 if the application of the 80% threshold under Decree 91 will result in a decrease in late payment interest.

2. Deadlines for tax declaration and payment

If the deadline for tax declaration, payment and other tax administrative work falls on a statutory day off, the deadline will be extended to the subsequent working day.

3. Information reporting obligation of local e-commerce platforms

Local e-commerce platforms, which are organizations established and operating under Vietnamese laws, are now required to provide tax authorities on a quarterly basis with information on merchants, organizations and individuals that conduct the sale and purchase of goods and/or the provision of services on e-commerce platforms including the seller's name, tax identification number or personal identification number, or identification card or passport number, address, telephone number and revenue generated through the online ordering function of e-commerce platforms.

4. Tax declaration and payment obligations of securities companies, commercial banks and fund management companies on behalf of individuals who receive dividends and bonuses in the form of shares

According to Decree 91, these tax declaration and payment obligations of securities companies, commercial banks, and fund management companies start from 1 January 2023.