Proposed regulations on international tax management

(Chinhphu.vn) - In the draft Law on Tax Administration, the Ministry of Finance proposed regulations on international cooperation on tax and international tax administration.

Ministry of Finance proposes regulations on international cooperation on tax and international tax management

The Ministry of Finance said that the Ministry proposed to stipulate a separate chapter on international cooperation on tax and international tax management, including 4 articles in Chapter IV of the draft Law on: (1) Scope of international cooperation on tax and international tax management (Article 28); (2) Principles of international cooperation and international tax management (Article 29); (3) Contents of international tax management by tax authorities (Article 30); (4) Principles of implementing MAP and APA (Article 31).

The content of Article 28 inherits the content on international cooperation of Article 12 of the 2019 Law on Tax Administration.

Specifically, the draft proposes the scope of international cooperation on tax and international tax management: Negotiating, signing, and participating in international treaties, international agreements, international tax forums, and other international organizations; implementing international treaties and international tax agreements of which Vietnam is a member or a signatory to serve tax management; performing membership obligations under international treaties, international agreements, and international tax forums on tax of which Vietnam is a member or a signatory to serve tax management.

The content of Article 29 is a new supplementary content that stipulates 03 principles of international cooperation on tax and international tax management: 1. Respect for national sovereignty , equality and mutual benefit; 2. Comply with international treaties and international agreements on tax to which the Socialist Republic of Vietnam is a member or signatory; 3. Ensure confidentiality of information and legitimate rights of taxpayers in accordance with the provisions of Vietnamese law and relevant international treaties, international agreements and international commitments on tax.

International tax administration content of tax authorities

Article 30 is a proposed new supplementary provision on the content of international tax management by tax authorities:

Subjects of international tax management are organizations and individuals within the scope of application of international treaties and international agreements on tax to which Vietnam is a member or signatory.

Duties of tax authorities in international tax administration:

a) Advise the Minister of Finance to propose negotiations, sign and implement rights, obligations and ensure the interests of the Socialist Republic of Vietnam according to international treaties to which the Socialist Republic of Vietnam is a member;

b) Negotiate, sign and implement international tax commitments to implement Double Taxation Avoidance Agreements, including: Bilateral Agreement Procedure (MAP), Advance Pricing Agreement (APA);

c) Negotiating, signing and implementing international commitments on taxes on exported and imported goods shall comply with customs laws and other relevant laws;

d) Guidance on implementation and processing of dossiers applying Double Taxation Avoidance Agreements and other international tax treaties;

d) Exploiting and exchanging information on taxpayers and cooperating in tax matters with foreign tax authorities in accordance with international treaties, international agreements on tax and international tax forums of which Vietnam is a member or signatory to serve tax management;

e) Cooperate and provide other tax administrative support with foreign tax authorities and international organizations in accordance with the provisions of Vietnamese law and international treaties and international agreements on tax to which the Socialist Republic of Vietnam is a member or signatory;

g) Implement regulations on Global Minimum Tax, tax management for enterprises with related party transactions and other membership obligations of which the Socialist Republic of Vietnam is a member or signatory.

The Ministry of Finance shall prescribe the contents, processes and procedures for signing and implementing international commitments specified in Point b above. The Government shall prescribe tax administration for the cases specified in Point d and Point e above.

Principles of implementing MAP, APA

Article 31 stipulates the principles for implementing MAP and APA. It adds the principles for implementing MAP and the effective date of APA.

Specifically, according to the draft, any agreements reached to implement MAP under the Double Taxation Avoidance Agreements that the Socialist Republic of Vietnam has signed and entered into force will be implemented in accordance with the provisions of such Double Taxation Avoidance Agreement.

The application of the mechanism of prior agreement on the method of determining taxable prices is carried out based on the request of the taxpayer, the agreement between the tax authority and the taxpayer according to the unilateral, bilateral and multilateral agreement between the tax authority, the taxpayer and the tax authority of the relevant foreign country or territory, and is decided by the head of the tax authority according to the regulations of the Ministry of Finance.

The application of the APA mechanism is based on taxpayer information; the database used in tax management for enterprises with related-party transactions. APA takes effect from the tax period in which the APA is signed.

Please read the full draft and give your comments here.

Wisdom

Source: https://baochinhphu.vn/de-xuat-quy-dinh-ve-quan-ly-thue-quoc-te-102250826213527731.htm