Tax administration has been taught in the Academy of Finance of many years. However, this subject has only been taught in Vietnamese so far. I order improve the English ability of the Academy’s students, series of solutions have been suggested and/or applied of which using English in teaching at the Academy is one of the key solutions.
There is a lot of work to do for teaching a new subject of which preparing learning materials is very important. Among other learning materials, a textbook on taxation is a must-do thing. That is the reason for the birth of book.
The aims of this book are to provide systematic understanding of tax theory, crucial contents and issues of tax laws, and tax administration in Vietnam. This book is designed for students who learn English in economics as their first university degree or students majoring in economics with upper-intermediate English level, and also for those who want to read about tax in English for their study, research or wok.
To make a textbook is always a dull work. Moreover, tax is a very complicated subject.
Therefore, it is inevitable to avoid errors in this book. We highly appreciate suggestins from scientists, colleagues and readers to perfect this work.
Le Xuan Truong, Associate Professor, Doctor of Philosophy in Economics, BA in Enghish, Vice Dean of Faculty Tax and Customs, Academy of Finance of Vietnam: Co-chief Author, writer of chapter 3 and 5, co-writer of chapter 1 and 7.
Nguyen Thi Thanh Hoai, Doctor of Philosophy in Economics, Vice Dean of Faculty Tax and Customs, Head of department of Taxation Academy of Finance of Vietnam: Co-chief Author, writer of chapter 2 and 8, co-writer of chapter 9.
Nguyen Van Hieu, Doctor of Philosophy in Economics, MBA (Aus), Vice director of Vietinbank Human resource development and training school: Writer of chapter 4.
Ly Phuong Duyen, Doctor of Philosophy in Economics, Lecture of faculty tax and customs, academy of finance of Vietnam: Writer of chapter 6.
Truong Thi My Hanh, MA (Aus), Leture of department of financial Enghlish, faculty of foreign languages, academy of finance of Vietnam, co-writer of chapter 1 and 9.
Truong Ba Tuan, MBA (Aus), senior researcher, financial strategy and policy institute of Vietnam: co-writer of chaper 7.
TABLE OF CONTENTS
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Page
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PREFACE
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3
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ACKNOWLEGEMENTS
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4
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THE AUTHORS
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5
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Chapter 1:An Overview of taxation
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7
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1.1.Concepts and characteristics of tax
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8
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1.2.Roles of tax
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9
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1.2.1.Main revenues of the government’s budget
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9
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1.2.2.Macroeconomic activites adjustment
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12
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1.2.3.Reduction of unfairness in income distribution
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17
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1.3.Tax system
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17
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1.3.1.Concepts
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17
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1.3.2.Tax classification
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18
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1.3.3.Stadards of a modern tax system
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23
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1.4.Basic elements of a tax law
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26
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1.4.1.Name of a tax
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26
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1.4.2.Taxpayer
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26
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1.4.3.Tax base
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27
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1.4.4.Tax rate
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27
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1.4.5.Incentives
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30
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1.4.6.Procedure
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31
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1.4.7.Punishment
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31
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1.5.The principles of taxation
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31
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1.6.The Vietnam’s tax system
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38
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Chapter review
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41
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Chapter 2: Value added tax
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47
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2.1.Concepts and characteristics of VAT
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48
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2.2.Basis contents of VAT in VietNam
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50
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2.2.1.Taxpayers
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50
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2.2.2.Taxable goods and services
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50
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2.2.3.Non-taxable goods and services (exemptions
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51
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2.2.4.Tax base
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52
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2.2.5.Tax rates
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55
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2.2.6.VAT menthods
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58
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2.2.7.Invoices
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69
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2.2.8.Tax declaration and payment
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73
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2.2.9.Tax refund
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82
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Chapter review
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88
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Chapter 3: Excise and characteristics of excise duty
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98
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3.2.Basic contents of excise duty in VietNam
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100
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3.2.1.Taxpayers
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100
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3.2.2.Excisable goods and servieces
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100
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3.2.3.Non-taxable transactions
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102
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3.2.4.Base price
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104
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3.2.5.Tax rates
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106
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3.2.6.Tax calculation
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109
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3.2.7.Tax declaration and payment
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111
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3.2.8.Tax reduction and exemption
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115
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Chapter review
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116
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Chapter 4: Customs duty
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123
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4.1.Concepts and characteristics
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124
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4.2.Basic contents of customs duty in Vietnam
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126
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4.2.1.Taxpayers
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126
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4.2.2.Dutiable goods
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127
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4.2.3.Non-dutiable objects
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127
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4.2.4.Tax base and ways to define tax payable
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128
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4.2.5.Tax declaration and payment
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139
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4.2.6.Tax declaration and payment
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139
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Chapter review
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148
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Chapter 5: Corporate income tax
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155
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5.1.Concepts and characteristics
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156
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5.2.Basic contents of corporate income tax in VietNam
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158
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5.2.1.Taxpayers
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159
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5.2.2.Tax base and tax calculation
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161
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5.2.3.Income transferred to scientific research and techonology development fund
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191
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5.2.4.Tax rates
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191
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5.2.5.Other tax incentives
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191
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5.2.6.Tax declaration and payment
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196
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Chapter 6: Personal characteristics
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216
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6.1.Concepts and characteristics
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216
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6.2.Basic contets of personal income tax in Vietnam
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220
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6.2.1.Taxpayers
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221
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6.2.2.Assessable income
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222
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6.2.3.Exempl income
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226
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6.2.4.Tax reduction
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228
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6.2.5.Tax base and tax rates
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228
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6.2.6.Tax declaration and payment
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240
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Chapter review
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242
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Chapter 7: Other taxes in Vietnam
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253
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7.1.Agricultural land use tax
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254
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7.1.1.Concepts and characteristics
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254
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7.1.2.Agricultural land use tax in Vietnam
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254
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7.2.Non-Auricultural land use tax
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256
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7.2.1. Concepts and characteristics
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256
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7.2.2. Non-Auricultural land use tax in Vietnam
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257
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7.3. Severange tax
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265
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7.3.1.Concepts and characteristics
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265
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7.3.2. Severange tax in Vietnam
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266
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7.4.Environmental protection tax
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273
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7.4.1. Concepts and characteristics
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273
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7.4.2. Environmental protection tax in Vietnam
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273
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7.5.Foreign contractor taxes
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279
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7.5.1.Taxpayers
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280
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7.5.2.Taxable objects
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282
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Chapter review
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295
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Chapter 8: Basic issues in tax administration
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303
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8.1.Tax registration
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304
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8.1.1.The concept
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304
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8.1.2.Taxpayers’ tax registrations obligation
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304
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8.1.3.Tax registration procedure
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305
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8.2.Taxpayers’ rights and obligation in tax audit
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310
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8.2.1.Taxpayers’ rights
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310
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8.2.2. Taxpayers’ obligations
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310
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8.3.Tax avoidance, evasion punishments of tax law’s violations
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311
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8.3.1.Tax avoidance and evasion
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311
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8.3.2. Punishments of tax law’s violations
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312
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8.4.Transfer pricing and anti-transfer pricing rules
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316
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8.4.1.Concepts
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316
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8.4.2.Anti-transfer pricing rules
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317
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Chapter review
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330
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Chapter 9: International taxation
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333
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9.1.Double taxation
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334
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9.2.Double taxation avoidance
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335
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9.2.1.Deduction method
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336
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9.2.2.Method for deduction of indirect tax
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338
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9.2.3. Method for deduction of indirect tax
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340
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Chapter review
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343
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