Tax exemption and reduction

Dossier of tax exemption or reduction

According to Article 80 Law on Tax Administration 2019, dossier of tax exemption or reduction is regulated as follows:

Dossier of tax exemption or reduction in case taxpayers determine by themselves the tax amount to be exempted or reduced includes:

•  A tax return;
• Documents relating to the determination of the tax amount to be exempted or reduced.

Dossier of tax exemption or reduction in case tax administration offices decide on tax exemption or reduction includes:

• A written request for tax exemption or reduction, clearly stating the kind of tax requested for exemption or reduction; reasons for tax exemption or reduction; and the tax amount proposed to be exempted or reduced;
• Documents relating to the determination of the tax amount to be exempted or reduced.

Tax exemption procedures:

According to Article 81 and Article Law on Tax Administration 2019, the procedures of tax exemption execution are as follows:  

Step 1: Taxpayers submit a tax dossier as follows:

• In case taxpayers determine by themselves the to-be-exempted or to-be-reduced tax amounts, the submission and receipt of tax exemption or reduction dossiers shall be conducted simultaneously with tax declaration and submission and receipt of tax declaration dossiers;
• In case tax administration offices decide on tax exemption or reduction in accordance with the tax laws, the submission of tax exemption or reduction dossiers is specified as follows:

– For export duty, import duty and other taxes on exported and imported goods, dossiers shall be submitted to customs offices competent to process such dossiers according to the Government’s regulations;

– For other taxes, dossiers shall be submitted to tax administration offices directly managing taxpayers;

•  Taxpayers shall submit tax exemption or reduction dossiers:

– Directly at tax administration offices;

– Sending dossiers by post;

– Sending dossiers via portals of tax administration offices, for electronic dossiers.

Step 2: Tax administration offices that receive tax exemption or reduction dossiers shall notify the receipt of the dossiers; in case tax exemption or reduction dossiers are invalid or incomplete or are made not according to set forms, tax administration offices shall, within 03 working days after receiving those dossiers, notify such in writing to taxpayers.

Step 3: Solving tax exemption or reduction dossiers in case tax administration offices decide on the to-be-exempted or to-be-reduced tax amounts

• Within 30 days after receiving a complete dossier, the concerned tax administration office shall issue a tax exemption or reduction decision or notify in writing the taxpayer of reasons for ineligibility for tax exemption or reduction.
• When necessary to conduct site inspection to obtain sufficient grounds for processing a tax exemption or reduction dossier, within 40 days after receiving a complete dossier, the concerned tax administration office shall issue a tax exemption or reduction decision or notify in writing the taxpayer of reasons for ineligibility for tax exemption or reduction.

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