When executing foreign investment projects, one of the biggest challenges investors face is completing tax documentation in compliance with legal regulations. The Globalink legal team, with extensive experience and success in numerous projects worldwide, proudly provides effective and comprehensive legal solutions for investors. To understand the crucial role of tax compliance confirmation documents, Globalink outlines the provisions of the Investment Law 2020, Decree 31/2021/ND-CP, and Circular 03/2021/TT-BKHDT, which establish proof of fulfilling tax obligations as one of the five essential conditions for obtaining a Certificate of Foreign Investment Registration.

Legal Requirements on Tax Compliance Confirmation

1. Clause 5, Article 60 of the Investment Law 2020: Requires a document from the tax authority confirming that the investor has fulfilled their tax obligations. The confirmation must be issued no later than three months before the date of submission of the investment project application.

2. Guidelines in Circular 03/2021/TT-BKHDT: Specify the tax compliance confirmation form for individuals/organizations (Form B.I.8).

During the process of advising and implementing foreign investment projects for economic organizations and individuals, Globalink has observed the following issues:

Challenges in Tax Compliance Confirmation

1. Local Tax Authorities: Many local tax authorities are unfamiliar with or reluctant to process tax compliance confirmations using Form B.I.8 as required by law, leading to significant delays and impacting the progress of foreign investment procedures.

2. Ambiguity in Confirmations: In certain cases, the confirmation documents do not clearly indicate whether the investor has “fully complied with tax obligations or has no outstanding tax debts.” Sometimes, incorrect forms are used, further complicating matters.

Underlying Causes:
Tax authorities face difficulties in verifying an investor’s tax compliance due to limited data management systems and a lack of clear criteria for confidently affirming compliance. As a result, tax compliance confirmation is often relative and time-specific.

Additionally, some tax authorities require investors to provide a written commitment regarding their tax obligations before issuing the confirmation, which prolongs the process.

This hesitation among tax authorities to provide clear confirmations as required by investment laws creates significant challenges for investors. Without explicit statements about tax status, applications for foreign investment certificates may be delayed or rejected. Furthermore, inaccuracies in forms and insufficient information exacerbate these issues, further delaying the certification process.

Globalink’s Proposed Solutions

To streamline administrative procedures and resolve differences in understanding between agencies, Globalink recommends the following:

1. Supporting Investors: Globalink assists investors in preparing clear and well-founded requests, citing specific legal grounds to ensure tax authorities process confirmations according to the law. We work closely with tax officials to ensure compliance with the required form.

2. Future Improvements: Establishing a comprehensive tax data system for individuals and organizations, enabling relevant authorities to easily access tax information and eliminate the need for tax compliance confirmation documents, thus simplifying administrative procedures.

3. Digital Transformation: Proposing the implementation of this procedure on the National Public Service Portal, allowing investors to complete the process online without visiting local tax offices. The results would be delivered directly to the investor’s residence, increasing convenience and contributing to state revenue.

With extensive practical experience, Globalink has supported numerous individuals and businesses in Vietnam and internationally, particularly in the fields of technology and investment. Our legal team not only possesses deep legal expertise but also excels at navigating complex situations with flexibility. We prioritize our clients’ interests, ensuring transparency and efficiency in every project.

Let Globalink be your trusted legal partner, helping you optimize investment opportunities and overcome all legal challenges.

Contact Globalink Today
📞 Hotline: 0908 173 988 – Tien Vu LLM, Globalink Law Firm
📧 Email: tienvu.globalinklaw@gmail.com