The setup: after the audit, the company receives a deemed tax assessment: 5 billion VND in back tax plus penalties. The chief accountant says “just sign it”; the lawyer says “appeal, we’re right”. Who’s right? Deemed assessments aren’t always wrong — and appealing isn’t always smart. You need a decision framework: when to accept, when to fight.
What is a deemed assessment?
When a taxpayer doesn’t register, doesn’t file, files wrongly without proof, or withholds documents — the tax authority deems the tax payable from available data (Tax Administration Law 108/2025/QH15). A deemed assessment is an evidence-based presumption — not arbitrary, but not gospel either.
When to ACCEPT
- 1. The authority’s numbers are right. Self-review shows you were wrong — accept early for mitigation (voluntary compliance counts).
- 2. Small gap, big appeal cost. 200 million VND assessed vs 300 million in lawyer fees and time — the economics say accept.
- 3. Your evidence is weak. No documents proving otherwise — an appeal has no “ammunition”.
- 4. You need quick closure. Clean records for M&A, IPO, borrowing — accept for a final conclusion.
When to APPEAL
- 1. Wrong facts. The authority used wrong data (another company’s revenue, wrong period) — you have proof.
- 2. Wrong law. Misread provisions, expired legal texts, wrong rates.
- 3. Procedural violations. Assessment beyond audit scope, no chance to explain, minutes missing signatures — procedural flaws can void decisions.
- 4. Big money + strong evidence. Billions assessed while you hold full documentation — worth fighting.
Procedure: complain first, sue later
Step 1: first complaint to the deciding authority (or its superior) within the statutory deadline — with a full evidence file.
Step 2: second complaint or administrative lawsuit in court if unsatisfied.
Note: during complaint/litigation, the deemed tax must still be paid (unless deferred) — non-payment triggers enforcement.
Frequently asked questions
1. What is a deemed tax assessment?
The tax authority determines tax payable in place of the taxpayer when there’s no filing, wrong filing without proof, or withheld documents — under Tax Administration Law 108/2025/QH15.
2. When should we accept it?
When the authority’s numbers are right, the gap is small versus appeal costs, your evidence is weak, or you need fast closure for M&A/IPO/borrowing.
3. When must we appeal?
Wrong facts (with proof), wrong law application, procedural violations, or big amounts with strong evidence.
4. Must tax be paid during the appeal?
Yes — the deemed tax must still be paid during complaint/litigation (unless deferred); non-payment triggers enforcement.
5. What’s the complaint deadline?
Under the Law on Complaints — file within the statutory period from receiving the decision; missing it forfeits the complaint right, leaving only litigation (also time-barred).
This article has been quality-reviewed by the FLAW AI Legal Council.
