Are charged-off tax debts subject to tax accounting in Vietnam?

Are charged-off tax debts subject to tax accounting in Vietnam?

According to the provisions in Article 4 of Circular 111/2021/TT-BTC as follows:

Objects of Tax Accounting

1. Receivables, collected amounts, and outstanding amounts related to taxes: Reflect the tax amounts that the tax authority must collect, have collected, and still need to collect from taxpayers or organizations authorized by the tax authority to collect.

2. Refund, refunded amounts, and outstanding refund amounts related to taxes: Reflect the tax amounts the tax authority must refund, have refunded, and still need to refund to taxpayers or organizations authorized by the tax authority for refunding purposes.

3. Tax exemptions, reductions, debt deferrals, and debt write-offs: Reflect the tax amounts exempted, reduced, deferred, and written off as executed by the tax authority.

The objects of domestic tax accounting include:

[1] Receivables, collected amounts, and outstanding amounts related to taxes;

[2] Refund, refunded amounts, and outstanding refund amounts related to taxes;

[3] Tax exemptions, reductions, debt deferrals, and debt write-offs.

Thus, referring to the above regulation, it can be seen that charged-off tax debts are indeed subject to tax accounting.

Are charged-off tax debts subject to tax accounting in Vietnam? (Image from the Internet)

How to storage tax accounting documents in Vietnam?

According to the provisions in Article 9 of Circular 111/2021/TT-BTC as follows:

- Tax accounting documents include input information of tax accounting, tax accounting vouchers, tax accounting books, tax accounting reports, and other related documents represented as electronic data stored in accordance with the law on accounting.

Input data before being collected into the Tax Accounting Subsystem is stored in the Taxpayer Obligation Management Subsystem and tax management operational subsystems within the Tax Management Application System as stipulated by the Director General of the General Department of Taxation. The General Department of Taxation is responsible for ensuring that storage is accessible for exploiting the origin of input information for tax accounting.

- Providing Tax Accounting Information and Documents

+ Information and document provision for tax accounting is carried out in accordance with the laws on accounting and tax management.

+ The information and documents provided by tax accounting include amounts to be collected, collected, to be refunded, refunded, exempted, reduced, deferred, written off by tax authorities, and other related information reflected in the indicators of tax accounting reports stipulated by this Circular.

What are the duties of domestic tax accounting in Vietnam?

According to Article 5 of Circular 111/2021/TT-BTC as follows:

[1] Scope of Tax Accounting Work in Implementing Tax Management Activities by the Tax Authority

Tax accounting work is one of the tax management functions of the tax authority, utilizing the completed results of other tax management operations to conduct tax accounting in accordance with the provisions of Article 6 of Circular 111/2021/TT-BTC, which includes:

- Collecting input information for tax accounting and preparing tax accounting documents

- Recording in the tax accounting books is conducted automatically by the Tax Accounting Subsystem to document input information of tax accounting and tax accounting vouchers as stated in clause 1 of Article 6 Circular 111/2021/TT-BTC to account for tax accounting and reflect arising tax management operations during the tax accounting period, including opening, recording, closing, and correcting tax accounting books in accordance with Section 3, Chapter II Circular 111/2021/TT-BTC.

- Tax accounting report preparation is conducted automatically by the Tax Accounting Subsystem or by officials performing tax accounting work to aggregate the results of tax management activities by tax authorities at all levels (including tax amounts to be collected, collected, to be refunded, refunded, exempted, reduced, deferred, written off) in accordance with Section 4, Chapter II Circular 111/2021/TT-BTC.

- Storing and providing tax accounting information and documents are conducted as per regulations in Article 9 Circular 111/2021/TT-BTC.

[2] Duties of Tax Accounting Work

- Performing the collection of input information for tax accounting and preparing tax accounting documents according to regulations in Section 1, Chapter II Circular 111/2021/TT-BTC to perform record-keeping in tax accounting books.

- Comparing, checking the recorded data to ensure accurate consistency with input information originating from related tax management operation records.

- In case of detecting errors during tax accounting, it is necessary to identify the cause and require handling in accordance with Article 14 Circular 111/2021/TT-BTC, Article 16 Circular 111/2021/TT-BTC.

- Storing, managing, and providing tax accounting information and documents in accordance with Article 9 Circular 111/2021/TT-BTC.

- Providing tax accounting information and documents honestly, fully, and promptly in accordance with accounting and tax management laws.

- Tax accounting tasks are performed automatically by the Tax Accounting Subsystem or by officials performing tax accounting work according to their functions, duties, and authority on the Tax Accounting Subsystem.

[3] Duties of Tax Management Functional Departments at Various Levels of Tax Authorities in Conducting Tax Management Operations

- Processing tax management operation dossiers in accordance with tax management operational procedures issued by the Director General of the General Department of Taxation, ensuring complete, accurate, and prompt information.

- Controlling data processing of tax management operation dossiers on the tax management application system of the tax industry in accordance with responsibilities for data processing control on the tax management application system of the tax industry issued by the Director General of the General Department of Taxation.

- Being responsible for the completeness, accuracy, and promptness of information provided as input information for tax accounting in accordance with Article 12 Circular 111/2021/TT-BTC.

- Comparing and reviewing tax management operation dossier data and tax management information with taxpayers to ensure fullness, accuracy, and promptness.

- In case of detecting errors or adjustments in tax management operation dossiers affecting tax accounting information, they must be handled and adjusted promptly according to regulations.