Does tax management in Vietnam include tax enforcement?

Does tax management in Vietnam include tax enforcement?

Based on Article 4 of the Tax Administration Law 2019, the provisions are as follows:

Contents of tax administration

1. Tax registration, tax declaration, tax payment, tax determination.

2. Tax refund, tax exemption, tax reduction, non-collection of tax.

3. Suspension of tax debt; tax debt relief, late payment interest, fines; exemption from late payment interest, fines; non-imposition of late payment interest; tax payment deferral; gradual payment of tax debt.

4. Management of taxpayer information.

5. Management of invoices and documents.

6. Tax inspection, tax audit and implementation of measures to prevent, combat, and stop violations of tax laws.

7. Enforcement of administrative decisions on tax administration.

8. Tax enforcement.

9. Resolution of tax-related complaints and denunciations.

10. International cooperation on tax.

11. Propagation and support for taxpayers.

Thus, according to the provisions, the contents of tax administration include the tax enforcement.

Is administrative procedure reform required during the tax administration process in Vietnam?

Based on Article 5 of the Tax Administration Law 2019, administrative procedure reform must be implemented during the tax administration process.

Principles of tax administration

1. All organizations, households, business households, and individuals are obligated to pay taxes as stipulated by law.

2. Tax administration agencies and other State bodies assigned with tax collection management duties must administer taxes according to the provisions of this Law and other relevant legal regulations, ensuring transparency, fairness, and the protection of the legitimate rights and interests of taxpayers.

3. Agencies, organizations, and individuals are responsible for participating in tax administration as prescribed by law.

4. Implement administrative procedure reform and apply modern information technology in tax administration; adopt tax management principles according to international practices, including the principle that the substance of transactions determines tax obligations, risk management principles in tax administration, and other principles in line with Vietnam’s conditions.

5. Apply preferential measures when performing tax procedures for export and import goods as stipulated by customs law and regulations by the Government of Vietnam.

Thus, administrative procedure reform must be implemented during the tax administration process, and this is a principle of tax administration.

Does tax management in Vietnam include tax enforcement? (Image from the Internet)

What are the 8 prohibited acts in tax administration in Vietnam?

Based on Article 6 of the Tax Administration Law 2019, the prohibited acts in tax administration include:

- Collusion and connivance between taxpayers and tax administration officials or tax management agencies to transfer pricing or evade taxes.

- Harassing and troubling taxpayers.

- Misappropriating or illegally using tax money.

- Intentionally failing to declare or declaring taxes incompletely, untimely, or inaccurately regarding the amount of tax payable.

- Obstructing tax administration officials in performing their duties.

- Using another taxpayer’s identification number to carry out illegal acts or allowing others to use one’s own identification number non-compliantly with the law.

- Selling goods, providing services without issuing invoices as required by law, using illegal invoices, and using invoices illegally.

- Falsifying, misusing, unauthorized accessing, or destroying taxpayer information systems.

What are regulations on risk management in tax administration in Vietnam?

Based on Article 9 of the Tax Administration Law 2019, the provisions on risk management in tax administration are as follows:

- Tax authorities apply risk management in taxpayer registration, tax declaration, tax payment, tax debt management, enforcement of administrative decisions on tax administration, tax refund, tax inspection, tax audit, and the management and use of invoices and documents as well as other tax administration operations.

- Customs authorities apply risk management in tax declaration, tax refund, non-collection of tax, tax inspection, tax audit, and other tax administration operations.

- Applying risk management mechanisms in tax administration includes operations of collecting and processing information and data related to taxpayers; developing tax management criteria; assessing taxpayer compliance; categorizing risk levels in tax administration; and organizing the implementation of appropriate tax management measures.

- Assessing taxpayer compliance and categorizing risk levels in tax administration are regulated as follows:

+ Assessing taxpayer compliance is conducted based on a set of criteria, information on the historical activity of taxpayers, compliance history, and the taxpayer's cooperative relationship with tax administration agencies in implementing tax laws and the severity of tax law violations;

+ Categorizing risk levels in tax administration is conducted based on the level of taxpayer compliance.

During the process of categorizing risk levels, tax administration agencies consider relevant information, including risk signals; signs or acts of violations in tax administration; and information on the operational results of tax administration agencies and related agencies as prescribed by this Law;

+ Tax administration agencies utilize the results of taxpayer compliance assessments and risk level categorizations in tax administration to apply appropriate tax management measures.

- Tax administration agencies apply information technology systems to automatically integrate and process data serving the application of risk management in tax administration.

- The Minister of Finance stipulates criteria for assessing taxpayer compliance, categorizing risk levels, and applying risk management in tax administration.