How long does it take for a taxpayer to receive a tax audit decision in Vietnam?

How long does it take for a taxpayer to receive a tax audit decision in Vietnam?

Pursuant to Clause 3, Article 110 of the Law on Tax Administration 2019 regarding tax audit at the taxpayer's premises as follows:

tax audit at the taxpayer's premises

...

3. The tax audit decision must be sent to the taxpayer within 03 working days and made public within 10 working days from the date of signing. Before publishing the inspection decision, if the taxpayer proves that the declared tax amount is correct and has paid the full amount due, the tax authority will revoke the tax audit decision.

...

Thus, the tax audit decision at the taxpayer's premises must be sent to the taxpayer within 03 working days and made public within 10 working days from the date of signing.

Before publishing the inspection decision, if the taxpayer proves that the declared tax amount is correct and has paid the full amount due, the tax authority will revoke the tax audit decision.

How long does it take for a taxpayer to receive a tax audit decision in Vietnam? (Image from the Internet)

What is the procedure for tax audit at the taxpayer's premises in Vietnam?

Pursuant to Subsection 2, Section 3, Part 2 of the tax audit Procedure issued with Decision 970/QD-TCT 2023, the procedure for tax audit at the taxpayer's premises is stipulated. To be specific:

(1) Preparation for inspection at the taxpayer's premises:

- Issuance of the Inspection Decision

- The tax audit decision at the taxpayer's premises must be sent to the taxpayer no later than 03 working days from the date of issuance of the decision. If the tax authority or section not directly managing the taxpayer conducts the inspection, one copy should be sent to the tax authority or section directly managing the taxpayer to coordinate with related sections.

- Before announcing the Inspection Decision, the Head of the inspection team must assign members to perform parts of the tasks according to the contents recorded in the Inspection Decision (as per form No. 07/QTKT issued with Decision 970/QD-TCT 2023).

- Revoke the Inspection Decision; postpone the inspection; suspend the inspection; adjust the inspection decision

- In cases where the taxpayer is still operating normally and fulfilling tax declarations, if the tax authority issues an Inspection Decision but the taxpayer does not receive it, or deliberately avoids complying, the inspection team will make an administrative violation report in accordance with Article 15 of Decree 125/2020/ND-CP.

Based on the administrative violation report regarding the taxpayer's non-compliance with the tax audit, the inspection team reports to the issuer of the Inspection Decision to impose administrative penalties, apply tax management measures (if any), and implement the steps to determine tax as provided in Articles 14, 15, 16 of Decree 126/2020/ND-CP.

An administrative violation report is made, if the violator or the representative of the violating unit is absent or deliberately avoids or does not sign the report for objective reasons, the report must have the signature of the representative of the local government or at least one witness to confirm.

If there is no confirmation from the local government or a witness, the reasons must be clearly stated in the report.

(2) Inspection at the taxpayer's premises:

- Announce the tax audit Decision

- Conduct inspection at the taxpayer's premises.

- Compile the tax audit report.

- Handle the inspection results at the taxpayer's premises.

- Record inspection logs.

- Supervise the inspection team.

- Monitor and urge the implementation of post-inspection results.

- If the database and IT applications of the tax authority and taxpayer meet the requirements for electronic transactions or online work, the inspection team and taxpayer can conduct inspections through electronic transactions, online work, or a combination of methods during inspections at the taxpayer's premises (direct work, electronic methods, online work).

It is encouraged for the inspection team and taxpayer to work through electronic transactions or online methods.

Will a taxpayer be subjected to tax liability imposition if they do not comply with a tax audit decision?

According to point d, clause 1, Article 50 of the Law on Tax Administration 2019 regarding tax liability imposition for taxpayers in cases of violations of tax laws as follows:

Tax liability imposition for taxpayers in cases of violations of tax laws

1. Taxpayers are subject to tax liability imposition in the following cases of violations of tax laws:

...

d) Non-compliance with tax audit, tax audit decisions as prescribed;

...

Thus, taxpayers who do not comply with a tax audit decision will be subjected to tax liability imposition.