May Vietnamese officials serve as tax agents?

May Vietnamese officials serve as tax agents?

Pursuant to Clause 4, Article 105 of the 2019 Law on Tax Administration concerning individuals who are not permitted to operate as tax agents:

Certificate of Practice in Tax Procedure Services

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3. Individuals holding a certificate of practice in tax procedure services working at a tax agency are termed tax agents. Tax agents must fully participate in knowledge update programs.

4. The following individuals are not permitted to operate as tax agents:

a) Officials and public employees; commissioned officers, non-commissioned officers, professional soldiers, defense workers, and public defense employees; commissioned officers, non-commissioned officers, and public security workers;

b) Persons prohibited from practicing tax procedure services, accounting, and auditing as per effective court judgments or decisions; those being prosecuted;

c) Persons convicted of economic management order violations related to taxation, finance, or accounting who have not been expunged; those subject to administrative handling measures such as community education at the commune level, compulsory education in educational institutions, or compulsory rehabilitation facilities;

d) Persons fined for administrative violations in tax management, accounting, or auditing, within 6 months from the date of completion of penalty decisions in the case of a caution, or within 1 year from the date of completion of penalty decisions in other forms.

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According to the above regulation, officials are not allowed to operate as tax agents.

May Vietnamese officials serve as tax agents? (Image from the Internet)

What are the criteria for tax agents in Vietnam?

Pursuant to Article 14 of Circular 10/2021/TT-BTC detailing the criteria for tax agents, as follows:

Tax agents must meet the following standards:

[1] Be a Vietnamese citizen or a foreigner permitted to reside and work in Vietnam, and not fall under the categories specified in Clause 4, Article 105 of the Law on Tax Administration;

[2] Hold a certificate of practice in tax procedure services issued by the General Department of Taxation;

[3] Be the legal representative of a tax agency or have a labor contract to work at a tax agency;

[4] Fully participate in knowledge update programs as regulated in Chapter IV of Circular 10/2021/TT-BTC.

What are the responsibilities of tax agents in Vietnam?

The responsibilities of tax agents are outlined in Article 17 of Circular 10/2021/TT-BTC as follows:

- Perform duties within the scope of the tax procedure service contract signed between the tax agency and the taxpayer.

- Be legally accountable for the use and management of the certificate of practice in tax procedure services as regulated.

- Provide complete and accurate personal information and documents related to registration for practicing tax procedure services to the tax agency, including: certificate of practice, proof of updated knowledge hours, work permit (for foreigners), and documents indicating the conclusion of work at other tax agencies (if any).

In cases where personal information related to the aforementioned documents is changed, tax agents must inform the tax agency of the changes for notification to the Tax Department.

- Notify in writing, at least 30 days before ceasing practice (except in cases of suspension or termination), to the tax agency.

- Comply with regulations on inspections related to practicing tax procedure services.

- Keep confidential information for organizations and individuals using the services of the tax agency.

- Attend training and knowledge update courses to ensure the required number of knowledge update hours as regulated.

Specifically, Clause 1, Article 20 of Circular 10/2021/TT-BTC regulates the duration of knowledge updates for tax agents as follows:

Duration and form of knowledge updates

1. The duration of knowledge updates for tax agents and individuals registering for practicing tax procedure services is determined as follows:

a) The minimum duration of knowledge updates is 24 hours (equivalent to 3 days) per year. The number of knowledge update hours is aggregated from January 1 to December 31 annually as a basis for practice registration or determining eligibility for the following year.

b) Knowledge update hours are calculated at a rate of 1 learning hour equals 1 knowledge update hour. The duration counted as knowledge update hours does not exceed 4 hours per session and 8 hours per day.

c) Proof of knowledge update hours is a certificate of participation issued by the organizing unit.

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