Shall tax authorities purchase information and documents from other organizations and individuals serving tax administration in Vietnam?

Shall tax authorities purchase information and documents from other organizations and individuals serving tax administration in Vietnam?

From December 5, 2020, Decree 126/2020/ND-CP has supplemented regulations regarding the purchase of information, documents, and data from service providers serving tax administration. Specifically, Clause 1, Article 40 of Decree 126/2020/ND-CP provides as follows:

Purchase of information, documents, data from service providers serving tax administration

1. Purchase of information, documents, data serving tax administration, address violations of tax law, customs law is when tax authorities purchase from domestic and foreign organizations and individuals the information, documents, data which the tax authority or other state bodies do not have or do not provide as per the law, or the information, documents, data provided by competent state agencies but are insufficient for the requirements of tax administration.

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This regulation allows tax authorities to purchase information, documents, data from domestic and foreign organizations and individuals which the tax authority or other state bodies do not have or do not provide as per the law or the information, documents, data provided by competent state agencies but are insufficient for the requirements of tax administration, addressing violations of tax law, customs law.

Thus, currently, tax authorities are entitled to purchase information and documents from other organizations and individuals serving tax administration.

Note: Tax authorities include:

- Tax authorities include the General Department of Taxation, Department of Taxation, Sub-Department of Taxation, Regional Sub-Department of Taxation;

- Customs authorities include the General Department of Customs, Department of Customs, Post-Clearance Audit Department, Sub-Department of Customs.

(According to Clause 2, Article 2 of the Law on Tax Administration 2019)

Purchase of information, documents, data from service providers serving tax administration in Vietnam (Image from Internet)

What are regulations on purchase of information and documents by tax authorities in Vietnam?

Based on Clause 2, Article 40 of Decree 126/2020/ND-CP, the regulation on the purchase of information, documents, data by tax authorities to support regular operations and arising needs are as follows:

(i) Purchase commercial databases to support regular tax administration work including:

+ Management of large enterprises;

+ Management of medium, small enterprises and business households, individuals;

+ Pre-agreed activities on methods of determining taxable prices;

+ Management of enterprises with interrelated transactions;

+ Other tax administration activities by tax authorities.

(ii) Purchase information, documents, data for arising matters during tax administration, including activities: Declaration, determination, inspection, verification, and other arising matters in tax administration.

(iii) Purchase information to determine origin, value, standards, quality of imported goods, verify the legality of documents, transactions related to exported, imported goods, verify other acts violating customs law.

Shall tax authorities use state funds to purchase information and documents serving tax administration in Vietnam?

Based on Clause 3, Article 40 of Decree 126/2020/ND-CP, the funding source for purchasing information and documents for tax administration work is provided by the state budget to the tax authority. To be specific:

- The head of the tax authority decides on the purchase of information and documents for tax administration work, addressing violations of tax law, customs law according to the State Budget Law 2015.

- The purchase of information, documents, data is designated and directly contracted with the individuals, organizations providing it. The Ministry of Finance provides specific guidance on content, spending level, management, usage, payment, settlement of funds for the purchase of information, documents, data for tax administration work.

Note:

- Tax authorities have the responsibility to use the information, documents, data purchased from organizations, individuals for the correct purpose and audience as per legal regulations.

- Information, documents, data purchased by tax authorities are used as the basis to determine tax obligations, address acts violating tax law, customs law of taxpayers.

According to Clause 1, Article 2 of the Law on Tax Administration 2019, taxpayers include the following entities:

+ Organizations, households, business households, individuals paying tax according to tax law;

+ Organizations, households, business households, individuals paying other amounts into the state budget;

+ Organizations, individuals deducting taxes.