Shall Vietnam Tax Advisory Councils be re-established every 5 years?

Shall Vietnam Tax Advisory Councils be re-established every 5 years?

According to Clause 2, Article 7 of Circular 80/2021/TT-BTC, the provisions are as follows:

Establishment of the Tax Advisory Council

1. The Chairperson of the district-level People's Committee, based on the number and scale of business and individual business households in the area, shall decide on the establishment of the commune-level Tax Advisory Council upon the proposal of the Head of the Tax Department.

2. The Tax Advisory Council is established and operates for a maximum period not exceeding 05 years.

3. The Tax Advisory Council may be re-established or have its members added or replaced in certain specific cases as follows:

a) Re-establish the Tax Advisory Council when the council's term expires according to the provisions of Clause 2 of this Article.

b) Add or replace members of the Tax Advisory Council in the following cases:

b.1) Members no longer meet the composition requirements as stipulated in Clauses 1 and 2, Article 6 of this Circular;

b.2) Add business households or individual businesses to align with the number of business households and individual businesses operational or replace ones that have ceased business in the commune-level town;

b.3) Other changes related to the composition of the Tax Advisory Council as proposed by the Head of the Tax Department.

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The Tax Advisory Council is established and operates for a maximum period not exceeding 05 years. The council may be re-established or have its members added or replaced in the specific cases mentioned above. According to this provision, there is no automatic complete change of the composition but rather the addition or replacement of council members if: Members no longer meet the composition requirements as stipulated in Clauses 1 and 2, Article 6 of Circular 80/2021/TT-BTC.

Shall Vietnam Tax Advisory Councils be re-established every 5 years? (Image from Internet)

What principles must a meeting of the Vietanm Tax Advisory Council ensure?

According to Clauses 2 and 3, Article 8 of Circular 80/2021/TT-BTC, the provisions are as follows:

Principles and policies of operation of the Tax Advisory Council

1. The Chairperson and members of the Tax Advisory Council operate on a part-time basis. The council is directly directed by the Chairperson of the Tax Advisory Council on the contents stipulated in this Circular.

2. The Tax Advisory Council meets to collect opinions from its members on advisory contents as convened by the Chairperson of the council. Meetings are conducted when presided over by the Chairperson and attended by at least 2/3 of the total number of members (including the Chairperson). The council may organize to collect opinions from its members on advisory contents via electronic means. In case the opinions of members are not unanimous, a vote must be conducted to decide by majority; if the vote results are tied, the decision shall be based on the content agreed upon by the Chairperson to form the basis for preparing the minutes of the Tax Advisory Council meeting.

3. Meetings of the Tax Advisory Council must be recorded in the minutes according to form number 07-2/HĐTV issued in Annex I of this Circular. The minutes must be signed by the members of the council attending the meeting. In the case of collecting opinions via electronic means, the council's standing member summarizes jointly and records it in the minutes as if it were a direct meeting.

Thus, it can be seen that to ensure: Meetings of the Tax Advisory Council are conducted when presided over by the Chairperson and attended by at least 2/3 of the total number of members (including the Chairperson).

Additionally, the meetings of the Tax Advisory Council must be recorded in the minutes according to form number 07-2/HĐTV issued in Annex I of this Circular. The minutes must be signed by the council members attending the meeting.

What are responsibilities of the Chairperson of the Tax Advisory Council in Vietnam?

According to Clause 2, Article 11 of Circular 80/2021/TT-BTC, the responsibilities of the Chairperson of the Tax Advisory Council are stipulated as follows:

- Decide on the program and work plan of the Tax Advisory Council;

- Invite representatives, convene members, and preside over the meetings of the Tax Advisory Council;

- Assign specific tasks to the members of the Tax Advisory Council;

- Decide and bear general responsibility for the activities of the Tax Advisory Council and its members in carrying out their duties as stipulated;

- Report in writing to the Chairperson of the district-level People's Committee and the Head of the Tax Department in case individuals or other members cannot continue to participate in the Tax Advisory Council;

- Sign documents and transaction materials on behalf of the Tax Advisory Council.