What are general principles in handling the taxpayer list with tax declaration dossiers in Vietnam?

What are general principles in handling the taxpayer list with tax declaration dossiers in Vietnam?

Firstly, according to Clause 3, Article 3 of Decision 98/QD-TCT in 2024, several terms are abbreviated in the regulations as follows:

- Taxpayer is abbreviated as NNT.

- Risk Management is abbreviated as QLRR.

- Value Added Tax is abbreviated as GTGT.

- Corporate Income Tax is abbreviated as TNDN.

- Special Consumption Tax is abbreviated as TTDB.

- tax declaration dossier is abbreviated as HSKT.

- Tax Authority is abbreviated as CQT.

Furthermore, handling the list of taxpayers with risky tax declaration dossiers will be conducted under Article 7 of Decision 98/QD-TCT in 2024 as follows:

* General Principles

The head of the Tax Audit Department, based on the list of taxpayers (NNT) with high-risk tax declaration dossiers (HSKT), assigns officials to directly handle the files for inspection.

Based on the assigned list, the tax officials conduct a review and check contents based on the results of each index criterion analysis.

In cases where taxpayers are evaluated to be on the list of high-risk taxpayers but during the actual review and inspection of the previous two (02) tax declaration periods no tax law violations are found, they will continue to be subject to risk analysis and assessment six (06) months after the inspection results.

If the tax authority (CQT) has reliable information that reduces the risk level of a taxpayer to low or has a basis to believe that the risk level of the taxpayer's HSKT is low, the tax authority may decide not to select that taxpayer for inspection at the tax office.

If the tax authority (CQT) has reliable information indicating that a taxpayer has a high-risk HSKT, the tax authority may add them to the inspection plan.

* Methods of Handling

After reviewing and eliminating risks with known causes, already explained in previous months/quarters/years, the Tax Audit Department will submit to the leadership of the tax authority (CQT) for approval a list of high-risk taxpayers to be inspected at the tax office. Based on this approved list, the Tax Audit Department forwards it to the Risk Management Department (QLRR) to input supplementary or exclusion reasons for high-risk HSKT into the QLRR application using form number 02-KTTB/QTr-QLRR Download no later than the 5th of the following month. The QLRR application automatically updates the list of high-risk taxpayers using form number 03-KTTB/QTr-QLRR Download.

Based on the list of high-risk taxpayers to be inspected at the tax office, the tax authority leader (may authorize the head of the QLRR Department) approves in the QLRR application to transfer to the tax audit support system. The Tax Audit Department conducts inspections at the tax office according to current tax inspection procedures.

What are general principles in handling the taxpayer list with tax declaration dossiers in Vietnam? (Image from Internet)

What are regulations on assessment of the application of risk management in tax declaration dossier selection in Vietnam?

According to Article 8 of Decision 98/QD-TCT in 2024, the assessment of the application of risk management in tax declaration dossier selection is as follows:

* For Tax Departments and Sub-Departments

The tax authority compiles a list of high-risk HSKT for VAT (GTGT), Corporate Income Tax (TNDN), and Special Consumption Tax (TTDB) requiring inspection at the tax office; the results of the HSKT inspection on the application are used to evaluate the following areas:

- Evaluate the effectiveness of each criterion index according to form number 07-KTTB/QTr-QLRR issued with this Procedure for each type of HSKT for VAT, TNDN, TTDB. The QLRR application is executed by February 5 of each year or as requested by the tax authority (CQT).

- Evaluate the achieved results, difficulties, obstacles, and propose solutions to enhance the effectiveness of QLRR application in selecting HSKT for VAT, TNDN, TTDB to inspect at the tax office.

Report submission deadlines:

- Tax Sub-Departments submit assessment reports to the Tax Department before February 15 of each year.

- Tax Departments submit assessment reports from the Tax Department Office and affiliated Tax Sub-Departments to the General Department of Taxation (QLRR Division) before February 25 of each year.

The assessment is conducted annually and according to specific tax management requirements.

* For the General Department of Taxation

The QLRR Division leads in cooperation with the Tax Inspection Department, the Large Enterprise Tax Department, and relevant Divisions/units to:

- Before February 28 of each year, compile assessment reports on the application of QLRR in selecting VAT, TNDN, TTDB HSKT at risk for inspection at the tax office for the entire tax sector to report to the General Department.

- Organize inspection and supervision of implementing QLRR application in selecting VAT, TNDN, TTDB HSKT at risk for inspection across different levels of the tax authority.

How to handle the List of taxpayers with tax declaration dossiers in Vietnam?

According to Clause 2, Article 7 of Decision 98/QD-TCT in 2024, the regulation is as follows:

- After reviewing and eliminating risks with known causes already explained in previous months/quarters/years, the Tax Audit Department will submit the list of high-risk taxpayers needing inspection at the tax office to the leader of the CQT for approval. Based on this approved list, the Tax Audit Department forwards it to the Risk Management Department (QLRR) to input supplementary or exclusion reasons for high-risk HSKT into the QLRR application using Download form number 02-KTTB/QTr-QLRR no later than the 5th of the following month. The QLRR application automatically updates the list of high-risk taxpayers using Download form number 03-KTTB/QTr-QLRR.

- Based on the list of high-risk taxpayers needing inspection at the tax office, the leader of the tax authority (CQT) (may authorize the head of the QLRR Department) approves in the QLRR application to transfer to the tax audit support system. The Tax Audit Department conducts inspections at the tax office according to current tax inspection procedures.