What are procedures for assessment and classification of taxpayers’ compliance and risks in Vietnam?
What are procedures for assessment and classification of taxpayers’ compliance and risks in Vietnam?
Based on the regulations stipulated in Clause 2, Article 8 of the Process issued under Decision 18/QD-TCT of 2023 concerning this content as follows:
Tax Assessment and classification of taxpayers’ compliance and risks
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2. Conduct assessment and classification.
a) Step 1 - Assess taxpayer compliance with tax laws.
a1) Assessment time: The assessment of taxpayer compliance with tax laws is conducted periodically on the 25th of every month.
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b) Step 2 - Classify overall taxpayers’ risks.
b1) Classification time.
The overall classification of taxpayers' risks is carried out on April 15, June 30, and September 30 annually, or as required by management tasks.
b2) Conduct classification.
B2.1 - Use automated data analysis and risk management applications to classify overall taxpayers’ risks.
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c) Step 3 - Classify risk level in tax management operations.
c1) Conduct classification.
B3.1 - For operations that conduct periodic classification: Use automated data analysis and risk management applications to classify risk levels in each tax management operation at the periodic times set according to regulations.
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The assessment and classification of taxpayers’ compliance and risks are conducted in three steps:
Step 1: Assess taxpayer compliance with tax laws.
Step 2: Classify overall taxpayers’ risks.
Step 3: Classify risk level in tax management operations.
What are procedures for assessment and classification of taxpayers’ compliance and risks in Vietnam? (Image from the Internet)
When is the time for overall classification of taxpayers' risks in Vietnam?
Based on Point b, Clause 2, Article 8 of the Process issued under Decision 18/QD-TCT of 2023 as follows:
Assessment and classification of taxpayers’ compliance and risks
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b) Step 2 - Classify overall taxpayers’ risks.
b1) Classification time.
The overall classification of taxpayers' risks is carried out on April 15, June 30, and September 30 annually, or as required by management tasks.
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The overall classification of taxpayers' risks is conducted on April 15, June 30, and September 30 annually.
Additionally, the overall classification of taxpayers' risks is also carried out as required by management tasks.
What are the principles of overall classification of taxpayers' risks in Vietnam?
Based on Clause 1, Article 8 of the Process issued under Decision 18/QD-TCT of 2023 regarding this content as follows:
Assessment and classification of taxpayers’ compliance and risks
1. Principles of assessment and classification.
a) The assessment of taxpayer compliance with tax laws and classification of taxpayers’ riskss are carried out automatically using information technology applications based on criteria indices and assessment methods issued by the General Department of Taxation.
b) The assessment of taxpayer compliance with tax laws is conducted for all taxpayers.
c) Depending on the requirements of tax management operations, each segment of taxpayers or each taxpayer will be classified according to overall risk levels and may be classified according to risk levels in tax management operations.
d) For classification of risk levels in tax management operations: Depending on tax management requirements to carry out periodic classifications according to the number of times in a year, one (1) time or multiple times, such as operations for inspection, audit planning at taxpayer headquarters; or periodic classifications by month, quarter, and immediate classification upon the occurrence of operational documents (such as tax refund operations).
dd) Procedure of assessment and classification.
The assessment of taxpayer compliance with tax laws and classification of taxpayers’ riskss is carried out in the following order:
First: Assess taxpayer compliance with tax laws.
Second: Classify overall taxpayers’ risks.
Third: Classify risk level in tax management operations.
e) Results of assessment and classification.
The results of assessment and classification are output according to the form issued with this Process and are arranged according to the criteria below:
- According to taxpayers with evaluated compliance levels and risk classifications from high to low.
- According to the order of criteria indices with many taxpayers violating or according to the score of each criterion from high to low.
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The assessment is based on the following principles:
- The assessment of taxpayer compliance with tax laws and classification of taxpayers’ riskss are carried out automatically using information technology applications based on criteria indices and assessment methods issued by the General Department of Taxation.
- The assessment of taxpayer compliance with tax laws is conducted for all taxpayers.
- Depending on the requirements of tax management operations, each segment of taxpayers or each taxpayer will be classified according to overall risk levels and may be classified according to risk levels in tax management operations.
- For classification of risk levels in tax management operations: Depending on tax management requirements to carry out periodic classifications according to the number of times in a year, one (1) time or multiple times, such as operations for inspection, audit planning at taxpayer headquarters; or periodic classifications by month, quarter, and immediate classification upon the occurrence of operational documents (such as tax refund operations).
- Regarding the procedure of assessment and classification:
The assessment of taxpayer compliance with tax laws and classification of taxpayers’ riskss is carried out in the following order:
First: Assess taxpayer compliance with tax laws.
Second: Classify overall taxpayers’ risks.
Third: Classify risk level in tax management operations.
- Regarding the results of assessment and classification:
The results of assessment and classification are output according to the form issued with this Process and are arranged according to the criteria below:
+ According to taxpayers with evaluated compliance levels and risk classifications from high to low.
+ According to the order of criteria indices with many taxpayers violating or according to the score of each criterion from high to low.
