What are procedures for collecting and processing tax risk management information in Vietnam?

What are procedures for collecting and processing tax risk management information in Vietnam?

The process of collecting and processing risk management information is carried out according to the provisions of Article 8 of Circular 31/2021/TT-BTC as follows:

First, collecting risk management information:

* The tax authorities collect risk management information from the following sources:

- From the information system within the tax authority;

- By cooperating with agencies and units under the Ministry of Finance and agencies and units under other relevant ministries and sectors in exchanging and providing information to serve tax administration;

- By coordinating and exchanging information with tax authorities and competent authorities abroad as stipulated by law;

- Receiving information provided by state agencies, organizations, and individuals according to legal regulations;

- Information related to the activities of taxpayers collected during the tax management process;

- Purchasing information as stipulated in the Tax Administration Law and guiding documents;

- Receiving tax-related information from foreign agencies and international organizations provided under Vietnam's international treaty obligations;

- From other relevant information sources as stipulated by law.

* The tax authorities collect risk management information through the following means:

- Providing and exchanging data in electronic format, electronic documents, email, exchanges via the General Department of Taxation's electronic portal; messages and calls to officially published telephone numbers of the tax authorities;

- Providing and exchanging information in written form, telegrams, fax, paper documents;

- Direct exchanges based on minutes recorded and confirmed by relevant parties; sending representatives for working, verifying, collecting information and documents; organizing meetings and through other forms.

Second, processing risk management information:

- Evaluating the relevance of the information to the needs and purposes of using the information; assessing the reliability and accuracy of the information;

- Classifying, organizing, and storing information from various sources into groups for information exploitation and analysis;

- Analyzing information, examining, and detecting elements constituting the information content to serve risk management;

- Synthesizing, linking detected relevant elements through analysis to clarify the content and value of the collected information to serve risk classification and assess tax law compliance of taxpayers.

What are procedures for collecting and processing tax risk management information in Vietnam? (Image from the Internet)

What are regulations on application of information technology to risk management in Vietnam?

Pursuant to the provisions of Article 9 of Circular 31/2021/TT-BTC, the application of information technology in tax risk management is regulated as follows:

- The risk management application and the database on taxpayers are built and managed centrally at the General Department of Taxation, ensuring that information serving as a basis for risk assessment is fully, accurately, and promptly updated thanks to the connectivity and exchange of information with the electronic tax data processing systems and related information systems.

In case of system failure or transmission error, the update, integration, processing, and storage of information on the system shall be carried out immediately when the failure or system error is resolved.

- Implementing management measures to ensure data security, computer safety, and network security as prescribed by law.

- The General Department of Taxation specifies the responsibilities of units and tax officials at all levels in the construction, management, operation, updating, exploitation, and usage of the risk management application suitable to each field of tax operations.

Vietnam: What information does risk management information of tax authority include?

Pursuant to Clause 1, Article 7 of Circular 31/2021/TT-BTC, risk management information within the tax authority includes:

- Information on business registration, taxpayer registration; personal information of founding members, owners, and legal representatives of taxpayers; labor registration and usage; information on taxpayer status; the number of times business registration and taxpayer registration information have been changed; members' capital contribution situation; main business sectors;

- Information on tax declaration records; tax payment; tax debt; tax incentives, exemptions, and reductions; tax payment term extensions; gradual tax payment; tax refunds; invoice and document registration, management, usage; complaint and denunciation information; inspection and examination results and post-inspection and examination handling; information on related transactions;

- Other information.