What are regulations on classification of tax records in Vietnam?

What are regulations on classification of tax records in Vietnam?

Pursuant to Clause 9, Article 3 of the Law on Tax Administration 2019 stipulates as follows:

Definitions

In this Law, the following terms are understood as follows:

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9. Tax record is the taxpayer registration, tax declaration, tax refund, tax exemption, tax reduction, exemption from late payment interest, non-calculation of late payment interest, tax payment extension, deferred payment of tax debt, non-collection of tax; customs documents; records of freezing tax debt; records of write-off of tax debt, late payment interest, and fines.

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Tax records are understood as the following types:

- Taxpayer registration, tax declaration, tax refund, tax exemption, tax reduction, exemption from late payment interest, non-calculation of late payment interest, tax payment extension, deferred payment of tax debt, non-collection of tax;

- Customs documents;

- Records of freezing tax debt;

- Records of write-off of tax debt, late payment interest, and fines.

Pursuant to Clause 1, Article 71 of Circular 80/2021/TT-BTC stipulates as follows:

Inspection of tax records at the tax authorities

1. Classification of tax records:

Tax records are classified into 03 levels of risk: Low risk, medium risk, and high risk.

2. The tax authority proposes a plan to inspect tax records at the tax authorities or handle according to the provisions of Clauses 3 and 4 of this Article for high-risk records.

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Tax records are classified into the following 03 levels of risk:

- Low risk.

- Medium risk.

- High risk.

What are regulations on classification of tax records in Vietnam? (Image from the Internet)

What is the deadline for providing explanations, supplementary information, and documents during the process of inspecting tax records in Vietnam?

Pursuant to Clause 3, Article 71 of Circular 80/2021/TT-BTC stipulates as follows:

Inspection of tax records at the tax authorities

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3. Inspection of tax records

The tax authority conducts inspections, comparisons, and analyses of tax records that contain inaccurate declarations, omissions, or require clarifications related to payable tax amounts, tax exemptions, tax reductions, tax refunds, or tax deductions carried forward to the next period. The tax authority shall issue Notice (First Time) in Form No. 01/KTT to request the taxpayer to provide explanations and supplementary information and documents.

Within 10 working days from the date the tax authority issues the notice for explanations or supplementary information and documents, the taxpayer must provide explanations and supplementary information and documents. This process can be done directly at the tax authorities or in writing (paper or electronic form).

If the taxpayer provides explanations directly at the tax authorities, the tax authority shall prepare a Working Minutes according to Form No. 02/KTT issued together with Appendix I of this Circular.

4. Handling inspection results

a) In cases where the taxpayer has provided explanations and supplementary information and documents (first or second time) that prove the declared tax amount is correct, the tax records shall be accepted; the explanation records and supplementary information shall be retained along with the tax records.

b) In cases where the taxpayer has provided explanations and supplementary information and documents but has not sufficiently proven the accuracy of the tax declarations or further clarifications are needed, the tax authority shall issue a Notice (Second Time) in Form No. 03/KTT to allow the taxpayer to continue providing explanations or additional documents, or to voluntarily amend the tax declaration and be responsible for the accuracy of the amended declarations. The deadline for providing explanations, additional documents, or amended tax declarations is 10 working days from the date the tax authority issues the notice. The tax authority shall only issue up to 2 notices requesting explanations or supplementary information for each inspection at the tax authorities.

c) After the second notice deadline, if the taxpayer does not provide explanations, supplementary information, or does not amend the tax declaration, or if the explanations or amendments do not prove the declared tax amount is correct, the tax authority shall impose the payable tax amount if there are sufficient grounds to do so; in cases where there are insufficient grounds to impose the payable tax amount, the tax authority shall issue a decision to inspect at the taxpayer's premises or use this as a basis to develop an inspection and audit plan according to the risk management principles.

d) In cases where the taxpayer has provided explanations or supplementary information (second time) and the tax authority has sufficient grounds to identify administrative violations regarding taxes, the tax authority shall prepare an administrative violation record and handle it according to regulations.

Accordingly, within 10 working days from the date the tax authority issues the notice for explanations or supplementary information and documents, the taxpayer must provide explanations and supplementary information and documents.

The process of providing explanations and supplementary information and documents can be done directly at the tax authorities or in writing (paper or electronic form).

Will the tax be imposed if the taxpayer does not provide supplementary tax records as requested?

Pursuant to Clause 3, Article 14 of Decree 126/2020/ND-CP stipulates as follows:

Cases of tax liability imposition

The taxpayer is imposed to pay tax in the following cases:

1. Failure to taxpayer registration as stipulated in Article 33 of the Law on Tax Administration.

2. Failure to declare tax or incomplete, untruthful, and inaccurate tax declaration as stipulated in Article 42 of the Law on Tax Administration.

3. Failure to provide supplementary tax records as requested by the tax authority or providing supplementary tax records that are incomplete, untruthful, and inaccurate as the basis for tax calculation to impose the payable tax amount.

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In this case, if the taxpayer does not provide supplementary tax records as requested by the tax authority, the tax authority will impose the payable tax amount.