What are regulations on risk management in tax administration in Vietnam?

What is risk management in tax administration in Vietnam?

Based on Clause 15 Article 3 of the 2019 Law on Tax Administration, the regulations are as follows:

Definitions

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

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14. Tax risk means the risk of non-compliance with the law by taxpayers, leading to loss of state budget revenue.

15. Risk management in tax administration is the systematic application of legal regulations and professional procedures to identify, assess, and categorize risks that may negatively impact the efficiency and effectiveness of tax administration, thereby serving as a basis for tax authorities to allocate resources appropriately and apply effective management measures.

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Risk management in tax administration is understood as the systematic application of legal regulations and professional procedures to identify, assess, and categorize risks that may negatively impact the efficiency and effectiveness of tax administration, thereby serving as a basis for tax authorities to allocate resources appropriately and apply effective management measures.

What are regulations on risk management in tax administration in Vietnam? (Image from the Internet)

What are regulations on risk management in tax administration in Vietnam?

Based on Article 9 of the 2019 Law on Tax Administration, the regulations are as follows:

Risk Management in Tax Administration

1. Tax authorities apply risk management in taxpayer registration, tax declaration, tax payment, tax debt, enforcement of administrative decisions on tax administration, tax refund, tax inspection, tax audit, management, and use of invoices, vouchers, and other practices in tax administration.

2. Customs authorities apply risk management in tax declaration, tax refund, tax exemption, tax inspection, tax audit, and other practices in tax administration.

3. The application of risk management mechanisms in tax administration includes the professional procedures of collecting, processing information, and data related to taxpayers; developing tax management criteria; assessing taxpayer compliance; classifying risk levels in tax administration; and organizing the implementation of appropriate tax management measures.

4. The assessment of taxpayer compliance and classification of risk levels in tax administration is regulated as follows:

a) Assessing the level of taxpayer compliance is based on a system of criteria, information about the taxpayer's activity history, compliance process, cooperation relationship with the tax management authority in implementing tax law, and the degree of tax law violations;

b) Classifying risk levels in tax administration is based on the degree of taxpayer compliance. During the classification process, the tax management authority considers related content, including information on risk indicators; signs and acts of violations in tax management; information on operational results of the tax management authority and other relevant agencies as stipulated by this Law;

c) The tax management authority uses the results of the taxpayer compliance assessment and the risk level classification in tax administration to apply appropriate tax management measures.

5. The tax management authority applies an information technology system to automatically integrate and process data to serve the application of risk management in tax administration.

6. The Minister of Finance stipulates the criteria for assessing taxpayer compliance, classifying risk levels, and applying risk management in tax administration.

The classification of risk levels in tax administration is based on the degree of taxpayer compliance.

During the classification process, the tax management authority considers related content, including information on:

- Risk indicators;

- Signs and acts of violations in tax management;

- Information on operational results of the tax management authority and other relevant agencies as stipulated.

What are regulations on updating the results of the application of professional measures for risk management in tax administration in Vietnam?

Based on Clause 8 Article 4 of the 2019 Law on Tax Administration, the regulations are as follows:

Principles of Risk Management

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8. The results of the application of professional measures corresponding to the risk rating levels must be fully and accurately updated into the tax management support applications of the tax authority or the risk management application for each specific case, serving the improvement and implementation of tax law compliance assessment and taxpayer risk classification in the following period.

The results of the application of professional measures corresponding to the risk rating levels must be fully and accurately updated into the tax management support applications of the tax authority or the risk management application for each specific case, serving the improvement and implementation of tax law compliance assessment and taxpayer risk classification in the following period.