What are tax administration operations in Vietnam?

What are tax administration operations in Vietnam?

Based on Clause 3, Article 3 of Circular 111/2021/TT-BTC the regulations are as follows:

Terms Explanation

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

1. Tax includes taxes and other revenues belonging to the state budget managed by the tax authorities as specified in Clause 1, Clause 2, Article 3 of the Tax Administration Law.

2. Tax accounting is the activity whereby tax authorities at all levels collect, record, and reflect all occurrences related to tax revenue that the tax authorities must collect, have collected, need to collect, need to refund, have refunded, need to refund, exempt, reduce, defer debts, and write off debts during the execution of tax administration operations.

3. Tax administration operations are the tax management activities carried out by tax authorities at all levels according to their functions, duties, powers, and in accordance with the regulations of the Tax Administration Law, Tax Laws, related legal provisions, and according to the tax management professional processes issued by the General Director of the General Department of Taxation.

4. The tax accounting unit is the General Department of Taxation, the Tax Department, the Regional Tax Sub-department, and the Tax Sub-department.

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As such, according to the above regulation, tax administration operations are the tax management activities performed by tax authorities at all levels in accordance with their functions, duties, powers, and in accordance with the processes issued by the General Director of the General Department of Taxation.

What are tax administration operations in Vietnam? (Image from Internet)

Is the tax accounting report used for reviewing results of tax administration operations in Vietnam?

According to Article 29 of Circular 111/2021/TT-BTC the regulations are as follows:

Tax accounting report

1. The tax accounting report is to summarize the situation and results of tax administration operations of tax authorities at all levels during a tax accounting period.

2. Requirements for the tax accounting report

a) The tax accounting report must be prepared in accordance with the prescribed forms, the indicators in the tax accounting report must ensure consistency, continuity, reflect truthfully, objectively, and reasonably the information related to the management of tax revenues and other revenues belonging to the state budget managed by tax authorities. The aggregate indicators on the tax accounting reports must ensure consistency with related provisions on state budget revenue aggregation.

b) The data in the tax accounting report must accurately, truthfully, objectively reflect, and be summarized from the tax accounting database after examination, reconciliation, and closing of tax accounting records.

c) The tax accounting report must be prepared according to the consistent content, method, and presentation between tax accounting periods; in case the tax accounting report is presented differently between tax periods, the reasons must be clearly explained.

d) In addition to the tax accounting reports prescribed in this Circular, the General Director of the General Department of Taxation can prescribe other reports compiled from the tax accounting database to serve management and operation in line with management requirements in each period.

3. Preparing the tax accounting report

a) Before closing the tax accounting period, the tax accounting department is responsible to cooperate with tax management professional departments to carry out reconciliation and examination of recorded data to ensure it matches with the professional records of the professional departments.

b) The tax accounting unit cooperates with the related State Treasury to perform examination, reconciliation, and adjustment of accounting data related to state budget revenues and expenditures as prescribed.

c) The tax accounting unit prepares the tax accounting report in electronic data form. The report is stored in electronic and paper format at the tax accounting unit.

4. The Tax Department aggregates the tax accounting reports of tax accounting units in the provincial area, the Large Enterprise Tax Department aggregates the tax accounting reports in areas where the Tax Department is tasked with revenue collection, and the General Department of Taxation aggregates the tax accounting reports of tax accounting units nationwide.

5. The unit in charge like the Regional Tax Sub-department and the Tax Sub-department must approve the tax accounting report no later than 20 days after the tax accounting period closure; the Tax Department must approve the report no later than 30 days after the period closure.

6. The list, form, and method of preparing the tax accounting report are detailed in Appendix V issued in conjunction with this Circular.

As such, according to the above regulation, the tax accounting report is to compile the situation and results of tax administration operations of tax authorities at all levels.

Is the tax accounting book used for systematically recording tax administration operations in Vietnam?

According to Article 25 of Circular 111/2021/TT-BTC the regulations are as follows:

Tax accounting book

1. The tax accounting book is a form of data established in the Tax Accounting Subsystem.

2. The tax accounting book is used to record, reflect, and store entirely and systematically the amounts required to collect, collected, still to be collected, to be refunded, refunded, still to be refunded, exempted, reduced, deferred debts, and written off debts in the process of implementing tax administration operations of tax authorities at all levels.

3. Information on the tax accounting book must fully, accurately, promptly, truthfully, continuously, and systematically reflect all tax administration operations of the tax authorities. The tax accounting department of the tax authorities must not leave out of the tax accounting book any amount that the tax authorities need to collect, have collected, still need to collect, refund, have refunded, still need to refund, exempt, reduce, defer debts, write off debts.

4. The tax accounting book in data form within the Tax Accounting Subsystem reflects tax accounting information that is established and stored electronically on the tax accounting database, set up according to the standard procedure of the Tax Management Application System, storing all tax administration operations incurred according to each professional content and related timing sequence to tax accounting. The tax accounting book in electronic data form can be printed out on paper for use as required by tax accounting activities.

5. The tax accounting database must be recorded and stored in compliance with the requirements of the Accounting Law, the Electronic Transactions Law, Decree No. 174/2016/ND-CP dated December 30, 2016, of the Government of Vietnam specifying several articles of the Accounting Law, guiding documents implementing the Accounting Law, and in conformity with the provisions of this Circular.

As such, according to the above regulation, the information on the tax accounting book must have a system of the entire tax administration operations.