What are the cases of tax audit at the taxpayer's premises in Vietnam?

What are the cases of tax audit at the taxpayer's premises in Vietnam?

According to Article 110 of the Tax Administration Law 2019, the tax audit at the taxpayer's premises will be conducted in the following cases:

- The tax refund claim is subject to inspection before refund or eligible for refund before inspection;

- The cases specified in Point b, Clause 2, Article 109 of the Tax Administration Law 2019;

- Post-clearance inspection on the declarant’s premises shall be carried out in accordance with customs law;

- Violations are suspected;

- The inspection is carried out under a plan or theme;

- The inspection is requested by State Audit Office of Vietnam, State inspectorates or another competent authority;

- The enterprise is undergoing full division, partial division, merger, amalgamation, conversion, dissolution, shutdown, equitization, TIN invalidation, relocation of business location; other cases of surprise inspection and inspection requested by competent authorities, except for the cases of dissolution or shutdown in which tax is not finalized by tax authorities.

In the cases specified in Point dd, Point e and Point g Clause 1 of Article 110 of the Tax Administration Law 2019, tax authorities shall carry out inspection on taxpayers’ premises not more than once per year.

The tax audit decision shall be sent to the taxpayer within 03 working days and announced within 10 working days from the day on which it is signed.

Before the decision is announced, if the taxpayer is able to prove that the declared tax is accurate and the tax has been fully paid, the tax authority shall annul the decision.

What are the cases of tax audit at the taxpayer's premises in Vietnam? (Image from the Internet)

What are the procedures for tax audit in Vietnam?

Under clause 4, Article 110 of the Law on Tax Administration 2019, the procedures for tax audit are as follows:

- Announce the tax audit decision before carrying out the inspection;

- Compare the declared information with accounting books, accounting records, financial statements, tax risk analysis, information about the document inspection on the tax authority’s premises, the situation within the scope of the tax audit decision;

- The duration of the inspection shall not exceed 10 working days and be specified in the inspection decision. The inspection begins when the decision is announced. In case the inspection is complicated, the issuer of the decision may extend the duration for up to 10 more days;

- Issue a tax audit record within 05 working days from the end of the inspection;

- Take proper actions or request a competent authority to take actions according to the inspection results.

Note: Post-clearance inspection shall be carried out in accordance with customs law.

What are the rights and obligations of taxpayers in Vietnam during tax audit at their premises?

Under Article 111 of the Law on Tax Administration 2019, the rights and obligations of taxpayers in Vietnam during tax audit at their premises include:

(1).  The taxpayer has the right to:

- Reject the inspection if the tax audit decision is not available;

- Refuse to provide information and documents that are not relevant to the audit; information and documents that are state secrets, unless otherwise prescribed by law;

- Receive the tax audit record and request explanation for the contents thereof;

- Leave comments in the tax audit record;

- File a complaint or lawsuit and claim damages as prescribed by law;

- Report violations of law committed during the audit.

(2) The taxpayer has the responsibility to:

- Comply with the tax audit decision;

- Fully and accurately provide information and documents relevant to the inspection as requested by the auditors; take legal responsibility for the accuracy of the information and documents provided;

- Sign the tax audit record within 05 working days from the end of the inspection;

- Comply with the requests specified in the tax audit record, conclusion and relevant decisions.