What are the procedures for establishing the Tax Advisory Councils of communes in Vietnam?

What are the procedures for establishing the Tax Advisory Councils of communes in Vietnam?

Based on Article 7 of Circular 80/2021/TT-BTC, the regulations are as follows:

Establishment of the Tax Advisory Council

1. The chairperson of the district-level People's Committee, based on the quantity, business scale, and individual business activities of business households and individuals in the locality, shall decide to establish the commune, ward, commune-level town Tax Advisory Council at the proposal of the Head of the Tax Sub-department.

2. The Tax Advisory Council is established and operates for a maximum period of no more than 05 years.

3. The Tax Advisory Council is re-established or supplemented/replaced with members in specific cases as follows:

a) Re-establish the Tax Advisory Council when the Council’s term expires as regulated in clause 2 of this Article.

b) Supplement/replace members of the Tax Advisory Council in the following cases:

b.1) Members no longer meet the composition requirements set out in clauses 1 and 2 of Article 6 of this Circular;

b.2) Add business households, individual businesses to fit the number of active business households, individual businesses, or replace those who have ceased business operations in the commune, ward, commune-level town;

b.3) Other changes related to the membership of the Tax Advisory Council as proposed by the Head of the Tax Sub-department.

4. Procedure for establishing the Tax Advisory Council

a) The Vietnamese Fatherland Front of the commune, ward, commune-level town proposes, introduces, and sends a list of business households and individuals to participate in the Tax Advisory Council to the Tax Sub-department. The Tax Sub-department is responsible for providing information on the business households, individuals as per the list for the Vietnamese Fatherland Front of the commune, ward, commune-level town to select.

b) The Head of the Tax Sub-department, based on the composition and list of participants in the Tax Advisory Council, shall propose to the Chairperson of the district, town-level People's Committee to issue a decision to establish the Tax Advisory Council following the regulations in this Article (according to form No. 07-1/HĐTV issued with Annex I of this Circular).

The current procedure for establishing the Tax Advisory Council is as follows:

- The Vietnamese Fatherland Front of the commune, ward, commune-level town proposes, introduces, and sends a list of business households, individual businesses to participate in the Tax Advisory Council to the Tax Sub-department.

The Tax Sub-department is responsible for providing information on business households, individual businesses as per the list for the Vietnamese Fatherland Front of the commune, ward, commune-level town to select.

- The Head of the Tax Sub-department, based on the composition and list of participants in the Tax Advisory Council, shall propose to the Chairperson of the district, town-level People's Committee to issue a decision to establish the Tax Advisory Council.

What are the procedures for establishing the Tax Advisory Councils of communes in Vietnam? (Image from Internet)

Who are members of the Tax Advisory Councils of communes in Vietnam?

Based on clause 1 of Article 6 of Circular 80/2021/TT-BTC, the members of the Tax Advisory Councils of communes include:

- The Chairperson or Vice Chairperson of the commune, ward, commune-level town People's Committee - Council Chairperson;

- The Head or Deputy Head of the commune, ward, commune-level town Tax Team or equivalent - Standing Member;

- An official responsible for finance under the commune, ward, commune-level town People's Committee - Member;

- Chairperson of the Vietnamese Fatherland Front of the commune, ward, commune-level town - Member;

- Head of the commune, ward, commune-level town Police - Member;

- Head of the residential group or equivalent level - Member;

- Head of market management - Member;

- Representatives of business households and individual businesses in the locality - Members. Representatives of business households and individual businesses participating in the Tax Advisory Council must meet the following conditions:

+ Comply well with State laws on business operations and tax laws;

+ Have been in business for at least 03 years before the date of participation in the Tax Advisory Council.

In cases where no business household, individual business has been in operation for at least 03 years, select the one with the longest operation.

Priority is given to representatives who are heads, deputy heads of business sectors in the locality or markets, commercial centers.

+ The number of business households and individual businesses participating in the Tax Advisory Council should not exceed 05 people.

The Chairperson of the district-level People's Committee, based on the quantity, business scale of business households, individual businesses in the locality, shall decide the number of business households, individual businesses participating in the Tax Advisory Council.

* In cases where the district administrative unit does not have a commune-level administrative unit, the Chairperson of the district People’s Committee decides on the establishment of the Tax Advisory Council with similar members according to regulations.

What are the powers of the Tax Advisory Councils of communes in Vietnam?

Based on Article 10 of Circular 80/2021/TT-BTC, the Tax Advisory Councils of communes has the following powers:

- To participate in training, dissemination, and receive materials on current tax policies and tax management related to the management of business households and individual businesses;

- To request the Tax Sub-department to provide information on the tax management situation regarding business households and individual businesses paying tax under the fixed tax method in the locality.