What are the regulations on tax inspection at the tax authorities in Vietnam?

What are the regulations on tax inspection at the tax authorities in Vietnam?

Based on Article 109 Law on Tax Administration 2019 stipulating tax inspection at the tax authorities as follows:

(1). Tax inspection at the tax authorities is carried out by the tax administration agency for the following tax documents:

- Tax inspection at the tax office is conducted based on the taxpayer's tax dossier to evaluate the completeness and accuracy of the information and documents in the tax dossier, and the taxpayer’s compliance with tax laws.

The tax official assigned the task of tax inspection, based on the level of tax risk of the tax dossier classified from the information technology database or as assigned by the head of the tax agency, will analyze the tax dossier according to the level of tax risk to propose a plan for inspection at the tax office or handle according to the regulations in (2);

- Tax inspection at the customs agency’s office is conducted to check, verify, and compare the contents of the tax dossier with related information, documents, tax regulations, and the actual inspection results of goods where necessary for export and import goods.

In case of post-clearance inspection at the customs office, it is conducted according to customs law regulations.

(2). The handling of tax inspection results at the tax authorities is stipulated as follows:

- In case of inspection during the customs procedures which discovers violations leading to tax deficiencies or tax evasion, the taxpayer must pay the full tax and be penalized according to this Law and other related legal provisions;

- In case the tax dossier contains items needing clarification related to payable tax amounts, exempted tax amounts, reduced tax amounts, deductible tax amounts carried over to the next period, refundable tax amounts, or non-collected tax amounts, the tax authorities will notify and request the taxpayer to explain or supplement information and documents.

If the taxpayer has explained and supplemented information and documents proving the declared tax amount to be correct, the tax dossier is accepted; if there is insufficient evidence to prove the declared tax amount correct, the tax authorities will request the taxpayer to file supplementary declarations.

If the taxpayer does not explain, supplement information and documents, or file supplementary tax dossiers by the deadline specified in the tax authorities’s notice, or if the explanations or supplementary declarations are incorrect, the head of the tax authorities will decide the payable tax amount or issue a tax inspection decision at the taxpayer's office, or use it as a basis for planning audit and inspection according to the risk management principles in tax administration.

What are the regulations on tax inspection at the tax authorities in Vietnam? (Image from the Internet)

What are the duties and powers of the head of the tax authorities in issuing a tax inspection decision in Vietnam?

Based on Clause 1, Article 112 Law on Tax Administration 2019, the head of the tax authorities issuing a tax inspection decision has the following duties and powers:

- Directing the implementation of the contents and deadlines recorded in the tax inspection decision;

- Applying measures to temporarily seize documents and properties related to tax evasion: During a tax audit, if the audited entity shows signs of dispersing or destroying documents and properties related to tax evasion, the head of the tax audit team on duty has the right to temporarily seize those documents and properties.

Within 24 hours from the time of temporary seizure of documents and properties, the head of the tax audit team must report to the head of the tax authorities to issue a decision on temporary seizure of documents and properties; within 08 working hours from the time of receiving the report, the authorized person must consider and issue a decision on temporary seizure.

If the authorized person does not agree with the temporary seizure, the head of the tax audit team must return the documents and properties within 08 working hours from the time the authorized person disagrees;

- Extending the inspection period;

- Deciding on tax handling and administrative penalties for violations according to their authority or recommending the person with authority to conclude and issue a decision on administrative penalties for tax management;

- Dealing with complaints and denunciations according to their authority.

What are the duties and powers of the tax administration official when conducting a tax inspection in Vietnam?

Based on Clause 2, Article 112 Law on Tax Administration 2019, the tax administration official conducting a tax inspection has the following duties and powers:

- Implementing the contents and deadlines recorded in the tax inspection decision;

- Requesting the taxpayer to provide information and documents related to the contents of the tax inspection;

- Drawing up a tax inspection report; reporting the inspection results to the person who issued the tax inspection decision and being responsible for the accuracy, truthfulness, and objectivity of the report;

- Imposing administrative penalties for violations according to their authority or recommending the person with authority to conclude and issue a decision on handling tax violations.