What are the Rights and Obligations of Taxpayers in Tax Inspections at the Taxpayer's Headquarters in Vietnam?

Rights and Obligations of Taxpayers During Tax Inspections at Taxpayer's Headquarters in Vietnam

The rights and obligations of taxpayers during tax inspections at the headquarters of the taxpayer are stipulated in Article 111 of the Law on Tax Administration 2019 as follows:

1. Taxpayers have the following rights:

- Refuse the inspection if there is no tax inspection decision;

- Refuse to provide information and documents not related to the content of the tax inspection; information and documents classified as state secrets, unless otherwise stipulated by law;

- Receive the tax inspection minutes and request an explanation of the contents of the tax inspection minutes;

- Reserve opinions in the tax inspection minutes;

- File complaints, initiate lawsuits, and claim compensation for damages according to the provisions of law;

- Report illegal acts during the tax inspection process.

2. Taxpayers have the following obligations:

- Comply with the tax inspection decision of the tax administration agency;

- Provide promptly, fully, and accurately the information and documents related to the inspection content as requested by the tax inspection team; be responsible before the law for the accuracy and truthfulness of the information and documents provided;

- Sign the tax inspection minutes within 5 working days from the end of the inspection;

- Comply with recommendations in the tax inspection minutes, conclusions, and decisions on handling the inspection results.

Rights and Obligations of Taxpayers During Tax Inspections at Taxpayer's Headquarters in Vietnam (Image from the Internet)

When Will Tax Inspections Be Conducted at the Taxpayer's Headquarters in Vietnam?

According to Clause 1, Article 110 of the Law on Tax Administration 2019, the cases in which tax inspections are conducted at the taxpayer's headquarters include:

- Cases where the tax dossier is subject to pre-refund inspection; post-refund inspection for tax dossiers subject to refund before inspection;- Cases specified in point b, clause 2, Article 109 of the Law on Tax Administration 2019:

+ Cases where the tax dossier contains issues that need clarification related to the payable tax amount, exempted tax amount, reduced tax amount, deductible tax amount carried forward to the next period, refundable tax amount, and non-taxable amount, the tax administration agency will notify and request the taxpayer to provide an explanation or additional information and documents.

If the taxpayer provides an explanation and additional information and documents proving the declared tax amount is correct, the tax dossier is accepted; if there is insufficient evidence proving the declared tax amount is correct, the tax administration agency will request the taxpayer to make additional declarations.

+ If the taxpayer does not provide explanations, additional information, documents, or does not make additional tax declarations, or if the explanations, additional declarations are incorrect within the time limit specified in the tax administration agency's notice:

The head of the tax administration agency shall decide on the tax amount to be paid or issue a decision to inspect taxes at the headquarters of the taxpayer or use it as a basis for creating inspection, audit plans according to the risk management principle in tax administration.

- Cases of post-clearance inspection at the headquarters of the customs declarant according to the provisions of customs law;- Cases of suspected law violations;

- Cases selected according to the plan, thematic;

- Cases based on recommendations of the State Audit, Government Inspectorate, or other competent authorities;

- Cases of division, separation, merger, consolidation, transformation of enterprise type, dissolution, termination of operation, equitization, termination of tax code validity, change of business location, and ad-hoc inspections, inspections directed by competent authorities, except for dissolution, termination of operations where the tax administration agency is not required to carry out final tax settlement according to the provisions of law.

When Should the Tax Administration Agency Conduct Inspections at the Taxpayer's Headquarters No More Than Once a Year?

According to Clause 2, Article 110 of the Law on Tax Administration 2019, the tax administration agency conducts inspections at the taxpayer's headquarters no more than once a year in the following cases:

- Cases selected according to the plan, thematic;

- Cases based on recommendations of the State Audit, Government Inspectorate, or other competent authorities;

- Cases of division, separation, merger, consolidation, transformation of enterprise type, dissolution, termination of operation, equitization, termination of tax code validity, change of business location, and ad-hoc inspections, inspections directed by competent authorities, except for dissolution, termination of operations where the tax administration agency is not required to carry out final tax settlement according to the provisions of law.