What conditions must the tax authority ensure when carrying out audits at the premises of taxpayers in Vietnam?

What conditions must the tax authority ensure when carrying out audits at the premises of taxpayers in Vietnam?

According to Clause 1, Article 19 of Circular 31/2021/TT-BTC, the regulations are as follows:

Application of risk management in inspection at the premises of taxpayers

1. The tax authority must ensure the following when selecting cases for inspection at the premises of taxpayers:

a) Cases selected through analysis, assessment of compliance with tax law, and categorization of taxpayer risk level must account for no less than 90% of the annual planned inspections;

b) Randomly selected cases must account for no more than 10% of the annual planned inspections.

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In cases where you have a question about the selection of inspections at the premises of taxpayers, the tax authority must ensure:

- Cases selected through analysis, assessment of compliance with tax law, and classification of taxpayer risk level must account for no less than 90% of the annual planned inspections;

- Randomly selected cases must account for no more than 10% of the annual planned inspections.

What conditions must the tax authority ensure when carrying out audits at the premises of taxpayers in Vietnam? (Image from the Internet)

What are regulations on selection of taxpayers for building inspection plans at premises of taxpayers in Vietnam?

Based on Clause 2, Article 19 of Circular 31/2021/TT-BTC, the selection of taxpayers for building inspection plans at premises of taxpayers is regulated as follows:

- Selection of taxpayers for building inspection plans at the premises of taxpayers

Based on the list of taxpayers categorized by risk levels concerning tax inspection activities as per Article 13 of this Circular, the tax authority selects inspection cases at the premises of taxpayers as follows:

+ Selection of inspection cases: Select taxpayers anticipated to be included in the annual inspection plan at the premises of taxpayers based on risk ranking from high to low.

+ Selection of check cases: Select taxpayers anticipated for inclusion in the annual check plan at the premises of taxpayers based on the risk ranking from high to low, and not overlapping with taxpayers already chosen for the inspection plan as per point a, clause 2 of this Article.

+ The application of risk management in selecting taxpayers with risk indications to build the tax inspection plan must avoid overlap and duplication as stipulated by the Tax Administration Law and related guiding documents.

In cases where the tax authority, within the framework of tax management, has reliable information that reduces a taxpayer's risk level to low, or has grounds to believe the taxpayer's risk level is low and has not been included in the annual inspection plan, the tax authority decides not to select that taxpayer for the inspection plan and selects other taxpayers as regulated for inclusion in the annual inspection plan. Should there be information collected and verified indicating that a taxpayer has high-risk signs, the tax authority will add them to the annual inspection plan. The tax authority bears responsibility for its decision changes.

+ The building of and the authority to approve the inspection plan at the premises of taxpayers; the additional, adjusted inspection plan list at the premises of taxpayers under this Article is implemented according to the Tax Administration Law and other related guiding regulatory documents.

- The tax authority determines the contents and scope of tax inspection based on risk analysis results through IT applications or risk from professional analysis, information from actual tax management activities.

What are regulations on measures to enhance tax compliance by taxpayers in Vietnam?

Pursuant to Article 14 of Circular 31/2021/TT-BTC, measures to enhance tax compliance by taxpayers are regulated as follows:

Measures to enhance tax compliance by taxpayers

Based on the tax compliance assessment results as stipulated in Article 10 of this Circular, the tax authority conducts an analysis of the nature of behavior, scale of each tax compliance level of taxpayers, and develops plans to enhance tax compliance with appropriate measures for each compliance issue as follows:

- For cases of high compliance: Include in the list of consideration, selection for commendation, and reward for tax law compliance taxpayers.

- For cases needing compliance enhancement:

+ Cooperate with related agencies, organizations, and tax agents to implement measures supporting taxpayers in carrying out tax procedures; organize programs in which taxpayers interact, participate in conferences, dialogues, workshops, and training to help them fulfill tax obligations accurately and fully;

+ Research policy amendments, simplify administrative procedures, implement support measures, and apply IT to facilitate convenient, time-saving, and cost-effective tax declarations and payments for taxpayers;

+ Be categorized by risk and apply tax management measures for taxpayer risk levels as stipulated in Articles 15, 16, 17, 18, 19, 20, 21, 22 of Circular 31/2021/TT-BTC.