What is a tax procedure service in Vietnam?

What is a tax procedure service in Vietnam?

According to the provisions at clause 2, Article 3 of Circular 10/2021/TT-BTC, a tax procedure service is an activity performed by a business engaged in providing tax procedure services, carrying out the services specified in clause 1, Article 104 of the Tax Management Law 2019 as per the service contract signed with the taxpayer.

Here:

- The services specified in points a and b, clause 1, Article 104 of the Tax Management Law 2019 are called tax services;

- The services specified in point c, clause 1, Article 104 of the Tax Management Law 2019 are called accounting services for micro-enterprises.

How to provide tax procedure services to taxpayers in Vietnam?

Based on the provisions of Article 104 of the Tax Management Law 2019 regarding the provision of tax procedure services as follows:

Provision of Tax Procedure Services

1. Services provided by tax agents to taxpayers under a contract include:

a) Procedures for taxpayer registration, tax declaration, tax payment, tax finalization, preparation of tax exemption, reduction, refund dossiers, and other tax procedures on behalf of the taxpayer;

b) Tax advisory services;

c) Accounting services for micro-enterprises as stipulated in Article 150 of this Law. Micro-enterprises are determined according to the provisions of the law on supporting small and medium enterprises.

2. Tax agents have the following rights and obligations:

a) Perform services for taxpayers as agreed in the contract;

b) Comply with the provisions of this Law, tax laws, and other relevant legal provisions in the practice of tax procedure services;

c) Be responsible before the law and the taxpayer for the service contents provided.

3. The Minister of Finance regulates the management of business activities providing tax procedure services.

Thus, the services provided by tax agents to taxpayers under a contract include:

- Procedures for taxpayer registration, tax declaration, tax payment, tax finalization, preparation of tax exemption, reduction, refund dossiers, and other tax procedures on behalf of the taxpayer;

- Tax advisory services;

- Accounting services for micro-enterprises as stipulated in Article 150 of the Tax Management Law 2019. Micro-enterprises are determined according to the provisions of the law on supporting small and medium enterprises.

What is a tax procedure service in Vietnam? (Image from the Internet)

What are the responsibilities of tax agents providing tax procedure services in Vietnam?

According to the provisions of Article 24 of Circular 10/2021/TT-BTC, tax agents providing tax procedure services have the following responsibilities:

(1) Operate services within the scope specified in the certificate of eligibility for providing tax procedure services issued by the Tax Department.

(2) Maintain and ensure the conditions for being granted the certificate of eligibility for providing tax procedure services during their operation.

(3) Recruit and manage employees of the business engaged in tax procedure services according to conformable standards.

(4) Comply with the provisions of tax laws, corporate accounting laws, and other relevant legal provisions when performing services under the contract with the taxpayer.

(5) Not conspire with tax officials or taxpayers to violate tax laws.

In case the business engaged in tax procedure services helps the taxpayer in tax evasion, underreporting tax, or violating tax procedures, the taxpayer remains responsible before the law for these violations.

At the same time, the business engaged in tax procedure services is jointly responsible and must compensate the taxpayer as per the signed contract with the taxpayer.

(6) Abide by the inspection regulations related to the practice of providing tax procedure services; on behalf of the taxpayer, provide explanations as required by the tax authority regarding information and documents within the contract with the taxpayer to prove the accuracy of tax declaration, payment, exemption, reduction, and refund dossiers of the taxpayer.

(7) Keep confidential information for taxpayers using the services of the business engaged in tax procedure services.

(8) Send notifications and reports to the Tax Department via the electronic portal of the General Department of Taxation:

- Within 05 working days from the date of any change in employee information of the business engaged in tax procedure services, submit an employee information change notification of the business engaged in tax procedure services according to Form 2.8 in the Appendix issued with Circular 10/2021/TT-BTC;

- No later than January 15 each year, submit an annual activity report of the business engaged in tax procedure services according to Form 2.9 in the Appendix issued with Circular 10/2021/TT-BTC. The reporting information is calculated from January 1 to December 31 of the reporting year.