What is the application of risk management to tax administration in Vietnam?

What is the application of risk management to tax administration in Vietnam?

Based on Article 13 of Circular 31/2021/TT-BTC, the application of risk management in tax administration is regulated as follows:

(1) The tax authorities, based on the results of tax compliance assessment in Article 10, the risk level classification of taxpayers in Article 11 and Article 12 of Circular 31/2021/TT-BTC, and the operational information at the decision time, identify the list of taxpayers classified by risk levels in each period and implement:

- Management of tax law compliance;

- Risk management regarding taxpayer registration;

- Risk management in the examination of tax files at the tax authority headquarters;

- Risk management in tax refund management;

- Risk management in inspection and audit at the taxpayer headquarters;

- Risk management in managing tax debts and enforcing tax administrative decisions;

- Risk management in managing invoices and documents;- Risk management for taxpayers under focused control and supervision;

- Risk management for individual taxpayers;

- Applying risk management in other operational activities in tax administration.

(2) The list of risky taxpayers in the cases listed in (1) is updated on the tax administration risk application.

Tax authorities at all levels are responsible for compiling, updating, and managing information on risky taxpayers to serve the tax administration sector-wide.

(3) The General Department of Taxation prescribes detailed periodic evaluations, compiling the list of risky taxpayers in cases mentioned in (1) to determine priorities in tax administration that meet the management requirements in each period.

(4) If there is suspicious information or detection of tax law violations through inspections, audits, complaints, or information from state management agencies or investigative agencies, the head of the tax authority decides to change the form, level of inspection, and other tax administration measures within their authority and is responsible for their decisions.

What is the application of risk management to tax administration in Vietnam? (Image from the Internet)

What are regulations on the management of risks of taxpayers that are individuals in Vietnam?

Pursuant to Article 15 of Circular 31/2021/TT-BTC, based on the list of individual taxpayers classified by risk levels in Article 13 of Circular 31/2021/TT-BTC, tax authorities apply appropriate tax administration measures as follows:

(1) For business households and individual businesses

- High risk: Apply one or more of the following measures:

+ Review, inspect, and verify related information as a basis for redefining the revenue and tax rate of business households and individual businesses;

+ Compile a checklist for surveys to redefine the revenue and tax rate of business households and individual businesses and the tax obligations of related organizations.

- Medium risk: Randomly select to include in the revenue survey list of business households and individual businesses; continue to classify risks for the next evaluation period;

- Low risk: Store files, perform risk level classification for the next evaluation period.

(2) For individuals with taxable personal income (excluding business households and individual businesses)

- High risk: Select for the inspection and verification list and conduct inspections and verifications according to current regulations;

- Medium and low risk: Store files, perform risk level classification for the next evaluation period.

In cases where individuals have taxable personal income through income-paying organizations, they are controlled by analyzing the risk indicators of the income-paying organizations.

(3) For individuals with revenue related to land and land-attached assets

- High risk: Perform file analysis, compile a list to report to the head of the tax authority for a plan to inspect at the tax authority headquarters, conduct tax return file checks at the tax authority headquarters according to current regulations for individuals and related organizations.

- Medium and low risk: Store files, perform risk level classification for the next evaluation period.

What are regulations on management of risks in inspecting tax declaration dossiers at tax authorities in Vietnam?

According to Article 17 of Circular 31/2021/TT-BTC, based on the list of taxpayers classified by risk levels regarding tax return files in Article 13 of Circular 31/2021/TT-BTC, appropriate measures are applied in handling tax return files as follows:

- High risk: Perform file analysis, compile a list to report to the head of the tax authority for a plan to inspect at the tax authority headquarters, conduct tax return file checks at the tax authority headquarters according to regulations.

- Medium and low risk: Do not yet conduct tax return file checks at the tax authority headquarters; perform law compliance evaluations, classify risk levels of tax return files for taxpayers for the next evaluation period.