What is the commercial database in Vietnam according to the latest Law on Tax Administration?

What is the commercial database in Vietnam according to the latest Law on Tax Administration?

Based on Clause 18, Article 3 of the Law on Tax Administration 2019, the definition of a commercial database is as follows:

Interpretation of terms

In this Law, the following terms are understood as follows:

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15. Risk management in tax administration is the systematic application of legal regulations and professional procedures to identify, assess, and classify risks that may adversely affect the effectiveness and efficiency of tax administration. This serves as the basis for the tax administration authority to rationally allocate resources and apply effective management measures.

16. Advance pricing agreement on the method of determining tax price is a written agreement between the tax authority and the taxpayer or between the tax authority, the taxpayer, and the foreign tax authority of the country or territory with which Vietnam has signed a tax treaty to avoid double taxation and to prevent tax evasion concerning income tax for a certain period. The agreement specifies the tax bases, methods of determining the tax price, or the market price before the taxpayer files the tax declaration dossier.

17. Tax debt is the amount of tax and other revenues belonging to the state budget managed and collected by the tax administration authority that the taxpayer has not yet paid to the state budget upon the expiration of the payment deadline as prescribed.

18. Commercial database is a system of financial information and enterprise data organized, arranged, and updated and provided by business organizations to the tax administration authority as prescribed by law.

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Accordingly, it can be understood that under the Law on Tax Administration 2019 currently in effect, a commercial database is a system of financial information and enterprise data organized, arranged, and updated and provided by business organizations to the tax administration authority as prescribed by law.

What is the commercial database in Vietnam according to the latest Law on Tax Administration? (Image from the Internet)

Which authority is responsible for organizing the construction of the taxpayer information system in Vietnam?

Based on Article 96 of the Law on Tax Administration 2019, the provisions are as follows:

Building, collecting, processing, and managing the taxpayer information system

1. The tax administration authority is responsible for organizing the construction, management, and development of the database, technical infrastructure of the taxpayer information system, and taxpayer information system; organizing specialized units to perform the tasks of collecting, processing, aggregating, analyzing information, forecasting, managing the database, and ensuring the maintenance and operation of the taxpayer information system and taxpayer information system.

2. The tax administration authority applies the necessary professional measures to collect, exchange, and process information domestically and internationally, official information from tax administration authorities and competent authorities abroad under international treaties of which the Socialist Republic of Vietnam is a member and international agreements related to taxation and customs to be used in tax administration.

3. The tax administration authority cooperates with related agencies, organizations, and individuals to exchange information and connect online networks.

4. The Minister of Finance shall stipulate in detail the construction, collection, processing, and management of the taxpayer information system.

Thus, by referring to the above provisions, the taxpayer information system is organized and constructed by the tax administration authority.

What are the 06 responsibilities of the tax administration authority in organizing the electronic information system in Vietnam?

Based on Clause 7, Article 8 of the Law on Tax Administration 2019 regarding electronic transactions in the field of taxation, the tax administration authority has the following responsibilities in organizing the electronic information system:

- Guiding and supporting taxpayers, service providers on electronic transactions in the field of taxation, banking, and related organizations to carry out electronic transactions in the field of taxation;

- Constructing, managing, and operating the system to receive and process electronic tax data while ensuring security, safety, confidentiality, and continuity;

- Building an information connection system, providing information on the tax amount paid to the state budget, information on the tax obligation fulfillment of taxpayers to relevant agencies, organizations, and individuals by electronic means to carry out administrative procedures for taxpayers as prescribed;

- Updating, managing, and providing registration information for the use of electronic tax transactions by taxpayers; authenticating electronic transactions of taxpayers for agencies and organizations cooperating in collecting state budget revenues to perform tax management and state budget revenue management;

- Receiving and providing results for resolving tax administrative procedures for taxpayers electronically;

- In cases where taxpayers' electronic documents have been stored in the database of the tax administration authority, the tax administration authority and tax officials must exploit and use the data on the system, and should not require taxpayers to provide tax dossiers and payment documents in paper form.