What is the current tax inspection procedure in Vietnam?

What is the purpose of tax inspection in Vietnam?

According to Section 1 Part 1 of the tax inspection procedure under Decision 1404/QD-TCT of 2015, the purposes of tax inspection are as follows:

- Standardize work content in tax inspection activities.

- Ensure tax inspection activities are carried out according to legal regulations, consistent from the General Department of Taxation to the Provincial Tax Department, meeting the requirements for tax reform and modernization.

- Enhance the capacity of tax inspection activities, ensure objectivity, transparency, and openness in tax inspection work.

What is the current tax inspection procedure in Vietnam? (Image from the Internet)

What is the current tax inspection procedure in Vietnam?

Currently, the latest tax inspection procedure still follows Section 2 Part 2 of the tax inspection procedure under Decision 1404/QD-TCT of 2015. The on-site tax inspection process at the taxpayer’s premises is implemented as follows:

Phase 1: Preparation and decision on inspection

Step 1: Gather documents, analyze, and identify inspection content.

Step 2: Issue an inspection decision.

Step 3: Announce the inspection decision.

Phase 2: Conducting the inspection

Step 1: Announce the tax inspection decision.

Step 2: Conduct the inspection at the taxpayer's premises.

Step 3: Draft the inspection report.

What are rights and obligations of the inspected tax subjects in Vietnam?

According to Article 118 of the 2019 Tax Administration Law, the rights and obligations of the inspected tax subjects include:

- The inspected tax subjects have the following rights:

+ Explain issues related to the tax inspection content;

+ Complain about decisions, actions of the decision-maker, the head of the inspection team, and members of the inspection team during the inspection; complain about the conclusion, post-inspection decisions according to the law on complaints; pending the complaint resolution, the complainant still has to implement the decisions;

+ Receive the tax inspection report and request an explanation of its content;

+ Refuse to provide information, documents not related to the tax inspection content, information, documents classified as state secrets, unless otherwise provided by law;

+ Request compensation for damages according to the law;

+ Accuse violations of the law by the head of the tax administrative agency, the head of the tax inspection team, and members of the inspection team according to the law.

- The inspected tax subjects have the following obligations:

+ Comply with the tax inspection decision;

+ Promptly provide complete and accurate information and documents as requested by the decision-maker, the head of the inspection team, and members of the inspection team, and bear legal responsibility for the accuracy and truthfulness of the provided information and documents;

+ Implement the recommendations, conclusions of the tax inspection, post-inspection handling decisions made by the decision-maker, the head of the inspection team, members of the inspection team, and competent state agencies;

+ Sign the inspection report.

What are duties and powers of the tax inspection decision-maker in Vietnam?

According to Article 116 of the 2019 Tax Administration Law, the duties and powers of the tax inspection decision-maker include:

- Direct, inspect, and supervise the tax inspection team to ensure they perform according to the tax inspection contents and decision;

- Request the inspected subjects to provide information, documents, written reports, and explanations related to the tax inspection contents; request agencies, organizations, and individuals with related information and documents to provide those information and documents;

- Solicit evaluations on issues related to the tax inspection contents;

- Temporarily suspend or propose the competent person to suspend activities that cause severe damage to the state's interests or the legitimate rights and interests of agencies, organizations, individuals;

- Decide on handling results of the inspection or propose the competent person to handle the results, supervise the implementation of inspection handling decisions;

- Resolve complaints, accusations related to the responsibilities of the head of the tax inspection team and other members of the inspection team;

- Suspend or replace the head and members of the inspection team if they do not meet the inspection requirements, duties, or if they have violated the law or have connections with the inspected subjects or due to other objective reasons that prevent them from performing their inspection duties;

- Conclude on tax inspection contents;

- Transfer case files indicating criminal offenses to investigative agencies and inform the relevant Procuracy in writing;

- Apply measures stipulated in Articles 121, 122, and 123 of the 2019 Tax Administration Law;

- Request the credit institutions where the inspected subjects hold accounts to freeze those accounts to facilitate the inspection when there are grounds to believe that the inspected subjects are dispersing assets, failing to comply with the Chief Inspector’s recovery decision, or the decision of the head of an agency tasked with specialized inspection functions or heads of state management agencies.