What is the information serving risk management in tax administration operations in Vietnam?

What is the information serving risk management in tax administration operations in Vietnam?

Based on Article 7 of Circular 31/2021/TT-BTC, the information serving risk management in tax administration operations includes:

(1) Information within the Tax Authority

- Information on business registration and taxpayer registration; personal information of the founding members, owners, and legal representatives of the taxpayer; registration and usage of labor; information on the status of the taxpayer; number of changes to business registration or taxpayer registration information; the contribution status of members; primary business activities;

- Information on tax filing records; tax payment; tax liabilities; tax incentives, exemptions, reductions; tax payment deferral; installment tax payments; tax refunds; registration, management, and use of invoices and documents; information on complaints and accusations; information on audit and post-audit results; information on related-party transactions;

- Other information.

(2) Information Collected from Relevant Government Agencies, Organizations, and Individuals with Obligations to Provide

- Information on the taxpayer collected from governmental agencies, relevant organizations, and individuals as stipulated in Article 26, Article 27, and Article 30 of Decree 126/2020/ND-CP, or as per current regulations;

- Information provided by foreign entities and international organizations under their obligations in relevant international treaties of which Vietnam is a member.

(3) Other Information Related to the Taxpayer.

What is the information serving risk management in tax administration operations in Vietnam? (Image from the Internet)

What are regulations on the collection and processing of risk management information in Vietnam?

Pursuant to Article 8 of Circular 31/2021/TT-BTC, the regulations on collecting and processing risk management information are as follows:

(1) Sources of Information Collection

- From the information systems within the tax authority;

- From cooperation with departments and units within the Ministry of Finance and other related ministries and departments in sharing and supplying information for tax management work;

- From collaboration in exchanging information with foreign tax authorities or competent agencies as per legal provisions;

- Receiving information provided by governmental agencies, organizations, or individuals as prescribed by law;

- Information related to taxpayers' activities collected during tax management;

- Purchasing information as specified in the Tax Administration Law 2019 and its guiding documents;

- Receiving tax-related information from foreign countries or international organizations as obligated under international treaties to which Vietnam is a member;

- From other related information sources as legally stipulated.

(2) Forms of Information Collection

- Provision and exchange in electronic data, electronic documents, e-mail, exchange through the General Department of Taxation's electronic portal; messages and calls to officially published phone numbers by the tax authority;

- Provision and exchange via written documents, telegraphs, fax, paper documents;

- Direct exchanges based on recorded minutes, confirmed by relevant parties; appointing representatives for work, verification, information, and document collection; organizing meetings and other forms.

(3) Processing Collected Information

- Assessing the relevance of the information to the needs and purposes of information use; reviewing the reliability and accuracy of the information;

- Classifying, organizing, and storing information from various sources into grouped categories for information exploitation and analysis;

- Analyzing information, assessing, and identifying components that constitute the content of information serving risk management;

- Summarizing and linking related elements discovered through analysis to clarify the content and value of the collected information for risk level classification and tax compliance evaluation of the taxpayer.

What are regulations on the application of information technology to risk management in Vietnam?

According to Article 9 of Circular 31/2021/TT-BTC, regulations on applying information technology in risk management include:

(1) Risk management applications and databases on taxpayers are developed and centrally managed at the General Department of Taxation, ensuring that information forms the basis for risk assessment is fully, accurately, and promptly updated through the exchange of information with electronic tax processing systems and relevant data information systems.

In case of system failures or connection errors, the updating, integration, processing, and storage of information in the system are carried out immediately after the system issues are resolved.

(2) Implementing management measures to ensure data safety, computer security, and network security as prescribed by law.

(3) The General Department of Taxation specifies the responsibilities of units and tax officials at all levels in developing, managing, operating, updating, exploiting, and using the risk management applications suitable to each field of tax administration operations.