When is a tax agent suspended from providing tax procedure services in Vietnam?

When is a tax agent suspended from providing tax procedure services in Vietnam?

Based on Article 6 of Circular 10/2020/TT-BTC, the instances in which a tax agent is suspended from business activities are specified as follows:

- Failure to meet the conditions stipulated in Clause 2, Article 102 of the Tax Administration Law 2019 for three consecutive months.

- Failing to provide, or providing incomplete or inaccurate information and documents to the tax authority as stipulated.

- Disclosing information that causes material, spiritual, or reputational harm to the taxpayer using the tax agent's services (except when the taxpayer agrees or is otherwise stipulated by law).

- Incorrect employment or management of tax agent staff as stipulated in this Circular.

- Failure to notify or report according to the regulations in Clause 8, Article 24 of Circular 10/2020/TT-BTC for 15 days or more past the reporting deadline or notice deadline of the tax authority.

When is a tax agent suspended from providing tax procedure services in Vietnam? (Image from the Internet)

What is the suspension period for tax procedure services for a tax agent in Vietnam?

In accordance with Clause 3, Article 26 of Circular 10/2021/TT-BTC, the suspension of tax procedure services is specified as follows:

Suspension of tax procedure services

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2. The Tax Department (where the tax agent is headquartered) issues a decision to suspend the tax procedure services of the tax agent using Form 2.11 in the Appendix issued with this Circular and simultaneously informs the direct tax administration agency of the tax agent.

3. The suspension period for the business activity of tax procedure services of a tax agent is from the effective date of the Tax Department's suspension decision until the tax agent rectifies the violation, but not exceeding 90 days from the effective date of the suspension decision. During the suspension, the tax agent is not allowed to provide services to taxpayers.

If the violation is rectified, the tax agent must provide a written notification to the Tax Department. The Tax Department will verify the information, and if the tax agent meets the conditions to provide tax procedure services, within 5 working days, the Tax Department will issue a written notification to the tax agent regarding the cessation of the suspension decision.

Thus, the suspension period for tax procedure services of a tax agent is from the effective date of the Tax Department's suspension decision until the tax agent rectifies the violation, but it does not exceed 90 days from the effective date of the suspension decision.

If the violation is rectified, the Tax Department will verify the information, and if the tax agent meets the conditions to operate tax procedure services, within 5 working days, the Tax Department will issue a notification to the tax agent regarding the cessation of the suspension decision.

What are the responsibilities of a tax agent in Vietnam?

Based on Article 24 of Circular 10/2020/TT-BTC, the responsibilities of a tax agent are specified as follows:

- Conduct business services within the scope specified in the confirmation certificate for eligibility to provide tax procedure services issued by the Tax Department.

- Maintain and ensure the conditions stipulated in the confirmation certificate for eligibility to provide tax procedure services throughout the period of operation.

- Recruit and manage tax agent staff appropriately.

- Comply with the legal regulations regarding tax, corporate accounting, and other related legal provisions while performing services as per contracts signed with taxpayers.

- Not connive with tax officials or taxpayers to violate tax laws. If a tax agent assists a taxpayer in committing acts of tax evasion, underreporting, or violating tax procedures, the taxpayer remains legally responsible for such violations; the tax agent bears related liability and must compensate the taxpayer as per the contract signed.

- Abide by regulations on inspections related to the business practice of providing tax procedure services; represent taxpayers in providing and explaining to the tax authority, as requested, any information and documents within the scope of contracts with taxpayers to substantiate the accuracy of tax declarations, payments, exemptions, reductions, and refunds by the taxpayer.

- Maintain confidentiality for taxpayers using the services of the tax agent.

- Submit notifications and reports to the Tax Department via the electronic information portal of the General Department of Taxation:

+ Within 5 working days from the date of any change in tax agent staff information, submit a notification of staff information changes according to Form 2.8 in the Appendix issued with Circular 10/2020/TT-BTC.

+ No later than January 15 each year, submit a report on the operational status of the tax agent according to Form 2.9 in the Appendix issued with Circular 10/2020/TT-BTC. The report information is calculated from January 1 to December 31 of the reporting year.