Guidance on Recording Documents for Implementing Recommendations on Tax, Fee, and Charge Increases by the State Audit Office
State Budget Revenue Increases from Taxes, Fees, Charges, and Other Revenues to Implement Priority Policies for Officials, Public Employees, and Workers Include Which Revenues?
Based on Clause 1, Article 2 of Circular 16/2019/TT-BTC, the state budget revenue increases from taxes, fees, charges, and other revenues to implement priority policies for officials, public employees, and workers include:
- Revenues from units that have an obligation to declare, pay, but fail to declare, declare incorrectly, evade taxes, commit tax fraud, or violate other regulations on state budget contributions leading to the identification of insufficient tax, fee, charge, land levy payments;
Revenues from land rental, water surface rental, the sale of state-owned houses, post-tax profits remaining after the establishment of funds as stipulated by 100% state-owned enterprises, dividends distributed to the state capital in joint-stock companies with state capital, or reduction of refunded tax amounts;
Revenues that are required to be repaid to the state budget but are overdue without repayment, discovered and recommended for collection by the State Audit, and have been duly settled and paid into the state budget.
- Revenues from additional tax collection, administrative penalty fines for tax violations, late payment fees as calculated insufficiently or not at all by competent authorities following tax laws, discovered and recommended for additional collection by the State Audit, with the units inspected having paid into the state budget;
- Revenues for which the competent authority has to issue a notice for taxpayers to pay to the state budget, yet has not issued such a notice and taxpayers have not paid, discovered by the State Audit and subsequently paid into the state budget by the taxpayers;
- Additional revenue discovered and recommended for state budget by taxpayers, such as adjusting to reduce the remaining deductible value-added tax via adjustments to the VAT declaration form;
Adjusting to reduce losses via adjustments to the corporate income tax finalization declaration form when corporate income tax obligations arise; implementing revenue increase recommendations through offsetting with excess tax payments of corresponding tax types and other legally permitted offsets;
- Revenues repaid to the state budget from agencies and units that collected from related parties exceeding permitted amounts or collected unlawfully. Interest generated from amounts originating from the state budget that has to be repaid to the state budget, discovered and recommended by the State Audit, and subsequently paid by the units into the state budget.
- Fees for mineral extraction rights where the competent state authority identified the amount undercharged, discovered and recommended by the State Audit, and subsequently paid by the units into the state budget.
Guide on Documenting Tax, Fee, and Charge Increase Recommendations by the State Audit
Documents for Implementing Recommendations to Increase Tax, Fee, and Charge Revenues by the State Audit Include What?
Based on Appendix 03 issued with Circular 16/2019/TT-BTC dated March 18, 2019, by the Ministry of Finance:
Documents for implementing recommendations to increase tax, fee, and charge revenues by the State Audit include:
Documents implementing standard forms issued under Circular 77/2017/TT-BTC, Circular 119/2014/TT-BTC:- Payment slip to the State Treasury (Forms C1-02/NS, C1-03/NS).- Payment order (Form C4-02/NS), Budget withdrawal slip (Forms C2-02a/NS, C2-02b/NS), Investment capital withdrawal slip (Form C3-01/NS).- Funding repayment slip (Forms C2-05a/NS, C2-05b/NS, C2-05c/NS, and C3-04/NS).- Transfer orders, Bank payment orders (hardcopy documents for manual payment or restoration for units participating in electronic payment).
Other documents implementing under Circular 77/2017/TT-BTC
How to Document the Implementation of Recommendations to Increase Tax, Fee, and Charge Revenues by the State Audit?
Based on Form 27/TBKQKT in the Appendix issued with Decision 01/2023/QD-KTNN dated January 10, 2023, by the Auditor General, the documentation of implementation of recommendations to increase tax, fee, and charge revenues by the State Audit is guided as follows:
For recommendations on increasing revenue from taxes, fees, other payments, and incorrectly allocated expenses,... deposited at the State Treasury:
The payment documents into the State Treasury where the unit audited transacts (payment slips, payment orders, funding repayment slips, transfer orders, etc.), in addition to explicitly stating the audit recommendation content and specific amount as per regulations, must also clearly state:
"Deposit to the State Treasury as per the recommendation of the State Audit for the budget year ..... from the Audit Report issued under Official Dispatch No. .../KTNN-TH dated ...,...,... at.... and as per Official Dispatch No. ... dated .../.../... by the State Audit/ region... to the Central/ Provincial/ City State Treasury."
Additionally, mark the KTNN box on the payment slip to the State Treasury. For cases where tax or customs authorities impose fines or additional tax collection on units:
The penalty and additional collection decisions of the tax management authority must clearly state "penalty or additional collection per the recommendation of the State Audit for the budget year ....";
The payment slip to the State Treasury must clearly state: "Payment for penalty or additional collection per the recommendation of the State Audit for the budget year ....".
Thus, the documentation of the implementation of recommendations to increase tax, fee, and charge revenues by the State Audit is executed following the above guidance.
Decision 01/2023/QD-KTNN will take effect from February 24, 2023.
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