Vietnam: What is the duration of establishing and operating the tax advisory council? What is the establishment procedure?
How long was the tax advisory council established and operated in Vietnam?
According to Clause 1, Clause 2 and Clause 3, Article 7 of Circular 80/2021 / TT-BTC stipulates the establishment of a Tax Advisory Council as follows:
- On the basis of the quantity and scale of local household businesses and individual businesses, the President of the People’s Committee of the district shall decide the establishment of Tax Advisory Councils in Vietnam of communes at the request of Directors of sub-departments of taxation.
- A Tax Advisory Council may operate for up to 05 years.
- A Tax Advisory Council may be re-established, add or replace its members in the following cases:
+ The Tax Advisory Council shall be re-established upon expiration of the 5-year period mentioned in Clause 2 of this Article.
+ Members of the Tax Advisory Council may be added or replaced in the following cases:
++ The composition of the Tax Advisory Council is no longer conformable with Clause 1 and Clause 2 Article 6 of this Circular;
++ Additional household businesses and individual businesses are needed to reach the required number or replace those that have stopped operating in the commune;
++ Other changes to the composition of the Tax Advisory Council proposed by the Director of the sub-department of taxation.
Vietnam: What is the duration of establishing and operating the tax advisory council? What is the establishment procedure?
What is the procedure for establishing the Tax Advisory Council in Vietnam?
The procedures for establishing the Tax Advisory Council in Vietnam according to Clause 4 Article 7 of Circular 80/2021 / TT-BTC are as follows:
- The Fatherland Front Committee of the commune shall submit the list of proposed household businesses and individual businesses participating in the Tax Advisory Council to the sub-department of taxation. The sub-department of taxation shall provide information about these household businesses and individual businesses in order to facilitate selection by the Fatherland Front Committee of the commune.
- On the basis of the composition and the list of participants in the Tax Advisory Council, the Director of the sub-department of taxation shall request the President of the People’s Committee of the district to issue the decision on establishment of the Tax Advisory Council in Vietnam (Form No. 07-1/HDTV in Appendix I hereof).
Who is the composition of the Commune, Ward and Town Tax Advisory Council in Vietnam?
The composition of the commune, ward and town tax advisory council according to Article 6 of Circular 80/2021 / TT-BTC is as follows:
- A tax advisory council shall consist of:
+ The President or Deputy President of the People’s Committee of the commune: President of the Council;
+ The chief or deputy chief of the inter-commune tax team: standing member;
+ A finance official of the People’s Committee of the commune: member;
+ President of Fatherland Front Committee of the commune: member;
+ Chief of the police department of the commune: member;
+ Chief of the neighborhood: member;
+ Chief of the market management board: member;
+ Representatives of local household businesses and individual businesses: members.
In case the district-level administrative division does not have any commune-level administrative division, the President of the People’s Committee of the district shall decide the establishment of the Tax Advisory Council whose members are conformable with regulations of this Clause.
- The representatives of local household businesses and individual businesses that participate in the Tax Advisory Council in Vietnam shall:
+ Comply with business laws and tax laws;
+ Have been doing business for at least 03 years before participating the Tax Advisory Council. In case there are no local household businesses and individual businesses that having been operating for at least 03 years, those with the longest operating period shall be selected. Priority shall be given to chiefs, deputies of business lines in the commune, market or shopping mall.
- Maximum number of representatives of local household businesses and individual businesses that participate in the Tax Advisory Council shall: 05 people. On the basis of the quantity and scale of local household businesses and individual businesses, the President of the People’s Committee of the district shall decide the quantity of their representatives.
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