How many steps are taken to assess the compliance with tax laws and risk classification of taxpayers in Vietnam?

How many steps are taken to assess the compliance with tax laws and risk classification of taxpayers in Vietnam? Question of Ms. An in Hanoi.

When is the overall risk classification of taxpayers made?

Pursuant to Point b, Clause 2, Article 8 the Process promulgated together with Decision No. 18/QD-TCT in 2023 as follows:

Assessment of compliance with tax laws and risk classification of taxpayers
...
2. Perform assessment and classification.
...
b) Step 2 - Classify the overall risk of taxpayers.
b1) Time of classification.
The classification of the overall risk for taxpayers is carried out on April 15, June 30, and September 30 every year or at the request of management.
...

The overall risk classification for taxpayers is made on April 15, June 30, and September 30 every year.

In addition, the overall risk classification for taxpayers is also carried out according to the requirements of the management.

How many steps are taken to assess the compliance with tax laws and risk classification of taxpayers in Vietnam?

How many steps are taken to assess the compliance with tax laws and risk classification of taxpayers in Vietnam?

What are the principles of the overall risk classification of taxpayers in Vietnam?

Pursuant to Clause 1, Article 8 the Process promulgated together with Decision No. 18/QD-TCT in 2023 as follows:

Assessment of compliance with tax laws and risk classification of taxpayers
1. Principles of assessment and classification.
a) The assessment of the taxpayer's compliance with tax laws and the classification of taxpayers' risk is carried out automatically by the application of information technology, on the basis of a set of criteria and evaluation methods issued by the General Department of Taxation.
b) The assessment of taxpayers' compliance with tax laws is carried out for all taxpayers.
c) Depending on the requirements of tax management operations, each taxpayer segment or each taxpayer will be classified as a total risk level and can be classified according to the level of risk according to tax management operations.
d) For classification of risk levels in tax administration operations: Depending on tax management requirements, to perform periodic classification according to the number of times a year, one (01) time or many times, such as inspection planning service at the taxpayer's office); or periodically classifying by month, quarter and instantaneous classification when arising business records (such as tax refund transactions).
d) Order of assessment and classification.
The assessment of the taxpayer's compliance with tax laws and the classification of taxpayer’s risk is carried out in the following order:
Firstly: Assess the taxpayer's compliance with tax laws.
Secondly: Classify the taxpayer's overall risk level.
Thirdly: Classify the level of risk in tax management operations.
e) Assessment and classification results.
The results of the assessment and classification are output according to the form issued with this Process and are arranged according to the following criteria:
- According to taxpayers, there is a level of tax compliance assessment and risk classification from high to low.
- According to the order of the index of criteria with many taxpayers violating or according to the score of each criterion from highest to lowest.
...

Thus, the assessment is based on the following principles:

- The assessment of the taxpayer's compliance with tax laws and the classification of taxpayers' risk is done automatically by the application of information technology, on the basis of a set of criteria and assessment methods. The price has been issued by the General Department of Taxation.

- The assessment of taxpayers' compliance with tax laws is carried out for all taxpayers.

- Depending on the requirements of tax management operations, each taxpayer segment or each taxpayer will be classified as a total risk level and can be classified according to the level of risk according to tax management operations.

- For classification of risk levels in tax administration operations: Depending on tax management requirements, to perform periodic classification according to the number of times a year, one (01) time or many times, such as inspection planning service at the taxpayer's office); or periodically classifying by month, quarter and instantaneous classification when arising business records (such as tax refund transactions).

- Regarding the order of assessment and classification:

The assessment of the taxpayer's compliance with tax laws and the classification of taxpayer risk is carried out in the following order:

Firstly: Assess the taxpayer's compliance with tax laws.

Secondly: Classify the taxpayer's overall risk level.

Thirdly: Classify the level of risk in tax management operations.

- About the results of assessment and classification.

The results of the assessment and classification are output according to the form issued with this Procedure and are arranged according to the following criteria:

+ According to taxpayers, the level of tax compliance is assessed and the risk is classified from high to low.

+ According to the order of the index of criteria that many taxpayers violate or according to the score of each criterion from the highest to the bottom.

How many steps are taken to assess the compliance with tax laws and risk classification of taxpayers in Vietnam?

Pursuant to the provisions of Clause 2, Article 8, the Process promulgated together with Decision No. 18/QD-TCT in 2023 as follows:

Assessment of compliance with tax laws and risk classification of taxpayers
...
2. Perform assessment and classification.
a) Step 1- Assess the taxpayer's compliance with tax laws.
a1) Assessment period: Tax compliance assessment for taxpayers is carried out periodically on the 25th of every month.
...
b) Step 2 - Classify the overall risk of taxpayers.
b1) Time of classification.
The classification of the overall risk for taxpayers is carried out on April 15, June 30, and September 30 every year or at the request of management.
b2) Perform classification.
B2.1 - A data analysis and risk management application that automatically classifies the overall level of risk for taxpayers.
...
c) Step 3 - Classify the level of risk in tax administration operations.
c1) Perform classification.
B3.1 - For transactions that perform periodic classification: Data analysis and risk management applications automatically classify the level of risk in each tax management operation at periodic times set as specified.
...

Thus, the assessment of compliance with tax laws and tax risk classification is carried out in 3 steps:

Step 1: Assess the taxpayer's compliance with tax laws.

Step 2: Classify the taxpayer's overall risk level.

Step 3: Classify the level of risk in tax management operations.

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