What are signs of companies posing high tax risks in Vietnam?
Hello Lawnet. I have a question. What are signs of companies posing high tax risks in Vietnam? Thank you!
Hoang Anh - Da Nang
What are signs of companies posing high tax risks in Vietnam? - image from internet
Pursuant to Clause 2 Article 11 of the Circular 39/2014/TT-BTC, companies posing high tax risks mentioned in Point d Clause 1 of this Article are any company whose equity capital is below VND 15 billion and:
- Does not have the right to ownership or the right to enjoyment of: a factory, workshop, warehouse, means of transports, outlet, and other facilities; or
- Engages in excavation of soil, rock, sand, gravel; or
- Has suspicious banking transactions according to regulations of law against money laundering; or
- Earns revenue from sale of goods and services to any other company whose owner is a family member (parent, spouse, sibling) or in a cross-ownership relationship which makes up more than 50% of the total revenue on the final statement of corporate income tax in the tax year.
- Fails to submit tax declarations or submits a tax declaration after 90 days from the deadline or from the commencement date of the business according to the business registration certificate; suspends the business for longer than the duration informed to the tax authority and the tax authority confirms that the company does business without declaring tax; no longer does business at the registered address without notifying the tax authority or the tax authority fails to determine the permanent or temporary residence of the legal representative or owner of the company.
- The legal representative of the company is charged with tax evasion, illegally printing, publishing or trading in invoices and receipts for payments to government budget.
- Is using self-printed invoices or ordered invoices on which the business address is changed twice or more within 12 months without making a notice, or fails to declare and pay tax at the new locality.
- The company shows other suspicious signs according to criteria for tax risk assessment of tax authorities.
Pursuant to instructions in this Clause, by the 5th every month, tax authorities shall review, carry out field inspections, and compile lists of companies posing high risks tax. Every Provincial Department of Taxation shall aggregate the lists of companies posing high risks tax complied by Department of Taxation of districts and the list of companies under the management of the Provincial Department of Taxation.
On the 15th every month, the Director of the Provincial Department of Taxation shall issue a Decision enclosed with a list of companies posing high tax risks, disclose the “List of companies posing high tax risks that buy invoices published by tax authorities" on the website of the General Department of Taxation, and send written notifications to companies.
After 15 days from the day on which the Director of the Provincial Department of Taxation issues the Decision and send notifications, every company that receives the notification must stop using self-printed invoices, ordered invoices, and use invoices bought from tax authorities. Tax authorities are responsible for selling invoices for such companies right after requiring companies to stop using ordered invoices and self-printed invoices.
Above are signs of companies posing high tax risks in Vietnam.
Best regards!
