Is taxpayer information confidential in Vietnam?
Is taxpayer information confidential in Vietnam?
Based on Article 99 of the Law on Tax Administration 2019 regulating the confidentiality of taxpayer information:
Article 99. Confidentiality of taxpayer information
1. Tax administration agencies, tax administration officials, former tax administration officials, agencies providing and exchanging taxpayer information, and organizations providing tax procedure services must keep taxpayer information confidential according to the provisions of the law, except in the cases specified in Clause 2 of this Article and Article 100 of this Law.
2. To serve litigation, inspection, examination, and audit activities upon written request, tax administration agencies are responsible for providing taxpayer information to the following agencies:
a) Investigative agencies, the Procuracy, and Courts;
b) State inspection agencies, State Audit Office;
c) Other State management agencies per the provisions of the law;
d) Foreign tax administration agencies in accordance with international tax treaties to which the Socialist Republic of Vietnam is a member.
Thus, taxpayer information will be kept confidential by tax administration agencies, tax administration officials, former tax administration officials, agencies providing and exchanging taxpayer information, and organizations providing tax procedure services, except in the following cases:
[1] To serve litigation, inspection, examination, and audit activities upon written request, tax administration agencies are responsible for providing taxpayer information to the following agencies:
- Investigative agencies, the Procuracy, and Courts
- State inspection agencies, State Audit Office
- Other state management agencies per the provisions of the law
- Foreign tax administration agencies in accordance with international tax treaties to which the Socialist Republic of Vietnam is a member
[2] Tax administration agencies are allowed to publicly disclose taxpayer information in the following cases:
- Tax evasion, delay in paying taxes and other contributions to the state budget on time; owing taxes and other contributions to the state budget
- Violating tax laws, affecting the tax obligations and rights of other organizations and individuals
- Failing to comply with the requests of tax administration agencies per the provisions of the law
Is taxpayer information confidential in Vietnam? (Internet image)
What are the duties of taxpayers in Vietnam?
According to Article 17 of the Law on Tax Administration 2019 regulating the duties of taxpayers in Vietnam as follows:
- Implement taxpayer registration and use tax identification numbers per the provisions of the law.
- Accurately, honestly, and fully declare taxes and submit tax dossiers on time; be responsible before the law for the accuracy, honesty, and completeness of tax dossiers.
- Fully and timely pay taxes, late payment interest, and fines at the right place.
- Comply with the accounting, statistics policies, and manage and use invoices and vouchers per the provisions of the law.
- Accurately, honestly, and fully record activities that generate tax obligations, tax deductions, and transactions that must declare tax information.
- Prepare and deliver invoices and vouchers to buyers according to the correct quantity, category, and actual payment value when selling goods and providing services per the provisions of the law.
- Accurately, fully, and promptly provide information and documents related to determining tax obligations, including information on investment values; the number and content of transactions of accounts opened at commercial banks and other credit institutions; explain tax calculation, tax declaration, and tax payment upon request of tax administration agencies.
- Comply with decisions, notifications, requests of tax administration agencies, tax administration officials per the provisions of the law.
- Be responsible for fulfilling tax obligations per the provisions of the law if the legal representative or authorized representative performs incorrect tax procedures on behalf of the taxpayer.
- Taxpayers conducting business in areas with information technology infrastructure must declare taxes, pay taxes, and interact with tax administration agencies via electronic means per the provisions of the law.
- Based on actual conditions and information technology equipment, the Government of Vietnam specifies the details of taxpayers who are not required to submit documents in tax declaration, tax payment dossiers, tax refund dossiers, and other tax-related dossiers that the state management agency already has.
- Build, manage, and operate technical infrastructure systems to ensure electronic transactions with tax administration agencies, apply information connections related to fulfilling tax obligations with tax administration agencies.
- Taxpayers with related-party transactions must prepare, store, declare, and provide documentation on the taxpayer and related entities, including information on related entities residing in other countries or territories outside of Vietnam, as prescribed by the Government of Vietnam.
Do taxpayers have the right to request an explanation from tax authorities regarding tax calculations?
According to Article 16 of the Law on Tax Administration 2019 regulating taxpayer's rights in Vietnam:
Article 16. Taxpayer's rights
Be supported and guided to fulfill tax obligations; provided with information and documents to fulfill tax obligations and rights.
Receive written documents related to tax obligations from functional agencies when conducting inspections, examinations, audits.
Request tax administration agencies to explain tax calculations and tax determinations; request the inspection of the quantity, quality, and type of exported and imported goods.
Have information kept confidential, except for information required to be provided to competent state agencies or disclosed per tax laws.
Enjoy tax incentives and refunds according to tax laws; be informed about tax refund processing times, amounts not refunded, and the legal basis for non-refunded tax amounts.
[...]
According to the above regulation, requesting tax administration agencies to explain tax calculations and tax determinations; requesting the inspection of the quantity, quality, and type of exported and imported goods are among the rights of taxpayers.
Thus, taxpayers have the right to request tax administration agencies to explain tax calculations.
