Request of the General Department of Taxation on focusing on personal income tax inspection in tax inspection in Vietnam

Request of the General Department of Taxation on focusing on personal income tax inspection in tax inspection in Vietnam (Internet image) 

On December 22, 2023, the General Department of Taxation issued Official Dispatch 5862/TCT-TTKT focusing on personal income tax inspection during the implementation of tax inspection and audit work.

Request of the General Department of Taxation on focusing on personal income tax inspection in tax inspection in Vietnam

Specifically, to strengthen tax management and resolve personal income tax (PIT) refund documents, the General Department of Taxation requires Departments of Taxation in the process of implementing tax inspection and examination to focus on and strengthen personal income tax inspection, specifically as follows:

- Apply risk management principles in conducting inspections and tests at enterprises; develop a plan to deploy flexible inspection and examination work, including strengthening inspection work at tax authority headquarters following the risk management method; enhance electronic transactions in inspection and examination through deploying and promoting the exchange of information and data to serve inspection and examination work.

- Promote the review and synthesis of information on the information technology system to connect information to the risk assessment database on tax management and promptly inspect for contents discovered through risk assessment.

- Strengthen personal income tax inspection when carrying out tax inspection and auditing at enterprises, ensuring compliance with policies and legal regulations. Heads of inspection and examination teams assign tasks and assign specific tasks to each member of the team.

- Strengthen coordination between tax authorities and competent agencies to fight against tax evasion, tax fraud, and tax crimes. During the inspection and examination process, if any signs of crime are discovered, the case file shall be immediately transferred to the competent investigation agency for investigation and handling according to the provisions of the law.

- Strengthen the order, discipline, attitude, and behavior of tax officials while implementing tax inspection and examination tasks according to Official Dispatch 429/TCT-TCCB dated February 14, 2023 of the General Department of Taxation.

Taxpayers of personal income tax in Vietnam

PIT payers include resident and non-resident individuals who earn taxable incomes. Scope to define taxable income of taxpayers shall be as follows:

- For resident individuals, their taxable incomes are incomes earned inside and outside the Vietnamese territory, regardless of where their incomes are paid;

- For non-resident individuals, their taxable incomes are incomes earned in Vietnam, regardless of where their incomes are paid.

** A resident individual means a person who satisfies any of the following conditions:

- Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of his/her presence in Vietnam;

Individuals present in Vietnam under this Point means those whose presence is in the Vietnamese territory.

- Having a place of habitual residence in Vietnam in either of the following two cases:

+ Having a registered place of permanent residence under the law on residence;

+ Having a rented house for dwelling in Vietnam under the law on housing, under a rent contract with a term of 183 days or more in a tax year.

In case an individual has a place of permanent residence in Vietnam as prescribed in this point but he/she actually presents in Vietnam less than 183 days in tax year and he/she fail to prove that he/she is resident person of other country, so he/she will be considered as resident person in Vietnam.

** A non-resident individual means a person who does not satisfy any of the conditions specified above

(Article 2 of Decree 65/2013/ND-CP)

Ho Quoc Tuan

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