Tax administration principles according to Vietnam’s current law

Specifically, according to Clause 1 Article 1 of the Amending Law on Tax Administration 2012 of Vietnam amending and supplementing Article 4 of  the Law on Tax administration 2006, tax administration principles include:

1. Taxes constitute a major revenue source of the state budget. It is an obligation and a right of all organizations and individuals to pay taxes in accordance with law. Agencies, organizations and individuals shall participate in tax administration.

2. Tax administration shall be conducted in compliance with this Law and other relevant provisions of law.

3. Tax administration must ensure publicity, transparency and equality; and guarantee lawful rights and interests of taxpayers.

4. Applying the risk management mechanism to tax administration:

- The application of risk management mechanism in tax administration includes: collecting information and data related to taxpayers; establishing the tax administration criteria; assessing the compliance with law of taxpayers; suggesting and applying tax administration measures;

- The tax authority shall manage and use professional information systems to asses taxation risks, the compliance with law of taxpayers, select objects of tax inspection, and support other activities in tax administration.

5. Giving priorities when carrying out taxation procedures applicable to exports and imports if the taxpayer satisfy the following requirements:

- Do not violate the laws on tax and customs within consecutive 02 years;

- Make payments via banks as prescribed by law;

- Carry out electronic customs procedures and taxation procedures;

- Comply with the law on accounting and statistics;

- Reach the required rate of export and import turnover.

View amendments and supplements at the Amending Law on Tax Administration 2012 of Vietnam, effective from July 01, 2013.

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