Vietnam: Application of information technology in risk management in tax management

1. The database system of tax operation information is centrally managed at the General Department of Taxation to ensure the information as a basis for risk assessment is fully gathered and updated, including:

- General information of the taxpayers;

- Information on tax declaration dossier and grounds for tax calculation;

- Management of risk dossiers in tax registration, declaration, payment, tax debt, tax refund and tax exemption or reduction, creation, printing, issue, management and use of printed matters of tax;

- Information about the taxpayer’s violation of tax law;

- Information about result of inspection, verification and handling after inspection and verification

- System of criteria for risk assessment;

- Operation information products;

- User’s account in the system;

- Other relevant information.

2. The tax authorities apply the information technology by the electronic mode based on the issued criteria for risk management; connect the common information system and database of the Tax sector and relevant information systems outside the tax sector to integrate and process information or data in order to:

- Assess the reality of compliance with tax law from the taxpayers;

- Assess and rate the risk level to the taxpayers;

- Warn risks, classify and give out professional requirements to orient and assist the verification and monitoring of contents of tax management for the operations.

3. The operational information system is connected online with the relevant information systems of the General Department of Taxation and other tax authorities in the country for monitoring, supervision and decision issue on taking measures to monitor, urge, verify and inspect and other necessary operational measures to ensure the compliance with the tax law.

4. Based on the result from the operational information system and other relevant information, the tax authorities shall take measures and apply the management forms as prescribed by law.

5. The General Department of Taxation specifies the responsibility of tax units and officers at all levels in development, management, operation, updating and use of information on the operational information system in accordance with each field of tax operation.

More details can be found in Circular No. 204/2015/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from February 04, 2016.

- Ngoc Duyen -

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