Vietnam: Principles to apply the risk management in tax management

1. The tax authorities apply risk management to encourage and create favorable conditions for the taxpayers to properly comply with regulations of law, simultaneously prevent, detect and promptly handle acts of violation of tax law in tax management to the taxpayers.

2. In tax management, the taxpayers whose risk must be assessed to apply the option for tax verification and inspection, classification of tax refund dossier, measures to enforce the administrative decision on tax, classification of case of creation, printing, issue, management and use of printed matters of tax and other necessary operation measures at appropriate level to ensure the compliance with tax law.

3. The assessment of risk and compliance with law of the taxpayers shall be based on the regulations of law, procedures and tax management operation measures and on the criteria for risk management, operation information and information and data on the “Database system on taxpayers” of the General Department of Taxation.

4. The tax authorities shall carry out their verification, inspection, monitoring and control on the basis of assessment and rating of high risk level and apply appropriate measures to the cases of assessment and rating of low risk level.

5. The tax authorities shall fully update information in the database system of tax operation information and the database system on taxpayers on the principle of electronicization and digitalization of relevant documents and information. The operational activities must be done on the system to ensure the management status update regularly and continuously.

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.

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