What is the tax accounting subsystem? 07 requirements of tax accounting Subsystems in Vietnam

What is the tax accounting subsystem? 07 requirements of tax accounting Subsystems in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is tax accounting subsystem?

According to Clause 7, Article 3 of Circular 111/2021/TT-BTC, tax accounting subsystem refers to an application belonging to the System of tax administration apps that is designed for tax accountancy in accordance with Article 4, 5 and 6 of Article 3 of Circular 111/2021/TT-BTC.

In addition, Tax accounting Subsystem is an application set up on TMS to carry out the tax accounting work by tax authorities in accordance with Circular 111/2021/TT-BTC, including such activities as collecting tax accounting inputs; processing tax accounting documents; recording entries in tax accounting books; and preparing tax accounting reports of tax authorities in Vietnam.

2. 07 requirements of tax accounting Subsystems in Vietnam

Specifically, in Clause 3, Article 11 of Circular 111/2021/TT-BTC, the specific requirements of tax accounting Subsystems in Vietnam are as follows:

(1) Each Subsystem must strictly comply with law on accountancy, law on tax administration, law on state budget and law on electronic transactions.

(2) Each Subsystem must be upgradable, amendable and adaptable to any change in law related to tax accounting tasks, requirements and record-keeping approaches without prejudice to the existing database.

(3) Each Subsystem must be capable of automatically processing and storing data according to the principle of compliance with accounting requirements and the method of calculating indicators available on the tax accounting report according to current regulations; must ensure that accounting data are appropriate and do not overlap; must be capable of forecasting, detecting and preventing any defect or omission arising from inputting updated data and processing tax accounting information.

(4) Each Subsystem must ensure information and data confidentiality and security; may grant authority to each user according to the assigned functions and duties; can monitor users’ access time and actions, updated, revised or deleted data of authorized users; can remember any change to accounting books; can restore accounting data and information in case of technical failure occurring during use.

(5) Principles of processing tax accounting data on tax-accounting IT apps must conform to regulations of Circular 111/2021/TT-BTC and regulations that the Director of the General Department of Taxation issues in writing under his delegated authority.

Whenever any tax accounting operation arises, a timely and comprehensive written manual for such operation must be available for use in the entire tax community; concurrently, tax accounting guides must be updated and synced for consistent use in the tax accounting Subsystem.

(6) The General Department of Taxation must manage the uniform use of IT apps in the tax accounting domain; manage grant of authority to access to and security for tax accounting data and information according to the functions, duties and entitlements of the tax accounting machinery at tax authorities at all levels.

(7) Government tax accountants must input and search for tax accounting data from the accounting database according to the functions, duties and entitlements assigned or approved by competent persons; must use correct usernames, passwords and passcodes that they are granted in order to process and search for tax accounting data from the tax accounting database; must change their passcodes at regular or irregular intervals.

In case of moving to other positions, they must inform app administrators to request change in the data access authority according to requirements of their newly assigned positions. App administrators must remove authority to access tax-accounting IT apps from government officers who are no longer in charge of tax accounting duties in Vietnam.

Tran Thanh Rin

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