Scope of responsibility for state compensation of tax authorities in Vietnam

Scope of responsibility for state compensation of tax authorities in Vietnam

Tax offices in Vietnam are responsible for compensation for damage in the following cases:

- Issue decisions to sanction illegal administrative violations;

- Apply measures to prevent and ensure the handling of illegal administrative violations;

- Apply measures to coerce the execution of decisions sanctioning illegal administrative violations;

- Illegally apply taxes, fees, and charges; illegal collection of taxes, fees, and charges; illegal tax arrears and refund; illegal collection of land use levy;

- Fail to apply or improperly apply the provisions of the Law on Denunciation on Measures to Protect Whistleblowers upon their request as prescribed in Clause 6, Article 17 of the Law on State Compensation Liability Law 2017.

- Perform prohibited acts under the provisions of the Law on Access to Information about intentionally providing false information without correcting it and without providing it again;

- Issue decisions on disciplinary sanctions for illegal dismissal of tax officials within the competence of heads of tax offices.

Principles of settlement of state compensation by tax authorities in Vietnam

- The settlement of compensation claims shall comply with the provisions of the state's compensation liability law. Tax offices shall settle compensation claims after having documents as a basis for compensation claims.

- The settlement of compensation claims is carried out promptly, openly, equally, in good faith, honestly, and in accordance with the law; it is conducted on the basis of negotiation between the compensation agency and the claimant in accordance with the provisions of the Law on State Compensation Liability Law 2017.

- The claimant has requested one of the compensation settlement agencies specified in Clause 7 Article 3 of the Law on State Compensation Liability Law 2017 to settle the claim and has been accepted and settled by that agency, it is not allowed to request another competent authority to settle the compensation claim, except for the cases specified at Point b, Clause 1 and Clause 2, Article 52 of the Law on State Compensation Liability Law 2017.

- Complying with claim settlement procedures.

- In case the damage sufferer is partly at fault in causing the damage, the tax office will only compensate for the damage after deducting the part of the damage corresponding to the fault of the damage sufferer.

Decision 657/QD-TCT takes effect from May 25, 2023.

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