05 things you should know about the Commune Tax Advisory Council in Vietnam

05 things you should know about the Commune Tax Advisory Council in Vietnam (Internet image)

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

1. Composition of the Commune Tax Advisory Council in Vietnam

According to Clause 1, Article 6 of Circular 80/2021/TT-BTC, a tax advisory council shall consist of:

- The President or Deputy President of the People’s Committee of the commune: President of the Council;

- The chief or deputy chief of the inter-commune tax team: standing member;

- A finance official of the People’s Committee of the commune: member;

- President of Fatherland Front Committee of the commune: member;

- Chief of the police department of the commune: member;

- Chief of the neighborhood: member;

- Chief of the market management board: member;

- Representatives of local household businesses and individual businesses: members.

In case the district-level administrative division does not have any commune-level administrative division, the President of the People’s Committee of the district shall decide the establishment of the Tax Advisory Council whose members are conformable with regulations of this Clause.

2. Conditions for joining the Commune Tax Advisory Council in Vietnam

According to Clause 2, Article 6 of Circular 80/2021/TT-BTC, the representatives of local household businesses and individual businesses that participate in the Tax Advisory Council shall:

- Comply with business laws and tax laws;

- Have been doing business for at least 03 years before participating the Tax Advisory Council.

In case there are no local household businesses and individual businesses that having been operating for at least 03 years, those with the longest operating period shall be selected.

Priority shall be given to chiefs, deputies of business lines in the commune, market or shopping mall.

3. Procedures for establishment of Commune Tax Advisory Council in Vietnam

Specifically, in Clause 4, Article 7 of Circular 80/2021/TT-BTC, the procedures for establishment of a Tax Advisory Council are as follows:

- The Fatherland Front Committee of the commune shall submit the list of proposed household businesses and individual businesses participating in the Tax Advisory Council to the sub-department of taxation.

The sub-department of taxation shall provide information about these household businesses and individual businesses in order to facilitate selection by the Fatherland Front Committee of the commune.

- On the basis of the composition and the list of participants in the Tax Advisory Council, the Director of the sub-department of taxation shall request the President of the People’s Committee of the district to issue the decision on establishment of the Tax Advisory Council (Form No. 07-1/HDTV in Appendix I of Circular 80/2021/TT-BTC).

4. Operation of the Commune Tax Advisory Council in Vietnam

The operation of the Commune Tax Advisory Council is prescribed as follows:

-The president and members of the Tax Advisory Council shall work on a part-time basis. The Tax Advisory Council shall work directly under the leadership of the President of the Tax Advisory Council.

- The President of the Tax Advisory Council shall convene meetings to seeks opinions of its members about the advisory contents.

A meeting of the Tax Advisory Council shall be opened when it is chaired by its President and participated in by at least two thirds of the members (including the President.

The Tax Advisory Council may seeks opinions of its members via electronic means.

In case of disagreement among the members, a voting under the majority rule shall be held; in case of a tie, the President of the Tax Advisory Council shall have the casting vote.

- Meetings of the Tax Advisory Council shall be recorded in writing according to Form No. 07-2/HDTV in Appendix I of Circular 80/2021/TT-BTC.

The minutes of meeting shall bear signatures of participating members.

In case of electronic survey, the standing member shall prepare the minutes as if it was an in-person meeting.

(Article 8 of Circular 80/2021/TT-BTC)

5. Responsibilities of a Commune Tax Advisory Council in Vietnam

According to Article 11 of Circular 80/2021/TT-BTC, the Commune Tax Advisory Council has the following responsibilities:

- Responsibility for providing advice on tax and tax administration

+ Provide advice on annual revenues and estimated stable presumptive tax of household businesses and individual businesses paying presumptive tax, including those whose revenues are not subject to VAT, personal income tax (PIT);

+ Provide advice on adjustment of tax payable by household businesses and individual businesses paying presumptive tax in case of changes to their business operation such as: change in scale, location, business lines, business suspension or termination in the tax year;

+ Cooperate with the sub-department of taxation in supervising and managing operation of local household businesses and individual businesses paying presumptive tax.

- Responsibilities of the President of a Tax Advisory Council:

+ Decide the working plan of the Tax Advisory Council;

+ Invite delegates, summon members and chair meetings of the Tax Advisory Council;

+ Assign specific tasks to members of Tax Advisory Council;

+ Make decisions and assume overall responsibility for the operation of the Tax Advisory Council and its members during performance of their tasks;

+ Submit written reports to the President of the People’s Committee of the district and the Director of the sub-department of taxation in case an individual or member cannot continue to participate in the Tax Advisory Council;

+ Sign documents on behalf of the Tax Advisory Council;

- Responsibilities of members of a Tax Advisory Council:

+ Common responsibilities of members of a Tax Advisory Council:

++ Perform the tasks assigned by the President of the Tax Advisory Council and take responsibility to the President of the Tax Advisory Council for their performance;

++ Participate in all activities of the Tax Advisory Council;

++ Offer opinions at the meeting or in writing;

++ The member who can no longer participate in the Tax Advisory Council shall submit a written report to the President of the Council.

+ Responsibilities of standing member of a Tax Advisory Council:

++ Propose the working plan of the Tax Advisory Council and tasks of each member to the President of the Tax Advisory Council for consideration and decision;

++ Prepare documents, take minutes of meetings and record opinions offered by members of the Tax Advisory Council;

++ Report to the president of the Tax Advisory Council and the Director of the sub-department of taxation in case of change or replacement of a member of the Tax Advisory Council.

- The Tax Advisory Council shall concurrently send its advice to the People’s Committee of the district, the People’s Committee of the commune and the sub-department of taxation.

Thanh Rin

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