The General Department of Taxation to issue the latest tax inspection process in Vietnam

The General Department of Taxation to issue the latest tax inspection process in Vietnam

Recently, the General Department of Taxation issued Decision 970/QD-TCT on the latest tax inspection process, which took effect as of July 14, 2023, in order to:

- Strengthen tax inspection in accordance with the Law on Tax Administration on the basis of applying risk management mechanisms and information technology to tax inspection in order to detect, prevent, and promptly handle tax violations and prevent tax loss.

- Improve the taxpayer's self-discipline to comply with tax laws in the implementation of tax laws.

- Implement administrative reform in tax inspection, creating favorable conditions for taxpayers to develop the production and business of goods and services.

As of July 14, 2023, the provisions of the following Decisions cease to be effective:

- Decision 746/QD-TCT 2015 on promulgating the tax inspection process;

- Decision 1215/QD-TCT in 2020 on amending and supplementing the tax inspection process;

- Contents of tax authorities' consultation with relevant agencies and organizations before handling tax-related violations through inspection for cases of remaining problems in the Regulation on Tax Authorities; consult relevant agencies and organizations before carrying out inspection conclusions, handling tax violations through inspection for cases of still problems issued together with Decision 2601/QD-TCT n 2016.

For on-going inspections with an inspection decision issued before the effective date of this Decision, during the remaining period of the inspection from the effective date of this Decision, the inspection shall be carried out according to the Process promulgated together with Decision 970/QD-TCT in 2023.

The General Department of Taxation to issue the latest tax inspection process in Vietnam (Internet image)

Scope of application of the tax inspection process in Vietnam

This process stipulates the order and procedures for tax inspection by tax authorities and tax officials in the following cases:

- Check tax records at tax offices.

- Tax inspection at the taxpayer's office shall:

+ Check at the taxpayer's office as prescribed at Point c, Clause 4, Article 71 of Circular 80/2021/TT-BTC and Decree 126/2020/ND-CP (also known as inspection from tax records).

+ Check at the taxpayer's office if there are signs of a law violation through tax administration, as prescribed at Point d, Clause 1, Article 110 of the Law on Tax Administration, and other legal regulations.

+ Check at the taxpayer's office in the following cases: dossiers subject to inspection before tax refund; post-tax refund inspection for dossiers subject to pre-tax refund as prescribed (also known as tax refund inspection).

+ Check at the taxpayer's office for selected cases according to the plan or topic decided by the head of the superior tax agency; Thematic examinations arising in the year shall be decided by the head of the tax authority at the same level (also known as the planned or thematic examination).

+ Check at the taxpayer's office at the request of the State Auditor, State Inspectorate, and other competent agencies.

+ Check at the taxpayer's office for taxpayers who divide, split, merge, transform, dissolve, terminate operations, equitize, invalidate tax identification numbers, change business locations leading to a change of tax authorities, and have an unexpected inspection and examination under the direction of competent authorities.

Subjects of application of the tax inspection process in Vietnam

The tax inspection process promulgated together with Decision 970/QD-TCT in 2023 applies to heads of tax agencies, divisions assigned to tax inspection, tax inspection teams under decisions of competent persons, and tax officials assigned to tax inspection tasks under tax authorities at all levels for the cases mentioned in Section II, Part I of this Process.

Mai Thanh Loi

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