Circular No. 204/2015/TT-BTC dated December 21, 2015 of the Ministry of Finance providing for application of risk management in tax management

CIRCULAR

Prescribing the application of risk management in tax administration[1]

Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration and November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration, and November 26, 2014 Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Tax Laws;

Pursuant to the Government’s Decree No. 83/2013/ND-CP of July 22, 2013, detailing a number of articles of the Law on Tax Administration and the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the tax decrees;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Resolution No. 19/NQ-CP of March 12, 2015, on major tasks and solutions to further improve the business environment and raise national competitiveness in the two years of 2015-2016;

At the proposal of the General Director of Taxation;

The Minister of Finance promulgates the Circular prescribing the application of risk management in tax administration as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular prescribes the application of risk management in tax administration by tax agencies at all levels in order to assess taxpayers’ compliance with tax laws in tax administration operations, including tax registration, declaration and payment; tax arrears and enforcement of tax-related administrative decisions; tax refund; tax examination and inspection; creation, printing, issuance, management and use of tax prints and other tax administration operations during the performance of professional operations, including:

1. Collection, processing, management of use of information and data about taxpayers.

2. Promulgation of the set of tax administration criteria and organization of assessment of risks and assessment of taxpayers’ compliance with tax laws to meet the tax administration requirements in each period.

3. Application of tax administration measures to taxpayers corresponding to their risk levels.

Article 2. Subjects of application

1. Taxpayers include:

a/ Business organizations and individuals that pay taxes, charges, fees or other levies to the state budget in accordance with law. Business individuals include individuals, groups of individuals and households;

b/ Organizations and individuals that are tasked to collect charges and fees into the state budget;

c/ Organizations that provide the service of carrying out tax procedures;

d/ Tax withholders, including:

- Vietnamese organizations and individuals signing contracts with foreign organizations and individuals that conduct business or earn incomes in Vietnam and pay value-added tax by the direct method or in a prescribed percentage of their incomes;

- Organizations and individuals withholding income tax when paying incomes to persons liable to personal income tax;

dd/ Organizations and individuals conducting oil and gas exploration and exploitation activities, including:

- Operators, for oil and gas contracts signed in the form of production sharing contracts.

- Joint operating companies, for oil and gas contracts signed in the form of joint operation contracts.

- Joint-venture enterprises, for oil and gas contracts signed in the form of joint-venture contracts or treaties to which the Socialist Republic of Vietnam is a contracting party.

- The Vietnam National Oil and Gas Group (PetroVietnam) or its member corporations and companies, for cases in which the group or its member corporations and companies conduct the exploration and exploitation of crude oil and natural gas.

2. Tax agencies, including the General Department of Taxation, provincial- and district-level Tax Departments.

3. Tax officers.

4. Other organizations and individuals involved in the implementation of tax laws.

5. Agencies and units of the Ministry of Finance involved in the exchange of information in accordance with this Circular.

6. Agencies and units of related ministries and sectors involved in the implementation of this Circular.

Article 3. Interpretation of terms

In this Circular, the terms below shall be construed as follows:

1. Tax risk means a risk of non-compliance by taxpayers with policies and laws on taxes, charges, fees and other levies payable to the state budget, which might cause state budget loss in tax collection administration.

2. Risk assessment criteria means standards promulgated to serve as a basis for assessing and classifying risks and assessing tax law compliance by taxpayers to meet the tax administration requirements in each period.

3. Risk identification means the collection and analysis of information in order to identify the risk of non-compliance by taxpayers with tax laws.

4. Risk analysis means the use of knowledge, experience and skills and application of information technology based on the prescribed risk management criteria to predict the frequency and consequences of risks.

5. Risk assessment means the summarization and comparison of risk identification and analysis results against the risk assessment criteria in order to classify risks.

6. Compliance measurement means the analysis of information and data according to set indicators in order to identify the level of compliance by taxpayers in each area of tax administration.

7. Compliance assessment means the collection, analysis, verification and comparison of information about operation and law compliance of taxpayers against the compliance assessment criteria in order to classify the law compliance of taxpayers.

8. Risk warning means the notification and provision of information about the risk of non-compliance by taxpayers with tax laws.

9. Risk assessment indicators means parameters demonstrating a specific risk situation.

10. Tax operation information means information relating to taxpayers that is collected, summarized, analyzed and assessed by tax agencies in order to decide on the application of tax operation measures.

11. Tax operation information database means an information and data system managed by the tax agency to collect, process and provide operation information to serve tax operations.

12. Taxpayer database means a system in which information and data are managed in a centralized manner and which is connected to, and receive information from, related information and data systems inside and outside the tax sector, and is built and managed by the General Department of Taxation for compliance assessment and risk assessment.

13. Tax prints include tax invoices and receipts, charge and fee receipts, liquor and cigarette stamps of all kinds and other kinds of tax prints.

Article 4. Principles of application of risk management in tax administration                  

1. Tax agencies shall apply risk management to encourage and create favorable conditions for taxpayers to properly comply with regulations and concurrently prevent, detect and promptly handle taxpayers’ violations of tax laws in the tax administration.

2. In the tax administration, the assessment of risks of taxpayers shall be conducted to choose cases subject to tax examination and inspection, classification of tax refund dossiers, enforcement of tax-related administrative decisions, and classification of cases in which tax prints are created, printed, issued, managed and used, and application of other necessary operation measures as appropriate in order to ensure tax law compliance.

3. The assessment of risks and law compliance of taxpayers shall be based on regulations, tax administration processes and measures as well as risk management criteria, operation information and information and data available in the taxpayer database of the General Department of Taxation.

4. Tax agencies shall examine, inspect, supervise and control cases assessed and classified as involving high risk and apply appropriate measures to cases assessed and classified as involving low risk.

5. Tax agencies shall update full information to the tax operation information and data system and the taxpayer database by computerization and digitalization of relevant documents and information. Professional operations shall be conducted on the system, ensuring the administration status is constantly and continuously updated.

Article 5. Procedures for application of risk management

Risk management shall be applied in tax administration according to the following procedures:

1. Tax agencies shall organize the electronic collection and processing of information and data related to taxpayers; and build, operate, manage and use the taxpayer database of the General Department of Taxation.

2. The General Department of Taxation shall establish and submit to the Ministry of Finance for promulgation a set of risk management criteria meeting the tax administration requirements in each period (3 years); and on a quarterly basis review, adjust and supplement the set to keep it updated.

3. Tax agencies shall base themselves on the tax administration regulations, professional processes and measures, set of risk management criteria, taxpayer database and applied database on tax operation information to analyze, identify and assess risks; assess law compliance by taxpayers; and manage risk dossiers of taxpayers that are likely to violate tax laws.

4. Tax agencies shall base themselves on results of the assessment of risks and law compliance of taxpayers under Clause 3, Article 5 of this Circular to apply the following measures to taxpayers: management of tax registration; management and inspection of tax declarations and payments; tax examination and inspection; classification of tax refund dossiers; enforcement of tax-related administrative decisions; classification of taxpayers that create, print, issue, manage and use tax prints, and other necessary professional measures.

5. Tax agencies shall monitor, update and assess feedback on results of the application of tax administration measures to taxpayers prescribed in Clause 4, Article 5 of this Circular; and measure the level of law compliance by taxpayers.

6. Tax agencies shall manage, archive and provide information and data; direct and guide the modification and supplementation to regulations on the application of risk management to ensure effective tax administration.

Article 6. Contents of application of risk management in tax administration

Tax agencies shall apply the risk management techniques specified in Articles 7 and 8 of this Circular to:

1. Management of tax registration;

2. Management and inspection of tax declaration and payment;

3. Management of tax refund;

4. Identification and selection of taxpayers to be included in tax examination and inspection plans in accordance with law;

5. Management of tax arrears and enforcement of tax-related administrative decisions;

6. Classification of taxpayers subject to management measures in the creation, printing, issuance, management and use of tax prints;

7. Collection and analysis of information and identification of taxpayers showing signs of violation of tax laws to be placed under stricter supervision.

8. Provision of information, data and assistance for other professional operations in tax administration.

Chapter II

SPECIFIC PROVISIONS

Section 1

RISK MANAGEMENT MEASURES AND TECHNIQUES

Article 7. Risk management measures and techniques in professional operations of tax agencies

For risk management in their professional operations of tax registration, declaration and payment; management of tax arrears and enforcement of tax-related administrative decisions; tax refund; tax examination and inspection; creation, printing, issuance, management and use of tax prints, tax agencies shall apply the following measures and techniques: 

1. Application of risk management criteria;

2. Collection of data and development of a taxpayer database; development of information technology applications in the risk management;

3. Assessment of tax law compliance and assessment and classification of risk levels of taxpayers;

4. Analysis of risks and identification of risks in professional tax administration operations;

5. Management of risk dossiers of taxpayers subject to sentinel supervision in tax administration for their likely non-compliance with tax laws or commission of tax fraud;

6. Drawing up and management of application of the list of risky taxpayers;

7. Application of a professional information system to identify forms and levels of management, urging, examination and inspection;

8. Measurement and assessment of tax law compliance in tax administration operations;

9. Monitoring, urging, examination and inspection of taxpayers; and assessment of efficacy and effectiveness of urging, examination and inspection measures and other professional tax administration measures to taxpayers.

Article 8. Collection and processing of information to serve risk management in professional operations of tax agencies

1. Information to serve the risk management in professional tax operations includes:

a/ Information from tax declaration dossiers and customs dossiers; financial statements and listing reports; statements and reports of taxpayers in accordance with tax laws and relevant laws;

b/ Information about tax law compliance in tax registration, declaration and payment; tax arrears; tax exemption and reduction; tax refund declaration and tax refund; tax examination and inspection; creation, printing, issuance, management and use of tax prints; information from examination, inspection and tax arrears settlement results; information and documents on sanctioning of administrative violations of tax laws; tax arrears and other measures applied by tax agencies in each period;

c/ Information provided by competent state management agencies and related agencies and organizations about investment; import and export of goods and services; registration and practical employment of labor; related-party transactions; transactions via banks, treasuries or other credit institutions; violations of the customs law; violations in the fields of accounting, statistics and corporate finance, and violations of the economic, civil and criminal laws;

d/ Information collected through purchase from or exchange with domestic and foreign sources, official information from tax administration agencies and overseas competent agencies under treaties to which the Socialist Republic of Vietnam is a contracting party and agreements concluded between Vietnam and related countries on taxation or customs for use in taxation;

dd/ Other relevant information sources.

2. The General Department of Taxation shall organize the collection of information for developing the taxpayer database to serve risk management, including:

a/ Information collected from taxpayers:

- Information about business registration and tax registration;

- Information about personal information of founding members and representatives of enterprises;

- Information about tax declaration, payment, arrears, exemption, reduction and refund dossiers; creation, printing, issuance, management and use of tax prints;

- Information about related parties and related-party transactions;

- Information about compliance with tax and other laws.     

b/ Coordination in information exchange:

- Connection and management of the taxpayer information systems;

- Coordination with the agencies and units of the Ministry of Finance and related ministries and sectors in the exchange and provision of information to serve tax administration under Articles 10 and 11 of this Circular;

- Coordination in information exchange with tax agencies of foreign countries and territories and related overseas agencies, organizations and individuals under Article 12 of this Circular;

- Summarization and analysis of information on newspapers, radio and television channels and e-portals of organizations and individuals and information in other mass media;

- Setting up of hotlines via the e-portal of the General Department of Taxation, telephones and email accounts to receive information about taxpayers committing tax frauds and other violations of tax laws.

c/ Collection of information from professional operations: 

- Collection and verification of information and documents by professional issue;

- Application of other necessary professional measures prescribed by law to collect information about activities of taxpayers;

- Purchase of information under regulations;

- Receipt of information provided by taxpayers in accordance with law.

d/ Information from related third parties such as domestic and overseas trade associations and business partners of taxpayers.

dd/ Information from reports and denunciations about tax evasion and frauds after final settlement conclusions are made by competent agencies and updated onto the database.

e/ Information and data from lawfully operating information suppliers. 

g/ Other official information sources as prescribed by law (including also information permitted by law to be purchased).

3. The General Department of Taxation shall develop and manage the tax information and database system and apply the following forms to process information to serve risk management in professional operations of tax agencies:

a/ Management and application of the database on professional tax operations to process information and data, analyze and assess risks in order to meet professional tax operation requirements under Article 9 of this Circular;

b/ Exploitation and use of information on the professional information system and information systems and databases inside and outside the tax sector and other related information sources, combined with professional knowledge and experience, for analysis and assessment of risks, and creation and provision of professional information products according to specific requests in the tax administration.

Article 9. Application of information technology in risk management

1. The database on professional tax operations shall be centrally managed by the General Department of Taxation, ensuring that information used for risk assessment shall be fully collected and updated, including:

a/ General information of taxpayers;

b/ Information about tax declaration dossiers and tax bases;

c/ Management of risk dossiers in tax registration, declaration, payment, arrears, refund, exemption and reduction, and creation, printing, issuance, management and use of tax prints;

d/ Information about taxpayers’ violations of tax laws;

dd/ Information about inspection, examination and post-inspection and post-examination handling results;

e/ Risk assessment criteria;

g/ Professional information products;

h/ Accounts of users on the system;

i/ Other relevant information.

2. Tax agencies shall apply information technology based on the promulgated set of risk management criteria; and connect the general information system and database of the tax sector with related information systems outside the tax sector for integrating and processing information and data in order to:

a/ Assess the tax law compliance of taxpayers;

b/ Assess and classify risks of taxpayers;

c/ Warn and channel risks, set professional requirements to direct and aid the examination and supervision of tax administration contents regarding the professional operations specified in Article 6 of this Circular.

3. The professional information system is the one connecting related information systems of the General Department of Taxation and tax agencies nationwide to serve the monitoring and supervision and decide on the application of supervision, urging, examination and inspection measures and other necessary professional measures in order to ensure tax law compliance.

4. Tax agencies shall base themselves on results obtained from the professional information system specified in Clauses 2 and 3, Article 9 of this Circular and other relevant information to apply law-prescribed management methods and forms.

5. The General Department of Taxation shall specify responsibilities of tax agencies and officers at all levels for developing, managing and operating the professional information system and updating, exploiting and using information on this system as appropriate to each professional tax operation.

Article 10. Coordination in information exchange with agencies and units of the Ministry of Finance

1. Tax agencies shall coordinate with the following agencies and units in exchanging and providing information to serve the risk management in professional tax operations:

a/ The General Department of Customs;

b/ The State Treasury;

c/ The Inspectorate of the Ministry of Finance;

d/ The Agency of Corporate Finance;

dd/ The Department of Tax Policy;

e/ The State Securities Commission;

g/ Other agencies and units of the Ministry of Finance.

2. Information to be exchanged and provided includes:

a/ Information about tax administration regimes and policies;

b/ Information of taxpayers, including:

b.1/ Information about tax registration of organizations and individuals;

b.2/ Information about operations of organizations and individuals;

b.3/ Information about tax declaration, payment, arrears, exemption, reduction and refund, and creation, printing, issuance, management and use of tax prints;

b.4/ Information about violations of tax laws; accounting, statistics and corporate finance regulations; economic, civil and criminal laws:

- Information about administrative violations related to taxes and other revenues;

- Information about administrative violations related to accounting and statistics;

- Information about tax evasions, tax frauds or accounting violations leading to tax evasions or frauds;

- Information relating to investigation and institution of criminal cases;

b.5/ Other relevant information about taxpayers;

c/ Tax fraud and evasion methods and acts:

d/ Other information relating to risk management in professional tax operations.

3. Forms of information exchange:

a/ Information exchanged via the computer network (using the uniform communications infrastructure of the Ministry of Finance).

b/ Information exchanged in the form of written document, fax, email or e-transmission and stored in other media (for tax agencies not yet connected to the e-information system).

c/ Information directly exchanged after being recorded or verified under regulations of the General Director of Taxation.

4. Tax agencies shall coordinate with the same-level agencies and units of the Ministry of Finance specified in Clause 1, Article 10 of this Circular in issuing specific regulations on coordination in information exchange appropriate to their functions and duties and management databases in order to exchange and provide information to serve risk management in professional tax operations.

The agencies and units of the Ministry of Finance shall coordinate with the same-level tax agencies in exchanging and providing information to serve risk management under Clauses 2 and 3, Article 10 of this Circular.

Article 11. Coordination in information exchange with functional agencies of other ministries and sectors

1. Tax agencies shall exchange and provide information with/to functional agencies and units of related ministries and sectors pursuant to current regulations and joint circulars of the Ministry of Finance and related ministries and sectors on exchange and provision of information to serve the state management of taxation and finance.

Tax agencies at all levels may sign coordination regulations with same-level functional agencies and units to realize and enhance their coordination relations in the exchange and provision of information to serve the state management of taxation under current regulations.

2. Information to be exchanged and provided includes:

a/ Information about business registrations of organizations and individuals;

b/ Information about operations of organizations and individuals;

c/ Information about tax declaration, payment and arrears; cases in which persons who have not yet fulfilled their tax obligations are not permitted to exit or have their exit postponed; tax incentives, exemption, reduction and refund; and creation, printing, issuance, management and use of tax prints;

d/ Information about transaction accounts; information about suspicious or abnormal transactions on transaction accounts;

dd/ Information about violations of tax laws; accounting and statistics regimes; economic, civil and criminal laws;

e/ Tax fraud and evasion methods and acts;

g/ Other relevant information about taxpayers;

h/ Other information relating to risk management in professional tax operations.

3. Forms of information exchange and provision:

a/ Exchange and provision of information in the form of official letter, fax, written document, email or data transmission;

b/ E-data connection and exchange via the information system of the tax sector with related agencies and units;

c/ Direct contact and exchange through working visits, verification and collection of documents, organization of meetings and other forms.

4. Contents and forms of information exchange and provision must comply with the regulations on protection of state secrets.

5. Once every six (6) months, tax agencies at all levels shall assess results of the implementation of the information exchange and provision mechanism, propose amendments and supplements to regulations and the coordination mechanism or solutions to problems arising in the course of implementation.   

Article 12. Collection of information relating to tax administration from abroad

1. The collection of information from abroad to serve the state management of taxation must comply with November 29, 2006 Law No. 78/2006/QH11 on Tax Administration and November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration and guiding documents; and the regulations on protection of state secrets.

2. Information sources abroad include:

a/ Information provided by tax agencies and other management agencies of countries and territories under double taxation avoidance agreements and information exchange and provision cooperation agreements signed with the Socialist Republic of Vietnam;

b/ Information provided by related international organizations under treaties to which the Socialist Republic of Vietnam is a contracting party;

c/ Information provided by manufacturers, importers or exporters at the request of tax agencies under treaties to which the Socialist Republic of Vietnam is a contracting party;

d/ Information services provided by overseas information service providers under treaties to which the Socialist Republic of Vietnam is a contracting party;

dd/ Other official sources of information as prescribed by law.

3. Forms of information collection, exchange and provision:

a/ Exchange and provision of information in the form of official letter, fax, written document, email or data transmission;

b/ Information sharing via e-data systems of tax agencies of countries and connection for information sharing via the information system with a foreign country (in case there is a treaty between the two countries);

c/ Information exchange in the forms of working visits of representatives, verification and collection of documents, organization of meetings and other forms.

Article 13. Management of information in taxpayer dossiers

1. A taxpayer dossier is a collection of information about a taxpayer’s establishment, business registration, tax registration, production or business operation, financial statements, tax declaration dossiers, reports on management of tax prints, process of compliance with tax and relevant laws, results of professional management by tax agencies and other relevant information.

The General Department of Taxation shall develop and manage in a centralized manner the taxpayer dossier information system to serve the integration and updating of information, assessment of law compliance, assessment of risks and application of appropriate tax administration regimes and policies.

2. Taxpayer dossiers shall be compiled and applied to meet professional tax operation requirements in each period, including:

a/ Taxpayer dossiers;

b/ Dossiers of other subjects related to activities of taxpayers;

c/ Tax agent dossiers.

3. The General Department of Taxation shall promulgate regulations on application of the set of information indicators, development of information systems and collection, updating, management and application of taxpayer dossiers on the principles of computerization and digitalization of documents, automatic system updating during professional operations, and performance of professional operations on the basis of the taxpayer database.

Article 14. Management of information about violations of taxpayers

1. Tax agencies shall manage in a centralized manner information on violations of taxpayers on the professional operation information system to serve the integration and updating of information, analysis and assessment of risks, and assessment of tax law compliance; making of statistics and analysis of the trend of violations of tax laws to meet requirements of other professional operations in the tax administration of taxpayers.

2. Information about violations of taxpayers includes information about illegal acts committed in the tax administration and information about violations related to accounting and statistics detected and handled by tax agencies or other functional agencies, specifically as follows:

a/ Information about violations of taxpayers which are detected and handled by tax agencies shall be managed according to violation case files and updated onto the system according to e-document forms. The updating process must last from the time of commission of acts violating or acts likely to violate tax laws to the time of completion of the handling of violations.

b/ Information about violations which are detected and handled by other functional agencies shall be collected and updated onto the information system under Articles 10 and 11 of this Circular and the regulations on coordination between tax agencies and other functional agencies.

3. While performing their duties, if tax officers detect violations of tax laws, they shall make written records of administrative violations in accordance with law and input information about the violations in the professional operation information system within 24 hours after the issuance of decisions on handling of administrative violations,

4. Units and civil servants of functional and professional sections in tax agencies at all levels shall:

a/ Monitor, examine and guide the timely updating of full and accurate information about violations onto the system;      

b/ On a quarterly basis, analyze, summarize and report on the situation and trend of violations of tax laws; analyze and assess the law compliance of taxpayers;

c/ Exploit and use information about violations to meet requirements of professional tax operations.

5. The General Department of Taxation shall prescribe and guide in detail the collection, management and use of information about violations of taxpayers under Article 14 of this Circular.

Article 15. Promulgation of sets of criteria and sets of indicators to serve risk management

1. The General Department of Taxation shall base itself on the practical situation to develop and submit to the Ministry of Finance for promulgation the sets of criteria for assessment of tax law compliance and risks of taxpayers to meet tax administration requirements in each period and conform with tax laws and current state management policies, including:

- Criteria for assessment of tax law compliance of taxpayers;

- Criteria for assessment and classification of risk levels of taxpayers;

- Criteria for selection of cases subject to examination of tax registration;

- Criteria for selection of tax declaration dossiers to be examined at offices of tax agencies;

- Criteria for classification and handling of tax refund dossiers and selection of dossiers showing signs of risk to be added in post-tax refund examination and inspection plans;

- Criteria for selection of taxpayers showing signs of risk in order to work out plans on examination and inspection at offices of taxpayers;

- Criteria for management and monitoring of collection of tax arrears and application of measures to enforce tax-related administrative decisions;

- Criteria for identification of risk levels in order to implement the law-prescribed regime of management and use of invoices and documents and identification of cases in which taxpayers show signs of risk to be added in examination and inspection plans regarding the creation, printing, issuance, management and use of tax invoices and prints.

2. The General Director of Taxation shall develop and submit to the Ministry of Finance for promulgation the sets of indicators for assessment of tax law compliance and risks of taxpayers to meet the tax administration requirements in each period and conform with tax laws and current state management policies, including:

- Indicators for assessment of tax law compliance of taxpayers;

- Indicators for assessment and classification of risk levels of taxpayers;

- Indicators for selection of cases subject to examination of tax registration;

- Indicators for selection of tax declaration dossiers to be examined at offices of tax agencies;

- Indicators for classification and handling of tax refund dossiers and selection of dossiers showing signs of risk to be added in post-tax refund examination and inspection plans;

- Indicators for selection of taxpayers showing signs of risk in order to work out plans on examination and inspection at offices of taxpayers;

- Indicators for management and monitoring of collection of tax arrears and application of measures to enforce tax-related administrative decisions;

- Indicators for identification of risk levels in order to implement the law-prescribed regime of management and use of invoices and documents and identification of cases in which taxpayers show signs of risk to be added in examination and inspection plans regarding the creation, printing, issuance, management and use of tax invoices and prints.

Article 16. Assessment of tax law compliance of taxpayers

1. Tax agencies shall assess tax law compliance of operating taxpayers in order to apply tax administration measures and other necessary professional measures in the tax administration of the taxpayers.

2. The assessment of tax law compliance of taxpayers shall be conducted on the professional operation information system which automatically assesses tax law compliance of taxpayers based on the conditions specified in Clause 3, Article 16 of this Circular and classifies taxpayers into the following three (3) classes:

a/ Class 1: Taxpayers that well comply with tax laws (below referred to as highly compliant taxpayers);

b/ Class 2: Taxpayers that moderately comply with tax laws (below referred to as fairly compliant taxpayers);

c/ Class 3: Taxpayers that poorly comply with tax laws (below referred to as poorly compliant taxpayers).

3. Conditions for assessing tax law compliance of taxpayers.

a/ A taxpayer shall be assessed as highly compliant when fully satisfying the following conditions:

a.1/ Being operational and fully and promptly declaring and paying imposed taxes under regulations; paying tax amounts appropriate to the size and investment or business field of its enterprise; and having well observed the regime of management and use of tax prints during two (2) years prior to the date of assessment.

a.2/ Paying taxes related to production and business activities (value-added tax, enterprise income tax, etc.) in a ratio to its turnover above the average ratio of production and business enterprises in the same field or sector.

a.3/ During two (2) consecutive years prior to the date of assessment:

- Having not been sanctioned for administrative violations in taxation or tax prints with a total fine amount falling beyond the competence of directors of district-level Tax Departments to sanction violations of tax procedures in accordance with the law on handling of tax-related administrative violations.

- Having not been administratively sanctioned by competent state agencies for tax evasion or frauds.

- Having not been administratively handled by tax agencies for non-compliance with tax examination or inspection decisions or coerced to execute tax-related administrative decisions.

- Having not been assessed through inspection, examination, management or supervision by competent state agencies as having failed to comply with the corporate finance, accounting and statistics laws.

- Having not been assessed through inspection, examination, management or supervision by competent state agencies as having failed to comply with the tax and customs laws.

- Having not been involved in criminal offenses subject to institution of criminal cases or its lawful representatives having not been accused in criminal cases.

a.4/ Having no tax arrears, late paid remittances and fines; owing no charges and fees to the state budget as prescribed by the law on charges and fees; owing no levies to the state budget in accordance with the Land Law the collection of which is managed by tax agencies, and other revenues to the state budget as prescribed by law, except tax arrears rescheduled in accordance with law and not yet due according to the rescheduled payment deadline by the time of assessment.

b/ A taxpayer shall be assessed as fairly compliant if it does not fall into the cases specified at Points a and c, Clause 3, Article 16 of this Circular.

c/ A taxpayer shall be assessed as poorly compliant when falling into one of the following cases:

c.1/ By the time of assessment, it:

- Has neither made nor submitted the tax declaration dossier and has paid taxes fully and on time for at least one third of its tax returns for the last 12 months;

- Has made negative value-added tax declarations for more consecutive periods than the average number of production and business enterprises operating in the same field or sector;

- Has an accumulative loss exceeding 50% (fifty percent) of its enterprise’s equity;

- Falls into a case subject to enforcement of a tax-related administrative decision, owes a late-paid remittance, fine, charge or fee amount or another revenue of the state budget as prescribed by law.

c.2/ During 2 (two) consecutive years prior to the date of assessment or during the period from the date of establishment to the date of assessment, for those established for less than 2 (two) years, it:

- Has been sanctioned twice or more for an administrative violation in taxation or tax prints with a total fine amount falling beyond the competence of directors of district-level Tax Departments to sanction violations of tax procedures in accordance with the law on handling of tax-related administrative violations.

- Has been administratively sanctioned by competent state agencies for tax evasion or frauds or for violations related to accounting.

- Has been administratively handled by tax agencies for non-compliance with tax examination or inspection decisions or enforcement of tax-related administrative decisions.

- Has committed a criminal offense for which a criminal case is instituted and is investigated.

- Has been assessed through inspection, examination, management and supervision by competent state agencies as having failed to comply with tax and customs laws.

c.3/ It has used unlawful tax prints or illegally used tax prints.

4. The General Department of Taxation shall:

a/ Develop the professional operation information system and taxpayer database to automatically serve tax agencies at all levels in assessing the tax law compliance of taxpayers.

b/ Guide the uniform application of the conditions for assessment of the tax law compliance of taxpayers prescribed in Clause 3, Article 16 of this Circular.

c/ Determine the period of assessment of the tax law compliance of taxpayers.

d/ Direct and guide tax agencies at all levels in collecting and updating information and ensuring the assessment of the tax law compliance of taxpayers.

Article 17. Assessment and classification of risk levels of taxpayers in tax administration

1. In the tax administration, taxpayers subject to assessment and classification of risk levels include:

a/ Class 1: Very low-risk taxpayers;

b/ Class 2: Low-risk taxpayers;

c/ Class 3: Average-risk taxpayers;

d/ Class 4: High-risk taxpayers;

dd/ Class 5: Very high-risk taxpayers;

e/ Class 6: Taxpayers that have operated for under 12 months.

2. Tax agencies at all levels shall collect information and apply the sets of criteria specified in Article 15 of this Circular, the professional operation information system and system for assessment of the tax law compliance of taxpayers specified in Clause 2, Article 16 of this Circular to assess and classify risk levels of taxpayers.

3. Results of the assessment and classification of risk levels of taxpayers shall be provided as a basis for deciding on the application of measures of examination, inspection and supervision of high-risk taxpayers or other professional measures in the tax administration regarding the contents specified in Article 6 of this Circular.

4. The General Department of Taxation shall:

a/ Develop and issue professional processes and prescribe specific responsibilities of tax agencies at all levels for the collection of information and assessment and classification of risk levels of taxpayers.

b/ Regularly assess and classify risk levels; update the list of taxpayers violating tax laws; the list of tax arrears and list of tax arrears to be publicized; the list of enterprises classified as those at high risk of violating tax laws and purchasing invoices issued by tax agencies.

c/ Base itself on the number of operating taxpayers managed by tax agencies at all levels to draw up lists of taxpayers subject to assessment and classification suitable to conditions and capability of each tax agency.

Article 18. Management of risks of taxpayers that are dissolved, go bankrupt, have their business registration certificates, enterprise registration certificates, investment certificates or investment registration certificates revoked, terminate or suspend their operation

1. The General Department of Taxation shall develop an e-database on, and update information about, taxpayers that are dead, missing or have lost their civil act capacity; taxpayers that have been dissolved, gone bankrupt or had their business registration certificates, enterprise registration certificates, investment certificates or investment registration certificates revoked and their tax identification numbers invalidated in accordance with tax laws as certified by tax agencies or other functional agencies.

2. The General Department of Taxation shall develop an e-database on, and update information about, taxpayers that have suspended or terminated their operation but have not yet had their tax identification numbers invalidated in accordance with tax laws. Tax agencies shall still assess the law compliance and assess and classify risk levels of these taxpayers.

Article 19. Drawing up and management of lists of risky taxpayers by tax administration operations

1. The General Department of Taxation shall use the sets of criteria specified in Article 15 of this Circular, results of the classification of risk levels of taxpayers under Article 17 and the professional operation information system to channel, draw up and manage lists of risky taxpayers in each tax administration operation in each period, including:

a/ List of cases subject to tax registration examination;

b/ List of cases subject to tax declaration dossier examination at offices of tax agencies;

c/ List of classified taxpayers in the handling of tax refund dossiers and selection of dossiers showing signs of risk to be added to post-tax refund examination and inspection plans;

d/ List of cases selected for examination and inspection at offices of taxpayers;

dd/ List of cases subject to management and monitoring of tax arrears collection and cases in which the measure of enforcement of tax-related administrative decisions is applied;

e/ List of risky taxpayers that have to use invoices created by tax agencies under regulations of the Ministry of Finance (such as invoices printed under orders or e-invoices with certification codes of tax agencies) and cases in which taxpayers show signs of risk to be added to examination or inspection plans regarding creation, printing, issuance, management and use of tax invoices and prints.

2. The General Department of Taxation shall make specific lists of taxpayers in the cases specified in Clause 1, Article 19 of this Circular from the professional operation information system and submit them to heads of competent agencies for approval, including also lists which need to be supplemented or modified in each period (if any). Information about taxpayers on the lists in the cases specified in Clause 1, Article 19 of this Circular includes:

a/ Names of taxpayers or their lawful representatives, and tax identification numbers, addresses and main business lines of taxpayers;

b/ Risks classified under Clause 1, Article 17 of this Circular;

c/ Other information relating to taxpayers.

3. Lists of risky taxpayers in the cases specified in Clause 1, Article 19 of this Circular shall be updated on the professional operation information system of the tax sector. Tax agencies at all levels shall summarize, update and manage lists of risk taxpayers in the entire sector to serve tax administration.

4. The General Department of Taxation shall prescribe in detail the assessment and drawing up of lists of risky taxpayers in the cases specified in Clause 1, Article 19 of this Circular in order to identify key issues in the tax administration to meet the tax administration requirements in each period.

Article 20. Sentinel supervision of taxpayers showing signs of violation of tax laws

1. Taxpayers subject to sentinel supervision are those showing the following signs:

a/ They conduct via-bank transactions showing suspicious signs as prescribed by the law on money laundering prevention and combat and related to tax evasions or frauds.

b/ They or their lawful representatives are accused in criminal cases for violations in taxation or tax prints.

c/ They show signs of high tax risks in key issues subject to tax administration supervision.

2. Tax agencies at all levels shall use the applications of the system of professional operation information about the subjects specified in Clause 1, Article 20 of this Circular to apply prescribed professional tax administration measures.  

3. Tax agencies at all levels shall monitor, supervise and apply professional tax administration measures appropriate to each case specified in Clause 1, Article 20 of this Circular.

4. Updating of results and feedback:

a/ Provincial-level Tax Departments shall summarize and update results of the application of professional measures in specific cases and report them to the General Department of Taxation.

b/ The General Department of Taxation shall summarize and analyze risks and issue risk warnings in tax administration to tax agencies at all levels.

5. The General Department of Taxation shall specify the collection and analysis of information, and identification of key issues subject to supervision and supervision measures in accordance with regulations in each period.

Section 2

APPLICATION OF RISK MANAGEMENT IN PROFESSIONAL TAX ADMINISTRATION OPERATIONS

Article 21. Application of risk management in the administration of tax registration

1. Tax agencies shall receive tax registration dossiers submitted directly at their offices and dossiers transferred by business registration offices through the information systems connected with such offices, and base themselves on the cases subject to tax registration examination as channeled on the professional operation information database under Article 19 of this Circular to apply appropriate measures to handle and process such dossiers or coordinate with business registration offices in handling and processing them in accordance with the laws on business and tax registration:

a/ For dossiers of newly established taxpayers that make tax registration/enterprise registration for the first time; dossiers of changes in tax registration/enterprise registration information or dossiers for business suspension registration: To automatically grant tax identification numbers/enterprise identification numbers to these taxpayers; accept dossiers of information changes or dossiers for business suspension registration under current regulations on tax and business registration. At the same time, based on the list of cases subject to tax registration examination prescribed in Article 19 of this Circular, to examine or coordinate with business registration offices and related state management agencies in examining tax registrations under current regulations.

b/ For dossiers for registration of dissolution, bankruptcy or operation termination       

- To update the status of dissolution, bankruptcy or operation termination on the tax registration application system for cases in which tax obligations have been fulfilled under regulations;

- To request or send notices to business registration offices to request taxpayers to fulfill tax obligations before their dissolution, bankruptcy or operation termination.

At the same time, based on the list of cases subject to tax registration examination prescribed in Article 19 of this Circular, to examine or coordinate with business registration offices and related state management agencies in examining tax registrations under current regulations.

2. Updating and notification of results:

Tax officers shall electronically handle tax registration dossiers on the taxpayer database. In case the dossiers are also handled in written form, tax agencies shall fully and accurately update handling measures and examination results in each case on the professional operation information system to serve the management of risks and assessment of tax law compliance of taxpayers.

Article 22. Application of risk management in the examination of tax declaration dossiers at offices of tax agencies

1. Tax agencies shall apply risk management in examining at their offices tax declaration dossiers of taxpayers having made tax registration but failing to fully declare taxes and taxpayers engaged in production or business activities failing to declare taxes fully and on time.

2. Tax agencies shall receive tax declaration dossiers and base themselves on the list of cases in which taxpayers are subject to tax declaration dossier examination at their offices as channeled on the professional operation information database under Article 19 of this Circular and system warnings on information which need to be verified in tax declaration dossiers of taxpayers to apply appropriate measures to handle and process tax declaration dossiers:

- For taxpayers not falling in the listed cases subject to examination at offices of tax agencies, of whom no risks are detected, or showing no sign of violation, their dossiers shall be kept for monitoring;

- For taxpayers falling in the listed cases subject to examination at offices of tax agencies, their tax declaration dossiers shall be examined and they shall be requested to explain or add information.

3. The examination of tax declaration dossiers at offices of tax agencies shall be conducted under Article 77 of the Law on Tax Administration and Clauses 1 and 2, Article 1 of November 20, 2012 Law No. 21/2012/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration. In the course of examination of tax declaration dossiers, tax agencies shall use taxpayer data updated on the professional tax administration operation information database and information relating to taxpayers (if any).

4. Updating and notification of examination results:

Upon completing the examination of tax declaration dossiers of taxpayers specified in Clause 2, Article 22 of this Circular at their offices, tax agencies shall fully and accurately update examination results in each case onto the professional operation information database to serve the management of risks and assessment of tax law compliance of taxpayers.

Article 23. Application of risk management in tax refund management

1. Tax agencies shall receive tax refund dossiers and base themselves on the professional operation information database’s channeling of classified taxpayers in the handling of tax refund dossiers and choice of post-tax refund examination or inspection under Article 19 of this Circular to apply appropriate measures in the handling and processing of tax refund dossiers:

a/ Classification and handling of tax refund dossiers:

- The General Department of Taxation shall base itself on the professional operation information database’s channeling to identify tax refund dossiers eligible for tax refund before examination and those subject to examination before tax refund.

- In the course of handling of tax refund dossiers, if detecting taxpayers showing signs of violation of tax and customs laws or if taxpayers fail to explain or supplement their tax refund dossiers or though having made dossier explanation or supplementation, taxpayers still fail to prove their declared tax amounts are correct, tax agencies shall change the channel of classified tax refund dossiers of taxpayers from tax refund before examination to examination before tax refund; the approval of change of classification channel shall be updated onto the professional operation information system.

b/ Post-tax refund examination and inspection (at the request of superior agencies) of dossiers eligible for tax refund before examination:

Tax agencies shall select taxpayers subject to post-tax refund examination and inspection of their dossiers which are eligible for tax refund before examination based on risk levels of such taxpayers classified under Article 19 of this Circular, and at the same time comply with current regulations, specifically:

b.1/ For taxpayers in the cases specified at Point a, Clause 4, Article 41 of Decree No. 83/2013/ND-CP: Post-tax refund examination and inspection shall be completed within 1 (one) year from the date of issuance of tax refund decisions in the priority order from higher risk to lower risk levels.

b.2/ For taxpayers in the cases specified at Point b, Clause 4, Article 41 of Decree No. 83/2013/ND-CP: Post-tax refund examination and inspection shall be completed within 60 days from the date of issuance of tax refund decisions for all high-risk enterprises; within 90 days for 50% of risk enterprises and within 180 days for remaining 50% of enterprises.

2. Tax agencies at all levels shall base themselves on results of the classification of tax refund dossiers and selection of taxpayers subject to post-tax refund examination and inspection under Clause 1, Article 23 of this Circular to handle tax refund dossiers and examine and inspect tax refund in accordance with law.

3. Updating and notification of results:

- Tax agencies shall receive for handling tax refund dossiers specified at Point a, Clause 1, Article 23 of this Circular, update onto the system these dossiers and draft tax refund decisions. Within 6 working hours, the General Department of Taxation shall notify handling results. Based on results notified by the General Department of Taxation, provincial-level Tax Departments shall issue tax refund decisions and automatically update these decisions onto the taxpayer database.

- Upon completing the examination and inspection of taxpayers specified at Point b, Clause 1, Article 23 of this Circular, tax agencies shall fully and accurately update examination and inspection results onto the professional operation information system for each case and notify such results to related superior units for summarization and timely modification or supplementation of the risk management criteria to serve the management of risks and assessment of tax law compliance of taxpayers.

Article 24. Application of risk management in the selection of cases subject to inspection and examination at offices of taxpayers

1. Tax agencies shall work out annual plans on inspection and examination at offices of taxpayers under Articles 78 and 81 of  November 29, 2006 Law No. 78/2006/QH11 on Tax Administration and Point 24, Article 1 of November 20, 2012 Law No. 21/QH13 Amending and Supplementing a Number of Articles of the Law on Tax Administration; Article 49 of Decree No. 83/2013/ND-CP of July 22, 2013, detailing a number of articles of the Law on Tax Administration and the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration; and base themselves on risk levels of taxpayers classified under Article 19 of this Circular to select cases subject to examination and inspection at offices of taxpayers.

Annual plans on inspection and examination at offices of taxpayers must ensure the following requirements:

- The list of taxpayers to be inspected must cover 1% to 2% of total operating enterprises; the list of taxpayers to be examined must cover 15% to 18% of total operating enterprises.

- The list of taxpayers to be inspected shall be decided by the Minister of Finance; the list of taxpayers to be examined shall be decided by the General Director of Taxation.

a/ Selection of cases subject to inspection:

Tax agencies shall select cases subject to inspection at offices of taxpayers, ensuring that:

- The number of cases selected through analysis, assessment and classification of risks accounts for at least 90% of the number of cases subject to inspection under annual plans;

- The number of randomly selected cases accounts for at most 10% of the number of cases subject to inspection under annual plans.

b/ Selection of cases subject to examination:

Cases in which taxpayers are classified as high risk, except the cases already selected to be incorporated in inspection plans specified at Point a, Clause 1, Article 24 of this Circular, shall be selected to be subject to examination. The selection of cases subject to examination at offices of taxpayers must ensure that:

- The number of cases selected through analysis, assessment and classification of risks accounts for at least 90% of the number of cases subject to examination under annual plans;

- The number of randomly selected cases accounts for at most 10% of the number of cases subject to examination under annual plans.

2. The General Department of Taxation shall develop and promulgate professional processes and prescribe specific responsibilities of tax agencies at all levels for making tax inspection and examination plans.

3. The making and competence for approval of plans on inspection and examination at offices of taxpayers; the list of cases to be added or changed in plans on inspection and examination at offices of taxpayers specified in Clause 1, Article 24 of this Circular shall be conducted under the documents guiding the Law on Tax Administration and the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration.

4. Updating and notification of results of examination and inspection at offices of taxpayers:

- In the course of conducting examination and inspection of taxpayers under Clause 1, Article 24 of this Circular, tax agencies shall promptly update their examination and inspection decisions onto the system upon the issuance of such decisions. During the examination and inspection of cases in which exist problems or divergent opinions, such shall be updated onto the system. Within 3 working days, the General Department of Taxation shall send notices thereof via the taxpayer database. Upon completion of the examination and inspection, examination and inspection results shall be fully and accurately updated onto the professional operation information system for each case and notify such results to related superior units for summarization and timely modification or supplementation of risk management criteria to serve the assessment of risks and tax law compliance of taxpayers.

- Heads of tax agencies at all levels shall issue electronic decisions on sanctioning of administrative violations of tax laws. In case of issuance of written decisions, they shall promptly update such decisions onto the database on the list of taxpayers violating tax laws and issue decisions to publicize the list of violating taxpayers on the website of the General Department of Taxation.

5. Tax agencies shall receive complaints and denunciations and settle them in accordance with the law on complaints and denunciations and promptly update them onto the taxpayer database.

Article 25. Application of risk management in the management of the collection of tax arrears and enforcement of tax-related administrative decisions

1. Tax agencies shall manage the collection of tax arrears and enforcement of tax-related administrative decisions in accordance with the Law on Tax Administration, the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration and guiding documents.

2. The General Department of Taxation shall develop a database on management of tax arrears of taxpayers in order to apply professional measures to urge the collection of arrears and enforce tax-related administrative decisions.

The General Department of Taxation and heads of tax agencies at all levels shall build a system for management of tax arrears and devise measures to urge the collection of arrears to be applied to the following categories of taxpayers:

- Taxpayers that have fulfilled the tax obligation toward the state budget and owe no tax arrears;

- Taxpayers that have owed tax for between 60 and 90 days;

- Taxpayers that have owed tax for between 91 and 121 days;     

- Taxpayers that have owed tax for over 121 days.

3. Tax agencies shall base themselves on the lists of cases of management and monitoring of the collection of tax arrears and cases subject to measures to enforce tax-related administrative decisions specified in Article 19 of this Circular and warnings of the system of information about tax arrears management to apply measures to urge the tax arrears collection and enforce tax-related administrative decisions against each taxpayer in accordance with current laws; certify the fulfillment of the tax obligation of taxpayers; and transmit information about taxpayers that are not yet permitted to exit or have their exit postponed in electronic or written form to the immigration management agency.

4. Management of tax arrears and enforcement of tax-related administrative decisions:

- Tax agencies shall send electronic notices of tax arrears and fines for late tax payment or enforcement decisions to tax-owing taxpayers specified in Clause 3, Article 25 of this Circular and related parties (if any); fully and accurately update onto the professional operation information system handling results in each case to serve the management of risks and assessment of tax law compliance of taxpayers.

- On a monthly basis, tax agencies all levels shall publicize tax arrears of taxpayers under Clause 1, Article 74 and Clause 3, Article 102 of November 29, 2006 Law No. 78/2006/QH11 on Tax Administration.

Article 26. Application of risk management in the management of creation, printing, issuance, management and use of tax prints

1. Tax agencies shall manage the creation, printing, issuance, management and use of tax prints in accordance with current regulations on tax prints.

2. Heads of tax agencies shall base themselves on information channeled on the professional operation information system about taxpayers that use invoices created by tax agencies under regulations of the Ministry of Finance (invoices printed under orders or e-invoices with certification codes of tax agencies) and those subject to examination and inspection of printing, issuance, management and use of tax prints under Article 19 of this Circular to issue decisions on application of professional measures to manage tax prints (decisions issued in electronic or written form; tax officers shall update written decisions onto e-dossiers of tax agencies) as follows:

a/ Deciding on cases in which taxpayers use invoices for the first time, use invoices created by tax agencies under regulations of the Ministry of Finance (invoices printed under orders or e-invoices with certification codes of tax agencies) or may create invoices by themselves for use;

b/ Deciding on cases in which enterprises stop using invoices which they print or are printed under their orders or shift to using invoices created by tax agencies under regulations of the Ministry of Finance like invoices printed under orders or e-invoices with certification codes of tax agencies, for enterprises currently using invoices which they print or are printed under their orders and having high tax risks or enterprises having committed violations related to invoices and being administratively handled for tax evasion or fraud.

According to the implementation roadmap set by tax agencies, high-risk taxpayers (including also business organizations and individuals) shall make e-invoices and electronically transmit invoice information to tax agencies for receiving invoice certification codes from tax agencies under current regulations;

c/ Publicizing the list of enterprises at high risk of violation of tax laws and required to use invoices created by tax agencies on the website of the General Department of Taxation under current regulations on management and use of tax prints;

d/ Handling administrative violations in the creation, printing, issuance, management and use of tax prints under current regulations;

dd/ Notifying invoices that are no longer valid for use in accordance with law (including invoices created by taxpayers themselves, those created by tax agencies and those no longer valid for use due to application of measures to coerce the payment of tax arrears under current regulations);

e/ Deciding on cases in which taxpayers are subject to examination and inspection of printing, issuance, management and use of tax prints in accordance with the Law on Tax Administration, Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, Law on Inspection, and current tax examination and inspection procedures.

3. Updating and notification of results:

Tax agencies shall electronically update results of the application of tax print management measures. Written decisions on application of tax print management measures shall be promptly updated onto the taxpayer database to serve the management of risks and assessment of tax law compliance of taxpayers.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 27. Effect

This Circular takes effect on February 4, 2016.

Article 28. Implementation responsibilities

1. The General Director of Taxation shall base himself/herself on the practical conditions to work out plans and submit to the Minister of Finance for promulgation decisions on application of technical and professional measures to manage risks in professional tax operations; issue documents to guide and organize the risk management in professional tax operations under plans and decisions of the Minister of Finance under this Circular.

2. Functional agencies and units of the Ministry of Finance and related ministries and sectors; organizations and individuals involved in the tax administration shall coordinate with and provide information to tax agencies in accordance with current laws and this Circular.

3. Heads of departments and units under the General Department of Taxation shall assist the General Director in collecting and processing professional tax information, managing and applying the professional operation information system and uniformly applying risk management in tax agencies at all levels.

4. Directors of provincial- and district-level Tax Departments shall organize the uniform application of regulations on risk management: To collect and process information based on the criteria for assessment of risks and law compliance of taxpayers; to effectively implement risk management programs and plans as assigned or decentralized to them; to take responsibility before law for smuggling, tax evasion or trade fraud practices occurring due to improper implementation of the processes and regulations on application of risk management in their localities.

5. The General Department of Taxation shall organize specialized units to perform risk management under the General Department of Taxation, provincial-level Tax Departments and district-level Tax Departments managing more than 3,000 enterprises and collecting a large tax amount of at least VND 1,000 billion each. In the remaining district-level Tax Departments, tax examination teams shall assist heads of tax agencies at all levels in collecting and processing information, developing databases and sets of risk management criteria and employing the professional tax operation information system to analyze, identify and assess risks and law compliance of taxpayers, and for directly implementing Articles 15, 16, 17, 18, 19 and 20 of this Circular.

6. Business organizations and individuals (business individuals include individuals, groups of individuals and households) that pay taxes, charges, fees and other revenues to the state budget as prescribed by law shall implement the regulations on application of risk management in accordance with law and this Circular.-

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN