Assessment and rating of taxpayer’s risk level in tax management

1. The taxpayers are assessed and rated according to their risk level in tax management, including:

a) Level 1: Taxpayers with very low risks;

b) Level 2: Taxpayers with low risks;

c) Level 3: Taxpayers with average risks;

d) Level 4: Taxpayers with high risks;

dd) Level 3: Taxpayers with very high risks;

e) Level 6: Taxpayers having the operating time of less than 12 months.

2. The tax authorities at all levels shall collect information and apply the set of criteria specified in Article 15 of this Circular, the operational information system and assess the taxpayer’s compliance with law as stipulated in Clause 2, Article 16 of this Circular to assess and rate the taxpayer’s risk level.

3. The result of assessment and rating of taxpayer’s risk level is provided as a basis for decision on application of measures to verify, inspect and monitor the taxpayers with high risks or other operational measures in tax management for the contents specified in Article 6 of this Circular.

4. The General Department of Taxation:

a) Develops and issues the operational procedure and defines the responsibility of tax authorities at all levels in information collection, assessment and rating of taxpayer’s risk level.

b) Periodically assesses and rates the risk levels; updates the list of taxpayers committing violation of tax; list of tax debt at public level; list of enterprises of high risk violating the tax law buying invoices issued by the tax authorities.

c) Based on a number of operating taxpayers managed by the tax authorities at all levels to make a list of taxpayers subject to being assessed and rated in accordance with conditions and capacity of each tax authority.

Article 18. Risk management to the taxpayers who dissolves, went bankrupt, stopped operating or temporarily stopped operating and whose Certificate of business registration, Certificate of enterprise registration, Certificate of investment or Certificate of investment registration is revoked

1. The General Department of Taxation shall develop the electronic database and update the list of taxpayers who die, are missing, lose civil act capacity; the taxpayers have dissolved, gone bankrupt and whose Certificate of business registration, Certificate of enterprise registration, Certificate of investment or Certificate of investment registration is revoked and the effect of tax code was terminated in accordance with regulations of tax law according to the certification of the tax authorities or other competent authorities.

2. The General Department of Taxation shall develop the electronic database and update the list of taxpayers who temporarily stopped operating or stopped operating but the effect of tax code has not been terminated in accordance with regulations of tax law; the tax authorities will have to assess the compliance with law and rate the risk level to such subjects.

Article 19. Making and managing the list of taxpayers with risks by the tax management operations

1. The General Department of Taxation uses the sets of criteria specified in Article 15 of this Circular and uses the result of rating of taxpayer’s risk level specified in Article 17 and the operational information system to classify, make and manage the list of taxpayers with risks by each tax management operation in each period, including:

a) List of verification cases of tax registration;

b) List of cases of verification of tax declaration dossier at the head office of tax management body;

c) List of classification of taxpayers in settlement of tax refund dossier and selection of dossiers with signs of risk to add them in the verification and inspection plan after tax refund;

d) List of selection of cases for verification and inspection at the taxpayer’s head office.

dd) List of cases of management and monitoring of tax debt collection and cases of application of enforcement of administrative decision on tax;

e) List of taxpayers with risks who must use invoices made by the tax authorities as prescribed by the Ministry of Finance (invoices printed by order or electronic invoices with certification code of the tax authorities) and cases where the taxpayers have signs of risk in order to add them in the verification and inspection plan on creation, printing, issue, management and use of invoices and printed matters of tax.

2. The General Department of Taxation shall make a list according to the cases specified in Clause 1, Article 19 of this Circular about the taxpayers from the operational information system and submit it to the head of competent authorities for approval, including the list to be added or adjusted in each period (if any). The information about the taxpayers is based on the list of cases specified in Clause 1, Article 19 of this Circular, including:

a) Name of taxpayers or their legal representatives, tax code, address, main business lines;

b) Rating of risk level specified in Clause 1, Article 17 of this Circular;

c) Other taxpayers’ relevant information.

3. List of taxpayers with risks according to cases specified in Clause 1, Article 19 of this Circular is updated in the operational information system of the tax sector. The tax authorities at all levels shall aggregate, update and manage the list taxpayers with risks in the entire sector for tax management.

4. The General Department of Taxation shall detail the periodical assessment and make a list of taxpayers with risks according to the cases specified in Clause 1, Article 19 of this Circular for tax management to meet the tax management requirements in each period.