Quick Guide To Conducting Vietnam Tax Inspection For Companies

With the evolving regulatory landscape and the critical importance of compliance, understanding the nuances of the tax inspection process is paramount. In this comprehensive guide, we delve into the key aspects of conducting tax inspections in Vietnam, providing essential insights into the purpose, scope, duration, and concluding procedures of these inspections.

What is a tax inspection in Vietnam?

A tax inspection in Vietnam is a critical process carried out by tax authorities to evaluate taxpayers’ compliance with tax laws. It involves a thorough examination of financial records, tax returns, and other pertinent documents to verify and collect evidence, with the ultimate aim of identifying any violations of tax regulations. This examination is based on a careful analysis of information and data related to the taxpayers.

Tax inspection is of utmost importance for businesses operating in Vietnam. However, a lack of understanding regarding the regulations governing these processes can lead to financial losses and potential risks for enterprises.

What is the purpose of conducting tax inspections?

The purpose of conducting tax inspections is to ensure tax compliance, uphold the integrity of the taxation system, and address specific concerns related to tax matters. These inspections serve several essential objectives:

1. Tax Compliance Assessment – Tax inspections are conducted to assess whether individuals and businesses are adhering to tax laws and regulations by meticulously reviewing financial records, tax returns, and relevant documentation.
2. Verification of Information – During a tax inspection, tax authorities verify the accuracy and completeness of information and documents in tax dossiers. This verification process is critical to confirm that individuals and businesses are providing truthful and accurate financial information for tax purposes.
3. Collection and Analysis of Data – Tax authorities collect and analyze information and data related to taxpayers to identify discrepancies, errors, or violations of tax laws. This analysis is crucial for maintaining tax law compliance and enforcing tax regulations.

The scope of tax inspection

The scope of tax inspection in Vietnam is well-defined and focuses on specific situations, including:

1. Suspected Tax Offense – Tax inspections are carried out when there is a suspicion of a tax offense. This serves to investigate and address any potential violations of tax laws and regulations.
2. Complaint Resolution and Anti-Corruption Measures – Tax inspections are initiated when there is a need to resolve a formal complaint or to enforce anti-corruption measures related to tax matters. This ensures transparency and integrity in tax-related issues.
3. Risk-Based Tax Administration – Tax inspections are conducted based on the classification of risks in tax administration. This targeted approach allows authorities to examine businesses or individuals that pose a higher risk of non-compliance.
4. Request from Competent Authorities – In some instances, tax inspections are initiated upon the request of other government agencies, such as the State Audit Office of Vietnam (SAV), the Government Inspectorate, or other relevant authorities. These requests can be made for various reasons, including financial oversight and compliance verification.

Time and location of the tax inspection

The time and location of tax inspections in Vietnam are governed by specific regulations, ensuring a structured and transparent process. Here are the key details regarding the time, location, duration and conclusion of tax inspections:

Time and Location of Tax Inspections

• The specific time and location of tax inspections are stipulated in the inspection or examination decision. Normally, tax authorities conduct periodic tax inspections once a year or irregularly, triggered by statutory signs of non-compliance.
• Tax inspections are conducted at the enterprise’s headquarters.

Duration of Tax Inspection

• The duration adheres to the provisions outlined in the Law on Inspection, spanning from the date of the tax inspection decision’s announcement and concluding upon the inspection’s finalization.
• The “tax inspection decider,” the person responsible for issuing the tax inspection decision, has the authority to prolong the inspection’s duration when required, in compliance with the Law on Inspection.

Conclusion of Tax Inspection

• Within a period of 15 days following the receipt of the tax inspection results, the inspection decider is obliged to issue a conclusion, unless another competent authority is responsible for providing such a conclusion.
• This conclusion should encompass an evaluation of the inspected entity’s compliance with tax laws, a decision regarding the examined matters, an analysis of the nature and severity of any violations, an explanation of the reasons behind these violations, and the identification of those responsible for the violations.
• The conclusion also specifies the measures to be undertaken or the penalties to be enforced by authorized individuals in accordance with the law.
• The inspection decider has the authority to request reports from the members and chief of the inspectorate and seek explanations from the inspected entity before issuing the conclusion or making post-inspection decisions.

How Can We Help- Taxation Service 

At Premia TNC, we offer invaluable support to businesses and individuals facing tax inspections in Vietnam. Our expert team is well-equipped to help you prepare for tax inspections by reviewing financial records, ensuring compliance with tax laws, and assessing your overall tax compliance.

We act as your trusted intermediaries, representing your interests and responding to inquiries during the inspection process. If discrepancies or non-compliance issues are identified, we work diligently to address them, minimizing potential penalties and helping you navigate the complex regulatory landscape.

Beyond the inspection, we provide ongoing tax advisory services to ensure long-term compliance and informed tax-related decisions. Contact us today for a FREE consultation and discover how we can assist you in confidently navigating the intricacies of tax inspections in