New points of Decision No. 970 on tax audit process

On July 14, 2023, the General Department of Taxation issued Decision 970/QD-TCT on Tax Audit Process. From the date this Decision takes effect (July 14, 2023), the provisions of the following Decisions cease to be effective:

Decision No. 746/QD-TCT dated April 20, 2015 of the Director of the General Department of Taxation on promulgating tax audit process;
Decision No. 1215/QD-TCT dated September 3, 2020 of the Director General of the General Department of Taxation on amending and supplementing the tax audit process.

The following are outstanding new points of Decision 970/QD-TCT

Content	Decision 746/QD-TCT	Decision 970/QD-TCT
The audit commencement date at the taxpayer’s offices	The field audit must be commenced not later than 10 working days from the date of issuing the decision on tax examinations. (Point 4.1, Clause 4, Part II – Tax examination that takes place at taxpayers’ offices)	The field audit must be commenced not later than 10 working days from the date of issuing the decision on tax examinations unless the Tax Inspection Decision must be annulled, or the inspection period must be postponed. (Clause a, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices) => New point: The latest commencement date is unchanged
The permitted duration of the field audit at the taxpayer’s offices	The permitted duration of a field audit shall not exceed 5 actual working days from the date of starting to announce the decision on such field audit. In each tax examination, the deadline for the tax examination shall be only extended once. The extended duration shall be restricted to 5 (five) actual working days. (Point 4.6, Clause 4, Part II – Tax examination that takes place at taxpayers’ offices)	The deadline for the tax examination shall only be extended once. The extended duration shall be restricted to 10 (ten) actual working days. (Clause b, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices) => New point: The extended tax examination duration shall be restricted to 10 actual working days (previously 5 actual working days)
Establishment date of the record on the tax examination	Within a permitted duration of 5 (five) working days from the end date of the deadline for the tax examination, the leader of the tax examination must publicly announce the examination record in front of taxpayers and members of the examination team. (Point 5.4, Clause 5, Part II – Tax examination that takes place at taxpayers’ offices)	At the end of the inspection at the taxpayers’ offices, the draft record on tax examination must be publicly announced in front of the inspection team and taxpayer and handed over to the taxpayer for comments and explanations (if any) and sign the record on tax examination. (Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices) => New point: At the end of the inspection at the taxpayers’ offices, the draft record on tax examination must be announced (previously 5 working days as from the end date of the deadline for the tax examination)
Date of signing the record on the tax examination	Where the examination record has been announced and taxpayers fail to sign that record, within 05 (five) working days from the date of announcing the examination record, the leader of the examination team must make the record on administrative violations, and concurrently request taxpayers to sign the examination record (Point 5.6, Clause 5, Part II – Tax examination that takes place at taxpayers’ offices)	In case the taxpayer has an explanation to the inspection team, the explanation, completion of the inspection record, and signing of the inspection record must be finished within 05 (five) working days from the closing date of the field audits. In case the taxpayer still has an explanation, the form and deadline for the explanation must be recorded in the tax examination record. If at the end of 05 (five) working days from the date of publication of the draft tax inspection record, the taxpayer does not sign the tax inspection record, the head of the inspection team must make a record of the administrative violation of not signing the tax inspection record, and concurrently request the taxpayer to sign the tax examination record. (Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices) => New point: The date of signing the tax examination record is within 05 (five) working days from the closing date of the field audits (previously within 05 (five) working days from the date of announcing the examination record).
Handling of the result of the field audit	Within 5 (five) working days from the date of signing the examination record, the leader of the examination team shall report to the head of the tax audit division to submit the tax audit result. The head of the taxation authority shall issue the decision to sanction tax-related violations, sign the tax audit conclusion: If the examination contains a lot of complicated details, the permitted duration is within 30 (thirty) working days from the date of signing the examination record. (Point 6.1, Clause 6, Part II – Tax examination that takes place at taxpayers’ offices)	Within 3 (three) working days from the date of signing the examination record, the leader of the examination team shall report to the head of the tax audit division to submit the tax audit result and the draft Decision to sanction tax-related violation, or the Tax audit conclusion. The head of the taxation authority shall issue the decision to sanction tax-related violations, sign the tax audit conclusion: In case details of administrative violations must be verified, within 01 month from the date of signing the tax examination record; or the tax audit results have particularly serious circumstances, have many complicated circumstances, and require more time to verify and collect evidence, then within 02 months from the date of signing the tax examination record. (Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices) => New point: Shortened from 05 days to 03 working days from the date of signing the tax examination record, the team leader must report to the head of the tax authority on the inspection results. The extension for complicated circumstances is 02 months from the date of signing the tax examination record instead of 01 month to issue a penalty decision.

Content

Decision 746/QD-TCT

Decision 970/QD-TCT

The audit commencement date at the taxpayer’s offices

The field audit must be commenced not later than 10 working days from the date of issuing the decision on tax examinations.

(Point 4.1, Clause 4, Part II – Tax examination that takes place at taxpayers’ offices)

The field audit must be commenced not later than 10 working days from the date of issuing the decision on tax examinations unless the Tax Inspection Decision must be annulled, or the inspection period must be postponed.

(Clause a, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices)

=> New point: The latest commencement date is unchanged

The permitted duration of the field audit at the taxpayer’s offices

The permitted duration of a field audit shall not exceed 5 actual working days from the date of starting to announce the decision on such field audit.

In each tax examination, the deadline for the tax examination shall be only extended once. The extended duration shall be restricted to 5 (five) actual working days.

(Point 4.6, Clause 4, Part II – Tax examination that takes place at taxpayers’ offices)

The deadline for the tax examination shall only be extended once. The extended duration shall be restricted to 10 (ten) actual working days.

(Clause b, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices)

=> New point: The extended tax examination duration shall be restricted to 10 actual working days (previously 5 actual working days)

Establishment date of the record on the tax examination

Within a permitted duration of 5 (five) working days from the end date of the deadline for the tax examination, the leader of the tax examination must publicly announce the examination record in front of taxpayers and members of the examination team.

(Point 5.4, Clause 5, Part II – Tax examination that takes place at taxpayers’ offices)

At the end of the inspection at the taxpayers’ offices, the draft record on tax examination must be publicly announced in front of the inspection team and taxpayer and handed over to the taxpayer for comments and explanations (if any) and sign the record on tax examination.

(Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices)

=> New point: At the end of the inspection at the taxpayers’ offices, the draft record on tax examination must be announced (previously 5 working days as from the end date of the deadline for the tax examination)

Date of signing the record on the tax examination

Where the examination record has been announced and taxpayers fail to sign that record, within 05 (five) working days from the date of announcing the examination record, the leader of the examination team must make the record on administrative violations, and concurrently request taxpayers to sign the examination record

(Point 5.6, Clause 5, Part II – Tax examination that takes place at taxpayers’ offices)

In case the taxpayer has an explanation to the inspection team, the explanation, completion of the inspection record, and signing of the inspection record must be finished within 05 (five) working days from the closing date of the field audits. In case the taxpayer still has an explanation, the form and deadline for the explanation must be recorded in the tax examination record.

If at the end of 05 (five) working days from the date of publication of the draft tax inspection record, the taxpayer does not sign the tax inspection record, the head of the inspection team must make a record of the administrative violation of not signing the tax inspection record, and concurrently request the taxpayer to sign the tax examination record.

(Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices)

=> New point: The date of signing the tax examination record is within 05 (five) working days from the closing date of the field audits (previously within 05 (five) working days from the date of announcing the examination record).

Handling of the result of the field audit

Within 5 (five) working days from the date of signing the examination record, the leader of the examination team shall report to the head of the tax audit division to submit the tax audit result.

The head of the taxation authority shall issue the decision to sanction tax-related violations, sign the tax audit conclusion:

If the examination contains a lot of complicated details, the permitted duration is within 30 (thirty) working days from the date of signing the examination record.

(Point 6.1, Clause 6, Part II – Tax examination that takes place at taxpayers’ offices)

Within 3 (three) working days from the date of signing the examination record, the leader of the examination team shall report to the head of the tax audit division to submit the tax audit result and the draft Decision to sanction tax-related violation, or the Tax audit conclusion.

The head of the taxation authority shall issue the decision to sanction tax-related violations, sign the tax audit conclusion:

In case details of administrative violations must be verified, within 01 month from the date of signing the tax examination record; or the tax audit results have particularly serious circumstances, have many complicated circumstances, and require more time to verify and collect evidence, then within 02 months from the date of signing the tax examination record.

(Clause c, Section 2.2, Part III – Tax examination that takes place at taxpayers’ offices)

=> New point:

Shortened from 05 days to 03 working days from the date of signing the tax examination record, the team leader must report to the head of the tax authority on the inspection results.

The extension for complicated circumstances is 02 months from the date of signing the tax examination record instead of 01 month to issue a penalty decision.