Notes on notice of tax inspection/ examination receiving

Notes on notice of tax inspection/ examination receiving

Notes on notice of tax inspection/ examination receiving
Procedures for tax inspection and examination
I. What taxpayer need to prepare before tax inspection/ examination

In order to prepare for the tax inspection / examination process, taxpayer needs to review the current status of relevant documents and accounting books, supplement and prepare necessary documents for the tax inspection / examination process.

A. Recommendations for businesses before tax inspection/ examination:

Review and adjust: Comprehensive review of tax risks, consider additional declarations and make adjustments (if necessary);

Communication: Actively discuss with the tax authority about the content, time of tax inspection / examination as well as the list of documents to be provided;

Preparation: Prepare documents to be provided and propose tax authority to extend the preparation time (if necessary);

Discussion: Discuss with relevant departments and assign responsibility to members;

Support: Consider supporting from tax consulting firms for comprehensive consultancy / review of tax risks.

B. Some documents that need to be prepared during the tax inspection / examination process are listed below:

1. Accounting books
  • Arrange monthly original documents
    i. Purchase Invoices are arranged together with payment voucher / bank payment voucher, inventory voucher, request for payment, contract and contract liquidation (if any);
    ii. Sale invoices are arranged together with receipt voucher / bank receipt voucher, delivery note, contract and contract liquidation (if any).
  • Financial report monthly/quarterly/yearly;
  • Print the annual accounting books as prescribed, for example, general journal, sales journal, purchase journal, cash book, etc.

2. Arrange and prepare the submitted report to the tax office

  • Corporate income tax finalization
    i. Taxable revenue
    ii. List of non-deductible expenses
  • Personal income tax finalization
  • Value-added Tax of imported goods
  • Monthly/ quarterly value-added tax declaration, Invoice status report, etc.

3. Fully gathering and arranging economic contracts; labor contracts and payroll scales as well as appointments decision and salary adjustments.

4. Original or notarized copy of legal documents:

  • Investment registration certificate / Business registration certificate.
  • Tax exemption/ reduction decision (if any).
  • Other documents related tax (if any)

II. Rights and obligations of taxpayer during tax examination/ inspection

In addition to the mandatory requirements from the tax authority, the taxpayer has a number of rights and obligations listed below:

  • Reject the tax examination/ inspection if the tax examination/ inspection decision is not available;
  • Refuse to provide information and documents that are not relevant to the content of tax examination/ inspection; information and documents that are state secrets, unless otherwise prescribed by law;
  • When receiving notice of tax inspection/ examination, enterprise may request to delay the time of tax inspection/ examination with reasonable reasons;
  • Announcing tax inspection/ examination decisions: Until an inspection/ examination decision is announced, enterprise still has the right to review its declaration. Enterprise adjusts taxes that have not been declared or declared not enough to avoid penalties;
  • Receiving tax examination/inspection minutes:
    i. Enterprise needs to ensure that the tax examination/ inspection minutes are approved by the leader of the inspection/ examination team;
    ii. Enterprise needs to express its opinions before signing the tax examination/ inspection minutes.
  • Apply a complaint letter when disagreeing with tax inspection/ examination conclusions: Enterprise shall submit 01 dossier, include:
    i. Complaint letter.
    ii. Enclosed documents (Documents, administrative decisions of the relevant tax authorities).
    Enterprise can apply complaint letter directly to the relevant authorities or via post.
  • If Enterprise disagrees with the complaint settlement
    i. Within 30 days after the expiration of the first-time complaint settlement, if a first-time complaint remains unsettled, or after receiving a first-time complaint settlement decision, if the complainant disagrees with this decision, he/ she may make another complaint with a person competent to settle second-time complaints; for deep-lying or remote areas with difficult travel conditions, this time limit may be prolonged but must not exceed 45 days.
    ii. For making second-lime complaints, the complainant must send a second-time complaint enclosed with the first-time complaint settlement decision and relevant documents to a person competent to settle second-lime complaints.
    iii. Upon the expiration of the complaint settlement time limit, if a first-time complaint remains unsettled or the complainant disagrees with the first-time complaint settlement decision, Enterprises has right to institute an administrative lawsuit at court in accordance with the Law on Administrative Procedures.