Select VAT, CIT, and SCT declaration documents for inspection at the tax office headquarters (Decision 98/QD-TCT)

DECISION

ISSUING PROCEDURES FOR APPLYING RISK MANAGEMENT FOR SELECTING DOCUMENTS FOR DECLARING VALUE ADDED TAX, CORPORATE INCOME TAX, SPECIAL CONSUMPTION TAX FOR INSPECTION AT TAX AUTHORITIES HEADQUARTERS

GENERAL DEPARTMENT OF DEPARTMENT OF TAXES

Pursuant to the Law on Tax Administration dated June 13, 6;

Pursuant to Decree No. 126/2020/ND-CP dated October 19, 10 of the Government detailing the implementation of a number of articles of the Law on Tax Administration;

Pursuant to Decision No. 41/2018/QD-TTg dated September 25, 9 of the Prime Minister defining the functions, tasks, powers and organizational structure of the General Department of Taxation under the Ministry of Finance;

Pursuant to Decision No. 15/2021/QD-TTg dated March 30, 3 of the Prime Minister amending and supplementing Clause 1, Article 3, Decision No. 41/2018/QD-TTg dated September 25, 9 of the Prime Minister regulating the functions, tasks, powers and organizational structure of the General Department of Taxation under the Ministry of Finance;

Pursuant to Circular No. 31/2021/TT-BTC dated May 17, 5 of the Minister of Finance regulating the application of risk management in tax management;

Pursuant to Circular No. 80/2021/TT-BTC dated September 29, 9 of the Minister of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 2021/126/ND-CP dated September 2020 October 19 of the Government detailing a number of articles of the Law on Tax Administration;

Pursuant to Decision No. 2363/QD-TCT dated December 16, 12 of the Director General of the General Department of Taxation stipulating the Regulations on organization and operation of the Risk Management Board under the General Department of Taxation;

Pursuant to Decision No. 1582/QD-TCT dated October 06, 10 of the Director of the General Department of Taxation on promulgating a set of criteria for selecting value-added tax, corporate income tax, and tax declaration dossiers. special consumption signs showing signs of risk should be checked at the tax office headquarters;

Pursuant to Decision No. 183/QD-TCT dated March 10, 3 of the Director of the General Department of Taxation regulating the amendment and supplementation of the Regulation on organization and operation of the Risk Management Board under the General Department of Taxation ;

At the request of the Head of Risk Management Department.

DECISION:

Article 1. Issued together with this Decision is the process of applying risk management for selecting Value Added Tax declaration dossiers, Corporate Income Tax, and Special Consumption Tax for inspection at the tax authority headquarters.

Article 2.

1. This Decision takes effect from the date of signing.

2. From the effective date of this Decision, the provisions of the following Decisions shall cease to be effective:

– Decision No. 1185/QD-TCT dated June 27, 6 of the Director of the General Department of Taxation on promulgating a set of criteria for checking value-added tax declaration dossiers at tax agency headquarters using information technology ;

– Decision No. 1186/QD-TCT dated June 27, 6 of the Director of the General Department of Taxation on promulgating the process of checking value-added tax declaration dossiers at tax agency headquarters using information technology.

Article 3. Heads of departments and equivalent units under and under the General Department of Taxation; Director of the Tax Department of provinces and centrally run cities; The Director of the Tax Department of the region, district, town, and city under the Tax Department of provinces and cities is responsible for implementing this Decision./.

PROCEDURE

APPLY RISK MANAGEMENT TO SELECT DOCUMENTS FOR VALUE ADDED TAX DECLARATION, CORPORATE INCOME TAX, SPECIAL CONSUMPTION TAX FOR INSPECTION AT TAX AUTHORITIES HEADQUARTERS
(Attached to Decision No. 98/QD-TCT dated January 26, 01 of the General Department of Taxation)

Chapter I

GENERAL RULES

Article 1. Purpose

1. Instruct tax authorities to collect, analyze, and evaluate information to select value-added tax, corporate income tax, and special consumption tax declarations that show signs of risk for inspection at Tax authority headquarters according to the provisions of law.

2. Standardize the content and work steps, create objective consistency in selecting documents for declaring value-added tax, corporate income tax, and special consumption tax with signs of risk to Check at the tax authority headquarters according to the provisions of law.

3. Modernize the selection of value-added tax declaration dossiers, corporate income tax, and special consumption tax for inspection at tax authority headquarters, improving the ability to detect, prevent, and handle Timely handle taxpayers who commit false declarations or tax evasion, contributing to improving the efficiency of tax administration.

Article 2. Scope of regulation, subjects of application

Instructions on the order, procedures, and steps to apply risk management in selecting taxpayers' value-added tax, corporate income tax, and special consumption tax documents. There are signs of risk to check at the tax office headquarters.

The process applies to tax authorities at all levels: General Department of Taxation, Tax Department, Tax Branch (including Regional Tax Department).

Article 3. Interpretation of terms and abbreviations

1. In this Procedure, the following terms are understood as follows:

– Criteria index: are informational indicators that carry the value of criteria to help identify and classify risk levels. Criteria indexes are specifically expressed in numbers, rates, rates, ratios... calculated through data collection and analysis.

– Risk score: is the specific score attached to each criterion index according to the risk level of that criterion index and on the basis of the risk score scale.

– Weight: is the criteria-based coefficient, used to evaluate the materiality of the criteria for the results of assessing the taxpayer's risk level.

– Risk management applications: is the application of information technology to connect and receive information from relevant data sources inside and outside tax authorities, electronicize risk management measures and techniques based on a set of criteria, The index is issued to analyze, evaluate compliance, and determine the level of risk to serve the decision to apply professional measures by tax authorities.

– Risk threshold: is a specific score range issued based on the total risk score of the tax declaration dossier and the number of high risk criteria indicators or the number and percentage of tax declaration dossiers according to the classified list calculated from the tax declaration dossier. the tax return with the highest risk score to the tax return with the lowest risk score. Risk thresholds are used to classify risks for all analyzed and evaluated tax returns.

– Evaluation time: is the time to analyze taxpayer risk assessment information.

- Tax authorities: including the General Department of Taxation, the Tax Department, and the Tax Branch (including the Regional Tax Department).

2. Departments at tax authorities at all levels participating in the process:

– Risk Management Department: Risk Management Department of the General Department of Taxation, Tax Accounting and Declaration Department and large enterprise database of the Large Enterprise Tax Department. For Tax Departments and Tax Sub-Departments with many inspection and examination departments/teams, each inspection and examination department/team assigns officers to be the focal point to perform the task of exploiting risk management applications to choose from. Value-added tax, corporate income tax, and special consumption tax declaration dossiers show signs of risk for taxpayers in the department/team under their management, and the Tax Department and Tax Sub-Department designate a department. /inspection and examination team acts as a general focal point.

– Tax Inspection – Inspection Department: Department of Tax Inspection and Inspection under the General Department of Taxation; The department is assigned the task of Inspection - Inspection of the Large Enterprise Tax Department under the General Department of Taxation; Inspection and Inspection Departments under the Tax Department; Tax Inspection Departments, Teams and Commune, Ward/Inter-Commune Tax Management Teams or Tax Management Professional Teams (in case the Tax Department does not have a Tax Inspection Team and Commune, Ward/Inter-Commune Tax Management Team) communes and wards) under the Tax Department.

– Information Technology Department: Department of Information Technology under the General Department of Taxation; Information Technology Department under the Tax Department; Information technology department under the Tax Department.

– Other operational departments participate in the Process: Departments/units under and under the General Department of Taxation, Divisions under the Tax Department, Departments/Teams under the relevant Tax Branches as assigned by the Tax Authority Leaders.

3. Abbreviations in the Process

– Taxpayer is abbreviated as NNT.

– Risk management is abbreviated as Risk Management.

– Value added is abbreviated as VAT.

– Corporate income is abbreviated as CIT.

– Special consumption is abbreviated as TTTDB.

– Tax declaration documents are abbreviated as HSKT.

– Tax authority abbreviated as CQT.

Chapter II

CONTENTS OF THE PROCESS

Article 4. Information collection and processing

Tax authorities collect, update and process information to ensure completeness, accuracy and timeliness before analyzing risks and selecting VAT, CIT and special tax documents of taxpayers for inspection at headquarters. CQT.

Information serving the analysis, risk assessment, and selection of VAT, CIT, and SCT documents of taxpayers for inspection at the CQT headquarters is collected from the tax industry database, centrally managed at the General Department. Taxes are processed, shared, and provided to tax authorities at all levels through the application of information technology to carry out tax management according to the provisions of law.

Tax authorities and tax officials collect and process information according to the Information collection and exploitation process for risk management in tax management issued in Decision No. 86/QD-TCT dated February 08, 02 of the Director General of the General Department of Taxation.

Article 5. Developing and using a set of criteria for selecting VAT, CIT, and special tax documents with signs of risk for inspection at the CQT headquarters

The Risk Management Board and the Information Technology Department under the General Department of Taxation use the risk assessment criteria issued by the General Department of Taxation to apply risk management in the selection of VAT, CIT, and special tax documents for inspection at the headquarters. CQT Department as follows:

The set of criteria for selecting VAT, CIT, and SCT documents with signs of risk for inspection at the CQT headquarters was issued under Decision No. 1582/QD-TCT dated October 06, 10 of the Director of the General Department of Taxation. applied uniformly nationwide for form No. 2022/GTGT, 01/TNDN, 03/TTDB issued together with Circular No. 01/80/TT-BTC dated September 2021, 29 of the Minister of Finance. In case the above criteria index set is amended, supplemented or replaced, the revised, supplemented or replaced criteria index set will apply.

During the application process, if the Tax Department proposes to supplement or modify criteria and criteria indexes to suit tax management, the Tax Department will send a document to the General Department of Taxation (Risk Management Board) stating: clearly state the reasons and basis for establishing index criteria; calculation formula; score, weight of each criterion, criterion index.

According to tax management requirements in each period, the General Department of Taxation issues documents amending and supplementing criteria indexes. The Risk Management Board presides over and coordinates with Departments/units/Departments of Taxation to research and advise the Director General of the General Department of Taxation to issue additional or adjust risk analysis criteria indicators.

The Department of Information Technology under the General Department of Taxation is responsible for building and upgrading relevant application software to meet the inclusion of criteria indicators issued by the General Department of Taxation into the risk management application for analysis, evaluation and selection. HSKT for VAT, CIT, and SCT have signs of risk and are inspected at the CQT headquarters.

Article 6. Evaluation, classification, and handling of results of classification of HSKT risk levels

1. General principles

– Analyzing, evaluating, and classifying risk levels to select VAT, CIT, and special tax documents for inspection at the CQT headquarters is done automatically and centrally on the Risk Management application.

– On a monthly basis, the risk management department at management agencies at all levels directly managing taxpayers coordinates with the information technology department to use the risk management application to select VAT, corporate income tax, and special tax documents of taxpayers as follows:

+ For VAT and STTDB technical documents: assessment and classification of risk levels are carried out periodically on the 25th of every month. In case the taxpayer has a revised or supplemented Technical Document, the assessment and reclassification of the risk level of the revised and supplemented Technical Document will be carried out on the 25th of the following month.

+ For CIT Technical Documents: the assessment and classification of risk levels are carried out periodically on April 25. In case the taxpayer has a CIT declaration period other than the calendar year or has amendments or supplements to the CIT Technical Document, the Assessment and classification of risk levels are carried out periodically on April 4, July 25 and October 4.

– Based on the total risk score of the technical candidates and the risk threshold, the risk management application automatically classifies the level of risk for each VAT technical candidate, corporate income technical student, special market technical student according to one of three levels: high risk, medium risk , low risk. The results of risk analysis and risk level classification for employees' technical documents are compiled according to form No. 01-KTTB/QTr-QLRR issued with this Procedure.

2. Build a risk threshold

– Risk threshold is the basis for classifying the risk level of technical students into 3 levels: high risk, medium risk and low risk. Risk thresholds must be approved on the system and take effect from the date of approval. Risk thresholds are adjusted and issued according to management requirements in each period and guided by the General Department of Taxation as a basis for classifying taxpayer risks.

– Risk management application allows choosing 02 methods to determine high risk threshold:

+ Absolute number method: the number of student candidates with signs of high risk is determined on the basis of student candidates with total risk score and number of high risk criteria indicators; or the number of technical students with a high total risk score is specifically assigned to each CQT.

+ Relative number method: the number of students with signs of high risk is determined by the percentage of students with the highest total risk score and the number of criteria indicators identified as high risk.

The ratio (number) of test students classified as low risk corresponds to 50% of the total number of test students taken from the lowest total risk score or higher.

Ratio (number) of test students classified at average risk level: is the rate (number) of test students remaining after subtracting the rate (number) of high-risk test students and low-risk test students.

– In case a technical candidate falls under the high risk threshold but has the same total risk score, then the sub-criteria will have results from high to low risk with the following order of priority:

3. Evaluate and classify technical students

Based on the results of classifying the risk level of technical documents, the risk management application automatically selects high-risk technical documents for VAT, CIT, and special income according to form No. 02-KTTB/QTr-QLRR issued with this Procedure.

The list of employees with high-risk test scores expected to be inspected at the CQT headquarters is automatically supported by the Risk Management application according to form No. 03-KTTB/QTr-QLRR issued with this Procedure according to the following principles:

– NNT has from one to three technical documents (VAT, CIT, STTDB) with high risk.

– The list of employees expected to be selected to check the technical documents at the headquarters of the agency does not overlap with the list of employees under the inspection plan at the headquarters of the agency that has been approved by the leaders of the agency before December 30 every year according to regulations. at Tax inspection process.

No later than the 28th day of every month, the risk management department at the QT agency at all levels directly managing the employee shall submit form number 02-KTTB/QTr-QLRR, form number 03-KTTB/QTr-QLRR and forward it to the Leader of the Payment department. Inspect - Inspect taxes directly managed by taxpayers to assign review and inspection.

In addition, the Risk Management department can print the Technical Examination Comment Sheet produced by the application according to form No. 04-KTTB/QTr-QLRR, Form No. 05-KTTB/QTr-QLRR, Form No. 06-KTTB/QTr-QLRR issued This procedure is attached to support the Tax Inspection - Inspection department in reviewing and checking the technical documents of taxpayers (if necessary).

Article 7. Handling the list of taxpayers with high-risk technical examinations for inspection at the CQT headquarters

1. General principles

The leaders of the Tax Inspection - Inspection department, based on the list of taxpayers with high-risk technical examinations, assign civil servants to directly process documents for inspection.

Based on the assigned list, tax officials review and check the contents according to the analysis results of each criterion index.

In cases where the taxpayer has been assessed and classified as being on the list of taxpayers with high-risk technical examinations, but when conducting a review and physical inspection of the two (02) previous tax declaration periods, no violations of tax law have arisen, the tax law will be continued. continue to analyze and evaluate risks after six (06) months from the date of inspection results.

In case the tax management authority has reliable information that reduces the risk level of the taxpayer to a low level or there is a basis to believe that the risk level of the taxpayer's technical examination is low, the authority will decide not to select that taxpayer. Check at CQT headquarters.

In case the QT has reliable information that identifies an employee with a high-risk technical exam, the QT will choose to add it to the inspection plan.

2. How to handle

After reviewing and eliminating risks with clear causes and explanations in previous months/quarters/years, the Tax Inspection - Inspection department will submit to the Management Board for approval a list of qualified taxpayers. High-risk students need to be checked at the CQT headquarters. Based on the list of taxpayers with high-risk technical documents approved by the Management Board, the Tax Inspection - Inspection department transfers the risk management department to enter the reason for adding or excluding high-risk technical documents into the risk management application according to the form number. 02-KTTB/QTr-QLRR no later than the 05th of the following month. The Risk Management application supports automatic updating of the List of employees with high-risk technical examinations according to form No. 03-KTTB/QTr-QLRR.

Based on the list of employees with high-risk technical documents that need to be inspected at the CQT headquarters, the CQT leaders (can authorize the head of the risk management department) approve on the risk management application to transfer to the inspection and examination support system. tax. The Tax Inspection - Inspection Department performs the inspection of technical documents at the CQT headquarters according to the instructions in the current Tax Inspection Process.

Article 8. Evaluating the application of risk management in the selection of VAT, CIT, and SCT technical documents for inspection at the CQT headquarters

1. For the Tax Department and Tax Branch

The tax authority compiles a list of high-risk VAT, CIT, and special tax documents that need to be checked at the CQT headquarters; HSKT test results on the application to evaluate the following contents:

– Evaluate the effectiveness of each criterion index according to form No. 07-KTTB/QTr-QLRR issued with this Procedure for each type of VAT, CIT, and STTDB. Risk management application is carried out on February 05 every year or at the request of the CQT.

– Evaluate the results achieved, difficulties and problems, propose solutions to improve the effectiveness of applying risk management in selecting VAT, CIT, and SCT technical documents for inspection at the CQT headquarters.

Deadline for submitting reports:

– The Tax Department sends an assessment report to the Tax Department before February 15 every year.

– The Tax Department sends the assessment report of the Tax Department Office and its affiliated Tax Branches to the General Department of Taxation (Risk Management Board) before February 25 every year.

The assessment is carried out annually and according to specific tax management requirements that arise.

2. For the General Department of Taxation

The Risk Management Board presides and coordinates with the Tax Inspection and Inspection Department, the Large Enterprise Tax Department and relevant departments/units to carry out:

– Before February 28 every year, compile a report evaluating the application of risk management in selecting risky VAT, CIT, and special tax documents for inspection at the headquarters of the tax authorities of the entire tax industry to report to the General Department.

– Organize the inspection and supervision of the implementation and application of risk management in selecting risky VAT, CIT, and SCT technical documents for inspection by QT authorities at all levels.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 9. Implementation organization

1. The Risk Management Board presides over and coordinates with the Department of Tax Inspection and Inspection to be responsible for guiding and directing the implementation of this Process. Departments/units under and under the General Department of Taxation are responsible for coordinating implementation.

2. Leaders of QT agencies at all levels are responsible for organizing and implementing according to the regulations in this Procedure; Periodically or irregularly organize inspections of the implementation of the Process of units under management.

3. During the process of organization and implementation, if there are any problems, Departments/units under and under the General Department of Taxation, Tax Departments of provinces and centrally-run cities shall promptly reflect and report to the General Department of Taxation. Department of Taxation (Risk Management Board) to research, consider and resolve./.