Circular 31/2021/TT-BTC on risk management in tax administration

CIRCULARS

REGULATIONS ON APPLICATION OF RISK MANAGEMENT IN TAX MANAGEMENT

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

Pursuant to Decree 126/2020/ND-CP dated October 19, 10 of the Government detailing a number of articles of the Law on Tax Administration;

Pursuant to the Decree No. 87 / 2017 / ND-CP dated 26 / 7 / 2017 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Taxation,

The Minister of Finance promulgates a Circular providing for the application of risk management in tax administration.

Chapter I

GENERAL RULES

Article 1. Scope

This Circular provides for the application of risk management in tax administration by tax authorities at all levels, including:

1. Collect, process, manage and use information related to taxpayers for risk management.

2. Tax compliance assessment and taxpayer risk classification.

3. Apply tax management professional measures corresponding to the level of tax compliance and taxpayer risk.

Article 2. Subject of application

1. Taxpayers.

2. Tax authority.

3. Tax officials.

4. State agencies, organizations and individuals concerned as prescribed in Article 2 of the Law on Tax Administration.

Article 3. Explain words

1. Applying risk management in tax management is the application of professional processes, principles, measures, techniques on risk management and assessment results of tax law compliance, taxpayer risk level to decide to implement measures. profession in tax administration.

2. Risk management information is tax and tax-related information collected, processed for application of risk management in tax administration.

3. Compliance level is the result of the tax authority's assessment and classification of the taxpayer's tax compliance.

4. Compliance Assessment Criteria are standards for assessing taxpayer compliance with tax laws.

5. Compliance assessment criteria index are information indicators that carry specific values ​​of the taxpayer's tax compliance assessment criteria.

6. Tax compliance assessment is the collection, analysis, verification, and comparison of information on the process of tax law enforcement and operation with criteria and indicators of compliance assessment criteria to classify the level of legal compliance of a company. taxpayers.

7. Tax compliance management means the tax authority's assessment of tax compliance, classification of risks, analysis of taxpayers' behavior, thereby using reasonable resources for management measures appropriate to each level. level, to encourage compliance and prevent non-compliance.

8. Taxpayer risk analysis is the analysis of information about taxpayers in order to detect signs of tax law violations leading to the possibility of loss of state budget revenue on taxes.

9. Risk level is the severity of the risk determined based on a combination of the frequency and the consequences of the risk.

10 Criteria for classifying the level of risk are the standards to assess and classify the level of risk in tax administration.

11 The index of criteria for classifying the level of risk are information indicators that carry specific values ​​of risk classification criteria.

12 Risk assessment is the classification, consideration and comparison of the level of risk with the criteria and criteria for classifying the level of risk and the treatment of previous risks to arrange the priority order.

13 Risk sign is a valuable information element reflecting the potential of illegal acts.

14 Signs of tax violations is an element that carries informational value, serving as a basis for identifying violations of tax law.

15 Key monitoring is the application of professional measures by the tax authority to taxpayers (assessed) with high tax risks or non-compliance with tax laws in each field of operation, each location in each period.

16 Application of risk management information technology in tax administration (hereinafter referred to as risk management application) is an application of information technology to connect and receive information from relevant data sources inside and outside the tax authority, electronicize risk management measures and techniques based on a set of criteria, The index is issued to analyze, assess compliance, determine the level of risk to serve the decision to apply professional measures of tax authorities.

17 Taxpayer segment Tax authorities divide taxpayers into groups with common characteristics to apply appropriate management measures.

18 Classification according to machine learning method is the implementation of computational and statistical algorithms on computers to identify models, functions, and indicators to help classify and predict risk levels.

19 Category ranking method is a method of assessing taxpayers through comparison with criteria and indicators on the process of operation and compliance with tax laws, arranged in groups corresponding to each ranking level. Taxpayers achieve a specific ranking level if they are assessed to satisfy the criteria, index in the group of criteria, and the index corresponding to that rating.

20 Scoring and grading method is a method of assessing taxpayers on the basis of scores of criteria and indicators on the process of operation and observance of tax laws.

Article 4. Principles of risk management

1. Applying risk management to ensure the effectiveness and efficiency of tax administration; encourage and create favorable conditions for taxpayers to voluntarily comply well with the provisions of the tax law and tax administration, and at the same time prevent, detect and promptly handle violations of the tax law. and tax administration.

2. Risk management information is collected from information sources inside and outside the tax authority (including information from abroad) in accordance with the law; is centrally managed at the General Department of Taxation through an information technology application system and is processed, shared and provided to tax authorities at all levels and other state management agencies to serve the purpose. tax administration in accordance with the law.

3. The assessment and classification of tax compliance and taxpayer risk is carried out automatically, periodically, according to one or a combination of methods specified in this Circular on the basis of the following methods. provisions of law, processes and professional measures of tax administration, based on the taxpayer segment, the criteria specified in this Circular and the database of taxpayers.

4. Based on the results of tax compliance assessment, taxpayer risk classification, information available on tax administration support applications, information on signs of violations , other risk indications are provided at the time of decision making, the tax authority does:

a) Decide to examine, inspect, supervise and apply appropriate professional measures.

b) Develop an overall compliance improvement plan in line with the tax authority's resources based on the results of analysis of the nature of behavior, causes and scale of each level of tax compliance, level of risk. NS.

5. In case the tax officer has strictly complied with the provisions of the law, this Circular and the regulations and guidelines on risk management, the tax officer is exempt from personal liability in accordance with the law. .

6. In case the risk management application crashes or does not meet the requirements for applying risk management according to the content specified in this Circular, the application of risk management is done manually by approval. Proposal or signed document issued by a person competent to apply professional tax management measures as prescribed in the Law on Tax Administration and guiding documents.

7. In case there is a change in information leading to a change in the tax compliance assessment results and taxpayer risk classification, the risk management application has not automatically adjusted the compliance level and the tax rate. risk level, the update and change of assessment results are done manually by civil servants, after approval of the competent person.

8. The results of application of professional measures corresponding to the risk ratings must be fully and accurately updated in tax administration support applications or risk management applications for tax authorities. on a case-by-case basis, serving to complete and conduct tax compliance assessment and taxpayer risk classification in the next period.

Article 5. Tax law compliance assessment methods and taxpayer risk classification

Tax compliance and taxpayer risk are determined by one or a combination of the following methods:

1. Scoring method and grading according to points.

2. Machine learning method.

3. Method of ranking by category.

Article 6. Order of application of tax risk management

The application of risk management in tax administration is carried out by tax authorities in the following order:

1. Assess the situation, determine the objectives and requirements for risk management

Tax authorities shall review the common risks and mistakes of taxpayers in implementing the provisions of Article 17 of the Law on Tax Administration No. 38/2019/QH14 or current regulations to determine the main risks. need to be handled, taxpayers have a great risk and direction to handle.

2. Organize the collection and processing of risk management information

Risk management information is collected and handled according to the provisions of Chapter II of this Circular.

In case false and incomplete declared information is discovered during the risk analysis, the taxpayer is responsible for providing, explaining or supplementing information and documents at the request and notice period of the agency. tax authorities to ensure that tax compliance assessment and taxpayer risk classification are accurate.

3. Set up and update indicators to analyze and assess tax compliance, classify taxpayers' risk

Based on the results of situation assessment, determination of risk management objectives and requirements specified in Clause 1 of this Article, risk management information and information technology application to establish and update indicators criteria, weights used to assess and classify the level of tax compliance, and the level of risk for taxpayers.

4. Analysis and assessment of compliance with tax laws; determine the level of taxpayer risk; determine the level of risk in tax administration operations; manage risk profiles for key surveillance cases

Taxpayers are segmented according to determined conditions in accordance with tax administration requirements in each period when analyzing and assessing tax compliance and taxpayer risk.

Analysis and classification of tax compliance and taxpayer risk are carried out by the methods specified in Article 5 of this Circular.

5. Based on the results of determining the level of risk; assess taxpayers' legal compliance to apply tax administration measures and develop an overall plan to improve taxpayer compliance.

6. Monitor, update and evaluate feedback on the results of implementation of tax administration measures.

7. Collect, process, use, store, and information information; directing, guiding, adjusting and supplementing the application of appropriate risk management to ensure effective tax administration.

Chapter II

COLLECTION, PROCESSING RISK MANAGEMENT INFORMATION

Article 7. Risk management information

Information for risk management in tax professional activities includes:

1. Information in tax authorities

a) Information on business registration, tax registration; information on the identity of the founding members, the owner and the legal representative of the taxpayer; registration and employment; information about taxpayer status; number of times of change of business registration information, tax registration; capital contribution of members; Main business sectors;

b) Information about tax declaration dossiers; taxpayer; tax debt; tax incentives, exemptions and reductions; tax payment extension; gradual payment of tax; tax refund; register, manage and use invoices and vouchers; information on complaints and denunciations; information on inspection and examination results and handling after inspection and examination; information about affiliate transactions;

c) Other information.

2. Information collected from relevant state management agencies, organizations and individuals is responsible for providing

a) Information about taxpayers collected from relevant state management agencies, organizations and individuals as prescribed in Articles 26, 27 and 30 of Decree No. 126/2020/ND-CP dated May 19 10 in 2020 of the Government detailing a number of articles of the Law on Tax Administration or according to current regulations;

b) Information from foreign countries, international organizations provided under obligations in tax-related international treaties to which Vietnam is a contracting party.

3. Other information relevant to the taxpayer.

Article 8. Collection and processing of risk management information

1. Sources of information collection

a) From the information system in the tax authority;

b) Coordinating with agencies and units under the Ministry of Finance and agencies and units under related ministries and branches in exchanging and providing information for tax administration;

c) From coordinating to exchange information with tax authorities, competent agencies abroad according to the provisions of law;

d) Receive information provided by state agencies, organizations and individuals in accordance with law;

dd) Information related to taxpayers' activities collected during tax administration;

e) Purchase information as prescribed in the Law on Tax Administration and its guiding documents;

g) Receive tax-related information from foreign countries or international organizations to provide according to obligations in international treaties to which Vietnam is a contracting party;

h) From other relevant information sources as prescribed by law.

2. Information collection form

a) Provide and exchange in the form of electronic data, electronic documents, electronic mail (e-mail), exchange through the portal of the General Department of Taxation; text messages and calls to phone numbers officially announced by the tax authorities;

b) Provide, exchange in writing, telegram, telegraph, fax, paper documents;

c) Direct communication on the basis of the record, certified by the parties involved; appoint representatives to work, verify, collect information and documents; organizing conferences and other forms.

3. Processing of collected information

a) Assess the relevance of information to information needs and purposes; consider the reliability and accuracy of information;

b) Classify, arrange and store information from sources according to each group of information for information extraction and analysis;

c) Analyze information, consider and detect elements constituting information content serving risk management;

d) Synthesize and link relevant factors discovered through analysis to clarify the content and value of collected information for risk classification and tax compliance assessment. taxpayers.

Article 9. Application of information technology in risk management

1. The risk management application and the taxpayer database are built and centrally managed at the General Department of Taxation, ensuring that the information used as a basis for risk assessment is fully and accurately updated. timely thanks to the connection of information exchange with tax electronic data processing systems and related data information systems

In case the system has a problem or a transmission error, updating, integrating, processing and storing information on the system is done as soon as the problem or system error is rectified.

2. Apply management measures to ensure safety, data security, computer safety and network security as prescribed by law.

3. The General Department of Taxation shall specify the responsibilities of tax authorities and units at all levels in building, managing, operating, updating, exploiting and using risk management applications suitable to each field. area of ​​tax operations.

Chapter III

ASSESSMENT OF TAX LAW COMPLIANCE AND CLASSIFICATION OF RISK OF PAYERS IN TAX MANAGEMENT

Article 10. Assessment of taxpayers' compliance with tax laws

1. Taxpayers are assessed and classified according to one of the following levels of tax compliance:

a) Level 1: High compliance.

b) Level 2: Moderate compliance.

c) Level 3: Low compliance.

d) Level 4: Non-compliance.

2. Taxpayers' compliance with tax laws is classified based on the criteria specified in Appendix I of this Circular.

3. The assessment results of taxpayers' compliance with tax law are monitored and handled by the tax authority as follows:

a) For taxpayers falling into the non-compliance level, apply management measures as prescribed in Article 22 of this Circular;

b) For taxpayers in the high, medium, low and non-compliant levels of compliance, conduct behavioral analysis to identify measures to improve compliance.

Article 11. Classification of the level of risk taxpayers are enterprises

1. Overall risk classification

a) Taxpayers being enterprises are classified according to one of the following classes of risk:

a.1) Class 1: Taxpayers with very low risk.

a.2) Class 2: Low-risk taxpayers.

a.3) Class 3: Taxpayer of medium risk.

a.4) Class 4: High-risk taxpayers.

a.5) Class 5: Taxpayers with very high risk.

b) The level of risk taxpayers are classified based on the results of tax compliance assessment in Article 10 and the criteria specified in Appendix II of this Circular.

c) Processing the results of classification of the risk level of taxpayers as enterprises

c.1) For taxpayers with very high risk or high risk, the management measures specified in Article 22 of this Circular shall be applied;

c.2) According to the requirements of tax administration in each period, taxpayers of different risk levels may continue to be classified as risks in tax administration operations specified in Clause 2 of this Article.

2. Classification of risk levels in tax administration operations

a) The level of risk that taxpayers are enterprises in tax administration operations is classified according to one of the following levels:

a.1) High risk.

a.2) Medium risk.

a.3) Low risk.

b) The degree of taxpayer risk in tax administration operations is classified based on the results of ranking the taxpayer's risk level in Clause 1 of this Article and the criteria specified in Appendix II of this Circular. .

c) Processing results of risk classification

The results of the classification of the risk that taxpayers may apply tax administration measures in each tax administration operation are specified in Chapter IV of this Circular.

Article 12. Classification of risk levels for taxpayers as individuals

1. The level of risk individual taxpayers are classified according to one of the following levels:

a) High risk.

b) Medium risk.

c) Low risk.

2. The risk level of individual taxpayers is classified based on the results of tax compliance assessment in Article 10 and the criteria specified in Appendix III of this Circular.

3. Handling the results of classification of the risk level of taxpayers as individuals

The results of the classification of the taxpayer's risk level are subject to the application of tax management measures specified in Article 15 of this Circular.

Chapter IV

APPLICATION OF RISK MANAGEMENT IN TAX MANAGEMENT

Article 13. Application of risk management in tax administration

1. Tax authorities shall base themselves on the results of tax compliance assessment in Article 10, the tax payer risk classification results in Articles 11 and 12 of this Circular and professional information at the time of tax compliance. make a decision to determine a list of taxpayers classified by risk levels in each period and implement:

a) Managing tax compliance;

b) Tax registration risk management;

c) Risk management in the examination of tax records at the head office of the tax authority;

d) Risk management in tax refund management;

dd) Risk management in inspection and examination at the taxpayer's office;

e) Risk management in tax debt management and enforcement of tax administrative decisions;

g) Risk management in invoice and voucher management;

h) Risk management for taxpayers in the case of key control and supervision;

i) Risk management for individual taxpayers;

k) Apply risk management in other professional activities in tax administration.

2. The list of taxpayers at risk according to the cases mentioned in Clause 1 of this Article is updated on the risk management application in tax management. Tax authorities at all levels are responsible for synthesizing, updating and managing information on taxpayers at risk to serve tax administration in the entire tax industry.

3. The General Department of Taxation shall periodically detail the assessment and list of risky taxpayers according to the cases mentioned in Clause 1 of this Article in order to determine the key points in tax administration to meet management requirements. taxes from time to time.

4. If there is information that suspects or detects signs of tax law violations through inspection, examination and audit, through denunciations, through information from state management agencies, agencies investigating agencies, heads of tax agencies decide to change the form and extent of inspection, change other tax administration measures according to their competence and take responsibility for their decisions.

Article 14. Measures to improve taxpayers' compliance with tax laws

Based on the results of assessment of tax compliance as prescribed in Article 10 of this Circular, the tax authority shall analyze the nature of the taxpayer's behavior and scale of each level of tax compliance. Develop a plan to improve tax compliance with appropriate handling measures for each compliance issue as follows:

1. In case of high compliance: Put in the list to consider, choose to commend and reward taxpayers who comply with tax laws.

2. For cases that need to improve compliance:

a) Coordinate with relevant agencies, organizations and tax agents to implement measures to support taxpayers in carrying out tax procedures; organize programs of contact with taxpayers, dialogue conferences, seminars and training to help taxpayers properly and fully fulfill their tax obligations;

b) Research to amend policies, simplify administrative procedures, implement support measures, and apply information technology to make tax declaration and payment convenient, saving time and costs. compliance for taxpayers;

c) Being classified into risks and applying tax management measures to the taxpayer's risk levels specified in Articles 15, 16, 17, 18, 19, 20, 21, Article 22 of this Circular.

Article 15: Application of risk management to individual taxpayers

Based on the list of individual taxpayers classified by risk levels in Article 13 of this Circular, the tax authority shall apply appropriate tax administration measures as prescribed.

1. For business households, business individuals

a) High risk: Apply one or a combination of the following measures:

a.1) Review, examine and verify relevant information as a basis for re-determination of revenue and tax rates of business households and individuals;

a.2) Making checklists and surveys to re-determine revenue and tax rates of business households and individuals and the fulfillment of tax obligations by relevant organizations.

b) Medium risk: Randomly selected to be included in the survey list of business household and individual revenue; continue to perform risk classification for the next assessment period;

c) Low risk: Keep records, perform risk classification for the next audit period.

2. For individuals who have incomes subject to personal income tax (excluding business households and business individuals)

a) High risk: Selection into the checklist, actual verification and organization of inspection and verification according to current regulations;

b) Medium risk and low risk: Keep records, perform risk classification for the next audit period.

In case an individual has personal income taxable income through an income paying organization, it is controlled through the analysis of risk signs of the income paying organization.

3. For individuals with revenues related to land and properties attached to land

a) High risk: Analyze dossiers, make a list and submit to the head of the tax authority the inspection plan at the tax office's office, inspect the tax declaration dossiers at the tax office's headquarters according to regulations. applicable to relevant individuals and organizations;

b) Medium risk and low risk: Keep records, perform risk classification for the next audit period.

Article 16. Application of risk management in tax registration management

Based on the list of taxpayers classified according to tax registration risk levels in Article 13 of this Circular, the tax authority can apply appropriate measures in handling, handling or coordinating with the business registration authority. shall be handled and handled according to the provisions of the law on business registration and tax registration.

1. In case the taxpayer changes tax registration information, causing changes to the tax authority directly managing:

a) High risk: The tax authority of the place of departure and the tax authority of the place of transfer shall cooperate in conducting the inspection at the tax office's office, inspecting or inspecting at the taxpayer's office in accordance with the law. current;

b) Medium risk: The tax authority of the place of relocation shall put it under supervision and request the taxpayer to provide additional explanations of information and documents at the request of the tax authority;

c) Low risk: The inspection and supervision have not been carried out; conduct tax compliance assessment, risk classification for the next audit period.

2. In case the taxpayer announces the suspension of business operations

a) High risk: Strengthen the implementation of tax management measures as prescribed, suitable to the situation of taxpayers' tax obligations to promptly handle tax debts, invoices and violations ( if any);

b) Medium risk and low risk: Implement tax management measures as prescribed; conduct tax compliance assessment, risk classification for the next audit period.

3. In case of invalidation of tax identification numbers

Prioritize according to the results of risk ranking from high to low to carry out inspection and tax finalization at the taxpayer's office in accordance with regulations.

Update the status of dissolution, bankruptcy or inactivity on the tax registration application system for cases where tax obligations have been fulfilled as prescribed. Apply measures to urge taxpayers to fulfill their tax obligations before being dissolved, bankrupt, or shut down in accordance with regulations.

4. For the remaining cases: Regularly review cases with signs of high risk to determine the list that needs to be checked and verified the operating status at the business location.

Article 17. Applying risk management in checking tax declaration dossiers at tax offices

Based on the list of taxpayers classified according to the risk levels of tax declaration dossiers in Article 13 of this Circular to apply appropriate measures in settlement and handling of tax declaration dossiers.

1. High risk: Analyze records, make a list and submit to the head of the tax authority the inspection plan at the headquarters of the tax authority, inspect the tax declaration dossiers at the headquarters of the tax authority according to the regulations. regulation;

2. Medium risk and low risk: The tax declaration dossier has not been checked at the head office of the tax authority; conduct legal compliance assessment, risk classification of taxpayer's tax return for the next assessment period.

Article 18. Application of risk management in tax refund

Tax authorities classify tax refund dossiers according to the provisions of the Law on Tax Administration, relevant legal documents or current regulations. For classification of tax refund dossiers by risk, based on the results of risk classification of tax refund dossiers in Article 13 of this Circular, tax authorities shall apply appropriate measures in settlement and handling of refund dossiers. taxes are as follows:

1. Classification and settlement of tax refund dossiers

a) Tax refund dossiers of high tax risk: Check first, refund later

For 12 consecutive months from the beginning of the fiscal year, taxpayers with consecutive tax refund records are assessed as high risk:

a.1) In case the ongoing risk assessment compared with the previous one is different in terms of the total number of risk points or the risk score at each different criterion and index: The tax refund dossier is subject to Check first, refund later.

a.2) If the ongoing risk assessment is the same as the previous one, the total number of points and the number of points in each criterion or indicator are the same; or an in-progress tax return compared to the immediately preceding previous assessment has a lower risk score at each metric resulting in a correspondingly lower total risk score:

- Results of the inspection of the previous tax refund dossier or the inspection and examination after the tax refund does not detect any false declaration leading to a lack of payable tax amount or an increase in the refunded tax amount, the second time tax refund dossier will be returned. The next one is not subject to pre-tax refund inspection.

- In case the inspection of the previous tax refund dossier, or the inspection and examination after tax refund, detects false declarations leading to a lack of payable tax amount or an increase in the refundable tax amount, the next tax refund dossier subject to pre-tax refund inspection.

b) Tax refund dossiers of medium-risk and low-risk categories: Tax refund first, check later.

c) In case, after the application of classification of tax refund dossiers, during the process of processing tax refund dossiers, the tax authority detects that the taxpayer has signs of violation of tax law, customs law or case if the taxpayer fails to explain or supplement the tax refund dossier, or makes an explanation or supplement but fails to prove that the declared tax amount is correct, the tax authority shall change the application of the tax refund dossier classification method. taxpayers who are subject to tax refund first, check later to be eligible for inspection before tax refund later; the approval of change to apply the classification form must be updated in the business information system.

2. Inspection and inspection after tax refund

a) The order of inspection and inspection after tax refund is done by the tax authority on the basis of the total risk score from high to low within five (05) years from the date of issuance of the tax refund decision:

a1) High risk (for tax refund dossiers that are not subject to inspection before and after tax refund as prescribed at Point a, Clause 1 of this Article): Inspect and inspect within one (01) year from the date of tax refund. issue tax refund decisions;

a2) Medium risk: Conduct inspection within three (03) years from the date of issuance of tax refund decision;

a3) Low risk: Carry out inspection within five (05) years from the date of issuance of the decision on tax refund;

a4) Based on the actual situation, the tax authority may conduct inspection and inspection after tax refund earlier than the time limit mentioned above.

b) The General Department of Taxation shall provide specific regulations on examination and inspection after tax refund; combined with inspection and examination of tax law observance as prescribed.

Article 19. Application of risk management in inspection and examination at the taxpayer's office

1. The tax authority that selects the case of inspection or examination at the taxpayer's office must ensure:

a) The case selected through analysis, assessment of compliance with tax laws and classification of taxpayers' risk level is not less than 90% of the number of cases inspected and examined according to the annual plan;

b) Cases are randomly selected not more than 10% of the number of cases to be inspected and examined according to the annual plan.

2. Select taxpayers to develop inspection and inspection plans at the taxpayer's office

Based on the list of taxpayers classified according to the risk levels of tax inspection and examination activities in Article 13 of this Circular, the tax authority shall select the cases of inspection and examination at the taxpayer's office. as follows:

a) Selection of inspection cases: Selection of taxpayers expected to be included in the annual inspection plan at the taxpayer's office according to the risk ranking results from high to low.

b) Selection of test cases: Selection of taxpayers expected to be included in the annual inspection plan at the taxpayer's office according to the results of risk ranking from high to low and not overlapping with the taxpayers already approved. selected for inclusion in the inspection plan at Point a, Clause 2 of this Article.

c) The application of risk management in the selection of taxpayers showing signs of risk to develop tax inspection and examination plans must avoid duplication and overlapping in accordance with the provisions of the Law on Tax Administration and other documents. implementation guidelines and other relevant legal documents.

In case the tax authority in tax administration has reliable information to reduce the taxpayer's risk level to a low level or has grounds to believe that the taxpayer's risk level is low, it has not been included in the plan. for annual inspection and examination, the tax authority shall decide not to select such taxpayer in the inspection and examination plan and select other taxpayers as prescribed for inclusion in the annual inspection and examination plan. In case in tax administration, information is collected and verified that taxpayers show signs of high risk, the tax authority may choose to add it to the annual inspection and examination plan. Tax authorities are responsible for their decisions on changes.

d) The formulation and authority to approve inspection and examination plans at the taxpayer's office; the list of additions and adjustments to the inspection and examination plan at the taxpayer's office in this Article shall comply with the provisions of the Law on Tax Administration, guiding documents and legal documents. other relevant laws.

3. Tax authorities shall base themselves on the results of risk analysis using information technology application or risks from professional analysis and information from actual tax administration to determine the content and scope of inspection, Tax Inspection.

Article 20. Application of risk management in tax debt management and enforcement of tax administrative decisions

Based on the list of taxpayers classified according to the risk levels of tax debt management and enforcement of tax administrative decisions in Article 13 of this Circular, the tax authority shall manage tax debt and enforce tax enforcement. implementing tax administrative decisions according to the provisions of the Law on Tax Administration and its guiding documents, taking into account the level of risk to prioritize handling or intensify the urging.

1. High risk: Based on the actual situation, the tax authority selects the taxpayer who is able to recover the tax arrears to the state budget, the taxpayer has a large tax debt, the taxpayer has acts of spreading property or absconding, taxpayers go abroad to increase the frequency of urging; or prioritize implementation in the list of taxpayers who need to apply measures to enforce tax administrative decisions;

2. Medium risk and low risk: Monitor, urge and apply debt collection measures in accordance with the Law on Tax Administration and its guiding documents.

Article 21. Application of risk management in the management of invoices and documents and in other operations in tax administration

1. Applying risk management in invoice and document management

Based on the list of taxpayers classified by risk levels in the management of invoices and documents in Article 13 of this Circular, the tax authority shall apply the following management measures:

a) High risk: Include in the list of reviewing and inspecting at the headquarters of the tax authority, supplementing the annual plan for inspection at the taxpayer's office in accordance with the provisions of the Law on Tax Administration. , guiding documents and other relevant legal documents. On the basis of the inspection results, the inspector shall change the form of using current invoices to purchase invoices from tax authorities or use electronic invoices with tax authorities' codes or take other measures. other invoice management methods according to current regulations; decide on the form of using invoices for taxpayers using invoices for the first time;

b) Medium risk and low risk: Sampling is done to review, check, handle and enhance support for taxpayers to comply well with legal regulations on invoices.

The General Department of Taxation stipulates the appropriate method of sampling according to the tax administration requirements of each locality and in each period.

2. Apply risk management in other operations

Based on the level of risk in other professional activities and professional information, the tax authority shall decide to apply appropriate professional measures according to its functions and tasks.

Article 22. Key control and supervision of taxpayers showing signs of tax law violations

1. Taxpayers subject to key tax supervision are taxpayers with one of the following signs:

a) Taxpayers perform banking transactions with suspicious signs in accordance with the law on prevention and combat of money laundering related to tax evasion and tax fraud.

b) The taxpayer or the taxpayer's legal representative is prosecuted for tax violations, invoices and documents.

c) Taxpayers showing signs of high tax risk in key topics or through collecting information from the management of tax authorities that need to monitor tax administration.

d) Taxpayers are selected from the list of taxpayers who do not comply with the tax law specified in Article 10, the list of taxpayers who are subject to very high risk and high risk as specified in Clause 1 of Article 11. XNUMX This Circular and the taxpayer do not explain or supplement information or explain or supplement information but it is incomplete as required and within the time limit stated in the written notice of the tax authority.

2. Tax authorities at all levels are responsible for monitoring, supervising and applying professional tax administration measures suitable to each case specified in Clause 1 of this Article.

3. The General Department of Taxation shall specify the collection and analysis of information, determining the monitoring focus and monitoring measures in accordance with the provisions of law in each period.

Article 23. Examination and assessment of the application of risk management in tax administration

1. Inspect and evaluate the following contents:

a) The quality of the organization that implements risk management measures and techniques;

b) Effectiveness and efficiency in applying risk management in tax administration operations;

c) Organization of implementation and results of implementation of decisions on inspection, inspection or other professional measures on the basis of applying risk management;

d) Evaluating the effectiveness of tax compliance assessment criteria and indicators and classifying taxpayers' risk.

2. Test and evaluation measures

a) Synthesize information and data reported by tax authorities at all levels, departments and units under the General Department of Taxation in the implementation and application of risk management;

b) Collecting, analyzing and synthesizing information on results of applying risk management in tax administration operations;

c) Organize working groups to inspect the implementation and application of risk management at tax authorities at all levels.

3. The Director of the General Department of Taxation assigns responsibilities to risk management units to inspect and evaluate the implementation and application of risk management in tax administration according to the provisions of Clause 2 of this Article. The assessment is carried out on a regular basis; Report periodically (6 months and annually) and according to specific arising business requirements.

Article 24. Monitoring and evaluating the implementation of the compliance improvement plan

1. Monitor and evaluate the following contents:

a) Organizing the implementation of the compliance improvement plan;

b) Results and effectiveness of implementation of the compliance improvement plan. Specifically:

b.1) Effectiveness and effectiveness of handling measures implemented by tax authorities at all levels on the basis of analysis and identification of risks for each taxpayer segment;

b.2) Actual and expected results of the implementation of risk reduction measures through compliance measurement.

c) The application of a transparent process in the development and implementation of the compliance improvement plan;

d) Improving the overall compliance of different groups of taxpayers and tax obligations;

dd) Regarding the organizational structure and human resources of tax authorities at all levels in the implementation of the plan, ensuring the effectiveness and efficiency according to the set objectives.

2. Monitoring and evaluation measures

a) Synthesize information and data reported by tax authorities at all levels, departments and units under the General Department of Taxation in implementing the plan to improve compliance;

b) Collect, analyze and synthesize information on performance results;

c) Organize inspection missions at tax authorities at all levels.

3. The Director of the General Department of Taxation decentralizes responsibilities to the risk management units to monitor and evaluate the implementation of the compliance improvement plan in accordance with Clause 2 of this Article. Monitoring and evaluation are carried out regularly, reporting periodically (6 months and annually) and as required on the progress of implementation of the compliance improvement plan.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 25. Responsible for implementing

1. Agencies and functional units of the Ministry of Finance and relevant ministries and branches; Organizations and individuals involved in tax administration activities are responsible for providing information and coordinating in the application of risk management in tax administration in accordance with current laws and regulations. This circular.

2. The Director of the General Department of Taxation, based on the guidance in this Circular, is responsible for promulgating:

a) Indicators and criteria specified in Articles 10, 11 and 12 of this Circular to meet tax administration requirements in each period; annually, it is possible to review, amend and supplement the criteria index to ensure its updating and practicality;

b) Specific regulations on responsibilities of tax authorities at all levels, tax officials and measures to collect and process information on risk management; scores, weights and technical measures of risk management in tax administration;

c) Processes, regulations, regulations and guidelines for the implementation and application of risk management in tax administration.

3. The Risk Management Unit as the focal point and presiding officer is responsible for:

a) Manage and operate risk management applications in tax administration and information and data systems for risk management as decentralized;

b) Organize the implementation and provide professional guidance, inspect the collection and handling of risk management information; risk management measures and techniques and the application of risk management in tax administration activities;

c) Manage the set of indicators and criteria issued by the Director General at Point a, Clause 2 of this Article on the risk management information system and related information systems; monitor, evaluate, adjust and supplement indicators and criteria to meet management requirements in each period.

4. Tax Departments, Regional Tax Departments, Departments of Taxation, Departments, Departments, units of the General Department of Taxation, tax officials are responsible for strictly and fully implementing the provisions on implementation and application. use risk management in this Circular and other relevant regulations.

Article 26. Enforcement

1. This Circular takes effect from August 02, 07.

2. This Circular replaces Circular No. 204/2015/TT-BTC dated December 21, 12 of the Ministry of Finance providing for the application of risk management in tax administration.

3. In case newly promulgated legal documents amend, supplement or replace documents referred to in this Circular, the newly promulgated documents shall apply.

APPENDIX I

Criteria for ASSESSMENT OF TAX LAW COMPLIANCES OF TAX PAYERS

(Issued together with Circular No. 31/2021/TT-BTC dated May 17, 05 of the Minister of Finance)

APPENDIX II

Criteria for classifying RISK LEVELS TAX PAYERS AS ENTERPRISES

(Issued together with Circular No. 31/2021/TT-BTC dated May 17, 05 of the Minister of Finance)

APPENDIX III

Criteria for classifying RISK PERSONAL PAYERS

(Issued together with Circular No. 31/2021/TT-BTC dated May 17, 05 of the Minister of Finance)