Circular 31-2021-TT-BTC stipulating the application of risk management in tax administration was issued by the Ministry of Finance on May 17, 5, effective from July 2021, 02, according to which:
🔸 Assess the taxpayer's risk classification;
🔸 Key supervision for taxpayers showing signs of tax law violations.
Here are the points that businesses need to understand and have a plan to avoid being classified as high-risk cases.
The scope of adjustment and the object of application #
Circular No. 31/2021/TT-BTC stipulating the application of risk management in tax administration by tax authorities at all levels, including: Collection, processing, management and use of information related to people pay taxes for risk management; Assess tax compliance and classify taxpayers' risk; Apply tax management professional measures corresponding to the level of tax compliance and taxpayer risk.
Subjects of application include: Taxpayers; Tax authorities; Tax officials; State agencies, organizations and individuals concerned as prescribed in Article 2 of the Law on Tax Administration.
The scope of regulation is extensive and wide #
In particular, risk management information is collected from information sources inside and outside the tax authority (including information from abroad) in accordance with the law; are centrally managed at the General Department of Taxation through an information technology application system and 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.
In addition, 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 basis of the 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.
Based on the results of tax compliance assessment, taxpayer risk classification, information available on tax administration support applications, information on signs of violations, marks Other risk signals provided at the time of decision-making, the tax authority shall: decide to examine, inspect, supervise and apply appropriate professional measures; Develop an overall compliance improvement plan in line with the tax authority's resources based on the results of analyzing the nature of behavior, causes and scale of each level of tax compliance and risk level.
Issuing tax law compliance assessment criteria #
The content of the Circular stipulates publicly the assessment criteria for tax compliance and the level of taxpayer risk (not promulgated under the confidentiality regime as previously done due to the set of risk assessment criteria in management). tax documents are not on the list of confidential documents of the Ministry of Finance).
In addition, the tax authority (General Department of Taxation) is responsible for promulgating indicators and criteria in order to achieve the goal of helping tax authorities implement risk management to be flexible and proactive in changing Criteria indicators to suit the reality of tax administration in each period; contribute to reducing unnecessary administrative procedures for ministerial-level management agencies.
The assessment of tax compliance for taxpayers and taxpayer ranking results is one of the criteria for risk analysis in tax management operations. The results of risk analysis are inherited, the evaluation results in the previous stage are part of the evaluation criteria in the later stages.
Overview of tax compliance levels, taxpayer risk #
Regarding risk analysis and risk classification to apply appropriate tax management measures, the Circular guides risk analysis based on: assessment of tax compliance, risk classification taxpayers and classification of taxpayer risk in tax administration operations. Based on the results of this assessment of the taxpayer's compliance and risk level to assess and classify the overall risk level of the taxpayer. Since then, the tax authorities have taken appropriate tax management measures. Specifically:
Firstly, the group of criteria to assess the level of tax compliance: mainly based on the analysis of compliance when declaring tax returns, paying taxes fully, accurately and on time or not.
Secondly, the group of criteria for classifying taxpayers' risks: basically based on the overall assessment of general information about the taxpayer's production and business activities.
Third, the group of criteria for classifying taxpayers' risk according to tax management operations: is a group of criteria that are set out in accordance with each tax management professional requirement in each locality and period. different.
Accordingly, the level of tax compliance is regulated to include 4 levels, including: Level 1: High compliance; Level 2: Moderate compliance; Level 3: Low compliance; Level 4: Non-compliance.
For the risk classification of taxpayers as enterprises according to 5 classes, including: Class 1: Taxpayers with very low risk; Class 2: Low-risk taxpayers; Rank 3: Medium-risk taxpayers; Class 4: High-risk taxpayers; Rank 5: Taxpayer very high risk.
Particularly for "Grade 6. Taxpayers established under 12 months" specified in Circular No. 204, have been omitted. The separate classification and supervision are suitable to the requirements of each operation when performing risk assessment.
Regulations on classification of risk levels Taxpayers in tax administration operations are classified according to 03 levels, including: High risk; Medium risk; Low risk. For the regulation on application of risk management in tax administration, which will be applied to each tax administration operation, it will specify the management measures to be applied corresponding to the level of risk, in order to guide to improve the effectiveness of tax administration and voluntary compliance of taxpayers.