This Circular introduces new regulations on assessment of the compliance with tax laws and classification of taxpayer risks and application of tax administration measures corresponding to levels of compliance with tax laws and levels of taxpayer risks.
According to the new regulations, “compliance with tax laws” is classified into 4 levels: High compliance; medium compliance; low compliance; non-compliance. The earlier regulations only classified 3 levels: good, medium and low.
The way of classification of levels of risks of taxpayers is also changed. For classification of levels of risks of taxpayers that are enterprises, according to overall risk classification, there are 5 levels of risks: very-low risk; low risk; medium risk, high risk; very-high risk. However, in case of risk classification in tax administration operations, there are 3 levels: high risk; medium risk and low risk. The old regulations generally classified into 6 levels: very-low risk; low risk, medium risk, high risk; very-high risk and group of taxpayers operating under 12 months.
Regarding criteria for classification of compliance with tax laws and levels of risks of taxpayers, the new criteria provided in Appendix I and Appendix II enclosed with this Decree shall be applied.
Another noticeable point of the new regulations is that tax authorities shall select in the list of taxpayers that are non-compliant, the list of very high-risk and high-risk taxpayers and those failing to provide explanation and additional information or those providing explanation and additional information but they are inadequate or are submitted after the prescribed deadline in order to apply the measure of “emphasized supervision”
This Circular takes effect from July 2nd, 2021 and replaces Circular No. 204/2015/TT-BTC dated December 21st, 2015.
|Published||Vietlaw's Newsletter No. 515|