Process of applying risk management for selecting value-added tax declaration dossiers, corporate income tax, and special consumption tax for inspection at tax authority headquarters

Decision 98/QD-TCT 2024 on the process of applying risk management for selecting value-added tax declaration dossiers, corporate income tax, and special consumption tax for inspection at tax authority headquarters. what?

1. Decision 98/QD-TCT of 2024 on the process of applying risk management to select VAT, CIT, and SCT tax declaration dossiers for inspection at tax authority headquarters?

On January 26, 2024, the Director General of the General Department of Taxation issued Decision 98/QD-TCT of 2024 on the process of applying selection risk management select tax declaration dossiers (HSKT) for Value Added Tax, Corporate Income Tax, and Special Consumption Tax for inspection at the tax authority headquarters.

Accordingly, 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 is carried out for the purposes of:

– Guide tax authorities to collect Collect, analyze, and evaluate information on selecting value-added tax declaration dossiers, corporate income tax, and special consumption tax with signs of risk for inspection at tax authority headquarters according to the provisions of law.

– Standardize the content and work steps, creating objective consistency in the work of selecting value-added tax declaration dossiers, corporate income tax, and special consumption tax with signs of risk for inspection at headquarters. tax authorities according to the provisions of law.

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

Procedure for submitting instructions. order, procedures, and steps to apply risk management in the selection of value-added tax declaration dossiers, corporate income tax, and special consumption tax of taxpayers showing signs of risk for inspection at tax authority headquarters.

Process applied to tax authorities at all levels: General Department of Taxation, Tax Department, Tax Sub-Department (including Regional Tax Sub-Department).

Content of the process for applying risk management to selecting Value Added Tax declaration dossiers, Corporate Income Tax, and Specific Special Consumption Tax are specified from Article 4 to Article 8. Procedure issued with the Decision 98/QD-TCT 2024 includes the following steps:

(1) Collecting and processing information

(2) Developing and using a set of criteria for selecting VAT, CIT, and special tax documents with signs of risk for inspection at tax authority headquarters

(3) Evaluating and analyzing type and handle the results of risk level classification of HSKT

(4) Handle the list of taxpayers with high-risk HSKT to check at the tax authority’s headquarters

(5) Evaluate the application of risk management in the selection of VAT, CIT, and special tax documents to check at the agency’s headquarters tax.

2. How to handle the list of taxpayers with high-risk tax declarations for inspection at the tax authority’s headquarters?

According to the provisions of Article 7 Process for applying risk management to select tax declaration documents (HSKT) Value Added, Corporate Income Tax, Special Consumption Tax for inspection at the tax authority’s headquarters issued in Decision 98/QD-TCT year 2024, the handling method is as follows:

– After reviewing and eliminating risks with clear causes, which have been explained in the previous months/quarters/years, the Tax Inspection – Inspection department will submit to the CQT Leaders for approval a list of NNTs with high-risk technical examinations that need to be checked at the CQT headquarters.

On the basis of the list of NNTs. If there is a high-risk technical examination that has been approved by the management authority, the Tax Inspection – Inspection department will transfer the risk management department to enter the reason for adding or excluding high-risk technical examinations into the risk management application according to form No. 02-KTTB/QTr-QLRR no later than the 5th of the following month.

The risk management application supports automatically updating the list of employees with high-risk technical examinations according to Form No. 03-KTTB/QTr-QLRR issued together with Decision 98/QD-TCT 2024.

– Based on the list of taxpayers with high-risk technical documents that need to be inspected at the tax authority headquarters, the tax authority leader (can authorize the head of the risk management department) approves the risk management application to switch to the tax inspection – audit support system. The Tax Inspection – Inspection Department conducts the inspection of technical documents at the CQT headquarters according to the instructions in the current Tax Inspection Process.

2. How is the risk level of taxpayers classified?

For taxpayers who are businesses

Taxpayers who are businesses are classified their risk level according to 02 methods in Article 11 of Circular 31/2021/TT-BTC as follows:

Method 1: Classification of total risk level can

Taxpayers that are businesses are classified according to their risk level according to one of the following classes:

– Class 1: Very low risk taxpayers.

– Class 2: Low risk taxpayers.

– Class 3: Medium risk taxpayers. average.

– Rank 4: High-risk taxpayers.

– Rank 5: Very high-risk taxpayers.

The risk level of taxpayers is classified based on the results of assessing tax law compliance in Article 10 and the criteria specified in Appendix II of the Circular 31/2021/TT-BTC.

Method 2: Classifying the level of risk in tax management operations

The risk level of corporate taxpayers in tax management operations is classified according to one of the following levels:

– High risk.

– Risk average.

– Low risk.

The level of risk of taxpayers in tax management operations is classified based on the results of ranking the risk level of taxpayers in Clause 1 of this Article and the criteria specified in Appendix II of Circular 31/2021/TT-BTC.

For taxpayers who are individuals individual

Taxpayers who are individuals are classified according to their risk level according to Article 12 Circular 31/2021/TT-BTC as follows:

The risk level of taxpayers who are individuals are classified according to one of the following levels:

– High risk.

– Risk medium.

– Low risk.

The risk level of individual taxpayers is classified based on the results of tax law compliance assessment in Article 10 and the criteria specified in Appendix III Circular 31/2021/TT-BTC.