Legal document newsletter week 23/04/2024
INSPECT 100% OF BUSINESS HOUSEHOLDS AND INDIVIDUALS WITH HIGH TAX RISK
On April 2, 2024 , the General Department of Taxation issued Official Dispatch 1357/TCT-DNNCN on reviewing tax management for business households (HCNs) and individual businesses (CNKDs) sent to the Director of the Department. Taxes of provinces and centrally run cities.
Accordingly, the Tax Departments of provinces and cities will organize inspection and supervision, specifically as follows:
1. Organize regular reviews and surveys of revenue and flat tax rates, compare the private database, the input invoice database of contracted households and the actual business situation in the area to evaluate Reassess revenue and flat tax rates of HKDs and CNKDs. From there, adjust revenue and presumptive tax rates closely to the actual situation, ensuring compliance with localities, provinces and cities throughout the country .
2. Implement inspection of tax management for business households and individuals at the Tax Department , including :
(I) Annual physical inspection of at least 10% of Tax Departments according to regulations on risk management to determine expected revenue and expected tax rates;
(II) Periodically conduct physical inspections of at least 5% of Tax Departments each quarter 1, 2, and 3;
(III) Contents of actual inspection include:
- Check on management database;
- Compare business registration and tax registration data;
- Physical inspection of at least 2% of business households, business individuals and related organizations in the area , focusing on checking 100% of business households and business individuals subject to risk management high risk according to regulations.
3. Tax Departments of provinces and centrally-run cities direct Tax Branches to conduct periodic, planned inspections at tax agency headquarters on the database of business households and individual businesses. and relevant organizations. For high-risk cases with signs of violation, inspections should be carried out at the taxpayer’s headquarters to promptly detect and prevent violations of tax laws and tax administration.
The Tax Departments of provinces and centrally-run cities shall carry out the above contents and report the results according to the appendices attached to this Official Dispatch and send it to the General Department of Taxation no later than April 29, 2024.