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Vietnam’s top taxman mulls ‘scoring’ enterprises on tax compliance

The General Department of Taxation of Vietnam is looking to introduce a set of criteria and indicators which will be used to “score” businesses based on their compliance with tax regulations.

The score will help categorize enterprises into risk-based groups for better management, the taxman said.

In order to be classified into the “good compliance” group, a business must meet at least nine out of 13 criteria ranging from timely tax payment to not being involved in legal prosecutions.

Specifically, an enterprise must not have violated regulations on tax declaration and payment within two years prior to the date of evaluation.

During this period, the business must comply with regulations on invoice issuance and use.

Another important criterion is that the amount of corporate tax paid by the business being evaluated must be higher than the average for businesses operating in the same field.

The enterprise must not have been found breaking rules during inspections, or being involved in legal prosecutions related to its economic activities during the two-year p.

The total amount of its overdue tax and fines must not exceed VND1 million (US$43).

If a business fails to meet at least nine of the 13 criteria during evaluation, it will be categorized into the “poor compliance” group.

These groups will serve to help the General Department of Taxation carry out its inspection activities more efficiently, as “high-risk” companies will be subject to more thorough inspections while “low-risk” ones will undergo fewer.

In addition, tax return requests filed by “compliant” enterprises will also be processed faster thanks to their history of good compliance with tax regulations, the top taxman said in a statement.

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Vietnam’s top taxman mulls ‘scoring’ enterprises on tax compliance

The General Department of Taxation of Vietnam is looking to introduce a set of criteria and indicators which will be used to “score” businesses based on their compliance with tax regulations.

The score will help categorize enterprises into risk-based groups for better management, the taxman said.

In order to be classified into the “good compliance” group, a business must meet at least nine out of 13 criteria ranging from timely tax payment to not being involved in legal prosecutions.

Specifically, an enterprise must not have violated regulations on tax declaration and payment within two years prior to the date of evaluation.

During this period, the business must comply with regulations on invoice issuance and use.

Another important criterion is that the amount of corporate tax paid by the business being evaluated must be higher than the average for businesses operating in the same field.

The enterprise must not have been found breaking rules during inspections, or being involved in legal prosecutions related to its economic activities during the two-year p.

The total amount of its overdue tax and fines must not exceed VND1 million (US$43).

If a business fails to meet at least nine of the 13 criteria during evaluation, it will be categorized into the “poor compliance” group.

These groups will serve to help the General Department of Taxation carry out its inspection activities more efficiently, as “high-risk” companies will be subject to more thorough inspections while “low-risk” ones will undergo fewer.

In addition, tax return requests filed by “compliant” enterprises will also be processed faster thanks to their history of good compliance with tax regulations, the top taxman said in a statement.

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