Notes When Being Subjected to Tax Inspection and Audit

1/ Tax Inspection Decision
When undergoing an audit, there must be an official decision from the competent Tax Authority. Businesses have the right to refuse inspection if there is no official decision.

2/ Is it reasonable to have multiple audits in one year?
Tax audits should not exceed one per year (refer to Directive 20/CT-TTg). If the audits concern the same issue, they should be consolidated into a single audit during the year, and there should be no duplication of inspection content in the same year.

For example, a tax audit and an environmental audit conducted in the same year for the same entity do not violate regulations.

3/ Rights of the audited entity
If a business disagrees with the audit conclusions, it must note this in the minutes, specifying which points or sections are contested as evidence. The business can then file a complaint with the relevant authority, keeping in mind the complaint deadline. If the complaint is not resolved, and the business wants to take the case to court, it should submit a written notification of withdrawal of the complaint for the court procedure. However, it is recommended to file a complaint before going to court.

4/ Tax Re-assessment Period
The maximum time limit for tax reassessment is 10 years under the Tax Administration Law.

5/ Tax Administrative Fines Period
The administrative fines for tax violations have a maximum period of 5 years.

6/ Late Payment Penalty
There is no time limit for the late payment penalty, which is currently 0.03% per day.

7/ Tax Inspection Decision, Announcement, etc. – Time Limits
According to the Tax Administration Law:

• Within 10 days, the audit team must prepare a report announcing the inspection decision, confirmed by both parties.

• The inspection period is 5 days. The audit team can request the Tax Authority to extend the inspection time by up to 30 days, and a confirmation minutes must be signed by both parties.

8/ Tax Inspection and Accounting Penalties
During a tax audit, the Tax Authority does not have the authority to impose administrative penalties for accounting errors. For example, if a business makes accounting mistakes that the Tax Authority identifies during an audit, the Tax Authority will not impose penalties but may suggest the Finance Department to issue a penalty.

9/ Relevant Documents on Tax Audits

• Directive 20/CT-TTg dated 17/05/2017

• Tax Inspection: Decision 746/QĐ-TCT dated 20/04/2015

• Tax Audit: Decision 1404/QĐ-TCT dated 28/07/2015

• Decision 2605/QĐ-TCT dated 30/12/2016

• Circular 156, guiding the Tax Administration Law

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