Legal News

[Taxation] Overview and Trends of Tax Investigations in the First Half of 2024

2024/07/18

In the first half of 2024, tax audits will include aggressive specialized examinations and inspections of areas where foreign companies are vulnerable to detection, specifically related-party transactions, capital transfers, e-commerce, business on digital platforms, VAT refunds, and electronic invoice abuse. The main points of tax audits in the first half of the year are explained below.

・In the first half of the year, 29,744 tax audits and inspections were conducted and the tax authorities examined 380,146 tax returns. Subsequently, additional processing of VND27,626.6 billion was requested.

・The tax authorities recognized that the first half of the year was characterized by malicious cases of tax fraud carried out in an ingenious and complex manner. For example, there were cases where companies were established to sell false invoices in order to gain illicit profits, instead of producing and operating. Malicious cases of such invoice transactions were found throughout Vietnam.

・The GDT continues to strengthen its specialized investigations and inspections of enterprises involved in such transactions.

・For the second half of 2024, the GDT has requested regional tax authorities to report on the status of violations by enterprises engaged in related party transactions and how to handle the cases.

The above is a summary of the tax audits for the first half of the year. It is recommended that all transactions, not only the ones mentioned above, be reviewed to ensure that they are in compliance with Vietnamese tax laws and regulations.

 

References:
General Department of Taxation Website