UNDERSTANDING THE TAX AUDIT IN VIETNAM

Tax audit is a process through which tax authorities review a taxpayer’s financial information and records to ensure that they are in compliance with the tax laws and regulations. Tax audits may be conducted either randomly or in response to a perceived discrepancy or irregularity in the taxpayer’s tax returns.

During the audit, tax authorities may request a range of documents and financial information, such as bank statements, accounting records, receipts, invoices, and other relevant documents. The authorities may also conduct interviews with the taxpayer or other relevant parties.

If tax authorities identify any noncompliance issues during the audit, they may impose penalties or fines on the taxpayer. In certain cases, they may even initiate legal action against the taxpayer.

To avoid potential legal or financial consequences of a tax audit, it is crucial for taxpayers to maintain accurate records and comply with all applicable tax laws and regulations. Seeking professional assistance before and during the audit process can help businesses identify and address potential compliance issues, as well as ensure compliance with current tax laws.