The Customs may implement retroactive tax increase within 10 years

	Creation of a mechanism for online tax declaration for personal house rental
	Close tax loopholes to prevent tax evasion
	Application of new tax refund, tax exemption and tax reduction procedures

Procedures examination at a customs office.

However, the General Department of Vietnam Customs said that it is in line with international practice if Customs implements customs post clearance for a period of 5 years and Customs still considers and may implement retroactive tax increase within 10 years.

According to HCM City Customs Department, many enterprises argued that with the current regulations, if the customs authorities perform post-clearance checks after 5 years to implement retroactive tax increase, it can create difficulties and damage companies’ reputation, as well as the foreign leaders of these companies. Many representatives of these companies explained that because the companies have accounted profit, loss and reported the holding companies at the end of the fiscal year, they will be unable to pay the expenses after many years. Therefore, the enterprises proposed customs authorities to create conditions for post-clearance checks every year.

In order to solve this recommendation of businesses, the General Department of Vietnam Customs confirmed that the duration to implement retroactive tax increase is 5 years, stipulated in the Customs Law. Besides, Law on Tax Administration provides that if tax fraud and tax evasion happen, the authorities may collect arrears of tax within 10 years.

Also, regulations to collect arrears within 5 years are basically consistent with international customs regulations to implement inspection in this period. The prescribed time within 5 years starts from the characteristics and situation of commercial fraud, tax evasion and other tax-related errors in Vietnam. On the other hand, if the customs authorities detect and prove a serious violation of major losses in taxes, prolonged duration of enterprises, the customs may implement retroactive tax increase within 10 years.

The General Department of Vietnam Customs emphasized that customs can not check every year as proposed by businesses because the number of post clearance checks will increase, leading to the unnecessary increase in human resources. Besides, the post clearance checks every year will affect the normal business activities of enterprises. The post clearance checks should only be carried out in cases of enterprises’ violation, at a high-risk or the Customs need to assess the compliance of the companies. The purpose of post clearance checks will be effective if enterprises increasingly improve the ability of law compliance.

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Also, the provisions of customs law provide obligations, specific responsibilities for enterprises to help them avoid mistakes, violations (they unintentionally, intentionally). If enterprises well comply with laws, they will not suffer any problem Therefore, the difficulties of companies above will depend on their compliance with the laws.