This article will cover the following topics:

• Which bank transaction data is provided by the bank to the tax authorities
• Process of providing banking transaction data
• How does the tax authority use information about banking transactions?
• What organizations and individuals need to do to avoid risks?

Decree 126/2020 / ND-CP, effective from December 05, 12, requires commercial banks to provide detailed information on banking transactions of taxpayers' organizations and individuals according to regulations. 

Decree 126/2020 / ND-CP allows the tax industry to hold balance information and transaction details through the bank accounts of organizations and individuals - a tax management tool, especially tax collection for electricity commerce. death.

1. What banking transaction data does the bank provide to the tax authorities?

Commercial banks are responsible for providing information about taxpayers' payment accounts opened at banks to tax authorities as follows:

i) At the request of the tax authority, the commercial bank shall provide information on the payment account of each taxpayer, including: name of the account holder, account number according to the tax code approved by the tax authority. tax authorities, account opening date, account closing date.

ii) The provision of account information under Point a of this Clause is made for the first time within 90 days from the effective date of this Decree. The update of account information is done monthly for 10 days of the following month. The method of providing information is done in electronic form.

iii) Commercial banks provide transaction information via account, account balance, transaction data at the request of heads of tax administration agencies to serve the purpose of inspection, examination and determination of payable tax obligations and implementation of coercive measures to enforce administrative decisions on tax administration according to regulations. tax laws.

2. Procedure for providing bank transaction data to tax authorities

About providing transaction information via account, account balance, transaction data:

Commercial banks and other credit institutions provide information on account transactions, account balances and transaction data at the request of the Director of the Tax Department for inspection and verification purposes. determine the payable tax liability and take measures to enforce the administrative decision on tax administration in accordance with the tax law, within 10 working days from the date of receipt of the written request. of tax authorities. In case commercial banks and other credit institutions fail to provide data at the request of tax administration authorities, they will be administratively sanctioned as prescribed in Article 19 of Decree No. 125/2020/ND. -CP dated October 19, 10 of the Government on penalties for administrative violations on taxes and invoices.

Regarding the declaration, deduction, payment on behalf of payable tax obligations and monitoring of the money transferred to overseas suppliers who do not have a permanent establishment in Vietnam and conduct e-commerce or business activities based on digital platforms with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers):

Commercial banks, other credit institutions and intermediary payment service providers shall ｄｅｃｌａｒｅ, deduct, pay on behalf of and monitor the money transferred to overseas suppliers for implementation. in accordance with the provisions of Article 81 of the Circular No. 80/2021/TT-BTC dated September 29, 9 of the Ministry of Finance. In case commercial banks, other credit institutions and intermediary payment service providers fail to do so, they will be handled according to the provisions of Clause 2021, Article 1 of the Law on Tax Administration No. 144/38. /QH2019 dated June 14, 13.

See more: Official Dispatch 2535_TCT_TTKT on the process of providing banking transaction data to tax authorities of the General Department of Taxation

3. How do tax authorities use information about banking transactions?

Tax administration agencies are responsible for keeping information confidential and fully responsible for the safety of information in accordance with the Law on Tax Administration and relevant laws.

Tax authorities use banking transaction data of organizations and individuals to:

• For the purpose of inspection, examination and determination of payable tax obligations.
• Implement measures to coerce the implementation of administrative decisions on tax administration according to the provisions of tax law.

4. What should organizations and individuals do to prevent risks?

In order to avoid risks and comply with regulations on providing data to tax authorities related to transaction information through accounts, account balances, transaction data, as well as declaration, deduction, and pay taxes, here are some tips for businesses:

• Understand the law: Master the regulations and guidelines related to data provision, tax return and tax payment. Make sure you understand how it's done and the restrictions and legal obligations you need to follow.
• Data systematization: Build and maintain a reliable tax, transaction and financial management system. This makes it easy for you to retrieve the necessary information when required by the tax authorities.
• Watch closely: Ensure that you have correctly recorded information regarding your bank accounts, transactions and transaction figures. Check regularly to ensure accuracy of data.
• Getting ready for inspection and inspection: Make sure you have the necessary data and information ready to face any examination or inspection from the tax authorities.
• Keep relevant documents: Store all tax and financial related documents and vouchers for the specified time. This will help you demonstrate the accuracy and compliance of your information where necessary.
• Partnering with a financial and tax professional: Work with an experienced tax and finance professional or consulting firm to ensure you follow the right process and comply with the law.

Complying with regulations and following the right process not only helps you avoid legal risks, but also contributes to the transparency and financial health of your business.

Doing the above is not easy for businesses, the effective solution is to use a professional service: Cooperate with a financial, accounting and tax expert to ensure you follow the correct process and comply with the regulations. legislation.

See detailed information about our services in the article

Accounting and tax consulting services.