The Ministry of Finance in Vietnam has announced new regulations regarding tax monitoring that will take effect from July 1. Under the new guidelines, specific cases of taxpayers will be closely monitored if they exhibit certain risk indicators related to tax compliance.

According to Circular 94/2026/TT-BTC, taxpayers will fall under key monitoring if they meet any of the following criteria:

• Engaging in suspicious banking transactions that may relate to tax evasion or fraud.
• The taxpayer or their legal representative is prosecuted for tax-related violations.
• Exhibiting a high risk of tax issues that require additional scrutiny from tax authorities.
• Failing to comply with tax regulations or not providing sufficient information as requested by tax authorities.

This key monitoring process involves the tax authorities implementing various measures to closely supervise and control the activities of high-risk taxpayers over a specified period. The tax risk levels are categorized into three tiers: high, medium, and low. Taxpayers classified as high risk will face stricter management measures, including increased monitoring frequency and direct intervention to recover tax debts.

For example, the tax authorities may impose temporary exit bans, apply enforcement measures for tax decisions, and publicly disclose tax debt information. The new regulation also emphasizes the importance of compliance with electronic invoicing, with high-risk taxpayers potentially facing restrictions on using electronic invoices.

These measures are part of a broader effort to enhance tax compliance and reduce instances of tax evasion in Vietnam. The new regulations replace the previous Circular 31/2021/TT-BTC and are a significant step towards improving tax administration in the country.