Updated: October 2026
Download the full text of Circular No. 94/2026/TT-BTC dated 1 July 2026 issued by the Ministry of Finance here (PDF, Vietnamese).
1. Circular 94/2026/TT-BTC changes how the tax authority selects companies for audit
From 1 July 2026, whether a company is selected for a tax audit depends mainly on its risk score. Circular 94/2026/TT-BTC of the Ministry of Finance, dated 1 July 2026, requires that at least 90% of cases in the annual on-site audit plan be selected based on compliance and risk assessment results, with no more than 10% selected at random (Article 17.1).
The Circular replaces Circular 31/2021/TT-BTC and implements the Law on Tax Administration No. 108/2025/QH15. Three points businesses should know:
- A central compliance and tax risk management module operated by the Tax Department (Article 7). It uses big data analytics, machine learning and artificial intelligence to score taxpayers, raise alerts and propose audit plans. Its output is decision support only; the final decision remains with the competent tax official.
- Data is updated continuously, in real time or near real time, from multiple sources: tax sector data, other ministries, foreign tax authorities and information purchased in accordance with regulations (Article 6).
- Assessment is automatic and periodic (Article 4.4). Companies are not told which tier they are in, but every return, invoice and late payment feeds into the score.
2. How companies are classified: 4 compliance tiers, 3 risk levels
Each company is scored on two layers. The first is its level of compliance. The second is its level of risk, and the compliance result is one of the inputs to that second layer.
| Assessment layer | Levels | Criteria set | Main consequence |
|---|---|---|---|
| Compliance level (Article 10) | Good, average, low, non-compliant | Appendix I, 28 criteria | Good compliance: considered for commendation and priority treatment. Non-compliant: placed under priority supervision |
| Risk level (Article 13) | High, medium, low | Organisations: Appendix II, 191 criteria. Individuals: Appendix III, 68 criteria | Determines whether the company is audited first, refunded first, or audited afterwards |
The tax authority may use one or a combination of three methods: scoring, machine learning and list-based ranking (Article 5). Specific scores, weightings and thresholds will be issued later by the Tax Department (Article 22). It is therefore not yet possible to know exactly what score results in a high-risk rating.
3. Situations that can lead to a tax audit
Beyond the annual audit plan, many routine procedures can also trigger an audit if the company is rated high risk.
| Situation | Measure if high risk | Medium or low risk | Provision |
|---|---|---|---|
| Annual audit plan | Selected in order from highest risk downwards | May not be selected | Article 17 |
| Desk review of tax returns | Reviewed at the tax office | Not reviewed for now | Article 15 |
| Moving the head office to an area managed by a different tax office | On-site audit by the departing tax office | Medium: placed under monitoring by the receiving office | Article 14.1 |
| Termination of the tax code | On-site audit | Reminder to settle tax obligations | Article 14.3 |
| Reactivation of the tax code | Review and audit before reactivation | Reactivated as normal | Article 14.4 |
| Tax refund | Audit first, refund later | Refund first, audit later | Article 16 |
| Tax exemption or reduction | On-site audit | Application processed, audit later | Article 19 |
| E-invoices | Registration refused or use of e-invoices suspended | Sample-based review | Article 20.1 |
In addition, where information comes from a whistleblower report, an inspection or audit finding, or an investigating authority, the head of the tax office may change the form and intensity of the audit (Article 8.4).
Article 9 also provides for priority supervision. A company falls into this category if it shows any of the following signs: suspicious bank transactions, prosecution for tax or invoice offences, high risk under a priority theme, or a non-compliant rating. Notably, simply failing to provide an explanation, or providing an incomplete or late explanation in response to a tax authority letter, is enough to be placed under priority supervision.
4. VAT refunds: the risk-free portion is refunded, the risky portion is suspended
For VAT refund applications rated medium or low risk, the tax authority refunds the portion with no identified risk first and suspends the portion showing risk signs (Article 16.1(b), points b.1 and b.2). The suspended portion is reviewed and audited within 2 years from the date of the refund decision.
Illustrative example (hypothetical scenario, not an actual case):
Company A is a foreign-invested manufacturer of export goods and applies for a VAT refund of VND 5,000,000,000. The application is rated medium risk. The module detects several input invoices issued by a supplier whose business is temporarily suspended (Appendix II, No. 173), with total VAT of VND 1,200,000,000.
| Item | Amount (VND) | Treatment |
|---|---|---|
| VAT refund requested | 5,000,000,000 | |
| Portion showing risk signs | 1,200,000,000 | Refund suspended, reviewed within 2 years |
| Portion with no identified risk (5,000,000,000 − 1,200,000,000) | 3,800,000,000 | Refund first, audit later |
When reviewing the suspended portion, the tax office managing the supplier must cooperate by exchanging information or auditing the seller on site. If high-risk signs are found during processing, the application may be moved to audit-first, refund-later treatment (Article 16.3).
Post-refund audit deadlines (Article 16.4), assuming the refund decision is issued on 15 November 2026:
| Risk level of the application | Post-refund audit period | Deadline in the example |
|---|---|---|
| High risk (not subject to audit-first treatment) | 1 year | 15/11/2027 |
| Medium risk | 3 years | 15/11/2029 |
| Low risk | 5 years | 15/11/2031 |
The tax authority may audit earlier than these deadlines. Companies should therefore keep full supporting documents for every input invoice at least until the post-refund audit period ends.
5. Signs that make FDI companies more likely to be rated high risk
Appendix II contains 191 criteria. Below are those most often relevant to foreign-invested companies.
| Group | Criterion | Reference |
|---|---|---|
| Business results | Continuous losses while still expanding production or business | Appendix II, No. 64 |
| Related-party transactions | Capital transfers, joint ventures, associations; non-deductible interest expense with related parties | Appendix II, Nos. 175, 176 |
| Profit | Dividend payments to shareholders | Appendix II, No. 189 |
| Financial statements | Audit opinion; submission of audited financial statements | Appendix II, Nos. 28, 29 |
| Staffing | Headcount not commensurate with scale; chief accountant information | Appendix II, Nos. 9, 10 |
| Legal representative | Residence, age and social insurance participation of the legal representative | Appendix II, Nos. 14, 16, 17 |
| Tax filing | Frequent amendments to returns; returns with all fields at zero | Appendix II, Nos. 26, 27 |
| Invoices | Buying from or selling to companies that are suspended or not operating at their registered address | Appendix II, Nos. 173, 174 |
| Audit history | Most recent audit period; tax previously assessed, penalties and late-payment interest | Appendix II, Nos. 164 to 167 |
The last criterion deserves attention: the results of previous audits feed back into the risk score. A company that has previously been assessed additional tax is more likely to be rated high risk in later periods.
In the other direction, the Circular includes a positive criterion: companies that voluntarily register for compliance and are ready to connect and share accounting ledgers, invoices and supporting documents with the tax authority (Appendix I, No. 26; Appendix II, No. 11).
6. What FDI companies should do now
The most effective way to reduce risk is to get things right the first time, because all data is recorded in the score.
- File every return, on time. The rate of returns filed and the rate of on-time filing are the first two criteria in the filing group (Appendix I, Nos. 6, 7).
- Get the return right the first time. Amending or supplementing returns is a risk criterion. When an error is found, the company must still file a supplementary return as required, but careful review before filing reduces the need for amendments.
- Check supplier status before accepting invoices. Look up the tax code of new suppliers, especially for large purchases that will support a refund claim.
- Respond to tax authority letters fully and on time. No explanation, or an incomplete or late explanation, is enough for priority supervision (Article 9.1(d)).
- Do not let tax debt arise. The age, frequency and total amount of tax debt are all criteria. High-risk tax debt can lead to an exit ban on the legal representative and enforcement measures (Article 18.1).
- Prepare documents before major changes. Moving the head office to another area, suspending business or applying for a refund are all points at which the tax authority reassesses risk.
- Be able to explain unusual indicators. Multi-year losses, large related-party transactions, dividend payments and low headcount relative to revenue should have explanations ready, including the related-party transactions appendix filed with the CIT finalisation.
- Keep records long enough. For refunded applications, retain documents at least until the post-refund audit period ends (up to 5 years).
7. Conclusion
Under Circular 94/2026/TT-BTC, the likelihood of a tax audit depends on the data a company generates every day: returns, invoices, payments and how it responds to the tax authority. The specific indicators and score thresholds will be issued later by the Tax Department. In the meantime, companies should proactively review the criteria above so they are not caught off guard by an audit decision or when filing a refund claim.
TrustlineAX supports FDI companies with tax compliance reviews, filing, year-end finalisation and refund preparation. Contact hello@trustlineax.com, call +84 376 375 068 or send us a request.
Disclaimer
This article is based on Circular No. 94/2026/TT-BTC dated 1 July 2026 of the Ministry of Finance on compliance management and risk management in tax administration. The example is a hypothetical scenario for illustration. Article numbers refer to the Vietnamese original; English terms are TrustlineAX working translations. The content is for reference only, does not replace the original legal text and is not advice for any specific case.