Learn about the latest financial year and the regulations related to the financial year in procurement

What documents do contractors need to provide for the latest financial year?

In almost all tender invitation documents, there are two requirements related to the latest financial year:

1. Evidence of fulfilling tax obligations for the latest financial year in comparison to the bidding closing date.
2. Average annual revenue for a specified number of years (as required) up to the latest financial year.

Recently, we have noticed that many tender invitation documents require contractors to provide a "Confirmation from the tax authority regarding the fulfillment of tax obligations or confirmation from the tax authority regarding the absence of tax arrears". We believe that this is a mechanistic approach from the inviting party and does not comply with the regulations and guidelines set forth by the Ministry of Planning and Investment for tender invitation documents. Specifically, determining tax obligations or submission of financial reports only requires one of the following documents:

• Tax settlement inspection minutes
• Self-declared tax return (for value-added tax and corporate income tax) with confirmation from the tax authority on the submission date
• Evidence of electronic tax settlement declaration by the contractor
• Confirmation document from the tax authority (confirming annual submissions) regarding the fulfillment of tax obligations
• Audit report (if available)

In regards to tax obligations, the purpose here is to demonstrate that the contractor has a healthy financial situation and does not have any tax arrears until the end of the latest financial year. However, the requirement for contractors to obtain confirmation from the tax authority is a separate issue. As we know, tax authorities make such affirmations in relation to tax inspection and verification, which does not happen regularly. In some cases, due to objective reasons, contractors may unexpectedly have a small "outstanding" tax amount. If they request the tax authorities to confirm this, the contractor will be labeled as having "tax arrears" and will be evaluated as inadequate in terms of experience and capacity.

This article analyzes the determination of the latest financial year and expresses the viewpoint that there is no need to obtain confirmation from the tax authority regarding the fulfillment of tax obligations. We hope this article is useful for contractors who are concerned about this issue. DauThau.info is always there to provide helpful information to interested contractors. If you need assistance, please contact us.

• Messenger: https://m.me/en.dauthau.info
• Hotline: 0904.634.288 or 024.8888.4288
• Email: [email protected]
• Contractor Support Group: www.fb.com/groups/nhathaumuasamcong
• Group Zalo: https://zalo.me/g/ozgoox472