Does tax administration content include cancellation of tax debts in Vietnam?

Does tax administration content include cancellation of tax debts in Vietnam?

According to the provisions of Article 4 of the Law on Tax Administration 2019 on tax administration content as follows:

Article 4. Tax administration content

1. Tax registration, tax declaration, tax payment, tax determination.

2. Tax refund, tax exemption, tax reduction, non-collection of tax.

3. Tax debt relief; cancellation of tax debts, late payment interests, fines; exemption from late payment interests, fines; non-application of late payment interests; extension of tax payment; installment payment of tax debts.

4. Management of taxpayer information.

5. Management of invoices and documents.

6. Tax inspection, tax auditing, and implementation of measures to prevent violations of tax laws.

7. Enforcement of administrative decisions on tax administration.

8. Penalties for administrative violations on tax administration.

9. Resolution of complaints and denunciations related to tax.

10. International cooperation on tax.

11. Publicity and support for taxpayers.

Thus, according to the above provisions, the cancellation of tax debts is part of the tax administration content according to legal regulations.

Does tax administration content include cancellation of tax debts in Vietnam? (Image from the Internet)

Does the tax authority have the duty to cancel tax debts in Vietnam?

According to Clause 5, Article 18 of the Law on Tax Administration 2019, the duties of the tax authority are stipulated as follows:

Duties of the tax authority

1. Organize the management of tax collection and other revenues belonging to the state budget according to tax law and other related legal provisions.

2. Propagate, disseminate, and guide tax laws; publicize tax procedures at the office, the website of the tax authority, and through mass media.

3. Explain, provide information related to tax obligation determination for taxpayers; the tax authority has the responsibility to disclose the payable tax amount of business households and individuals operating businesses in communes, wards, and commune-level towns.

4. Ensure the confidentiality of taxpayer information, except for information provided to competent authorities or information disclosed according to legal provisions.

5. Implement tax exemption; tax reduction; cancellation of tax debts, late payment interests, fines; exemption from late payment interests, fines; non-application of late payment interests; extension of tax payment; installment payment of tax debts; suspend tax debt; non-collection of tax; handle overpaid taxes, late payment interests, fines; tax refund according to the provisions of this Law and other related legal provisions.

6. Confirm the fulfillment of tax obligations by taxpayers upon request according to legal provisions.

7. Resolve complaints and denunciations related to the implementation of tax laws according to authority.

8. Deliver minutes, conclusions, tax handling decisions after tax inspection, tax auditing to taxpayers and explain when requested.

9. Compensate for damages to taxpayers according to legal regulations on state liability.

10. Appraise to determine the payable tax amount of taxpayers at the request of competent state authorities.

11. Develop and organize an electronic information system and apply information technology to conduct electronic transactions in the tax field.

Thus, according to the above provisions, the tax authority has the duty to cancel tax debts according to legal regulations.

When shall taxpayers have their tax debts cancelled in Vietnam?

According to Article 85 of the Law on Tax Administration 2019, the cases where taxpayers can have their tax debts, late fees, and fines cancelled are stipulated as follows:

- Enterprises and cooperatives declared bankrupt that have fulfilled payments in accordance with bankruptcy law but remain without assets to pay tax, late fees, fines.

- Individuals who have died or been declared dead, lacking civil capacity, or without any assets, including inherited property to cover outstanding tax, late fees, fines.

- Tax debts, late fees, fines of taxpayers not covered under clause 1 and clause 2 of the Law on Tax Administration 2019 where enforcement measures have been applied as per point g clause 1 Article 125 of the Law on Tax Administration 2019 and such debts have been outstanding for over 10 years since the tax payment deadline and are unrecoverable.

Taxpayers being individuals, individual business operators, household heads, household business owners, owners of private enterprises, and single-member limited liability companies whose tax debts, late fees, fines have been cancelled under this provision before resuming production, business, or establishing a new production, business establishment must repay the State the tax debts, late fees, fines that were cancelled.

- Taxes, late fees, fines in cases affected by natural disasters, disasters, epidemics with a wide scope where late payment fees have been waived under the regulation at clause 8 Article 59 of the Law on Tax Administration 2019 and have been deferred under point a clause 1 Article 62 of the Law on Tax Administration 2019 while still suffering losses, without recovery capability in production or business, and unable to pay tax, late fees, fines.

- The Government of Vietnam regulates the coordination between tax authorities and business registration authorities, local governments to ensure tax, late fees, fines that were cancelled are to be reimbursed to the state budget according to clause 3 of the Law on Tax Administration 2019 before issuing business registration certificates, enterprise registration certificates; provides detailed regulations in clause 4 of the Law on Tax Administration 2019.