How many enforcement measures are there for implementation of tax enforcement decisions in Vietnam?

How many enforcement measures are there for implementation of tax enforcement decisions in Vietnam?

Pursuant to Clause 1, Article 125 of the 2019 Law on Tax Administration, the enforcement measures for implementation of tax enforcement decisions are prescribed as follows:

Enforcement measures for implementation of tax enforcement decisions

1. The enforcement measures for implementation of tax enforcement decisions include:

a) Deducting money from the account of the entity subject to enforcement of the administrative decision on tax administration at the State Treasury, commercial banks, or other credit institutions; freezing the account;

b) Withholding a portion of salary or income;

c) Halting the customs procedures for export and import goods;

d) Suspending the use of invoices;

đ) Seizing property, auctioning the seized property in accordance with the law;

e) Collecting money, or other assets of the entity subject to enforcement of the administrative decision on tax administration held by other agencies, organizations, or individuals;

g) Revoking the certificate of enterprise registration, certificate of business registration, certificate of cooperative registration, certificate of investment registration, license for establishment and operation, practice license.

2. The enforcement measures for implementation of tax enforcement decisions prescribed in Clause 1 of this Article cease to be effective once the outstanding tax is fully paid into the state budget.

3. The application of enforcement measures for implementation of tax enforcement decisions is carried out as follows:

a) For the enforcement measures prescribed in Points a, b, and c of Clause 1 of this Article, depending on the actual situation, the tax administration authority applies the appropriate enforcement measure;

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Thus, there are a total of 7 enforcement measures for implementation of tax enforcement decisions, including:

- Deducting money from the account of the entity subject to enforcement of the administrative decision on tax administration at the State Treasury, commercial banks, or other credit institutions; freezing the account;

- Withholding a portion of salary or income;

- Halting the customs procedures for export and import goods;

- Suspending the use of invoices;

- Seizing property, auctioning the seized property in accordance with the law;

- Collecting money, or other assets of the entity subject to enforcement of the administrative decision on tax administration held by other agencies, organizations, or individuals;

- Revoking the certificate of enterprise registration, certificate of business registration, certificate of cooperative registration, certificate of investment registration, license for establishment and operation, practice license.

How many enforcement measures are there for implementation of tax enforcement decisions in Vietnam? (Image from the Internet)

What are cases where the tax enforcement is applied in Vietnam?

Pursuant to Article 124 of the 2019 Law on Tax Administration, the cases subject to tax enforcement are as follows:

- Taxpayers have overdue tax debts exceeding 90 days from the due date as prescribed.

- Taxpayers have overdue tax debts upon the expiration of the tax payment extension period.

- Taxpayers with overdue tax debts engage in spreading assets or absconding.

- Taxpayers do not comply with administrative penalty decisions on tax administration within the time specified in the administrative penalty decision on tax administration, except in cases of deferral or suspension of the penalty decision.

- Tax enforcement measures have not been applied to taxpayers whose tax debts are stalled by the tax administration authority within the debt suspension period; do not calculate late tax payment fees; or are allowed to pay the overdue tax gradually within a period but not exceeding 12 months from the commencement of the tax enforcement period.

The gradual payment of overdue taxes is considered by the head of the tax managing authority based on the taxpayer's proposal and must be guaranteed by a credit institution. The Minister of Finance prescribes the number of gradual payments and the dossier and procedures for gradual payment of overdue taxes.

- Enforcement measures are not applied to taxpayers with customs fees and goods transit fees overdue.

- Individuals who are legal representatives of taxpayers must fulfill the tax obligations of enterprises subject to tax enforcement before exiting the country, and may have their exit temporarily suspended in accordance with the law on exit and entry.

What contents are included in the tax enforcement decisions in Vietnam?

According to the provisions in 1 Article 127 of the 2019 Law on Tax Administration, the enforcement decision on tax enforcement decisions includes the following contents:

- Date of issuance;

- Basis for the decision;

- Decision maker;

- Name, address, and tax code of the taxpayer subject to enforcement of the administrative decision on tax administration;

- Reason for enforcement of the administrative decision on tax administration;

- Enforcement measures for the administrative decision on tax administration;

- Time and place of execution;

- Presiding agency, coordinating agency implementing the tax enforcement decisions.