Is deduction of salary or income considered a tax enforcement measures on tax administration in Vietnam?

Is deduction of salary or income considered a tax enforcement measures on tax administration in Vietnam?

Pursuant to the provisions of Clause 1, Article 125 of the Law on Tax administration 2019 as follows:

Measures for Compulsory Enforcement of Administrative Decisions on tax administration

1. Measures for compulsory enforcement of administrative decisions on tax administration include:

a) Deduction of money from the account of the subject under enforcement of the administrative decision on tax administration at the State Treasury, commercial banks, and other credit institutions; account freezing;

b) deduction of salary or income;

c) Suspension of customs procedures for exported or imported goods;

d) Suspension of invoice usage;

đ) Seizure of assets, auction of seized assets in accordance with the law;

e) Collection of money and other assets from the subject under enforcement of the administrative decision on tax administration held by other agencies, organizations, individuals;

g) Revocation of business registration certificates, business registration certificates for cooperation, investment registration certificates, establishment and operation licenses, practicing certificates.

2. The measures for compulsory enforcement of administrative decisions on tax administration stipulated in Clause 1 of this Article terminate when the tax arrears are fully paid into the state budget.

...

Thus, deduction of salary or income is one of the measures for compulsory enforcement of administrative decisions on tax administration.

Is deduction of salary or income considered a tax enforcement measures on tax administration in Vietnam? (Image from the Internet)

What is the starting date of the revocation of enterprise registration certificate due to tax decision enforcement in Vietnam?

Based on Clause 3, Article 41 of Decree 01/2021/ND-CP as follows:

- "revocation of enterprise registration certificate due to tax decision enforcement" is the legal status of a business whose Business Registration Certificate has been revoked by the Business Registration Office upon the request of the tax administration authority implementing measures for compulsory enforcement of administrative decisions on tax administration.

- The date of transition to the legal status "revocation of enterprise registration certificate due to tax decision enforcement" is the date the Business Registration Office issues the decision to revoke the Business Registration Certificate.

- The end date of the legal status "Revoked due to tax administration compulsion" is the date the Business Registration Office restores the legal status of the business based on the proposition of the tax administration Authority according to the Law on Tax administration.

Thus, the starting date of the revocation of enterprise registration certificate due to tax decision enforcement is the date the Business Registration Office issues the decision to revoke the Business Registration Certificate.

What are cases of tax enforcement in Vietnam?

According to the provisions in Article 124 of the Law on Tax administration 2019, cases subjected to compulsory enforcement of administrative decisions on tax administration include:

(1) Taxpayers with tax arrears overdue by more than 90 days from the due date according to regulations.

(2) Taxpayers with tax arrears at the end of the tax payment extension period.

(3) Taxpayers with arrears who are dispersing assets or absconding.

(4) Taxpayers not complying with administrative penalty decisions on tax administration within the time specified on the administrative penalty decision on tax administration, except in cases of deferral or suspension of penalty executions.

(5) Non-imposition of compulsory tax measures in cases where the taxpayer is arranged to have tax debts suspended during the suspension period; not charging late payment interest as per the Law on Tax administration; or is allowed to pay overdue taxes in installments within a period but not exceeding 12 months from the start of the tax enforcement period.

The payment by installment of overdue taxes is considered by the head of the tax administration body directly responsible for the taxpayer based on the taxpayer’s proposal and must have the guarantee of a credit institution.

(6) Non-execution of coercive measures against taxpayers owing customs charges, goods, vehicle foreign depot fees.

(7) An individual who is the legal representative of a taxpayer must complete the tax obligations of the enterprise under enforced administrative decisions on tax administration before leaving the country and may be temporarily prohibited from leaving according to the law on exit and entry.