Is the seizure of assets a measure for tax enforcement decision in Vietnam?

Is the seizure of assets a measure for tax enforcement decision in Vietnam?

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

Tax enforcement measures

1. The tax enforcement measures include:

a) Deduction of money from the account of the subject being coerced to enforce the administrative decision on tax management at the State Treasury, commercial banks, or other credit institutions; account freezing;

b) Deduction of a part of the salary or income;

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

d) Stopping the use of invoices;

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

e) Collection of money or other assets of the subject being coerced to enforce the administrative decision on tax management held by other agencies, organizations, or individuals;

g) Revocation of business registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, license for establishment and operation, or practicing license.

2. The tax enforcement measures provided in Clause 1 of this Article shall cease to be effective when the tax debt is fully paid into the state budget.

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Thus, according to the above regulations, the seizure of assets is one of the tax enforcement measures.

Is the seizure of assets a measure for tax enforcement decision in Vietnam? (Image from the Internet)

What is the ending date of revocation of enterprise registration certificate due to tax decision enforcement?

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

- The revocation of the Business Registration Certificate due to coercion on tax management is the legal status of the enterprise whose Business Registration Certificate is revoked by the Business Registration Office at the request of the tax authority to implement measures to enforce the administrative decision on tax management.

- The date of conversion to the legal status "Revocation of Business Registration Certificate due to coercion on tax management" is the date on which the Business Registration Office issues the decision to revoke the Business Registration Certificate.

- The date of termination of the legal status "Revoked due to coercion on tax management" is the date on which the Business Registration Office restores the legal status of the enterprise Pursuant to the request from the Tax Authority in accordance with the law on tax management.

Thus, according to the above regulation, the date of revocation of enterprise registration certificate due to tax decision enforcement is the date on which the Business Registration Office restores the legal status of the enterprise Pursuant to the request from the Tax Authority in accordance with the law on tax management.

When is tax enforcement applied in Vietnam?

Pursuant to the provisions of Article 124 of the Law on Tax Administration 2019, cases subject to tax enforcement include:

(1) Taxpayers whose tax debts exceed 90 days from the due date for payment as prescribed.

(2) Taxpayers with tax debts after the expiration of the tax payment extension period.

(3) Taxpayers with tax debts who commit acts of asset dispersal or escape.

(4) Taxpayers who do not comply with the decision on administrative penalties for tax management within the time limit stated in the decision on administrative penalties for tax management, except in cases where the penalty decision is postponed or suspended.

(5) No measures are applied in cases where taxpayers are allowed by the tax authority to postpone tax debts within the postponement period; no interest charged on late tax payment according to the Law on Tax Administration; taxpayers are allowed to gradually pay tax debts within a period not exceeding 12 months from the commencement of tax coercion.

Gradual repayment of tax debts is decided by the head of the direct tax management agency Pursuant to the taxpayer's request and must have a guarantee from a credit institution.

(6) No measures are applied against taxpayers who owe customs fees and transit fees for goods and vehicles.

(7) Individuals who are legal representatives of taxpayers must fulfill tax obligations of businesses subject to coercive enforcement of administrative tax management decisions before exiting the country and may be temporarily banned from exiting in accordance with the law on entry and exit.