Shall a person owing taxes have their salary or income deducted according to the tax enforcement decision in Vietnam?

Shall a person owing taxes have their salary or income deducted according to the tax enforcement decision in Vietnam?

According to Clause 3, Article 130 of the Law on Tax Administration 2019, there is a specific regulation that the salary of a person owing taxes will be subjected to enforcement by tax deduction as follows:

- Deducting a portion of the salary or income of the individual subjected to enforcement of the administrative decision on tax management and transferring the deducted amount into the State budget account at the State Treasury according to the content recorded in the enforcement decision of the administrative decision on tax management from the nearest salary or income payment period until the tax debt amount is fully deducted as per the enforcement decision of the administrative decision on tax management, and simultaneously notifying the person who issued the enforcement decision and the enforced individual;

- In the case where the full tax debt amount has not been deducted according to the enforcement decision, and the employment contract of the individual subjected to enforcement is terminated, the employing agency or organization must notify the person who issued the enforcement decision on tax management within 5 working days from the termination date of the employment contract;

- The employing agency or organization managing the salary or income of the individual subjected to enforcement of the administrative decision on tax management that intentionally fails to execute the enforcement decision of the administrative decision on tax management will be subjected to administrative penalties as stipulated in Chapter XV of this Law.

How many tax enforcement measures are there in Vietnam?

Based on Section 14 of the Law on Tax Administration 2019, there are specific regulations on enforcement measures for administrative decisions on tax management with 07 enforcement measures as follows:

- According to Article 129, coercion by the measure of withdrawing money from the accounts, freezing accounts of the individual subjected to enforcement of the administrative decision on tax management.

- According to Article 130, coercion by deduction of a portion of salary or income.

- According to Article 131, coercion by the measure of stopping customs procedures for export and import goods.

- According to Article 132, coercion by the measure of suspending the use of invoices.

- According to Article 133, coercion by seizure of property, auctioning seized property.

- According to Article 134, coercion by the measure of collecting money, other assets of the individual subjected to enforcement held by other agencies, organizations, or individuals.

- According to Article 135, coercion by the measure of revoking business registration certificates, business operation certificates, cooperative registration certificates, investment registration certificates, establishment and operation licenses, practicing licenses.

Shall a person owing taxes have their salary or income deducted according to the tax enforcement decision in Vietnam? (Image from the Internet)

What are the main contents in the tax enforcement decision in Vietnam?

According to Clause 1, Article 127 of the Law on Tax Administration 2019, there are specific provisions on the main contents in the tax enforcement decision, including:

[1] Date, month, year of the decision;

[2] Basis for the decision;

[3] Decision-maker;

[4] Name, address, tax code of the taxpayer subjected to enforcement of administrative decisions on tax management;

[5] Reason for enforcement of the administrative decision on tax management;

[6] Enforcement measures for administrative decisions on tax management;

[7] Time, location of implementation;

[8] Lead agency, coordinating agency in executing the tax enforcement decision.

- Additionally, the tax enforcement decision must be sent to the enforced party, the superior tax management agency, and relevant organizations and individuals; in cases eligible for electronic transactions in the field of tax management, the enforcement decision will be sent electronically and updated on the tax management agency’s electronic information portal; if enforcement is by regulated measures, the enforcement decision must be sent to the chairman of the People’s Committee at the commune level where the enforcement is to take place before implementation.

- The enforcement decision is effective for one year from the issue date; for enforcement by the measure of withdrawing money from the accounts, freezing accounts of the individual subjected to enforcement, it is effective for 30 days from the issue date.