Shall a taxpayer declared incapacitated by a court be eligible for tax chargeoff in Vietnam?

Shall a taxpayer declared incapacitated by a court be eligible for tax chargeoff in Vietnam?

Based on Article 83 of the Law on Tax Administration 2019 stipulating cases eligible for tax chargeoff, including:

(1) The taxpayer is deceased, declared deceased, missing, or incapacitated by a court.

The tax chargeoff period starts from the date a death certificate, death notice, or equivalent document as per civil status laws, or a court decision declaring death, missing, or incapacitated status is issued.

(2) The taxpayer has a dissolution decision sent to the tax administration authority and the business registration authority. The business registration authority has announced that the taxpayer is undergoing dissolution procedures on the national business registration information system but has not completed the dissolution procedures.

The tax chargeoff period starts from the date the business registration authority announces the taxpayer’s dissolution procedures on the national business registration information system.

(3) The taxpayer has filed for bankruptcy or has been filed for bankruptcy by a person authorized to do so under the bankruptcy laws.

The tax chargeoff period starts from the date the competent court accepts the bankruptcy filing, or the taxpayer has submitted a bankruptcy file to the tax administration authority while still undergoing debt settlement procedures according to bankruptcy laws.

(4) The taxpayer is no longer conducting business at the registered business address. The tax administration authority has cooperated with the People’s Committee of the commune where the taxpayer is located to verify, and has announced nationwide that the taxpayer or legal representative is not present at the registered address.

The tax chargeoff period starts from the date the tax administration authority issues a nationwide announcement that the taxpayer or legal representative is not present at the registered business address.

(5) The taxpayer’s business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license has been proposed for revocation by the tax administration authority or has been revoked by the competent authority.

The tax chargeoff period starts from the date the tax administration authority issues a proposal for revocation or the effective date of the revocation decision of the business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license.

Thus, a taxpayer declared incapacitated by a court qualifies for tax chargeoff.

Therefore, if a taxpayer is declared incapacitated by a court, they shall be eligible for tax chargeoff.

Shall a taxpayer declared incapacitated by a court be eligible for tax chargeoff in Vietnam? (Image from Internet).

What documents are required for tax chargeoff in Vietnam?

According to Clause 1, Article 23 of Decree 126/2020/ND-CP guiding the documentation for tax chargeoff, the required documents include:

- For case (1): Death certificate, death notice, or equivalent documents as per civil status laws, or a court decision declaring a person deceased, missing, or incapacitated (original or certified copy).

- For case (2): Dissolution decision of the taxpayer and information about the name, business code, and the time of information posting by the business registration authority about the taxpayer’s dissolution procedures on the National Business Registration System.

- For case (3): Notification from the competent court about the acceptance of the bankruptcy application (original or certified copy).

- For case (4): Confirmation between the tax administration authority and the People’s Committee of the commune about the taxpayer not operating at the registered business address and the tax administration authority’s announcement regarding this (original or certified copy).

- For case (5): Proposal letter from the tax administration authority to the competent authority for revocation or the decision from the competent authority to revoke the business registration certificate, enterprise registration certificate, cooperative registration certificate, business household registration certificate, establishment and operation license, practice license, or registration certificate of branch, representative office (original or certified copy).

Vietnam: Do contents of tax management include tax chargeoff?

According to Article 4 of the Law on Tax Administration 2019 stipulating the contents of tax management, as follows:

Contents of Tax Management

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

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

3. Suspension of tax debts; cancellation of tax debts, late payment fines, penalties; exemption of late payment fines, penalties; non-calculation of late payment fines; tax payment extensions; installment tax payments.

4. Management of taxpayer information.

5. Invoice and voucher management.

6. Tax inspection, tax audit, and enforcement measures to prevent and control tax law violations.

7. Enforcement of administrative decisions on tax management.

8. Handling administrative violations of tax laws.

9. Tax complaint and denunciation resolution.

10. International tax cooperation.

11. Taxpayer outreach and support.

Thus, according to the above regulations, tax chargeoff is indeed a component of tax management.