Shall an individual declared incapacitated be entitled to the outstanding tax cancellation in Vietnam?

Shall an individual declared incapacitated be entitled to the outstanding tax cancellation in Vietnam?

Pursuant to Clause 2, Article 85 of the Law on Tax Administration 2019, the cases eligible for outstanding tax cancellation, late payment interest, and fines are stipulated as follows:

Cases eligible for outstanding tax cancellation, late payment interest, and fines

...

2. An individual who has died or has been declared dead or lacks civil act capacity by a court and who does not possess any assets, including inherited assets, for paying outstanding tax, late payments, and fines.

...

Therefore, an individual declared incapacitated may have outstanding tax canceled if the following two conditions are met:

- Has been declared by a court as declared incapacitated.

- Possesses no assets, including inherited assets, to pay the outstanding tax.

Shall an individual declared incapacitated be entitled to the outstanding tax cancellation in Vietnam? (Image from the Internet)

Who has the authority to cancel outstanding tax for individuals declared incapacitated in Vietnam?

Pursuant to Clause 1, Article 87 of the Law on Tax Administration 2019, the authority to cancel outstanding tax, late payment interest, and fines is stipulated as follows:

Authority to Cancel outstanding tax, Late Payment Interest, and Fines

1. The Chairperson of the Provincial People's Committee has the authority to cancel outstanding taxs, late payment interests, and fines for the following cases:

a) Cases stated in Clause 1 and Clause 2, Article 85 of this Law;

b) Households, business households, business individuals, and individuals stipulated in Clause 3, Article 85 of this Law;

c) Enterprises and cooperatives falling under the cases in Clause 3, Article 85 of this Law with outstanding taxs, late payments, and fines under 5,000,000,000 VND.

2. The Director General of the General Department of Taxation and the Director General of the General Department of Customs have the authority to cancel debts for enterprises and cooperatives falling under the cases in Clause 3, Article 85 of this Law with outstanding taxs, late payments, and fines from 5,000,000,000 VND to under 10,000,000,000 VND.

3. The Minister of Finance has the authority to cancel debts for enterprises and cooperatives falling under the cases in Clause 3, Article 85 of this Law with outstanding taxs, late payments, and fines from 10,000,000,000 VND to under 15,000,000,000 VND.

4. The Prime Minister of the Government of Vietnam makes decisions on debt cancellations for enterprises and cooperatives falling under the cases in Clause 3, Article 85 of this Law with outstanding taxs, late payments, and fines of 15,000,000,000 VND or more.

5. The Chairperson of the Provincial People's Committee reports on the status and results of outstanding tax cancellations, late payments, and fines to the People's Council at the same level in the first session of the year. The Minister of Finance compiles the situation of outstanding tax cancellations, late payments, and fines for the Government of Vietnam to report to the National Assembly when settling the state budget.

Thus, the authority to cancel outstanding tax for an individual declared incapacitated falls under the jurisdiction of the Chairperson of the Provincial People's Committee.

Vietnam: What does the dossier for canceling outstanding tax for individuals declared incapacitated include?

According to Article 16 of Circular 06/2021/TT-BTC, the dossier for canceling outstanding tax for individuals declared incapacitated includes:

- 01 original Official Dispatch requesting outstanding tax cancellation, late payment interest, and fines from the Customs Department or the Customs Sub-department (where the Customs Department does not have its headquarters) where the taxpayer owes taxes, according to Form No. 16/TXNK Appendix I issued together with Circular 06/2021/TT-BTC.

- 01 certified copy from the outstanding tax cancellation requesting authority of the court's decision declaring the individual declared incapacitated or documents from a competent state agency proving the individual is declared incapacitated.

What are procedures for resolving the dossier for canceling outstanding tax for individuals declared incapacitated in Vietnam?

According to point a, clause 1, Article 65 of Circular 80/2021/TT-BTC, the procedure for resolving the dossier for canceling outstanding tax for individuals declared incapacitated is as follows:

- For dossiers prepared and submitted by the Tax Sub-department, the Tax Department evaluates the dossier:

+ If not eligible for debt cancellation, the Tax Department notifies the Tax Sub-department using Form No. 02/XOANO issued together with Appendix 1 of Circular 80/2021/TT-BTC.

+ If eligible for debt cancellation but the dossier is incomplete, the Tax Department informs the Tax Sub-department to supplement the dossier using Form No. 03/XOANO issued together with Appendix 1 of Circular 80/2021/TT-BTC.

+ If eligible for debt cancellation and the dossier is complete, the Tax Department prepares a proposal, drafts a decision to cancel the debt using Form No. 04/XOANO issued together with Appendix 1 of Circular 80/2021/TT-BTC, along with the dossier to be sent to the Provincial People's Committee for consideration and decision.

- For dossiers prepared by the Tax Department:

+ If eligible for debt cancellation and the dossier is complete, the Tax Department prepares a proposal, drafts a decision to cancel the debt according to Form No. 04/XOANO issued with Appendix 1 of Circular 80/2021/TT-BTC, along with the dossier to be sent to the Provincial People's Committee for consideration and decision.