Vietnam: What does the tax debt freezing documentation include?

Vietnam: What does the tax debt freezing documentation include?

According to Clause 1 Article 23 of Decree 126/2020/ND-CP, the tax debt freezing documentation includes the following:

- For taxpayers who are deceased, who the court declares deceased, missing, or incapacitated:

A death certificate or a notice of death or other documents replacing the notice of death as prescribed by civil registration law, or a court decision declaring a person dead, missing, or incapacitated (original or a copy extracted from the original register or a certified copy).

- For taxpayers with a dissolution decision sent to the tax administration authority, the business registration authority to perform dissolution procedures, and the business registration authority has announced that the taxpayer is undergoing dissolution procedures on the national business registration information system but the taxpayer has yet to complete the dissolution procedures:

The taxpayer's dissolution decision and information about the name, enterprise code, the time of publication of information of the business registration authority regarding the taxpayer undergoing dissolution procedures on the National Business Registration Information System.

- For taxpayers who have filed for bankruptcy or have had a bankruptcy application filed by an entitled party as prescribed by bankruptcy law:

A notification from the competent court regarding the acceptance of the bankruptcy petition (original or a copy extracted from the original register or a certified copy).

- For taxpayers who no longer conduct business at the registered business address with the business registration authority and tax administration authority has cooperated with the Commune-level People's Committee where the taxpayer has the headquarters or contact address to check and verify the taxpayer’s absence from the locality and announced nationwide about the taxpayer;

Or the legal representative of the taxpayer is not present at the registered headquarters or contact address registered with the tax administration authority:

A confirmation document between the tax authority and the commune-level People's Committee, where the taxpayer has the headquarters or contact address, about the taxpayer not conducting business at the registered address or contact address and a notification from the tax administration authority about the taxpayer not conducting business at the registered address (original or a copy extracted from the original register or a certified copy).

- For taxpayers that have been proposed by the tax authority to competent authority for revocation or have already had their business registration certificate, enterprise registration certificate, co-operative registration certificate, establishment and operation license, professional license revoked by the competent authority:

A proposal document from the tax authority to the competent authority for revocation or a decision from the competent authority revoking the business registration certificate or enterprise registration certificate;

Or co-operative registration certificate, household business registration certificate, establishment and operation license, professional license, or branch, representative office registration certificate (original or a copy extracted from the original register or a certified copy).

Vietnam: What does the tax debt freezing documentation include? (Image from Internet)

What are procedures for tax debt freezing in Vietnam?

According to Clause 3 Article 23 of Decree 126/2020/ND-CP, the tax debt freezing procedure is conducted as follows:

- For cases eligible for tax debt freezing as prescribed in Article 83 of the Tax Administration Law 2019, when all required documents at clause 1 are complete:

The head of the tax administration authority directly managing the taxpayer shall issue a debt freezing decision using Form No. 01/KN in Appendix 3 issued with Decree 126/2020/ND-CP for the tax debt amount at the start of the debt freezing period specified in Clause 2 Article 23 of Decree 126/2020/ND-CP.

- In cases where the tax administration authority has issued a debt freezing decision but the court reverses its decision declaring a person dead, missing, incapacitated or the taxpayer resumes business operations:

The tax administration authority shall issue a decision terminating the debt freezing decision using Form No. 02/KN in Appendix 3 issued with Decree 126/2020/ND-CP.

The tax administration authority will calculate late payment interest for the taxpayer from the date the decision terminating the debt freezing is issued to the date the taxpayer pays the required tax debt to the state budget.

- In cases where the taxpayer has been issued a debt freezing decision by the tax administration authority, but later qualifies for debt cancellation as prescribed in Article 85 of the Tax Administration Law 2019, the tax administration authority will issue a decision terminating the debt freezing using Form No. 02/KN and perform the debt cancellation as prescribed.

- For cases where the taxpayer is an individual, sole proprietor, household business owner, private enterprise owner, or single-member limited liability company that has the debt suspended but the tax administration authority discovers the taxpayer has established another business or enterprise:

The tax administration authority shall issue a decision terminating the debt freezing decision using Form No. 02/KN and calculate late payment interest from the date the debt freezing was granted to the date the taxpayer pays the tax debt in full to the state budget.

When is the time for calculating debt freezing for a taxpayer no longer conducting business in Vietnam?

According to Article 83 of the Tax Administration Law 2019, in cases where the taxpayer no longer conducts business at the registered business address with the business registration authority and tax administration authority has cooperated with the Commune-level People's Committee where the taxpayer has the headquarters or contact address to verify the taxpayer’s absence and announced nationwide about the taxpayer;

Or the legal representative of the taxpayer is not present at the registered headquarters or contact address registered with the tax administration authority:

The debt freezing period shall be calculated from the date the tax administration authority issues a national announcement regarding the taxpayer or their legal representative's absence from the registered business address or contact address with the tax administration authority.