What are cases where a taxpayer is subject to the enforcement measure of bank account freeze in Vietnam?

What are cases where a taxpayer is subject to the enforcement measure of bank account freeze in Vietnam?

Based on sub-section 1.1, Section 1, Part 2 of the Debt Enforcement Procedure issued with Decision 1795/QD-TCT in 2022 by the General Director of the General Department of Taxation, the cases in which a taxpayer is subjected to the enforcement measure of bank account freeze are as follows:

- The taxpayer has overdue tax debts exceeding 60 days from the due date for tax payment as prescribed, and the tax authority has not yet enforced.

- The taxpayer has a debt extended but has less than 30 days remaining until the end of the extension period.

- The entity guaranteeing the taxpayer's tax payment is overdue by 60 days from the tax payment deadline stated in the tax payment installment decision of the tax authority, and the taxpayer or guarantor has not fully paid into the state budget.

- The taxpayer does not comply with the decision on administrative tax penalties within the timeline indicated in the penalty decision.

The department in charge of advising on issuing the decision on administrative tax penalties is responsible for providing the administrative tax penalty decisions to the debt enforcement division on the day of issuing the decision (either in paper or electronic form).

- The taxpayer is being subjected to one of the following enforcement measures by the tax authority: Stopping the use of invoices; Confiscating assets, auctioning seized assets; Collecting money or other assets held by other agencies, organizations, or individuals; Or the taxpayer is in the period where the tax authority has requested the business registration agency to revoke the business registration certificate, but the business registration agency has not yet issued a revocation decision.

- The taxpayer has tax debts and engages in asset dispersion or absconds.

What are cases where a taxpayer is subject to the enforcement measure of bank account freeze in Vietnam? (Image from the Internet)

What is the procedure for issuing a decision to enforce a bank account freeze in Vietnam?

Based on sub-section 1.4, Section 1, Part 2 of the Debt Enforcement Procedure issued with Decision 1795/QD-TCT in 2022 by the General Director of the General Department of Taxation, the procedure for issuing a decision to enforce a bank account freeze proceeds as follows:

(1) Based on the list of taxpayers subject to enforcement (form number 01-2/DS-TK issued with Decision 1795/QD-TCT in 2022), the official performs:

- Drafting the Enforcement Decision (form number 01/CC in Appendix 3 issued with Decree 126/2020/ND-CP and State Budget Collection Order), accompanied by the documents:

+ A presentation on the application of enforcement measures, clearly indicating the process of urging the taxpayer;

+ Notification of tax arrears (form number 01/TTN issued with Circular 80/2021/TT-BTC) at the nearest time or other administrative tax decisions;

+ Documents verifying information (if any);

+ Documents providing information from the taxpayer or related organizations, individuals (if any);

+ Evidence proving the taxpayer's dispersal of assets or absconding (if any);

+ Other relevant documents and materials (if any).

In cases where the taxpayer has accounts at multiple credit institutions or State Treasury entities, the official presents to the Head of the tax authority the draft Enforcement Decision to withdraw money from one or more accounts. If necessary to freeze other accounts of the taxpayer, the official concurrently drafts the decision requiring the credit institutions or State Treasury to freeze the taxpayer's accounts (the amount frozen corresponds to the amount enforced).

- Reporting to the head of the department/team to present to the Head of the tax authority to sign and issue the Enforcement Decision.

(2) After receiving the draft Enforcement Decision, the state budget collection order with full accompanying documents, the Head of the tax authority signs and issues the Enforcement Decision ensuring the correct timing as prescribed:

- After the 90th day from the deadline for tax payment or from the end of the tax debt installment period;

- Immediately after the extension period for tax payment ends;

- Immediately after the taxpayer fails to comply with the decision on administrative tax penalties within the timeline indicated in the penalty decision (except in cases of postponed or suspended execution of the decision on administrative tax penalties);

- Immediately on the day of receiving full information, documents about the taxpayer's dispersal of assets or absconding.

- Immediately after the day when there is information, conditions to implement this enforcement measure simultaneously.

Who has the authority to issue the decision to enforce a bank account freeze in Vietnam?

Based on Clause 1, Article 126 of the Tax Administration Law 2019, the authority to issue enforcement decisions on the execution of administrative decisions in tax management is as follows:

Authority to decide enforcement of administrative decisions on tax management

1. The head of the tax administration agency, the Director of the Anti-smuggling Investigation Department under the General Department of Customs, the Director of the Post-Clearance Inspection Department are authorized to decide to apply enforcement measures for executing administrative decisions on tax management as prescribed in points a, b, c, d, đ, and e, Clause 1, Article 125 of this Law.

...

Based on point a, Clause 1, Article 125 of the Tax Administration Law 2019, the enforcement measures for executing administrative decisions on tax management are prescribed as follows:

Enforcement measures for executing administrative decisions on tax management

1. Enforcement measures for executing administrative decisions on tax management include:

a) Deducting money from the account of the enforced subject at the State Treasury, commercial banks, other credit institutions; freezing accounts;

...

Thus, the authority to issue enforcement decisions for freezing bank accounts belongs to:

- The head of the tax administration agency.

- The Director of the Anti-smuggling Investigation Department under the General Department of Customs.

- The Director of the Post-Clearance Inspection Department.