What are regulations on tax liability fulfillment upon exit from Vietnam?

What regulations on tax liability fulfillment in Vietnam?

Based on Clause 12, Article 3 of the Law on Tax Management 2019, tax liability fulfillment means paying the full amount of tax payable, late payment fines, fines for tax law violations, and other collections that belong to the state budget.

What are regulations on tax liability fulfillment upon exit from Vietnam?

Based on Article 21 of Decree 126/2020/ND-CP regulating the fulfillment of tax obligations in the case of exit as follows:

* Cases of temporary exit suspension include:

- Individuals, individuals being the legal representatives of taxpayers who are enterprises under compulsory enforcement of administrative decisions on tax management who have not fulfilled their tax obligations.

- Vietnamese people who exit to settle abroad but have not fulfilled their tax obligations.

- Vietnamese people settling abroad before exiting who have not fulfilled their tax obligations.

- Foreigners before exiting from Vietnam who have not fulfilled their tax obligations.

* Authority to decide on temporary exit suspension, extension of temporary exit suspension, and cancellation of temporary exit suspension

- The head of the tax management agency directly managing the taxpayer has the authority to decide based on actual conditions and tax management activities in the area to select cases of temporary exit suspension as prescribed in Clause 1, Article 21 of Decree 126/2020/ND-CP.

- The person with the authority to decide on temporary exit suspension also has the authority to decide on the extension of temporary exit suspension and the cancellation of temporary exit suspension.

- The person with the authority to decide on temporary exit suspension is responsible for canceling the temporary exit suspension no later than 24 working hours from when the taxpayer fulfills their tax obligations.

* Procedures for implementing temporary exit suspension, extension of temporary exit suspension, and cancellation of temporary exit suspension

- After reviewing, comparing, and accurately determining the taxpayer's tax obligations, the directly managing tax agency will list individuals, individuals being legal representatives of enterprises under temporary exit suspension, and prepare a document according to Form 01/XC in Appendix 3 issued with Decree 126/2020/ND-CP to the exit management agency and inform the taxpayer to fulfill their tax obligations before exiting.

- On the day of receiving the temporary exit suspension document from the tax management agency, the exit management agency is responsible for executing the temporary exit suspension according to regulations and posting it on the exit management agency's website.

- In case the taxpayer has fulfilled their tax obligations, within 24 working hours, the tax management agency will issue a document canceling the temporary exit suspension according to Form 02/XC in Appendix 3 issued with Decree 126/2020/ND-CP and send it to the exit management agency to execute the cancellation of the temporary exit suspension as regulated.

Before the temporary exit suspension period ends, if the taxpayer has not fulfilled their tax obligations within 30 days, the tax management agency will send a document extending the temporary exit suspension according to Form 02/XC in Appendix 3 issued with Decree 126/2020/ND-CP to the exit management agency and inform the taxpayer.

- The temporary exit suspension documents, extension of temporary exit suspension, cancellation of temporary exit suspension are sent by post or electronically if eligible for electronic transactions and posted on the tax management agency's website. If the document sent to the taxpayer by post is returned and the document has been posted on the tax management agency's website, it is considered as sent.

What are regulations on tax liability fulfillment upon exit from Vietnam? (Image from the Internet)

What are regulations on tax liability fulfillment in case of dissolution, bankruptcy, termination in Vietnam?

Based on Article 67 of the Law on Tax Management 2019, the regulations on tax liability fulfillment in case of dissolution, bankruptcy, and termination of activities are as follows:

- Tax liability fulfillment in case of enterprise dissolution will be implemented according to the laws on enterprises, credit institutions, insurance business, and other relevant legal provisions.

- Tax liability fulfillment in case of enterprise bankruptcy will be carried out according to the processes and procedures stipulated in the 2014 Bankruptcy Law.

- Enterprises ceasing operations or leaving the registered business address without tax liability fulfillment, the remaining tax debt will be the responsibility of the private enterprise owner, the single-member limited liability company owner, contributing shareholders, capital contributing members, and general partners according to the provisions for each type of enterprise stated in the 2020 Enterprise Law.

- Business households, individual businesses ceasing operations without tax liability fulfillment, the remaining tax debt will be the responsibility of the household head and the individual.

- Taxpayers with branches and dependent units ceasing operations with outstanding tax debts and other collections belonging to the state budget have the responsibility to inherit the debts of these branches and dependent units.