What are the methods of sending tax enforcement decisions to organizations and individuals subject to enforcement in Vietnam?

What are the tax enforcement measures taken against organizations and individuals subject to enforcement in Vietnam?

Under the provisions in Clause 1, Article 3 of Circular 215/2013/TT-BTC, amended by Clause 2, Article 2 of Circular 87/2018/TT-BTC, six tax enforcement measures taken against organizations and individuals in Vietnam subject to enforcement as follows:

[1] Extract money from the taxpayer’s account at the State Treasury, or credit institution; freeze accounts;

[2] Deduct money from the taxpayer’ salary or income;

[3] Suspend use of invoices;

[4] Seizure and auction of distrained assets as per the law to collect overdue tax, fines, late tax payment interest, late payment interest of fines into the state budget.

[5] Confiscate the taxpayer’s money and assets that are being held by a third party.

[6] Revoke business registration certificates, enterprise registration certificates, licenses for establishment and operation, or practicing licenses.

What are the methods of sending tax enforcement decisions to organizations and individuals subject to enforcement in Vietnam?

Sending tax enforcement decisions to organizations and individuals subject to enforcement in Vietnam is carried out according to the provisions of Article 6 of Circular 215/2013/TT-BTC, amended by Clause 2, Article 1 of Circular 87/2018/TT-BTC as follows:

[1] For organizations and individuals subject to enforcement:

(1.1) The enforcement decision must be sent to the enforced party before carrying out the enforcement. In case the taxpayer already has an electronic tax transaction account, the enforcement decision is sent electronically. If the taxpayer does not have an electronic tax transaction account, the enforcement decision is delivered directly or sent by registered mail through the post office.

(1.2) The circumstances in which the decision is considered served are as follows:

- If delivered directly and the organization or individual does not accept it, the authorized person or tax official responsible for delivering the enforcement decision must make a record of the organization or individual’s refusal, with a confirmation from the local authority where the organization or individual has registered an address with the tax office; this is considered served.

- If sent by registered mail and returned after being sent three times within 10 days due to the enforced party not accepting it, the enforcement decision shall be posted at the headquarters of the organization or the residence of the individual subject to enforcement, or if there is evidence that the enforced party is evading receipt of the decision, it is considered served.

[2] For related organizations and individuals:

The person authorized to issue the enforcement decision or tax official tasked with carrying out enforcement must send the decision to related organizations and individuals before enforcement.

If the enforcement requires coordination with the People's Committee of the commune, ward, or commune-level town, the enforcement decision must be sent to the Chairman of the People's Committee of the concerned commune, ward, or commune-level town where the enforcement is to take place for coordination.

What are the methods of sending tax enforcement decisions to organizations and individuals subject to enforcement in Vietnam? (Image from the Internet)

What are the regulations the responsibilities during the implementation of tax enforcement decisions in Vietnam?

Under Clause 1, Article 7 of Circular 215/2013/TT-BTC regarding responsibilities during the implementation of tax enforcement decisions:

- The issue of the enforcement decision shall organize the implementation of such decision.

The issuer of the decision shall send the enforcement decision to relevant entities and organize the enforcement of the decision on administrative penalties for tax offences issued by the issuer and his/her inferior.

- If the enforcement decision is issued by the President of the People’s Committee, the President of the People’s Committee shall appoint an agency affiliated to the People’s Committee to take charge of implementation of the enforcement decision. The appointment of the agency in charge must be appropriate for its function. If the case is related to multiple agencies, the appointment shall be decided on a case-by-case basis.

- The People’s Committee of the commune where the delinquent taxpayer is located shall appoint relevant agencies to cooperate with the tax authority in enforcement of the tax decision.

- Any organization or individual that receives the enforcement decision must implement it and bear all the enforcement costs.

- Relevant entities shall cooperate with the issuer of the enforcement decision or agency in charge of enforcement in taking actions to implement the enforcement decision.