What is tax debt? What are cases of tax chargeoff in Vietnam?

What is tax debt?

Based on Clause 17, Article 3 of the Law on Tax Administration 2019, tax debt is defined as follows:

Definitions

In this Law, the following terms shall be construed as follows:

...

17. Tax debt is the tax and other payments to the state budget managed and collected by the tax administration agency, which the taxpayer has not paid to the state budget by the deadline as prescribed.

...

Thus, according to the above regulations, tax debt is the tax and other payments to the state budget.

This tax debt will be managed and collected by the tax administration agency, which the taxpayer has not paid to the state budget by the deadline as prescribed.

What is tax debt? In which cases is tax debt suspended? (Image from the Internet)

Is tax debt part of tax administration in Vietnam?

Based on the provisions of Article 4 of the Law on Tax Administration 2019, the regulations are as follows:

Content of tax administration

1. Tax registration, tax declaration, tax payment, and tax determination.

2. Tax refund, tax exemption, tax reduction, and non-collection of tax.

3. Suspension of tax debt; remission of tax debt, late payment interest, and fines; exemption of late payment interest and fines; not calculating late payment interest; extension of tax payment; gradual payment of tax debt.

4. Management of taxpayer information.

5. Management of invoices and vouchers.

6. Tax inspection, tax audit, and implementation of measures to prevent and combat tax violations.

7. Enforcement of administrative decisions on tax administration.

8. Sanctioning administrative violations of tax administration.

9. Resolution of tax complaints and denunciations.

10. International cooperation on taxation.

11. Taxpayer communication and support.

Thus, according to the above regulations, tax debt, including the suspension of tax debt and gradual payment of tax debt, is part of tax administration.

At the same time, the suspension of tax debt and gradual payment of tax debt is one of the duties that the tax administration agency must perform according to Clause 5, Article 18 of the Law on Tax Administration 2019.

What are the 5 cases of tax chargeoff?

Based on Article 83 of the Law on Tax Administration 2019, the 5 specific cases of tax chargeoff are as follows:

Case 1: The taxpayer is deceased, declared dead by a court, missing, or incapacitated.

The suspension period is counted from the date of issuance of the death certificate or death notification or other documents in place of the death notification according to regulations on civil status or a court decision declaring death, missing, or incapacitated.

Case 2: The taxpayer has a resolution to dissolve and has sent a notification to the tax administration agency or business registration agency for dissolution procedures. The business registration agency has notified that the taxpayer is undergoing dissolution procedures on the national business registration system, but the taxpayer has not completed the dissolution procedures.

The suspension period is counted from the date the business registration agency announces that the taxpayer is undergoing dissolution procedures on the national business registration system.

Case 3: The taxpayer has filed for bankruptcy or has been petitioned for bankruptcy procedures by a related party according to the bankruptcy law.

The suspension period is counted from the date the competent court announces the acceptance of the bankruptcy petition or the date the taxpayer has submitted bankruptcy documents to the tax administration agency while in the process of settling debts according to the Bankruptcy Law.

Case 4: The taxpayer is no longer operating at the registered business address, and the tax administration agency has cooperated with the commune-level People’s Committee where the taxpayer’s headquarters or registered contact address is located to check and verify that the taxpayer is not present at the registered address and has issued a nationwide notification that the taxpayer or the legal representative is not present at the registered business address or contact address.

The suspension period is counted from the date the tax administration agency issues a nationwide notification that the taxpayer or the legal representative is not present at the registered business address or contact address.

Case 5: The taxpayer has been suggested by the tax administration agency for withdrawal of the business registration certificate or has had the business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license withdrawn by the competent authority.

The suspension period is counted from the date the tax administration agency suggests the withdrawal or from the effective date of the decision to withdraw the business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license.