What is the order of imposion of tax enforcement measures in Vietnam?

What is the order of imposion of tax enforcement measures in Vietnam?

According to Clause 3, Article 125 of the Law on Tax Administration 2019, the application of tax enforcement measures of tax enforcement decision is implemented as follows:

- For the following enforcement measures, based on the actual situation, the tax authority applies the appropriate enforcement measure:

+ Deduction of money from the account of the subject being coerced to enforce tax enforcement decision at the State Treasury, commercial banks, or other credit institutions; freezing accounts;

+ Deducting a portion of salary or income;

+ Suspending customs procedures for exported or imported goods;

- For the enforcement measures listed below, if the earlier enforcement measures cannot be applied, the tax authority switches to imposion of the subsequent enforcement measures:

+ Suspension of invoice use;

+ Seizure of property, auctioning of property seizure as prescribed by law;

+ Collection of money and other assets of the subject being coerced to enforce tax enforcement decision in the possession of other agencies, organizations, or individuals;

+ Revocation of the certificate of enterprise registration, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practice license.

- In cases where a decision to enforce certain measures is still valid but ineffective, and the tax authority has sufficient information and conditions, it shall proceed with prior or subsequent enforcement measures as mentioned above.

Order of imposion of tax enforcement measures in Vietnam

What are the principles for imposion of enforcement measures according to administrative tax decisions in Vietnam?

Based on Article 5 of Circular 215/2013/TT-BTC (amended by Clause 1, Article 1 of Circular 87/2018/TT-BTC and Clause 2, Article 2 of Circular 87/2018/TT-BTC), the principles for imposion of enforcement measures include:

- The application of subsequent enforcement measures is carried out when earlier enforcement measures cannot be applied or have been applied but have not collected enough overdue tax money, fines, late tax payment money, late fine payment according to the administrative tax decision; in the case of coercion by deducting a portion of salary or income, it is only applied to individual taxpayers.

- Method of calculating the day for carrying out coercive procedures:

+ If the period is calculated by "days," it is counted continuously according to the calendar days, including holidays.

+ If the period is calculated by "working days," it is counted according to the working days of state administrative agencies according to the law: as calendar days excluding Saturdays, Sundays, holidays, and Tet (collectively referred to as holidays).

+ If the period is calculated from a specific date, the start date is the day following that specific date.

+ If the last day of the period for carrying out coercive procedures coincides with a holiday as stipulated by law, the last day of the period is the next working day.

- Temporary suspension or non-implementation of enforcement measures against taxpayers with tax debts, fines, late tax payment, late fine payment when the amount under coercion or the coercion measure's application period has lapsed but has been issued by the tax authority with one of the following documents:

+ Decision on gradual payment of tax debts;

+ Decision on tax payment extension;

+ Notification of not calculating late payment interest.

- The source of deduction money and seized assets for organizations subject to coercion is implemented according to the provisions in Article 4 of Decree 166/2013/ND-CP.

What is the time limits for imposion of enforcement measures according to administrative tax decisions in Vietnam?

According to Clause 1, Article 9 of Circular 215/2013/TT-BTC, it is stipulated as follows:

Time limits for enforcement of coercive decisions

1. A coercive decision is valid for enforcement within 01 (one) year from the date recorded in the coercive decision. The time limits for imposion of enforcement is noted in the coercive decision.

Specifically, decisions to enforce coercion by deducting money from the account of the coerced subject are valid for enforcement within 30 (thirty) days from the date recorded in the coercive decision. The time limits for imposion of coercion is 30 (thirty) days as noted in the coercive decision.

A coercive decision is valid for enforcement for 01 year from the date noted in the coercive decision.

Within this period, if organizations or individuals subjected to enforcement measures intentionally avoid, delay, obstruct enforcement, and do not fulfill their responsibilities such as not receiving the coercive decision, obstructing tax authorities from executing enforcement measures, the time limits for enforcement is reset from the time these actions cease.