What is the procedure for tax debt enforcement through account withdrawal and account freezing in Vietnam?

Procedure for tax debt enforcement through account withdrawal and account freezing in Vietnam

Pursuant to Subsection 1 Section 2 Part B of the Tax Debt Enforcement Procedure issued together with Decision 1795/QD-TCT of 2022, the procedure for tax debt enforcement through account withdrawal and account freezing request of the taxpayer is carried out in the following steps:

Step 1: Prepare a list of taxpayers subject to enforcement

Step 2: Collect and verify the information of the taxpayers subject to enforcement

Step 3: Make a list of taxpayers to be enforced

Step 4: Issue an enforcement decision

Step 5: Send and publicize the enforcement decision

Step 6: Organize the implementation

Legal basis for issuing tax debt enforcement decision through account withdrawal and account freezing request in Vietnam

According to Article 31 of Decree 126/2020/ND-CP, the basis for issuing an enforcement decision includes one of the following information:

(1) Information about the taxpayer's account in the tax management database or data from related organizations or individuals.

(2) Information about the account number, the amount of money currently in the taxpayer's account provided by the State Treasury, credit institutions as requested by the tax administration authority in cases where the data in the tax administration authority's database is incomplete.

The tax administration authority is responsible for keeping the taxpayer's account information confidential.

Procedure for Tax Debt Enforcement through Account Withdrawal and account freezing request in Vietnam (Image from the Internet)

What are the regulations on issuance and sending of the enforcement decision through account withdrawal and account freezing request in Vietnam?

Pursuant to points 1.4 and 1.5 of Subsection 1 Section 2 Part B of the Tax Debt Enforcement Procedure issued together with Decision 1795/QD-TCT of 2022, the issuance and sending of the enforcement decision through account withdrawal and account freezing request is carried out as follows:

Regarding the Issuance of the Enforcement Decision

- Based on the list of taxpayers to be enforced (form number 01-2/DS-TK), the official performs:

Drafting the enforcement decision (form number 01/CC in Appendix 3 issued together with Decree 126/2020/ND-CP and State Budget Collection Order), along with the following documents:

+ A report on the application of enforcement measures, clearly stating the process of urging taxpayers;

+ The latest tax debt notice (form number 01/TT) or other administrative tax decisions;

+ Information verification documents (if any);

+ Information provided by the taxpayer or related organizations or individuals (if any);

+ Documents proving the taxpayer's behavior of dispersing assets or fleeing (if any);

+ Other related documents (if any).

In case the taxpayer has multiple accounts at different credit institutions and State Treasuries, the official submits a draft enforcement decision to the head of the tax authority for account withdrawal from one or multiple accounts.

If it is necessary to freeze other accounts of the taxpayer, the official simultaneously drafts a decision requesting credit institutions and State Treasuries to freeze the taxpayer's account (the frozen amount corresponding to the enforced amount).

The report is submitted to the leadership of the department/unit for the head of the tax authority to sign and issue the enforcement decision.

- After receiving the enforcement decision draft and the state budget collection order accompanied by the complete 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 the installment payment of tax debt;

+ Immediately after the extension period for tax payment expires;

+ Immediately after the taxpayer does not comply with the administrative penalty decision on tax violations as per the deadline stated in the penalty decision (except for cases where the execution of the penalty decision on tax violations is postponed or suspended);

+ Immediately on the day of receiving full information and documents about the taxpayer's behavior of dispersing assets or fleeing.

+ Immediately after having the information and conditions to simultaneously implement this enforcement measure.

Regarding the Sending and Publicizing of the Enforcement Decision:

- The enforcement decision along with the State Budget Collection Order is sent to the enforced taxpayer, the State Treasury, commercial banks, and other credit institutions where the enforced taxpayer has an account on the day of issuing the enforcement decision.

The sending form is carried out according to the provisions in point c clause 3 Article 31 of Decree 126/2020/ND-CP.

- The tax authority is responsible for publishing information about the enforced taxpayer on the tax sector's electronic information page as follows:

+ In case of electronic signing of the enforcement decision, the tax management application system automatically publicizes information according to form number 01/CKCC issued along with this procedure.

+ In cases without electronic signing of the enforcement decision, the official inputs information on the enforcement decision into the system for publicizing.