What is the tax debt in the import-export of goods in Vietnam?

What is the tax debt in the import-export of goods in Vietnam?

Based on Clause 1, Article 47 of Circular 38/2015/TT-BTC, the regulation on tax debt in the import-export of goods is as follows:

Order of payment for taxes, late payments, and fines

1. Unpaid taxes on goods that have been cleared or released are considered tax debt.

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Thus, it can be understood that the tax debt in the import-export of goods is the amount of money that the taxpayer has not paid even though the goods have been cleared or released.

What are regulations on handling tax debts, late payments, and fines related to import-export goods in Vietnam?

Based on Article 47 of Circular 38/2015/TT-BTC, the regulation on handling tax debts in the import-export of goods is as follows:

- Taxes, late payments, and fines that are due must be paid in the order prescribed in Article 45 of the Law on Tax Administration 2006 (the document has expired and has been replaced by the Law on Tax Administration 2019), including:

+ Tax debts, fines, and overdue late payments subject to enforcement measures;

+ Tax debts, fines, and overdue late payments not yet subject to enforcement measures;

+ Taxes, fines, and late payments arising.

- The State Treasury and customs authorities shall coordinate to exchange information on the collection of taxes, late payments, and fines to determine the order and collect in the correct prescribed order. Specifically:

+ Customs authorities monitor the tax debt status of taxpayers, guide taxpayers to pay in the correct order, and build a data search system for taxpayers to self-search and comply with tax payments in the prescribed order;

+ Based on the payment documents of taxes, late payments, and fines of taxpayers, the State Treasury records state budget revenue and circulates documents and detailed information of the payments to the customs authorities for monitoring and management;

+ In cases where taxpayers pay taxes, late payments, and fines in the incorrect order, the customs authorities issue an adjustment order for the collected tax amount, send it to the State Treasury for adjustment, and notify the taxpayers of the adjusted tax amount, late payments, and fines; or request taxpayers to pay the remaining taxes, late payments, and fines in the correct payment order.

Goods for export and import under new customs declarations will only be cleared when the taxpayers have no overdue tax debt, late payments, and fines;

+ In cases where taxpayers do not specify the amount paid for each type of tax, late payments, and fines on the payment documents, the customs authorities record the collected taxes, late payments, and fines in the order, and notify the State Treasury for state budget recording and inform the taxpayers.

Tax debt in the import-export of goods in Vietnam (Image from the Internet)

How many times and the amount for installment payment of tax debt in Vietnam?

Based on Clause 3, Article 66 of Circular 80/2021/TT-BTC, the specific regulations on installment payment of tax debt are as follows:

Installment payment of tax debt

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3. Number of times and amount for installment payment of tax debt

a) The tax debt amount to be paid in installments is the tax debt calculated up to the time the taxpayer requests the installment but does not exceed the tax debt guaranteed by the credit institution.

b) The taxpayer may pay the tax debt in installments for a period not exceeding 12 months and within the effective period of the guarantee letter.

c) The taxpayer may pay the tax debt in installments monthly, ensuring that the tax debt paid each time is not less than the average monthly installment amount. The taxpayer must determine the late payment amount arising to pay together with the tax debt amount paid in installments.

4. Deadline for installment payment of tax debt

The deadline for installment payment of tax debt is no later than the last day of the month. If the installment payment deadline as committed for each month is missed or not fully paid, or if the guarantor has not fulfilled the obligation to pay on behalf of the taxpayer, within 5 working days from the overdue date, the tax authority shall issue a document according to form No. 02/NDAN attached to Appendix I of this Circular, requesting the guarantor to perform the guarantee obligations as prescribed by law and notify the taxpayers.

Thus, the number of times and the amount for installment payment of tax debt are as follows:

- The tax debt amount to be paid in installments is the tax debt calculated up to the time the taxpayer requests the installment but does not exceed the tax debt guaranteed by the credit institution.

- The taxpayer may pay the tax debt in installments for a period not exceeding 12 months and within the effective period of the guarantee letter.

- The taxpayer may pay the tax debt in installments monthly, ensuring that the tax debt paid each time is not less than the average monthly installment amount. The taxpayer must determine the late payment amount arising to pay together with the tax debt amount paid in installments.