What tax enforcement measures will be applied for taxpayers that owe tax debt in Vietnam from January 1, 2025?

What tax enforcement measures will be applied for taxpayers that owe tax debt in Vietnam from January 1, 2025?

Pursuant to Clause 12, Article 6 of the Law amending the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management, Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the National Reserve Law, the Law on Handling Administrative Violations 2024 (effective from January 1, 2025), the amendment and supplementation of a number of articles of the Law on Tax Administration is stipulated as follows:

Amend and supplement some articles of the Law on Tax Administration

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12. Amend and supplement some points of Clause 3, Article 125 as follows:

a) Amend and supplement point b and point c as follows:

“b) For tax enforcement measures specified at points d, đ, e, and g of Clause 1 of this Article, in cases where the previous enforcement measure cannot be applied, the tax administration agency shall switch to applying the subsequent enforcement measure; the tax enforcement measures specified at point đ and point e of Clause 1 of this Article can be applied when the tax administration agency has sufficient information and conditions to enforce;

c) In cases where the enforcement decision has not expired and the tax administration agency has sufficient information and conditions to apply another enforcement measure specified at Clause 1 of this Article, it can simultaneously implement those tax enforcement measures;”;

b) Add point d after point c as follows:

“d) In cases where there are grounds to determine that the taxpayer with tax arrears has committed acts of asset dispersion or absconding, the competent person can choose to apply an appropriate enforcement measure to promptly collect the tax arrears into the state budget.”

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Thus, if a taxpayer with tax arrears absconds, the tax agency may immediately choose to apply an appropriate enforcement measure among the 7 tax enforcement measures prescribed in Clause 1, Article 125 of the Law on Tax Administration 2019 to promptly collect the tax arrears into the state budget.

What tax enforcement measures will be applied for taxpayers that owe tax debt in Vietnam from January 1, 2025? (Image from the Internet)

What are regulations on 07 tax enforcement measures to implement tax enforcement decisions in Vietnam?

Based on Clause 1, Article 125 of the Law on Tax Administration 2019, the 07 tax enforcement measures for implementing tax enforcement decisions are regulated as follows:

(1) Deduct amounts from the account of the subject being enforced to execute administrative tax management decisions at the State Treasury, commercial banks, other credit institutions; freeze the account;

(2) Deduct a portion of wages or income;

(3) Halt customs procedures for export and import goods;

(4) Suspend the use of invoices;

(5) Seize assets, auction seized assets as prescribed by law;

(6) Collect money and other assets of the subject being enforced, held by other agencies, organizations, and individuals;

(7) Revoke the enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practice license.

What is the responsibility for organizing the implementation of tax enforcement decisions in Vietnam?

According to Article 128 of the Law on Tax Administration 2019 regulating the responsibility for organizing the implementation of tax enforcement decisions:

- The person who issues the enforcement decision regarding the execution of administrative tax management decisions is responsible for organizing the implementation of tax enforcement decisions.

- The People's Committee at the commune level where the enforcement subject resides is responsible for directing agencies to cooperate with tax management agencies in implementing the implementation of tax enforcement decisions.

- The People's Police force is responsible for protecting security, ensuring order and social safety, supporting the tax management agency in the course of enforcing the execution of administrative tax management decisions upon request from the person issuing the enforcement decision.

Who has the authority to decide on the implementation of tax enforcement decisions in Vietnam?

According to Article 126 of the Law on Tax Administration 2019 which stipulates the authority to decide on the implementation of tax enforcement decisions:

- The head of the tax management agency, the Director of the Anti-Smuggling Investigation Department under the General Department of Customs, and the Director of the Post-Clearance Audit Department have the authority to issue decisions to apply tax enforcement measures to execute administrative tax management decisions as prescribed at points a, b, c, d, đ, and e of Clause 1, Article 125 Law on Tax Administration 2019.

- The revocation of the enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practice license as prescribed at point g, Clause 1, Article 125 Law on Tax Administration 2019 is carried out in accordance with the law.