When do measures for enforcing administrative decisions on tax administration in Vietnam become ineffective?

When do measures for enforcing administrative decisions on tax administration in Vietnam become ineffective?

Based on Article 125 of the Tax Administration Law 2019:

Enforcement measures for executing administrative decisions on tax administration

1. Enforcement measures for executing administrative decisions on tax administration include:

a) Deducting money from the account of the subject being enforced to execute the administrative decision on tax administration at the State Treasury, commercial banks, and other credit institutions; account freezing;

b) Deducting a portion of wages or income;

c) Stopping customs procedures for export and import goods;

d) Suspending the use of invoices;

dd) Seizing assets, auctioning off the seized assets as prescribed by law;

e) Collecting money and other assets of the subject being enforced to execute the administrative decision on tax administration held by other agencies, organizations, or individuals;

g) Revoking business registration certificates, business operation certificates, cooperative registration certificates, investment registration certificates, establishment and operation licenses, practice certificates.

2. The enforcement measures for executing administrative decisions on tax administration as stipulated in Clause 1 of this Article cease to be effective when the owed tax is fully paid into the state budget.

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Thus, based on the above regulation, enforcement measures for executing administrative decisions on tax administration cease to be effective when the owed tax is fully paid into the state budget.

When do measures for enforcing administrative decisions on tax administration in Vietnam become ineffective? (Image from the Internet)

What are principles for enforcing measures for overdue tax collection in Vietnam?

According to Section 1 Part B of the Procedure for enforcing overdue tax collection issued together with Decision 1795/QD-TCT of 2022, the principles for enforcing measures for overdue tax collection in Vietnam include:

- For enforcement measures of deducting money from the account, freezing the account of taxpayers at the State Treasury, commercial banks, and other credit institutions; deducting a portion of wages or income; requesting the customs authority to enforce by the measure of stopping customs procedures for export and import goods, the application of enforcement measures is implemented as follows:

+ The enforcement measure of deducting money from the account, freezing the account of the taxpayer applies to taxpayers with accounts at the State Treasury, commercial banks, and other credit institutions.

In cases where the taxpayer is an enterprise or organization, but the tax authority's database lacks account information or has inaccurate account information, the tax authority must verify the account information for enforcement purposes.

+ The enforcement measure of deducting a portion of wages or income applies only to taxpayers who are individuals receiving wages, salaries, or income from:

++ The agency or organization where the individual is on the payroll;

++ The agency or organization where the individual has a labor contract lasting 6 months or more;

++ The agency or organization disbursing retirement or disability benefits.

+ The enforcement measure of stopping customs procedures for export and import goods applies only in cases where the tax authority has sufficient information and documents to determine that the taxpayer is engaged in exporting or importing goods or has conducted export and import activities at least once in the past 12 months.

+ The tax authority bases the actual situation of the taxpayer to apply the above enforcement measures appropriately and effectively.

- The enforcement measures d, dd, e, g stipulated in Clause 1 Article 125 of the Tax Administration Law 2019 must be implemented sequentially in order, if the preceding enforcement measure cannot be applied, move on to the next measure.

- The decisions on enforment against each taxpayer must be issued continuously, successively.

For the enforcement measures d, dd, e stipulated in Clause 1 Article 125 of the Tax Administration Law 2019, if applying these measures concurrently with the condition of the taxpayer's information or if the subsequent measures are more effective, the tax authority shall apply the earlier or subsequent enforcement measures to collect the owed taxes into the state budget.

- From the day the tax authority submits a proposal to revoke the business registration certificate to the business registration agency until the business registration agency issues a revocation decision or informs non-revocation, the tax authority may apply suitable enforcement measures to ensure effective tax administration.

- In cases where the taxpayer shows signs of asset dispersal or fleeing, the amount enforced is the total tax debt of the taxpayer.

Who has the authority to decide on enforcement measures for executing administrative decisions on tax administration in Vietnam?

Based on Article 126 of the Tax Administration Law 2019, the authority to decide on enforcement measures for executing administrative decisions on tax administration belongs to the Head of the tax administration agency, the Director of the Anti-Smuggling Department under the General Department of Customs, and the Director of Post-Clearance Audit Department for enforcement measures specified in points a, b, c, d, dd, and e Clause 1 Article 125 of the Tax Administration Law 2019.

For the enforcement measure of revoking business registration certificates, business operation certificates, cooperative registration certificates, investment registration certificates, establishment and operation licenses, and practice certificates stipulated in point g Clause 1 Article 125 of the Tax Administration Law 2019, the person authorized to decide on the revocation shall follow the law's regulations.