When does a decision for enforcement by deducting money from taxpayers' accounts become invalid in Vietnam? Who has the authority to deduct money from taxpayers' accounts?
When does a decision for enforcement by deducting money from taxpayers' accounts become invalid in Vietnam?
Based on Point đ, Clause 3, Article 31 of Decree 126/2020/ND-CP, the regulation regarding the validity termination of a decision for enforcement by deducting money from taxpayers' accounts is as follows:
Enforcement by deducting money from accounts, freezing taxpayer accounts subject to enforcement of administrative decision related to tax management
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- Decision for enforcement by deducting money from taxpayers' accounts, account freezing
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đ) The coercive decision becomes invalid from the day the taxpayer has fully paid the coerced tax debt into the state budget, or when the tax debt coerced is subject to a phased payment plan, tax payment extension, tax payment delayed fee waiver, or a notice of non-application of delayed payment fee issued by the tax authority. The tax authorities will issue a decision to terminate the validity of the coercive decision as per Form 08/CC in Appendix III issued with this Decree.
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Therefore, the coercive decision to deduct money from an account becomes invalid from the day the taxpayer has fully paid the coerced tax debt into the state budget, or when the debt is subject to a phased payment plan, tax payment extension, or exemptions as decided by the tax authority.
When does a decision for enforcement by deducting money from taxpayers' accounts become invalid in Vietnam? Who has the authority to deduct money from taxpayers' accounts? (Image from the Internet)
Who is subject to tax enforcement decision for by deducting money from taxpayers' accounts?
Based on Clause 1, Article 31 of Decree 126/2020/ND-CP, the subjects subject to tax enforcement decision for by deducting money from taxpayers' accounts are taxpayers under enforcement for executing an administrative decision on tax management who have accounts at the State Treasury, commercial banks, and other credit institutions.
Subjects under enforcement for executing an administrative decision on tax management include:
- Taxpayers falling under the cases specified in Clauses 1, 2, 3, and 4, Article 124 of the Law on Tax Administration 2019.
For taxpayers who owe the state budget and have their tax debt considered for phased payment, extension, or debt deferral, enforcement of the tax debt is not executed during the period of payment or extension or deferral, or while awaiting accurate tax obligation determination as confirmed by the State Audit Office and State Inspection Agencies based on the taxpayer's proposal.
- A credit institution failing to comply with an administrative penalty decision on tax management as prescribed by the Law on Tax Administration 2019;
- An organization guaranteeing tax payment for the taxpayer: If after 90 days from the due date of tax debt payment as per the tax authority's approval document, and the taxpayer has not fully paid into the state budget, the guarantor is subject to coercion as prescribed by the Law on Tax Administration 2019;
- State treasuries, provincial, district state treasuries (collectively referred to as the state treasury) not executing monetary transfers from the accounts of coerced taxpayers held at the state treasury to the state budget as per an administrative penalty decision on tax management from the authorized agency.
- Related organizations and individuals not complying with administrative penalty decisions on tax management from the competent authority.
If the coerced taxpayer is the project owner of ODA projects, or the account owner of ODA funds and concessional loans at the state treasury, or credit organization, this enforcement measure is not applicable.
Who has the authority to issue tax enforcement decision for by deducting money from taxpayers' accounts in Vietnam?
According to Clause 2, Article 126 of the Law on Tax Administration 2019, the stipulation is as follows:
Authority to decide on enforcement of an administrative decision regarding tax management
- The head of a tax management agency, Director of the Anti-smuggling Investigation Department under the General Department of Customs, Director of the Post-Clearance Audit Department, has the authority to issue a decision on coercive measures to enforce an administrative decision concerning tax management as stipulated in points a, b, c, d, đ, and e of Clause 1, Article 125 of this Law.
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Referencing back to Clause 1, Article 125 of the Law on Tax Administration 2019:
Measures to enforce an administrative decision regarding tax management
- Measures to enforce an administrative decision regarding tax management include:
a) Deduction of money from accounts of the object under enforcement for execution of administrative decision regarding tax management at the State Treasury, commercial banks, other credit institutions; account freezing;
b) Deduction of part of wages or income;
c) Suspension of customs procedures for import and export goods;
d) Suspension of usage of invoices;
đ) Seizure of assets, auction of seized assets according to legal regulations;
e) Collection of money, and other assets from the object under enforcement for execution of administrative decision regarding tax management held by other organizations or individuals;
g) Revocation of business registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practice license.
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From the above provisions, it can be seen that the head of a 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 are the authorities with the competence to decide on the enforcement measure of monetary deduction from an account.
