When is the enforcement decision on account freezing issued in Vietnam?
When is the enforcement decision on account freezing issued in Vietnam?
Based on Point b, Clause 3, Article 31 of Decree 126/2020/ND-CP, the provisions are as follows:
Enforcement by means of deducting funds from accounts or freezing the accounts of taxpayers who are subject to enforcement of administrative decisions in tax management
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- Decision to enforce by deducting funds from accounts or freezing accounts
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b) The enforcement decision must be issued at the following times:
b.1) After the 90th day from the tax payment deadline;
b.2) Immediately after the tax payment extension deadline;
b.3) Immediately after the taxpayer fails to comply with the administrative penalty decision in tax management within the time limit stated in the penalty decision (except in cases of a stay or suspension of the administrative penalty enforcement decision in tax management);
b.4) On the day of discovering the taxpayer has acts of asset dispersion or absconding.
Acts of asset dispersion or absconding are based on the following information: the taxpayer subject to enforcement carries out procedures for transferring, gifting, or selling assets, liquidating, or dispersing account balances in an irregular manner unrelated to normal business transactions before the tax management agency issues the enforcement decision, or leaves the registered business address.
c) The enforcement decision by means of deducting funds from accounts or freezing accounts is sent to the taxpayer subject to enforcement, the state treasury, the credit institution where the taxpayer subject to enforcement has opened their account, and related organizations and individuals alongside the State Treasury Collection Order on the day the enforcement decision is issued. It is also updated on the electronic information portal of the tax or customs sector.
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Thus, the enforcement decision on account freezing is issued at the following times:
- After the 90th day from the tax payment deadline;
- Immediately after the tax payment extension deadline;
- Immediately after the taxpayer fails to comply with the administrative penalty decision in tax management within the time limit stated in the penalty decision (except in cases of a stay or suspension of the administrative penalty enforcement decision in tax management);
- On the day of discovering the taxpayer has acts of asset dispersion or absconding.
When is the enforcement decision on account freezing issued in Vietnam? (Image from the Internet)
What contents are included in the enforcement decision on account freezing in Vietnam?
According to Clause 1, Article 127 of the Tax Administration Law 2019, the enforcement decision on implementing administrative decisions concerning tax management, in general, and the enforcement decision to freeze accounts, in particular, includes the following information:
- The date, month, and year the decision is issued;
- The basis for issuing the decision;
- The issuer of the decision;
- Name, address, and tax identification number of the taxpayer subject to enforcement of the administrative decision concerning tax management;
- Reason for enforcing the administrative decision concerning tax management;
- Measures for enforcing the administrative decision concerning tax management;
- Time and place of implementation;
- Leading agency, coordinating agency for implementing the enforcement decision concerning tax management.
What are enforcement subjects of account freezing measure in Vietnam?
Based on Clause 1, Article 31 of Decree 126/2020/ND-CP, the account freezing measure is applied to taxpayers subject to enforcement of administrative decisions concerning tax management who have accounts at the State Treasury, commercial banks, and other credit institutions.
The entities subject to the enforcement of administrative decisions concerning tax management include:
- Taxpayers as stated in Clauses 1, 2, 3, and 4 of Article 124 of the Tax Administration Law 2019.
For taxpayers with outstanding debts to the state budget for which the tax authority has issued a decision to gradually pay the owed taxes, extend the tax payment or defer the owed taxes, or notify the non-application of interest on late payment, enforcement is not carried out on the owed tax amount during the allowable time for gradual payment, extension, deferment, non-application of interest on late payment, or when the State Audit Office, State Inspectorate determines the accurate tax obligations of the taxpayer based on the taxpayer's request.
- Credit institutions that do not comply with administrative penalty decisions in tax management according to the provisions of the Tax Administration Law 2019.
- Organizations guaranteeing tax payments for taxpayers: After the 90-day deadline, from the date of tax debt payment deadline according to the tax authority's approval document, if the taxpayer has not paid in full to the state budget, the guarantor is subject to enforcement under the provisions of the Tax Administration Law 2019.
- The State Treasury, provincial state treasuries, or district state treasuries (hereinafter referred to as the state treasury) that do not perform deductions from accounts of taxpayers subject to enforcement held at the state treasury to pay into the state budget according to the administrative penalty decision on tax management issued by a competent authority.
- Related organizations and individuals that do not comply with administrative penalty decisions on tax management by competent authorities.
In the case where the taxpayer subject to enforcement is the owner of an ODA project, or holds ODA capital source accounts and concessional loans at the state treasury or credit institutions, this enforcement measure is not applied.
