When shall a taxpayer owning tax be imposed tax enforcement in Vietnam?

When shall a taxpayer owning tax be imposed tax enforcement in Vietnam?

Based on point a, clause 1, Article 2 of Circular 215/2013/TT-BTC, the provisions are as follows:

Cases Subject to Enforcement

1. For taxpayers:

a) Taxpayers with tax debts, delayed payment of tax debts that are overdue by more than 90 (ninety) days from the deadline for tax payment, the extension deadline for tax payment as prescribed by the Law on Tax Administration and competent state authorities.

b) Taxpayers owing tax, fines, delayed payment of taxes who flee or disperse assets.

c) Taxpayers who do not comply with the administrative tax penalty decision within 10 (ten) days from the receipt of the administrative tax penalty decision will be enforced to execute the administrative tax penalty decision. In cases where the administrative tax penalty decision has a longer enforcement deadline than 10 (ten) days and the taxpayer does not comply with the penalty decision within the deadline stated in the decision, they will be enforced to execute the administrative tax penalty decision (except in cases of deferred or temporarily suspended enforcement of the administrative tax penalty decision).

...

Thus, a taxpayer who owes tax for more than 90 (ninety) days from the deadline for tax payment or the extension deadline for tax payment as prescribed by the Law on Tax Administration 2019 and the competent state authorities will be subject to tax enforcement.

When shall a taxpayer owning tax be imposed tax enforcement in Vietnam? (Image from the Internet)

What are cases subject to tax Enforcement in Vietnam?

Based on Article 2 of Circular 215/2013/TT-BTC, the cases subject to enforcement include:

- For taxpayers:

+ Taxpayers with tax debts, delayed payment of tax debts that are overdue by more than 90 (ninety) days from the deadline for tax payment or the extension deadline for tax payment as prescribed by the Law on Tax Administration 2019 and the competent state authorities.

+ Taxpayers owing tax, fines, delayed payment of taxes who flee or disperse assets.

+ Taxpayers who do not comply with the administrative tax penalty decision within 10 (ten) days from the receipt of the administrative tax penalty decision will be enforced to execute the administrative tax penalty decision. In cases where the administrative tax penalty decision has a longer enforcement deadline than 10 (ten) days and the taxpayer does not comply with the penalty decision within the deadline stated in the decision, they will be enforced to execute the administrative tax penalty decision (except in cases of deferred or temporarily suspended enforcement of the administrative tax penalty decision).

- Credit institutions that do not comply with administrative tax penalty decisions as prescribed by the Law on Tax Administration 2019 and the Law on Handling Administrative Violations 2012.

- Organizations guaranteeing tax payment for taxpayers: if overdue by 90 (ninety) days from the deadline for tax payment, fines, delayed payment as per the tax authority's approval document and the taxpayer has not fully paid to the state budget, the guarantor will be subjected to enforcement as prescribed by the Law on Tax Administration 2019 and the Law on Handling Administrative Violations 2012.

- The State Treasury, provincial State Treasuries, or district State Treasuries (hereinafter referred to as the State Treasury) that do not perform deductions from accounts held by entities subject to enforcement at the State Treasury to pay into the state budget according to the tax authority's administrative penalty decision.

- Organizations or individuals related to the non-compliance with the tax authority's administrative penalty decisions.

Vietnam: What does tax enforcement measures include?

Based on Article 3 of Circular 215/2013/TT-BTC, as amended by clause 2, Article 2 of Circular 87/2018/TT-BTC, the tax enforcement measures include:

- Deducting money from the accounts of entities subject to enforcement at the State Treasury or credit institutions; requesting account freeze.

- Garnishing a portion of wages or income.

- Announcing that invoices are no longer valid for use.

- Seizing and auctioning seized assets according to legal regulations to collect tax debts, fines, delayed payment into the state budget.

- Collecting money or other assets held by organizations or individuals for the enforced entities.

- Revoking business registration certificates, enterprise registration certificates, establishment and operation licenses, or practice licenses.

* The implementation of tax enforcement measures is executed according to the regulations in Articles 11, 12, 13, 14, 15, and 16, Section 2 of Circular 215/2013/TT-BTC.

In cases where a later enforcement measure decision has been issued, but information or conditions arise to implement a previous enforcement measure, the issuer of the enforcement decision has the right to terminate the ongoing enforcement measure and issue a decision to implement the previous measure to ensure full collection of due taxes, fines, and delayed payment taxes.