When shall a taxpayer that owes tax be subject to tax enforcement in Vietnam?
When shall a taxpayer that owes tax be subject to tax enforcement in Vietnam?
Pursuant to Article 2 of Circular 215/2013/TT-BTC which stipulates cases subject to invoice enforcement as follows:
Cases subject to enforcement
1. For the taxpayer
a) A taxpayer owes taxes, late tax payment for more than 90 (ninety) days from the due date for tax payment, the extended deadline for tax payment as stipulated by the Tax Administration Law and by competent state authorities.
b) The taxpayer still owes taxes, fines, late tax payment, and exhibits behavior of absconding or dispersing assets.
c) A taxpayer who does not comply with the decision on administrative tax penalty within 10 (ten) days from the date of receiving the decision on administrative tax penalty will be subject to enforcement of the administrative tax penalty decision. If the decision on administrative tax penalty is executable for more than 10 (ten) days and the taxpayer does not comply within the stipulated time, they shall be subject to enforcement of the administrative tax penalty decision (except for cases of postponed or temporarily suspended execution of the administrative tax penalty decision).
2. Credit institutions not complying with the decision on administrative tax penalties according to the laws on Tax Administration and Handling of Administrative Violations.
3. Organizations guaranteeing tax payments for taxpayers exceeding the regulation period of 90 (ninety) days from the tax payment deadline by the tax authority's approval letter, yet the taxpayer has not fulfilled payment to the state budget, the guarantor shall be subject to enforcement according to the Tax Administration Law and Handling of Administrative Violations Law.
4. State treasury, provincial state treasury, district state treasury (hereinafter collectively referred to as state treasury) does not implement account deduction from those subject to enforcement to pay into the state budget according to the administrative tax penalty decision of the tax authority.
5. Organizations or individuals involved do not comply with the administrative tax penalty decisions of the competent authority.
Therefore, a taxpayer owing taxes, late tax payment beyond 90 days from the due date for tax payment, or from the due date for extended tax payment as regulated by the Tax Administration Law 2019 and competent state authorities will be subject to enforcement of the administrative tax decision.
When shall a taxpayer that owes tax be subject to tax enforcement in Vietnam? (Image from Internet)
How many measures for enforcement of tax decisions are there in Vietnam?
Based on Article 3 of Circular 215/2013/TT-BTC (some phrases have been replaced by Clause 2, Article 2 of Circular 87/2018/TT-BTC) stipulating the enforcement measures as follows:
+ Deduct money from the accounts of those subject to enforcement at the state treasury, credit institutions; request account freezing.
+ Deduct a portion of salaries or income.
+ Announce the invalidity of invoices.
+ Seize property and auction the seized property in accordance with the law to recover owed taxes, fines, late tax payment fines.
+ Collect money and other assets held by organizations or individuals on behalf of the subject under enforcement.
+ Revoke business registration certificates, enterprise registration certificates, establishment and operation licenses, or practice licenses.
Hence, there are 6 measures for enforcement of tax decisions.
How to calculate the time for implementing enforcement procedures of tax decisions in Vietnam?
Based on Article 5 of Circular 215/2013/TT-BTC (with some terms replaced by Clause 2, Article 2 of Circular 87/2018/TT-BTC), the regulations are as follows:
Principle of applying enforcement measures
- Subsequent enforcement measures are carried out when prior enforcement measures cannot be implemented or have been implemented but have not fully collected owed taxes, fines, late tax payments, and late penalties as per the administrative tax decision; the enforcement measure of deducting part of salaries or income is only applicable to individual taxpayers.
- Calculation of days for implementing enforcement procedures
a) If the deadline is calculated in "days," it is counted continuously according to the calendar days, including days off.
b) If the deadline is calculated in "working days," it is based on the working days of state administrative agencies according to the law: these are the calendar days except Saturdays, Sundays, holidays, and Tet (collectively referred to as days off).
c) If the deadline is calculated from a specific day, the start date is the day following that specific day.
d) If the last day of the enforcement procedure deadline coincides with a legally designated day off, the deadline is the next working day after the day off.
Therefore, the method for calculating days for implementing enforcement procedures for tax decisions is:
- If the deadline is calculated in "days," it is continuously counted by the calendar days, including days off.
- If the deadline is calculated in "working days," it is based on the working days of state administrative agencies according to the law: these are calendar days except Saturdays, Sundays, holidays, and Tet (considered as days off).
- If the deadline starts from a specific day, the start of the calculation is the day following that specific day.
- If the last day of the deadline execution for enforcement procedures falls on a day off according to the law, the last day of the deadline is considered the next working day.
