Which regulated entities are subject to enforcement by drawing money from account and account freezing in Vietnam?

Which regulated entities are subject to enforcement by drawing money from account and account freezing in Vietnam?

According to Clause 1, Article 11 of Circular No. 215/2013/TT-BTC, the regulation is as follows:

Enforcement by means of deducting money from the accounts of individuals subject to enforcement at the State Treasury, credit institutions; freezing accounts

1. Subjects of Application

a) Enforcement by deducting money from the accounts of individuals subject to enforcement who have accounts at the State Treasury, credit institutions; freezing accounts apply to individuals subject to enforcement within the cases specified in Article 2 of this Circular.

b) In cases where the individual subject to enforcement is the owner of an ODA project, the account holder of ODA funds, and preferential loans at the State Treasury, credit institutions, this enforcement measure is not applied.

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Thus, the measure of tax enforcement by deducting money from accounts, freezing accounts is applied to individuals subject to enforcement who have deposits at the State Treasury, commercial banks, and other credit institutions, including:

- For taxpayers:

+ Taxpayers who owe taxes, late payment of taxes for more than 90 (ninety) days from the tax due date, the extended tax deadline as stipulated by the Law on Tax Administration 2019 and by competent state authorities.

+ Taxpayers who still owe taxes, fines, late payment of taxes and have fled or disposed of assets.

+ Taxpayers who do not comply with the administrative sanction decision on tax within 10 (ten) days from the date of receiving the administrative sanction decision on tax will be subject to enforcement of the administrative sanction decision on tax.

In cases where the administrative sanction decision on tax has a longer enforcement period than 10 (ten) days, taxpayers who do not comply with the sanction decision within the specified period will be subject to enforcement of the administrative sanction decision on tax (except in cases where the enforcement of the sanction decision on tax is postponed or suspended).

- Credit institutions that do not comply with the administrative sanction decision on tax according to the regulations of the Law on Tax Administration 2019 and the Law on Handling Administrative Violations 2012.

- Organizations guaranteeing tax payments for taxpayers: Beyond the stipulated 90 (ninety) days from the tax deadline, fine, or late tax payment deadline according to the approval document of the tax authority, if the taxpayers have not fully paid into the state budget, the guarantor will be subject to enforcement under the provisions of the Law on Tax Administration 2019 and the Law on Handling Administrative Violations 2012.

- The State Treasury, including provincial and district State Treasuries (collectively referred to as the State Treasury), that do not implement the transfer of money from the account of the individual being enforced to the state budget according to the administrative sanction decision on tax of the tax authority.

- Organizations and individuals involved that do not comply with the administrative sanction decisions on tax by competent authorities.

Which regulated entities are subject to enforcement by drawing money from account and account freezing in Vietnam? (Image from the Internet)

Vietnam: When is the decision on drawing money from account and account freezing issued?

According to Point b, Clause 3, Article 11 of Circular No. 215/2013/TT-BTC, amended by Clause 5, Article 1 of Circular No. 87/2018/TT-BTC, enforcement decisions on drawing money from account and account freezing must be issued at the following times:

- After the 90th (ninetieth) day from the date the tax debt or late tax payment due date has passed; the permitted installment tax payment period stipulated by law has expired.

- Immediately after the extended tax payment deadline expires.

- Immediately after the taxpayer does not comply with the administrative sanction decision on tax by the deadline specified in the sanction decision (except in cases of postponement or suspension of the enforcement of the sanction decision on tax).

Responsibilities of the State Treasury of Vietnam, commercial banks, and credit institutions in applying measures to draw money from accounts and account freezing in Vietnam

According to Article 129 of the Law on Tax Administration 2019, the regulation is as follows:

Enforcement by extraction of money from the taxpayer’s account; account freezing

1. The measure of deducting money from accounts and freezing accounts applies to individuals subject to enforcement of administrative decisions on tax management who have deposits at the State Treasury, commercial banks, and other credit institutions.

2. Upon receiving the enforcement decision of the administrative decision on tax management, the State Treasury, commercial banks, and other credit institutions are responsible for deducting the amount specified in the enforcement decision from the account of the individual subject to enforcement and transfer it to the state budget account at the State Treasury, and simultaneously notify in writing the issuer of the enforcement decision and the individual subject to enforcement.

3. If the enforcement decision of the administrative decision on tax management expires and the State Treasury, commercial banks, and other credit institutions have not fully deducted the tax amount according to the enforcement decision, they must notify in writing the issuer of the enforcement decision.

4. During the enforcement period of the administrative decision on tax management, if there is a balance in the account of the individual subject to enforcement and the State Treasury, commercial banks, or other credit institutions do not implement the deduction to transfer to the state budget according to the enforcement decision, they will be subject to administrative sanctions as specified in Chapter XV of this Law.

5. The Government of Vietnam details this Article.

Thus, the responsibilities of the State Treasury, commercial banks, and credit institutions in applying measures to deduct money from accounts, freeze accounts include:

- Responsible for deducting the amount specified in the enforcement decision from the account of the individual subject to enforcement and transferring it to the state budget account at the State Treasury;

- Notifying in writing the issuer of the enforcement decision and the individual subject to enforcement.