Who has the authority to decide on tax chargeoff in Vietnam?

What are 05 cases eligible for tax chargeoff in Vietnam?

According to Article 83 of the Law on Tax Administration 2019, five specific cases qualify for tax chargeoff:

(1) The taxpayer has died, has been declared dead, missing, or lost civil act capacity by a court.

(2) The taxpayer has a dissolution decision submitted to the tax administration agency and business registration authority for dissolution procedures, the business registration authority has notified that the taxpayer is in the process of dissolution on the national business registration information system but the taxpayer has not completed the dissolution procedures.

(3) The taxpayer has filed for bankruptcy proceedings, or a related party has filed for bankruptcy proceedings against the taxpayer following bankruptcy law regulations.

(4) The taxpayer has ceased business activities at the registered business address with the business registration authority. The tax administration agency has cooperated with the People's Committee at the commune level where the taxpayer is located to verify that the taxpayer is not present at the registered location and has announced nationwide that the taxpayer or their legal representative is not present at the registered address with the tax administration agency.

(5) The taxpayer has been requested by the tax administration agency in writing to relevant authorities for business registration revocation or has had their business registration certificate, enterprise registration certificate, cooperative registration certificate, establishment and operation license, or practice license revoked by relevant authorities.

Who has the authority to decide on tax chargeoff in Vietnam?

According to Article 84 of the Law on Tax Administration 2019, the procedures, dossiers, time, and authority for tax chargeoff are regulated:

Procedures, dossiers, time, and authority for tax chargeoff

1. The Government of Vietnam stipulates the procedures, dossiers, time for tax chargeoff cases eligible for deferral.

2. The head of the tax administration agency directly managing the taxpayer decides on the tax chargeoff.

3. The tax administration agency continues to monitor deferred tax debts and cooperates with relevant agencies to recover tax debts when the taxpayer is able to pay or execute debt relief as stipulated in Article 85 of this Law.

Thus, the authority to decide on tax chargeoff lies with the head of the tax administration agency that directly manages the taxpayer.

05 cases eligible for tax chargeoff in Vietnam (Image from the Internet)

What are procedures for tax chargeoff procedures in Vietnam?

According to Clause 3, Article 23 of Decree 126/2020/ND-CP, the procedures for tax chargeoff are as follows:

- For cases eligible for tax chargeoff under Article 83 of the Law on Tax Administration 2019, when complete dossiers are available as per section 1, the head of the tax administration agency directly managing the taxpayer issues a tax chargeoff decision using Form No. 01/KN in Appendix 3 enclosed with Decree 126/2020/ND-CP for the amount of tax debt at the beginning of the deferral period stipulated in Clause 2, Article 23 of Decree 126/2020/ND-CP.

- If the taxpayer has been issued a tax chargeoff decision, and the court cancels the declaration of death, missing, loss of civil act capacity, or the taxpayer resumes business activities, the tax administration agency will issue a decision to terminate the tax chargeoff using Form No. 02/KN in Appendix 3 attached to Decree 126/2020/ND-CP.

The tax administration agency calculates late payment interest from the date of issuing the decision to terminate the tax chargeoff until the taxpayer fully pays the tax debt to the state budget.

- If the taxpayer has been issued a tax chargeoff decision, upon meeting the conditions for debt relief as stipulated in Article 85 of the Law on Tax Administration 2019, the tax administration agency will issue a decision to terminate the tax chargeoff using Form No. 02/KN and proceed with the debt relief as stipulated.

- For taxpayers being individuals, small business households, household businesses, sole proprietors, and single-member limited liability companies that have been granted tax chargeoff but found by the tax administration agency to have established another business or company, the tax administration agency will issue a decision to terminate the tax chargeoff using Form No. 02/KN and calculate late payment interest from the date the taxpayer was granted the tax chargeoff until the date the taxpayer fully pays the tax debt to the state budget.