Who has the power to take tax enforcement actions in Vietnam?

Who has the power to take tax enforcement actions in Vietnam?

Based on Clause 1, Article 4 of Circular 215/2013/TT-BTC, specific regulations on the power to take tax enforcement actions are as follows:

- The General Director of the General Department of Taxation, the Director of the Department of Taxation, and the Chief of the Tax Sub-department have the authority to issue enforcement decisions and apply enforcement measures stipulated in points a, b, c, d, and đ of Clause 1, Article 3 of Circular 215/2013/TT-BTC.

- The Chairpersons of the District-level and Province-level People's Committees are authorized to issue enforcement decisions to execute administrative penalty decisions concerning tax violations within their jurisdiction.

- In cases where violators are subject to enforcement measures specified at point e, Clause 1, Article 3 of Circular 215/2013/TT-BTC, the tax authorities compile documents, materials, and written requests for the agency in charge of issuing business licenses, enterprise registration certificates, establishment and operation permits, and professional practice licenses to revoke the business licenses, enterprise registration certificates, establishment and operation permits, and professional practice licenses.

Who has the power to take tax enforcement actions in Vietnam? (Image from the Internet)

What are regulations on division of power to issue decisions on tax enforcement in Vietnam?

Based on Clauses 2 and 3, Article 4 of Circular 215/2013/TT-BTC, specific regulations on the division of enforcement authority are as follows:

- The General Director of the General Department of Taxation, the Director of the Department of Taxation has the authority to issue enforcement decisions regarding: administrative tax decisions issued by themselves; administrative tax decisions issued by subordinates who lack the authority for enforcement, or subordinates who have the authority to issue enforcement decisions but lack the necessary resources and means to execute the enforcement decision and have requested in writing for the superior to issue the enforcement decision.

- The General Director of the General Department of Taxation issues enforcement decisions regarding entities subject to enforcement having multiple offices in various localities managed by multiple Tax Departments.

- The Director of the Department of Taxation issues enforcement decisions in cases where entities subject to enforcement have multiple offices in various locations managed by multiple Tax Sub-departments within the same locality (same province, centrally run city).

Individuals authorized to issue enforcement decisions as specified in Clauses 1 and 2 of Circular 215/2013/TT-BTC may delegate the power to deputies to consider issuing enforcement decisions. Delegation of power is only permissible during the absence of the superior and must be documented in writing, clearly outlining the scope, content, and duration of delegation. The delegated deputy shall be responsible for their decisions to the superior and before the law. The deputized individual is not allowed to further delegate the power to any other individual.

What are the regulations on sending tax enforcement decisions to the enforced organizations and individuals and related individuals in Vietnam?

According to Article 6 of Circular 215/2013/TT-BTC (amended and supplemented by Clause 2, Article 1 of Circular 87/2018/TT-BTC), the regulations are as follows:

(1) For the enforced organizations and individuals:

- The enforcement decision must be sent to the enforced party before the execution of enforcement. If the taxpayer has a registered electronic tax transaction account, the enforcement decision is sent electronically. If the taxpayer does not have a registered electronic tax transaction account, the enforcement decision is delivered directly or sent by registered mail through the postal service.

- Instances considered that the decision has been delivered are determined as follows:

+ If the decision is delivered directly and the enforced organization or individual refuses to accept it, the competent person or the tax official responsible for delivering the enforcement decision must document this refusal, with confirmation from local authorities where the organization or individual is registered with tax authorities, it shall be considered that the decision has been delivered.

+ If sent via registered postal mail, after 10 days from the date the enforcement decision was sent for the third time and returned due to the enforced organization or individual not receiving it; and the enforcement decision has been posted at the headquarters of the organization or residence of the individual being enforced or there is evidence that the individual is evading receipt of the enforcement decision, it shall be considered that the decision has been delivered.

(2) For related organizations and individuals:

The person authorized to issue the enforcement decision or the tax official responsible for executing the enforcement decision must send the enforcement decision to related organizations or individuals before performing enforcement.

In cases where enforcement requires coordination with the commune-level People's Committees, the enforcement decision must be sent to the Chairpersons of the commune-level People's Committees where the enforcement is to be carried out to coordinate the implementation.