Procedures for Tax Debt Freeze in 2023: How is it Implemented? How is the Timing of Debt Freeze Determined?
Procedures for Tax Debt Deferral in 2023: How to Implement?
The tax debt deferral procedure is stipulated in Clause 3, Article 23 of Decree 126/2020/ND-CP as follows:
- For cases eligible for tax debt deferral as stipulated in Article 83 of the Law on Tax Administration 2019, upon the completion of the tax debt deferral application dossier, the head of the tax administration directly managing the taxpayer shall issue a decision on tax debt deferral according to Form 01/KN in Appendix III attached to Decree 126/2020/ND-CP for the debt amount at the start of the tax debt deferral period as stipulated in Clause 2, Article 23 of Decree 126/2020/ND-CP.
- If a taxpayer has been issued a tax debt deferral decision by the tax administration but the court annuls the decision declaring a person dead, missing, or without civil conduct capacity, or the taxpayer resumes business, the tax administration shall issue a decision to terminate the validity of the tax debt deferral decision according to Form 02/KN in Appendix III attached to Decree 126/2020/ND-CP.
The tax administration calculates the late payment interest for the taxpayer from the date of issuing the decision to terminate the validity of the tax debt deferral decision until the taxpayer fully pays the tax debt into the state budget.
- If a taxpayer has been issued a tax debt deferral decision, and they meet the conditions for debt cancellation stipulated in Article 85 of the Law on Tax Administration 2019, the tax administration shall issue a decision to terminate the validity of the tax debt deferral decision according to Form 02/KN in Appendix III attached to Decree 126/2020/ND-CP and implement the debt cancellation as per the regulations.
- For individual taxpayers, business individuals, household business owners, household owners, private enterprise owners, and one-member limited liability companies whose debts have been deferred, if the tax administration discovers that the taxpayer has established another business or enterprise, the tax administration shall issue a decision to terminate the validity of the tax debt deferral decision according to Form 02/KN in Appendix III attached to Decree 126/2020/ND-CP and calculate the late payment interest from the date the taxpayer was granted the tax debt deferral until the date the taxpayer fully pays the tax debt into the state budget.
Procedures for tax debt deferral in 2023: How to determine the deferral period?
How to Determine the Tax Debt Deferral Period?
Based on Clause 2, Article 23 of Decree 126/2020/ND-CP, the period determination is stipulated as follows:
- For taxpayers stipulated in Clause 1, Article 83 of the Law on Tax Administration 2019:
The deferral period is calculated from the date on the death certificate, notice of death, or documents in lieu of the notice of death as per civil status regulations, or the court decision declaring a person dead, missing, or without civil conduct capacity until the court annuls the declaration decision or the debt is canceled as per the regulations.
- For taxpayers stipulated in Clause 2, Article 83 of the Law on Tax Administration 2019:
The deferral period is calculated from the date the business registration authority posts information about the taxpayer undergoing dissolution procedures on the National Business Registration Portal until the taxpayer resumes business activities, completes the dissolution procedures, or the debt is canceled as per the regulations.
- For taxpayers stipulated in Clause 3, Article 83 of the Law on Tax Administration 2019:
The deferral period is calculated from the date the competent court accepts the bankruptcy petition or the date the taxpayer submits the bankruptcy dossier to the tax administration but is still processing debt settlement and handling procedures according to the Bankruptcy Law until the taxpayer resumes business activities or the debt is canceled as per the regulations.
If a competent court has accepted the bankruptcy petition, taxpayers are allowed to defer the tax debt amounts up to the time the court accepts the bankruptcy petition.
- For taxpayers stipulated in Clause 4, Article 83 of the Law on Tax Administration 2019:
The deferral period is calculated from the date the tax administration issues a nationwide notice about the taxpayer or the legal representative of the taxpayer not being present at the registered business address, registered contact address until the taxpayer resumes business activities or the debt is canceled as per the regulations.
- For taxpayers stipulated in Clause 5, Article 83 of the Law on Tax Administration 2019:
The deferral period is calculated from the date the tax administration proposes the competent authority to revoke or from the effective date of the decision to revoke the business registration certificate, enterprise registration certificate, cooperative registration certificate, household business registration certificate, establishment and operation license, professional practice license, or registration certificate for branches and representative offices until the taxpayer resumes business activities or the debt is canceled as per the regulations.
If a Taxpayer with Deferred Tax Debt Resumes Business, Will the Tax Debt Deferral Be Canceled?
Based on Clause 2, Article 18 of Circular 69/2020/TT-BTC, the cases for canceling the tax debt deferral, and canceling the late payment interest are as follows:
Cases for Canceling Tax Debt Deferral, Canceling Late Payment Interest
1. The taxpayer has been granted tax debt deferral, debt cancellation, but the competent authority or tax administration discovers that the deferral or cancellation is not implemented according to the provisions in Resolution 94/2019/QH14.
2. The taxpayer has been granted tax debt deferral, debt cancellation, but resumes production, business, except for the cases stipulated in Clauses 6 and 7, Article 4 of Resolution 94/2019/QH14.
3. Individuals, business individuals, or representatives of households, household business owners, private enterprise owners, owners of one-member limited liability companies with deferred or canceled debt establish new businesses or production establishments, except for the cases stipulated in Clauses 6 and 7, Article 4 of Resolution 94/2019/QH14.
Thus, except for cases where taxpayers suffer material damages due to natural disasters, disasters, epidemics, fires, unexpected accidents, and cases where taxpayers supply goods and services paid directly from state budget funds, including subcontractors as stipulated in contracts with the investor and directly paid by the investor, which are subject to debt cancellation, when taxpayers with deferred tax debt resume business, the tax debt deferral will be canceled.
LawNet