What are regulations on tax debt classification standard for imported and exported goods in Vietnam?

What groups are tax debt classified into?

Pursuant to Clause 2, Article 4, Procedures for managing tax debt and other revenues for exported and imported goods issued together with Decision 2317/QD-TCHQ in 2022 stipulating debt classification criteria:

Debt classification criteria

1. Taxes and other revenues belonging to the state budget that have not yet expired according to regulations include taxes and other revenues belonging to the state budget that are within the guarantee period; Taxes on customs declarations cleared or released during the month of priority enterprises; Enterprise debt is in the period of extension and installment payment; Taxes and other revenues belonging to the state budget of enterprises providing goods and services are paid with state budget capital but have not yet been paid; Administrative fines within the time limit for implementing the decision.

2. Debt group that can be collected

The collectible debt group includes all arising debts (except for cases where there is information to determine debt classification according to Clauses 3, 4, 5 of this Article) arranged according to the following criteria:

a) Tax debt is overdue for less than 90 days: tax debt is overdue from 01 day to 90 days from the end of the tax payment deadline.

b) Tax debt is overdue for more than 90 days: tax debt is overdue for more than 90 days from the end of the tax payment deadline.

c) Debt on administrative violation fines: debt must be paid due to exceeding the deadline of 10 days from the date of receiving the decision to sanction administrative violations in the customs field or exceeding the execution time limit stated in the decision to sanction administrative violations in the customs.

d) Late tax payment debt: debt due due to late tax payment compared to the prescribed deadline, tax payment extension deadline, deadline stated in the tax assessment decision and tax handling documents of the agency have authority.

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Thus, tax debt is classified as follows:

(1) Tax debt that can be collected , including:

- Tax debt is overdue for no more than 90 days

- Tax debt is overdue for more than 90 days

- Debt for fines for administrative violations

- Debt for late tax payment

- Debt for late payment of fines for administrative violations

- Debt of fees and charges: debt of customs fees; fees for goods in transit and means of transport in transit.

(2) Group of bad debts , including:

- Debts of taxpayers who are considered by law to be dead, missing, or have lost civil act capacity do not have a request for debt freezing or a request for debt forgiveness.

- The taxpayer's debt is in the process of being dissolved.

- Debts of taxpayers who are undergoing bankruptcy procedures.

- Taxpayer's debt is in the stage of investigation, criminal prosecution, acceptance or awaiting conclusion from law enforcement agencies, and has not fulfilled tax payment obligations.

- Debt of taxpayers importing two-wheeled motorbike components according to the localization rate in 2001 and 2002.

- The taxpayer's debt is no longer active at the registered address.

- Other bad debts

(3) Group of frozen debts

(4) Group of pending debts , including:

- Debt waiting for tax exemption or tax reduction

- Tax debt is being appealed

In what cases are administrative decisions on tax administration enforced in Vietnam?

Pursuant to Article 124 of the Law on Tax Administration 2019, it stipulates cases of forced enforcement of administrative decisions on tax management, including:

1. The taxpayer’s tax has been overdue for more than 90 days.

2. The taxpayer fails to pay tax by the extended deadline.

3. The taxpayer attempts to liquidate assets or abscond.

4. The taxpayer fails to implement the tax decision by the deadline written therein, unless it is delayed.

5. A tax decision will not be enforced for up to 12 months if the tax authority charges off the tax debt; exempts late payment interest in accordance with this Law; allows payment of outstanding tax in instalments.

Payment of tax by instalments shall be considered by the supervisory tax authority of the taxpayer on the basis of the taxpayer’s request and guarantee of a credit institution. The Minister of Finance shall specify the number of instalments and procedures for tax payment by instalments.

6. Do not enforce tax payment if the taxpayer owes customs fees and transit fees.

7. The legal representative of the enterprise against which the tax decision is enforced shall fulfill its tax liability before exiting the country and may be suspended from exit in accordance with immigration laws.

What measures do tax authorities apply to enforce administrative decisions on tax administration in Vietnam?

Clause 1, Article 125 of the Law on Tax Administration 2019 stipulates measures to enforce administrative decisions on tax management including:

1. For the purposes of Articles 125 to 135, “taxpayer” means the taxpayer against whom a tax enforcement measure is taken. Tax enforcement measures include:

a) Extract money from the taxpayer’s account at the State Treasury, commercial bank or credit institution; freezing accounts;

d) Deduct money from the taxpayer’ salary or income;

c) Suspend customs procedures for exports or imports;

d) Suspend use of invoices;

dd) Seize the taxpayer’s assets and sell them at auction in accordance with law;

e) Confiscate the taxpayer’s money and assets that are being held by a third party;

g) Revoke the certificate of business registration, certificate of enterprise registration, cooperative registration certificate, investigation registration certificate, license for establishment and operation, practice certificates.

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