General Department of Taxation's requests for focusing on implementation of measures to recover tax debts in Vietnam

General Department of Taxation of Vietnam's requests for focusing on implementation of measures to recover tax debts in Vietnam

The General Department of Taxation of Vietnam requests Tax Departments of provinces and centrally affiliated cities to concentrate on implementing measures for recovering tax debts. Some specific actions are as follows:

- Assign duties and responsibilities for tax debt recovery and handling outstanding tax debts to each leader of the Tax Department, Divisional leaders, Sub-departments of Taxation, and each management official. Additionally, organize monitoring, supervision, and strict progress checking of enforcement measures to ensure the fulfillment of debt recovery targets and limit new debt accumulation.

- Regarding classification of tax debt:

+ Review and categorize tax debts accurately according to the nature of the debt and maintain complete classification records in accordance with the Debt Management Process; if records are incomplete, promptly reclassify according to the debt's nature.

+ Accurately and completely record and track taxpayers' debts in the centralized tax management application (TMS), facilitating the digitalization of debt management and enforcement.

- On urging tax debt recovery:

Implement fully the urging measures and public disclosure of information as stipulated by the Law on Tax Administration and guiding documents to recover outstanding tax amounts into the state budget. Specifically:

+ For taxpayers with tax debts under 90 days, the inspection - examination division is responsible for controlling the data and urging taxpayers to pay the outstanding tax into the state budget, minimizing prolonged outstanding debts.

+ For taxpayers with tax debts exceeding 30 days, the tax authority issues a Tax Debt Notice in form number 01/TTN sent electronically via the e-tax transaction account (etax). If the taxpayer does not have an e-tax transaction account but has registered an email address, the tax authority assists in sending the Notice via email and the etaxmobile application.

+ For taxpayers with tax debts over 60 days, tax officials must regularly contact taxpayers to remind them about paying the outstanding tax and inform them about the application of enforcement measures if the debt exceeds 90 days.

- Regarding enforcement measures and temporary exit suspension:

+ For taxpayers with tax debts over 90 days or debts subject to enforcement: the tax authority must immediately apply enforcement measures and disclose information as required.

+ For tax amounts deferred according to Government Decrees and Resolutions, the tax authority enforces and applies enforcement measures immediately upon the expiration of the deferral period if the taxpayer fails to pay into the state budget.

+ If the enforcement decision expires but the taxpayer has not paid or has not fully paid the enforced tax debt into the state budget, continue to apply suitable enforcement measures as appropriate.

+ Consider applying concurrent enforcement measures according to regulations to enhance debt recovery effectiveness.

+ Issue enforcement decisions through the centralized tax management application (TMS) to advance towards automating tax enforcement across the area. Ensure that the electronic invoice application blocks invoice issuance immediately when the enforcement decision to stop using invoices comes into effect; in case of issues, promptly update in the electronic invoice application and report to the General Department of Taxation of Vietnam for handling.

+ Implement temporary exit suspension regulations for taxpayers with overdue tax debts under enforcement conditions regarding administrative decisions on tax management, especially for cases no longer operating at the registered address.

+ Regularly review and monitor to promptly extend temporary exit suspension durations or cancel the suspension as appropriate.

+ Issue temporary exit suspension notices through the centralized tax management application (TMS) to ensure retrieval of temporary exit suspension data on the tax sector website, etax, etaxmobile applications.

- Regarding unresolved tax debts and tax adjustments:

+ Focus on promptly and appropriately resolving documentation received by the tax authority, which is in the process of being dealt with (applications for tax payment extensions, debt write-offs, interest waiver, installment payments of tax debts, tax reductions...).

+ The declaration and tax accounting division leads and coordinates with other tax authorities to handle allocation documents, promptly recording them into the system.

+ Review to ensure classification records of pending tax adjustments are appropriate, while coordinating with relevant divisions and taxpayers to reconcile debts, standardize debt data, ensure data accuracy, and promptly handle debts due to errors.

+ Send documents to functional agencies to expedite the deduction process for compensation, land clearance funds into land levy, and land rent payable to promptly resolve these debts thoroughly.

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