Procedures for tax debt charge-off in Vietnam under Circular 69/2020/TT-BTC

Procedures for tax debt charge-off in Vietnam under Circular 69/2020/TT-BTC (Internet image)

Article 15 of Circular 69/2020/TT-BTC stipulates the procedures for tax debt charge-off in Vietnam as follows:

1. Make and evaluate an application, issue a decision on debt charge-off

- For a taxpayer eligible for debt charge-off prescribed in clauses 1, 2, 3, 4 and 5 Article 4 of the Resolution No. 94/2019/QH14, the debt management department or department in charge of debt settlement (hereinafter referred to as debt settlement department) of the collecting tax authority shall compile a complete application for debt charge-off as prescribed in clause 1 Articles 4, 5, 6, 7, 8, 9, 10, 11 and clause 1 Article 12 of this Circular, draft of decision on debt charge-off using Form No. 01/QDKN-1 or Form No. 01/QDKN-2 hereto, and then forward the application to the specialized or legal department for further evaluation.

If the application is not duly complete, the tax authority shall cooperate with relevant entities in providing additional documentation;

- The specialized or legal department shall evaluate the application for debt charge-off forwarded by the debt settlement department. The application shall be evaluate within 7 working days after receiving the duly complete application;

- After receiving the evaluation, within 10 working days, the debt settlement department shall send a final report to the head of the collecting tax authority to consider issuing a decision on debt charge-off;

- Once the application is approved, the head of collecting tax authority shall issue a decision on tax debt charge-off.

2. Make public and send decision on debt charge-off

- The debt settlement department shall input decision on debt charge-off into the tax administration application within 5 working days after the decision on debt charge-off is issued;

- No later than 5 working days since the date of issue, Department of Taxation or Department of Customs, Department of Post-Customs Clearance Inspection shall upload the decision on debt charge-off on the websites of Department of Taxation, Department of Customs and General Department of Customs;

- The collecting tax authority shall send the decision on debt charge-off immediately to the business registration authority or competent authority which issued establishment and operation license or practice certificate in the administrative division;

- The tax accounting department or the debt settlement department shall modify the late payment fines and interest on the tax administration application (if any).

More details can be found in Circular 69/2020/TT-BTC, which comes into force from July 1, 2020.

Thuy Tram

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