The General Department of Taxation of Vietnam's requests regarding enhancement of the recovery of outstanding tax debts in Vietnam

The General Department of Taxation of Vietnam's requests regarding enhancement of the recovery of outstanding tax debts in Vietnam  (Internet image)

On June 6, 2024, the General Department of Taxation issued Official Dispatch 2403/TCT-QLN regarding the enhancement of the recovery of outstanding tax debts in Vietnam.

The General Department of Taxation of Vietnam's requests regarding enhancement of the recovery of outstanding tax debts in Vietnam 

In order to fulfill the state budget revenue targets, achieve the debt collection targets, and handle tax debts and outstanding tax amounts in 2024, in order to enhance the recovery of outstanding tax debts to the state budget and limit the emergence of new debts, the General Department of Taxation proposes that the Provincial Tax Departments, Central-affiliated Cities' Tax Departments, and the Large Enterprise Tax Department implement the following:

- Conduct a comprehensive review of all debts related to land and the granting of mineral exploitation rights, based on which compile a report on the status of large debts for land use fees, land rent, water surface rent, and mineral exploitation rights fees (including cases classified as pending complaints and lawsuits), stating the reasons and causes for the large and prolonged debts for each case of outstanding land use fees, land rent, water surface rent, and mineral exploitation rights fees according to the attached form of this official letter, report any related difficulties (if any), and propose solutions and recommendations for handling. The report should be sent to the General Department of Taxation via email at vqlntct@gdt.gov.vn before June 12, 2024.

- Report on the explanation of the reasons for the increase in debts as of May 31, 2024 compared to December 31, 2023, with specific supporting data by major debtors and by reason groups (tax rates, debtor groups) (the increase should be explained to be almost equal to the increase as of December 31, 2023). The Tax Department should include this report in the Report on Debt Management and Tax Debt Enforcement (Form 01/BC-QLN issued with the Debt Management Procedure) and send it to the General Department of Taxation via email at vqlntct@gdt.gov.vn within 5 working days from the date of system operation.

- Direct the assigned divisions responsible for debt management and the affiliated Tax Sub-Departments of the Tax Department to conduct a review, classify tax debts, closely monitor and supervise the situation of tax debts in accordance with the instructions in the Debt Management Procedure; coordinate with relevant departments to standardize data, reconcile tax debts, and fully and timely record the tax obligations of taxpayers into the centralized tax management system (TMS) to facilitate the automation of debt management and tax debt enforcement processes.

- The Director of the Tax Department should assign, supervise, and closely control the full and timely implementation of measures to urge and enforce, publicly disclose information about taxpayers with tax debts in accordance with regulations, and assign specific responsibilities to each official and civil servant.

- Continue to enhance the application of temporary exit postponement measures for individuals acting as legal representatives of companies subject to administrative enforcement decisions regarding tax management; pay attention to cases where taxpayers no longer operate at the registered address, but still have tax debts and other amounts owed to the state budget in the field of e-commerce business.

- Prevent tax debts and handle small debts through regular communication and dissemination to taxpayers to be aware of, monitor, and check their tax obligations (including the amount of tax debts), and encourage taxpayers to pay taxes electronically through the General Department of Taxation's Electronic Information Portal or the Etaxmobile application.

More details can be found in Official Dispatch 2403/TCT-QLN dated June 6, 2024.

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