The General Department of Taxation to urge and implement measures to collect outstanding environmental protection tax debts in Vietnam

The General Department of Taxation to urge and implement measures to collect outstanding environmental protection tax debts in Vietnam (Internet image) 

On February 23, 2024, the General Department of Taxation issued Official Dispatch 651/TCT-QLN urging and implementing measures to collect outstanding environmental protection tax debts in Vietnam.

The General Department of Taxation to urge and implement measures to collect outstanding environmental protection tax debt in Vietnam

On December 15, 2023, the General Department of Taxation issued Official Dispatch 5729/TCT-QLN to the Tax Departments of provinces and centrally-run cities on urging and implementing measures to collect outstanding environmental protection tax debt.

On January 15, 2024, the General Department of Taxation issued Official Dispatch 191/TCT-QLN on assigning targets for debt collection, debt handling, and tax debt in 2024.

On January 22, 2024, the General Department of Taxation issued Official Dispatch 270/TCT-QLN to the Tax Departments of provinces and centrally-run cities on strengthening debt management and tax debt enforcement.

To have a basis for controlling the situation of environmental protection tax debt nationwide, ensuring the implementation of debt collection targets in 2024, it is recommended that Tax Departments seriously implement Official Dispatch 5729/TCT-QLN mentioned above (seriously implement and issue enforcement decisions in accordance with regulations for key petroleum trading enterprises, including dependent units and member units) and, at the same time, report on the results of urging and enforcing tax debt for businesses that owe environmental protection tax (including dependent units and member units). As follows:

- Environmental protection tax debt situation as of December 31, 2023.

- Results of environmental protection tax debt recovery as of December 31, 2023, through each reporting month.

- Status of environmental protection tax debt at the time of reporting (specify the new amount or old tax debt).

- Urgent and enforcement measures have been and are being implemented by the Tax Department to recover environmental protection tax debt.

Report implementation results monthly according to the form in the attached Appendix to the General Department of Taxation (Department of Human Resource Management and Taxation) at the email address: vuqln@gdt.gov.vn before the 10th of every month.

More details can be found in Official Dispatch 651/TCT-QLN, taking effect on February 23, 2024.

Objects not subject to environmental protection tax in Vietnam

Goods is not specified in Article 3 of the Law on Environmental Protection Tax 2010 shall not be subject to environmental tax.

Goods provided for in Article 3 of the Law on Environmental Protection Tax 2010 shall not be subject to environmental tax in the following cases:

- Goods transported in transit  or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

- Goods temporarily imported for re-export within the time limit prescribed by law;

- Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

(Article 4 of the Law on Environmental Protection Tax 2010)

Ho Quoc Tuan

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