According to current regulations, who has the authority to waive tax, late payment interest, and fines for exported and imported goods in Vietnam? - Question from Mr. Hoang Nhat Minh from Da Nang.
Article table of contents
Illustration Image
would like to address Mr. Minh's issue as follows:
According to the provisions in Clause 4, Article 136 of Circular 38/2015/TT-BTC, Article 67 of the Tax Administration Law 2006 (amended and supplemented by Clause 22, Article 1 of the Amended Tax Administration Law 2012), the authority to waive tax arrears, late payment interest, and fines related to export and import goods in Vietnam is specifically regulated as follows:
- For taxpayers who are enterprises declared bankrupt as prescribed in Clause 1, Article 65, individuals specified in Clause 2 and Clause 3, Article 65, households in Clause 3, Article 65, of the Tax Administration Law 2006, the Chairperson of the provincial/municipal People's Committee is authorized to waive tax debts, late payment interest, and fines.
- For taxpayers not falling into the above cases, the authority for debt cancellation is regulated as follows:
+ The Prime Minister of the Government of Vietnam is authorized to waive debts for cases where taxpayers owe tax debts, late payment interest, and fines of ten billion VND or more;
+ The Minister of Finance is authorized to waive debts for cases where taxpayers owe tax debts, late payment interest, and fines from five billion VND to under ten billion VND;
+ The Director-General of the General Department of Taxation and the Director-General of the General Department of Customs are authorized to waive debts for cases where taxpayers owe tax debts, late payment interest, and fines under five billion VND.
- The Government of Vietnam reports to the National Assembly the amount of tax, late payment interest, and fines written off annually when presenting the state budget finalization to the National Assembly for approval.
- The Government of Vietnam stipulates the organization of debt write-offs.
However, these regulations remain valid until June 30, 2020. Starting from July 1, 2020, when the Tax Administration Law 2019 takes effect, this authority will be regulated as follows:
- The Chairperson of the provincial People's Committee decides to waive tax debts, late payment interest, and fines for the following cases:
+ Enterprises, cooperatives declared bankrupt who have made payments as required by the bankruptcy law but have no assets left to pay tax debts, late payment interest, and fines.
+ Individuals who have passed away or are declared dead, missing, or legally incapacitated by the court, with no assets, including inherited assets, to pay the remaining tax debts, late payment interest, and fines.
+ Tax debts, late payment interest, and fines of households, business households, individual businesses, and individuals not falling into the above cases for which tax authorities have applied enforcement measures as prescribed in Point g, Clause 1, Article 125 of Tax Administration Law 2019, and these debts have been outstanding for over 10 years from the tax due date without recovery ability.
+ Enterprises, cooperatives falling under the provisions of Clause 3, Article 85 of Tax Administration Law 2019 with tax debts, late payment interest, and fines under 5,000,000,000 VND.
- The Director-General of the General Department of Taxation, the Director-General of the General Department of Customs decides to waive debt for enterprises and cooperatives falling under the provisions of Clause 3, Article 85 of Tax Administration Law 2019 with tax debts, late payment interest, and fines from 5,000,000,000 VND to under 10,000,000,000 VND.
- The Minister of Finance decides to waive debts for enterprises and cooperatives falling under the provisions of Clause 3, Article 85 of Tax Administration Law 2019 with tax debts, late payment interest, and fines from 10,000,000,000 VND to under 15,000,000,000 VND.
- The Prime Minister of the Government of Vietnam decides to waive debts for enterprises and cooperatives falling under the provisions of Clause 3, Article 85 of Tax Administration Law 2019 with tax debts, late payment interest, and fines from 15,000,000,000 VND or more.
- The Chairperson of the provincial People's Committee reports the debt write-off status and results to the People's Council at the first annual meeting. The Minister of Finance of Vietnam consolidates the tax debt write-off situation for the Government of Vietnam to report to the National Assembly during the state budget finalization.
Nguyen Trinh
- Key word:
- tax debt
- import and export goods
- Vietnam
