Cases of enforcement of tax decisions in Vietnam

Cases of enforcement of tax decisions in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Enforcement of tax decisions in Vietnam

According to Clause 1, Article 3 of Circular 215/2013/TT-BTC, enforcement actions include:

- Extracting money from the delinquent taxpayer’s account at a State Treasury or credit institution; requesting freezing of account.

- Withholding part of the taxpayer’s wage or income (hereinafter referred to as income).

- Invalidating invoices.

- Distraining property and sold it at auction to collect unpaid tax, fines, late payment interest.

- Confiscating the delinquent taxpayer’s money and other property that are held by other entities.

- Revoking the Certificate of Business Registration, license for establishment and operation, or practice certificate.

2. Cases of tax enforcement in Vietnam

Specifically, in Article 2 of Circular 215/2013/TT-BTC, cases of forced enforcement of tax administrative decisions are as follows:

(1) Taxpayers

- Any taxpayer that owes tax or late payment fine more than 90 days from the deadline for paying tax or extended period according to regulations of the Law on Tax administration and competent authorities.

- Any taxpayer that owes tax, fine, late payment fine and attempts to illegally liquidate his/her property or makes a getaway.

- Any taxpayer that fails to implement the decision on administrative penalties for tax offences within 10 days from the day on which the decision is received. 

If the deadline for implementing the decision on administrative penalties for tax offences is longer than 10 days and the taxpayer fails to implement it by the deadline, the decision shall be enforced unless it is suspended.

(2) Any credit institution that fails to implement the decision on administrative penalties for tax offences according to the Law on Tax administration and the Law on Actions against administrative violations.

(3) Any organization that provide guarantee for the taxpayer (hereinafter referred to as guarantor): if the taxpayer fails to pay tax, fine, or late payment interest within 90 days from the deadline, the guarantor shall face enforcement according to the Law on Tax administration and the Law on Actions against administrative violations.

(4) Any State Treasury that fails to extract money from delinquent taxpayer’s account opened at the State Treasury and transfer it to government budget according to the decision on administrative penalties for tax offences issued by a tax authority.

(5) Any relevant entities that fail to implement decisions on administrative penalties for tax offences issued by competent authorities.

3. Measures for assurance of implementation of decision on enforcement in Vietnam

Measures for assurance of implementation of decision on enforcement include:

- If the taxpayer who owes unpaid tax, fine, or late payment interest attempts to make a getaway or illegally liquidate property, the issuer of the decision on enforcement shall take appropriate enforcement actions to ensure tax collection as prescribed in Article 17 Section 2 of Circular 215/2013/TT-BTC.

- If there is ample evidence that the current enforcement action does not ensure sufficient collection of unpaid tax, fine, or late payment interest, the issuer of the decision on enforcement is entitled to terminate the current decision on enforcement and take the next enforcement action.

- If the delinquent taxpayer keeps refusing to implement the decision on enforcement after due explanation is given, the issuer of the decision on enforcement is entitled to mobilize forces to enforcement.

- If delinquent taxpayer who is an individual fails to implement or avoids implementing the decision on enforcement after having received it, the individual shall be suspended from exit.

(Clause 1, Article 8 of Circular 215/2013/TT-BTC)

Tran Thanh Rin

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