Guidance on handling insolvent tax debts in Vietnam

Guidance on handling insolvent tax debts in Vietnam

To be specific, with regards to insolvent tax debts:

- Review and complete the documentation for debt suspension and debt write-off for taxpayers eligible for such measures in accordance with the Tax Administration Law 2019 and related guiding documents, submit to competent authorities for consideration and decision.

- For businesses and business households that are not operating at their registered addresses and have not fulfilled their tax obligations, the following steps should be taken:

+ Continue to educate and motivate taxpayers to comply with the law, promptly declare, and pay taxes fully to the state budget;

+ Report to local authorities, coordinate with police agencies to support the application of measures to expedite debt recovery;

+ Complete the documentation to transfer to police authorities cases of legal violations regarding tax.

By March 1, 2025, all files with signs of tax evasion, tax money appropriation at a level requiring criminal liability investigation must be transferred to the investigating agency for review.

Focus on handling debts of land levy, land rent, mineral exploitation rights fee in Vietnam

Additionally, focus on handling debts of land levy, land rent, mineral exploitation rights fee in Vietnam:

- Review and report to the People's Committee to direct relevant agencies in the area to focus on removing difficulties and obstacles regarding land area, land price, planning adjustments, deduction of compensation for site clearance... (if any) to promptly handle and recover debts related to land levy, land rent, and mineral exploitation rights fees;

Urge functional agencies to promptly carry out incomplete procedures related to land allocation, land leasing, land recovery, mine recovery, annulment of decisions recognizing land auction results, handling exemptions, reductions,... as a basis for tax authorities to notify financial obligations and urge taxpayers to pay all outstanding amounts into the state budget;

For projects that are stagnant, with prolonged tax debts, failing to fulfill financial obligations to the State, it is recommended to implement land recovery in accordance with land laws.

- Review mines that have temporarily ceased mineral exploitation or had their licenses revoked under the licensing authority of the Ministry of Natural Resources and Environment of Vietnam or the provincial People's Committee; propose the Ministry of Natural Resources and Environment of Vietnam or advise the provincial People's Committee to direct the Department of Natural Resources and Environment to promptly send documentation to the Tax Department regarding the adjustment of the amount payable for mineral exploitation rights, so that the tax authority can monitor and adjust the amount payable for mineral exploitation rights by the taxpayer.

More details can be found in Official Dispatch 4216/TCT-QLN dated September 23, 2024.

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