Vietnam: The General Department of Taxation implements measures to recover outstanding tax debts

The General Department of Taxation implements measures to recover outstanding tax debts

Specifically, in Official Dispatch No. 2564/TCT-QLN dated June 17, 2024, the General Department of Taxation of Vietnam requests the Tax Departments of provinces and centrally-affiliated cities to perform:

• Advise the Provincial People's Committees to establish steering committees to expedite the collection of tax and land use, land lease fees arrears in the area, under the leadership of the Provincial People's Committees, with members being representatives from relevant departments and the People's Committees of districts, townships. In cases where the steering committee has already been established, advise on reviewing and adding tasks to the steering committee. Provide specific assignments to each member and develop detailed plans and programs for implementation. The Tax Departments are to report the establishment results of the steering committee to the General Department of Taxation (Department of Debt Management and Tax Collection Enforcement) in writing and via email vqlntct@gdt.gov.vn before July 10, 2024.

• Compile a list of taxpayers with large tax arrears in the area and identify specific recovery measures for each taxpayer for the steering committee to organize direct meetings with taxpayers and expedite the recovery of tax arrears. No later than the 10th of each month (initial report before August 10, 2024), the Tax Departments must report the activities undertaken by the steering committee and the results of tax recovery from the previous month according to the attached appendix to the General Department of Taxation (Department of Debt Management and Tax Collection Enforcement) in writing and via email at vqlntct@gdt.gov.vn.

• Closely coordinate with relevant local authorities in applying debt management measures and enforcing tax debts as stipulated by the Tax Administration Law 2019 to reclaim tax arrears. For prolonged debt accounts such as land use fees, land lease fees, and mineral exploitation rights, non-compliance with financial obligations to the state, the Tax Department should advise the steering committee to focus on resolving difficulties or implement land recovery according to regulations.

• Cooperate with relevant agencies to gather information, timely and effectively implement tax debt recovery measures, publicize information of tax debtors according to regulations, and promote the application of exit ban measures against individuals or representatives of legally bound businesses under enforced administrative decisions on tax management who have not yet fulfilled their tax obligations.

• Collaborate with Information and Communication Departments and local news agencies to intensify the dissemination of tax policy laws, especially the regulations on debt management and tax debt enforcement, allowing taxpayers to voluntarily comply with tax obligations, thus reducing the occurrence of new tax arrears.

For more details, refer to Official Dispatch No. 2564/TCT-QLN issued on June 17, 2024.

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