Does a deceased person have to fulfill their tax liability in Vietnam?

Does a deceased person have to fulfill their tax liability in Vietnam? (Internet image)

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

1. What is tax liability fulfillment?

Clause 12, Article 3 of the Law on Tax Administration 2019 explains the tax liability fulfillment as follows:

Tax liability fulfillment means full payment of tax liabilities, late payment interest, penalties of tax violations and other amounts payable to the state budget.

2. Does a deceased person have to fulfill their tax liability in Vietnam?

According to Article 69 of the Law on Tax Administration 2019, the fulfillment of tax liability upon a taxpayer’s death or court declaration that a taxpayer is dead, missing or incapacitated is as follows:

- In the cases where a taxpayer is dead or declared death by the court, his/her inheritor shall fulfill his/her tax liability within the inheritance to which the inheritor is entitled.

In case there is no inheritor or all of the inheritors reject the inheritance, tax liability of the dead person or the person whose death is declared by the court shall be fulfilled in accordance with civil law.

- Tax liability of a person who is declared missing or incapacitated by the court shall be fulfilled by his/her property manager within the property.

- In case the court issues a decision to revoke the declaration that a person is dead, missing or incapacitated, the cancelled debt of tax, late payment interest and fine mentioned in Article 85 of the Law on Tax Administration 2019 shall be restored.

However, late payment interest will not be charged over the effective period of the aforesaid declaration.

Thus, in case the deceased still has to fulfill the tax payment obligation, the fulfillment of the deceased person's tax obligation is done by the heir in the deceased person's assets. In cases where there are no heirs or all heirs refuse to accept the inheritance, the tax payment obligation of the deceased shall be fulfilled in accordance with the provisions of civil law.

3. What are performance of property obligations left by deceased of the heirs in Vietnam?

Article 615 of the Civil Code 2015 stipulates the performance of property obligations left by deceased as follows:

- A person entitled to an inheritance has the responsibility to perform the property obligations within the scope of the estate left by the deceased, unless otherwise agreed.

- Where an estate has not yet been divided, the property obligations left by the deceased shall be performed by the administrator of the estate as agreed by the heirs.

- Where an estate has already been divided, each heir shall perform those property obligations left by the deceased corresponding to, but not exceeding, that part of the estate that the heir has inherited, unless otherwise agreed.

- Where the heir inheriting an estate under a will is not a natural person, it must perform the property obligations left by the deceased in like manner as a natural person.

Nguyen Ngoc Que Anh

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