Quyết định 1395/QD-TCT

DECISION

ON PROMULGATION OF PROCEDURE FOR TAX DEBT MANAGEMENT

THE DIRECTOR OF THE GENERAL DEPARTMENT OF TAXATION

Pursuant to the Law on Tax administration, tax laws, and their guiding documents;

Pursuant to the Prime Minister’s Decision No. 115/2009/QĐ-TTg dated September 28, 2009 defining the functions, tasks, entitlements and organizational structure of General Department of Taxation, which is affiliated to the Ministry of Finance;

Pursuant to Decision No. 106/QĐ-BTC dated January 14, 2010 of the Minister of Finance defining the functions, tasks, powers and organizational structure of Departments of General Department of Taxation;

Pursuant to Decision No. 108/QĐ-BTC-BTC dated January 14, 2010 of the Minister of Finance defining the functions, tasks, powers and organizational structure of Provincial Departments of Taxation;

Pursuant to Decision No. 502/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation defining the functions, tasks, powers and organizational structure of Departments of Provincial Departments of Taxations;

Pursuant to Decision No. 504/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation defining the functions, tasks, powers and organizational structure of tax teams affiliated to Sub-departments of taxation;

At the request of the Director of Tax Enforcement Agency affiliated to General Department of Taxation;

DECIDES:

Article 1. Procedure for Tax debt management is promulgated together with this Decision

Article 2. This Decision takes effect from the day on which it is signed. This Decision replaces Decision No. 477/QĐ-TCT dated May 15, 2008 of the Director of the General Department of Taxation on promulgation of Procedure for tax debt management and Decision No. 752/QĐ-TCT dated May 14, 2010 of the Director of the General Department of Taxation on promulgation of Procedure for management of tax debts of business households and individual tax payers under the management of Sub-departments of taxation.

Article 3. Heads of Departments of General Department of Taxation, Directors of Provincial Departments of Taxation, Directors of Sub-departments of taxation are responsible for the implementation of this Decision./.

TAX DEBT MANAGEMENT PROCEDURE

(promulgated together with Decision No. 1395/QĐ-TCT dated October 14, 2011 of the Director of the General Department of Taxation)

A. GENERAL PROVISIONS

I. PURPOSES

This document deals with the duties, contents, procedures, and time for tax authorities to set targets, collect and settle tax debts of taxpayers in accordance with the Law on Tax administration and other documents on taxation.

II. SCOPE

1. Tax authorities include: General Department of Taxation, Provincial Departments of Taxation, and Sub-departments of taxation.

2. Tax Enforcement Agency of General Department of Taxation.

3. Tax debt management and tax enforcement department of Provincial Departments of Taxation, tax debt management and tax enforcement unit and tax debt management and tax enforcement units of Sub-departments of taxation (hereinafter referred to as tax debt departments/units)

4. The departments/units engaged in this procedure include: tax inspection department/unit; personal income tax department/unit; land management departments (if any) department/unit in charge of revenue from land; major company team (if any) or a unit in charge of major companies affiliated to tax inspection department/unit; licensing fee unit, inter-commune tax department/unit. The departments/units involved in tax debt management such as tax declaration and tax accounting, inspection, documents, IT, propagation – support.

5. Officials of tax debt departments/units, officials of the departments/units participating in the procedure (hereinafter referred to as participating departments/units).

III. REFERENCE (See Appendix 01 enclosed herewith for more details)

1. The Law on Tax administration No. 78/2006/QH11 November 29, 2006 and its guiding documents.

2. The Law on Enterprises No. 60/2005/QH11 dated November 29, 2005.

3. The Law on Bankruptcy No. 21/2004/QH11 dated June 15, 2004.

4. Circular No. 108/2008/TT-BTC dated November 18, 2008 of the Ministry of Finance on settlement of government budget at years’ ends and making of annual government budget statements.

5. Circular No. 128/2008/TT-BTC dated December 24, 2008 of the Ministry of Finance on collection and management of government revenues via State Treasuries.

6. Circular No. 61/2007/TT-BTC dated June 14, 2007 on actions against tax offenses.

7. Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance on guidelines for the Law on Tax administration, the Government's Decree No. 85/2007/NĐ-CP dated May 25, 2007 and the Government's Decree No. 106/2010/NĐ-CP dated October 28, 2010.

8. Decision No. 106/QĐ-BTC dated January 14, 2010 of the Minister of Finance defining the functions, tasks, powers and organizational structure of agencies affiliated to General Department of Taxation.

9. Decision No. 502/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation defining the functions, tasks, powers and organizational structure of departments of General Department of Taxation.

10. Decision No. 504/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation defining the functions, tasks, powers and organizational structure of tax units affiliated to Sub-departments of taxation.

IV. DEFINITIONS

1. Tax debt means an amount of tax amount, fee, late payment fine, and any other amount payable according to regulations of law on taxation that has been declared by the taxpayer or calculated by the tax authority; discovered by a competent authority and notified to the tax authority, and is considered by the tax authority the taxpayer’s liability, notified to the taxpayer but has not been paid to government budget by the prescribed deadline.

2. Paid tax pending adjustment means an amount of tax, fee, late payment fine, or any other amount payable that has been paid by the taxpayer but there are some errors on the deposit note, or documents are delayed or lost, or they are awaiting recording, and are being adjusted by the tax authority.

3. Tax debtor means a taxpayer that has owes a tax debt according to Point 1 Section IV Part A of this document.

4. Debt means a debt that is determined when it is incurred.

5. Late payment fine means an interest on the tax debt and number of days of late payment.

6. Number of days of late payment means a period of consecutive days from the beginning day of tax debt until the debt is paid to government budget, including days off and public holidays defined by the Labor Code.

7. Beginning day of tax debt means the day succeeding the deadline for paying tax according to regulations of law on taxation.

8. Ending day of tax debt means the day on which the tax debt is paid government budget, or the effective date of a decision on debt cancellation, tax exemption, or another form of settlement.

9. Book closing date means the time at which accounting documents related to tax liability of taxpayers such as tax declarations, tax payment receipts, decisions, notifications, etc... are stop being received and entered After book closing date, every information in the log book of the previous months shall not be adjusted. Adjustments shall only be made after the book closing date and recorded when errors are found.

V. TAX DEBT CLASSIFICATION

1. Bad tax debts include:

Tax debt owed by any taxpayer that is, by law, considered dead, missing, incapable of civil acts, and no request for tax debt cancellation is made.

1.2. Tax debt related to criminal liability: a tax debt owned by any taxpayer who has not fulfilled his/her tax liability and is under investigation, facing criminal prosecution, awaiting a court’s judgment or conclusion by a legal authority,

1.3. Tax debt owned by any taxpayer who has not fulfilled his/her tax liability and is no longer doing business at the registered location, or submits a petition for shut down to the tax authority; the tax authority has checked and concluded that the taxpayer’s business has been shutdown. Cases of enterprise dissolutions against the procedures in Company law are also taken into account.

1.4. Tax debt owed by any taxpayer that has been dissolved (the decision on dissolution has been approved) but has not pay off tax debts as prescribed by law.

1.5. Tax debt owed by any taxpayer that goes bankrupt (a decision on bankruptcy has been made or bankruptcy procedures are being followed) but has not settled his/her debts as prescribed by law.

1.6. Other bad debts: any tax debt that has been overdue for more than 90 days and is not mention in 1.1, 1.2, 1.3, 1.4, 1.5, and tax authority has taken ultimate tax enforcement measures such as revocation of the Certificate of Business Registration, license for establishment and operation, or practice certificates (according to the Law on Tax administration) without being able to collect the tax debt.

2. Tax debts overdue for up to 90 days: An amount of tax that has been overdue for 01 - 90 days and is not classified as a bad debt, tax debt pending decision, paid tax pending adjustment, or tax debt overdue for more than 90 days; including tax debts under disputes.

3. Tax debts overdue for more than 90 days: An amount of tax that has been overdue for more than days and is not classified as a bad debt, tax debt pending decision, paid tax pending adjustment, or tax debt overdue for up to 90 days; including tax debts under disputes. Tax authority shall enforce the payment of such tax debts.

4. Tax debts pending decision:

4.1. Tax debt pending reduction or exemption: the tax debt owed by a taxpayer who is following procedures at a tax authority for grant of tax exemption or tax reduction in accordance with regulations of law on taxation (see Clause 14 in Appendix 01 enclosed herewith)

4.2. Tax debt pending tax deferral: the tax debt owed by a taxpayer awaiting the tax authority to grant a decision on tax deferral. Cases in which tax payment is deferred shall comply with regulations of law on taxation (see Clause 15 in Appendix 01 enclosed herewith)

4.3. Tax debt pending cancellation: the tax debt owed by a taxpayer who is following procedures at a tax authority for tax debt cancellation in accordance with regulations of law on taxation (see Clause 16 in Appendix 01 enclosed herewith).

4.4. Tax debt pending offsetting: the tax debt owed by a taxpayer who has filed a claim and is following tax refund procedures at a tax authority or awaiting the tax authority to issue a decision on tax refund and offsetting (see Clause 17 in Appendix 01 enclosed herewith).

5. Paid tax pending adjustment: an amount of tax that has been paid to government budget but the adjustment procedures have not been completed by the tax authority, including the cases below:

5.1. Tax pending adjustment due to errors:

a. The taxpayer provides incorrect or insufficient on the deposit note.

b. Errors are made by a State Treasury or commercial bank.

c. Errors made by the tax authority:

- Incorrect information about tax payable or paid tax.

- The taxpayer has declared tax at the tax authority monitoring the taxpayer’s headquarter is located and paid provisional tax at the tax authorities monitoring the taxpayer’s branches, but the tax authority monitoring the taxpayer’s headquarter has not received tax payment receipts.

5.2. Tax pending adjustment due to delayed or lost documents: documents are not sent to the tax authority properly by the State Treasury or the commercial bank; documents are lost and the tax authority have received documents provided by the taxpayer, State Treasury, or commercial bank; the tax official or authorized collector has collected tax but has not completed tax payment procedures and transfer such amount to government budget.

5.3. Tax pending recording: the taxpayer has declared tax and followed tax payment procedures, and is awaiting a competent authority to record such amount to government budget, or the amount has to be recorded periodically (monthly, quarterly, or annually).

B. TAX DEBT MANAGEMENT PROCEDURE

I. TAX DEBT COLLECTION TARGET

1. Determining tax debt in the current year

- Determine tax debt in the previous year (preceding the year in which the tax debt collection target is set) in the tax debt classification report of December.

- Determine the tax debt when setting the target (November every year) in the tax debt classification report of October.

- Estimate the tax debt of the current year according to the tax debt in the previous year and tax debt when setting the target; analyze and assess the possibility to collect and settle tax debts; estimate the tax debt by December 31 of the current year.

2. Setting tax debt collection targets in the current year (see the tax debt collection targets Section I in Appendix 02 enclosed herewith)

- Consider the tax debt in the current year estimated in Point 1 and the tax debt collection target set by the superior tax authority.

- Consider the economic analysis and forecasts, the new tax debt management policies; then:

+ Propose a tax debt collection target in the current year.

+ Provide solutions for achieving such target.

3. Reporting tax debt collection targets to superior tax authorities:

3.1. Every Sub-department of taxation shall report its tax debt collection target to the Provincial Department of Taxation.

3.2. Every Provincial Department of Taxation shall report its tax debt collection target to General Department of Taxation.

4. Approving tax debt collection targets

4.1. According to the reports submitted by the Provincial Departments of Taxation, General Department of Taxation shall approve tax debt collection targets by November 30.

4.2. According to the target approved by General Department of Taxation and the result mentioned in Point 3, every Provincial Department of Taxation shall set tax debt collection targets of tax debt departments, participating departments, and Sub-departments of taxation by December 31, then send a report to General Department of Taxation.

5. Working towards approved tax debt collection targets mentioned in Point 4

5.1. Tax debt departments shall:

- Set targets to collect the tax debts under the management of the Provincial Department of Taxation;

- Estimate tax debt collection target and request heads of the Provincial Department of Taxation to set tax debt collection targets of tax debt departments, participating departments, and Sub-departments of taxation;

- Assign tax debt collection tasks to officials of the tax debt departments.

5.2. Participating departments shall:

- Participate in setting tax debt collection target;

- Assign tax debt collection tasks to officials of the departments.

5.3. According to the target set by the Provincial Department of Taxation, every Sub-department of taxation shall set tax debt collection targets of its tax debt units and participating units, then send a report to the Provincial Department of Taxation.

- Every tax debt unit:

+ Set targets to collect the tax debts under the management of the Sub-department of taxation;

+ Estimate tax debt collection target and request heads of the Sub-department of taxation to set tax debt collection targets of tax debt units and participating units;

+ Assign tax debt collection tasks to officials of the tax debt unit.

- Participating units shall:

+ Participate in setting tax debt collection targets;

+ Assign tax debt collection tasks to officials of the unit.

II. SUPERVISING COLLECTION AND SETTLEMENT OF TAX DEBTS

1. Assignment of tax debt management tasks

Every month, one day before the book closing date, the chiefs of the tax debt department/unit and participating department/unit shall:

Assign tax debt management tasks to officials of the tax debt unit or participating unit (hereinafter referred to as tax officials) following the procedures below:

- Appoint experienced officers of the department/unit to handle the companies and business households that follow accounting and invoicing regulations (declaring tax) according to type of business, tax, business line, administrative division, location, and other criteria.

- Appoint tax debt officials to handle the business households that do not follow accounting and invoicing regulations (paying flat tax) and the individuals that has tax liability according to location such as: communes, train stations, bus stations, markets, etc.

- Where the inspectorate makes a decision to collect tax arrears, the tax debt department/unit or participating department/unit shall:

+ Request the head of the Provincial Department of Taxation or Sub-department of taxation to order the inspection department/unit to urge taxpayers to pay the tax arrears to government budget.

+ Appoint tax officials to join the inspection department/unit in collecting tax arrears.

1.2. If the assignments are changed in the month, the tax official shall transfer documents about the taxpayers under their management to the recipient.  The transfer must be certified by the chief of the department/unit.

2. Tax debt classification

2.1. Monthly, at least 03 working days after book closing date, tax official shall:

- Compare the tax debt at the closing day of the month on the tax administration application and the tax debt management application.

- Review the list of taxpayers in debt and classify the according to the debt shown by the tax debt application, the criteria for tax debt classification, and documents about taxpayers.

2.2. Any department/unit of the tax authority that receives documents about a taxpayer that are related to tax classification shall make copies and send them to the tax debt department/unit or participating department/unit in order to classify tax debts as prescribed.

Documents serving tax debt classification shall comply with the Law on Tax administration and its guiding documents (see Section II in Appendix 02 enclosed herewith).

3. Keeping log and monitoring tax debts

On the working days succeeding the day on which tax debts are classified as prescribed in Point 2 above, tax officials shall:

- Keep a log of tax debts of every taxpayer using form 08/QLN enclosed herewith.

The each taxpayer shall have a separate log to monitor his/her tax debts.

- Request the official in charge of making summary of the department/unit to make a summary using form No. 09/QLN enclosed herewith.

- The official in charge of making summary shall make the summary of the status of local taxpayers.

If the tax debt management application is being used, the tax debt official must update information promptly and monitor the automatic log of the application.

4. Data comparison

4.1. After tax debts are classified, if errors are found, tax officials shall:

- Invite the taxpayer or his/her legal representative to the tax authority to compare his/her tax debt. The invitation shall be made using the form No. 03/QLN enclosed herewith and signed by the head of the tax authority, head of the tax debt department, or head of the participating department. Tax declarations and proof of payment (deposit notes, tax payment receipts, payment orders, decisions on tax refund and offsetting, etc.) shall be used as the basis for verifying the declared information, determining the tax debt difference between taxpayer and the tax authority.

- A comparison record shall be made using form No. 12/QLN enclosed herewith.

- The record and relevant documents (tax declaration, proof of payment, etc.) shall be transferred to the tax declaration and accounting department/unit in order to make an adjustment note in a timely manner.

4.2. If the tax debt information in the inspection record is not consistent with that in the tax debt management application, tax officials shall cooperate with the inspection department/unit and tax accounting department/unit in making comparison and determining the reasons for such discrepancy, then make an adjustment note and send it to the tax declaration and accounting department/unit for adjusting the tax debt.

4.3. When a taxpayer declares that the tax debt in the Notification No. 07/QLN is inaccurate, the tax official shall invite such taxpayer to the tax authority for comparison:

- If the difference is on account of the taxpayer, the taxpayer shall be requested to make a written explanation and a record using the form no. 12/QLN enclosed herewith; it shall then be transferred together with relevant documents (tax declaration, proof of payment, etc.) to the tax declaration and accounting department/unit in order to make an adjustment note in a timely manner.

- If the difference is on account of the tax authority, the tax debt department/unit or participating department/unit shall follow the procedures for determining the reasons and send a written request for data replacement (certified by the chief of the department/unit) to the tax declaration and accounting department/unit.

5. Urging tax payment

According to the log mentioned in Point 3 and comparison mentioned in Point 4:

5.1. With regard to the debts overdue for 01 – 30 days, tax officials shall call, send messages or emails to taxpayers or their legal representatives to urge the tax payment;

5.2. With regard to the tax debts overdue for more than 31 days, tax officials shall:

- Make a notification of tax debt and late payment fine using form No. 07/QLN enclosed herewith, which also includes the new debts that have been overdue for 01 days or more.

- Request the head of the tax authority, head of the tax debt department, or head of the participating department to approve and sign the form No. 07/QLN.

- After being approved, the notification shall be makes into several copies. 01 copy shall be sent to the taxpayer; 01 copy is kept together with the taxpayer’s profile; 01 copy is sent to the tax declaration and accounting department/unit; 01 copy is kept in the archives; and other copies shall be sent to relevant department/units according to instructions in Section III Appendix 02 enclosed herewith.

- If any error is found after the notification is issued, the tax debt department/unit or participating department/unit shall reissue the notification, specifying that it replaces the old one.

- If the taxpayer fails to pay the tax debt after 10 working days from the issuance of the notification, the tax debt department/unit or participating department/unit shall:

+ Invite the taxpayer or his/her legal representative to the tax authority, or work directly at the taxpayer’s premises. The invitation shall be made using the form No. 03/QLN enclosed herewith and signed by the head of the tax authority, head of the tax debt department, or head of the participating department;

+ If the taxpayer does not go to the tax authority after 01 working days from the deadline, or the taxpayer fails to makes a satisfactory explanation or provide sufficient information and documents, tax officials shall work at the taxpayer’s premises (a letter of introduction issued by the Provincial Department of Taxation or Sub-department of taxation must be presented);

+ If the taxpayer pays tax via an authorized collector, the tax unit of the commune shall request the head of the Sub-department of taxation to invite a representative of the authorized collector and the taxpayer to the tax authority in order to grasp information about the taxpayer's business operation, financial condition, and reasons for late payment of tax.

After working, a record shall be made, which requests the taxpayer to make a commitment to pay tax within 90 days from the deadline.

5.3. If the taxpayer fails to pay tax within 90 days from the deadline or by the extended deadline and attempts to liquidate his/her assets or makes a getaway, the tax debt department/unit shall make a notification of tax enforcement using form No. 09/TB-CCNT enclosed herewith.

5.4. A tax debt notification shall not be made if tax has been paid and pending adjustment.

5.5. Every day, tax officials shall write the completed tasks and time of completion it the log of each taxpayer (form No.08/QLN), and monitor the automatic update of information in the tax debt management application.

6. Processing requests for tax debt cancellation, tax deferral, refund and offsetting

6.1. Tax debt classification

With regard to the cases in which tax debts are cancelled din the Law on Tax administration:

6.1.1. Making and verifying the requests for tax debt cancellation

a. The official in charge of debt management shall directly make requests for cancellation of tax debts owed by eligible taxpayers. Request for cancellation of tax and fine debts shall be made in accordance with regulations of law on taxation (see Clause 16 of Appendix 01 enclosed herewith).

b. Documents shall be submitted to the chief of the tax debt unit, then transferred to the legal department (if any) or the administration department for verification. The verification shall be done within 03 working days from the receipt of the said documents.

c. Within 02 working days from the receipt of opinions from the legal department or administration department, the tax debt department/unit shall request the head of the tax authority to grant an approval and submit a report to the superior tax authority.

d. After receiving the requests for tax debt cancellation sent by the Provincial Department of Taxation, the Tax Enforcement Agency, which is affiliated to General Department of Taxation, shall:

- If the documents are satisfactory and the taxpayer is eligible: Within 05 working days from the receipt of documents, the Tax Enforcement Agency shall send a draft report, the decision on tax debt cancellation, and requests for opinions to the relevant units affiliated to General Department of Taxation and the Ministry of Finance.

- If the taxpayer is eligible but the documents are not satisfactory: Within 05 working days from the receipt of the documents, the Tax Enforcement Agency shall request General Department of Taxation to request the Provincial Department of Taxation to complete the documents.

- If the taxpayer is not eligible: Within 05 working days from the receipt of the documents, the Tax Enforcement Agency shall request General Department of Taxation to send a rejection to the Provincial Department of Taxation.

6.1.2. After an approval for tax debt cancellation is issued, the tax debt department/unit shall send its photocopies to:

- The tax declaration and accounting department/unit for adjusting the tax payment deadline in the tax administration application;

- The participating department/unit.

6.1.3. The tax official in charge of tax debt management shall write the completed tasks and time of completion it the log of each taxpayer (form No.08/QLN), and monitor the automatic update of information in the tax debt management application.

6.1.4. The tax debt department/unit shall keep all documents about tax debt cancellation, including the requests for tax debt cancellation, relevant documents, and the decision on tax debt cancellation.

6.2. Tax deferral

6.2.1. Receiving and verifying applications for tax deferral

The tax debt department/unit shall receive and examine applications for tax deferral:

a. If the application is satisfactory but the taxpayer is not eligible for tax deferral, within 05 working days from the receipt of the application, the tax debt unit shall request the head of the tax authority to sign the decision to reject tax deferral (form No. 04 enclosed herewith). 01 copy of the decision shall be given to the taxpayer; 01 copy shall be kept by the tax debt unit; 01 copy shall be kept in the archives, and other copies shall be sent to relevant units.

b. If the application is not satisfactory as prescribed, within 03 working days from its receipt, the tax debt department/unit shall request the taxpayer, in writing, to complete the application. If the taxpayer fails to complete the application, it shall not be considered.

c. If the application is satisfactory and the taxpayer is eligible for tax deferral:

- If the tax deferral is within the competence of the taxpayer’s supervisory tax authority:

+ A draft of the permission for tax deferral shall be made (the form in Appendix 03 enclosed herewith) and sent to the legal department (if any) or the administration department for verification. Within 03 working days from the receipt of said document, the verifying unit shall offer its opinions.

+ Within 03 working days from the receipt of opinions form the legal department or administration department, the tax debt department/unit shall request the head of the tax authority to grant an approval. If the taxpayer’s request is rejected, 6.2.1.a. shall apply.

After the head of the tax authority issue a written approval, it shall be made into several copies. 01 copy shall be sent to the taxpayer; 01 copy is kept by the tax debt unit; 01 copy is sent to the tax declaration and accounting unit; 01 copy is kept in the archives; and other copies shall be sent to relevant units.

- If tax deferral is decided by the Prime Minister because of some special difficulties, the tax debt department/unit shall receive the application:

+ If the taxpayer is eligible for tax deferral, 6.2.1.a shall apply.

+ If the taxpayer is eligible for tax deferral but the application is not satisfactory, 6.2.1.b shall apply.

If the application is satisfactory and the taxpayer is eligible for tax deferral, the Provincial Department of Taxation or Sub-department of taxation shall request the head of the tax authority in writing to transfer documents to the superior tax authority for submission to the Ministry of Finance and the Prime Minister.

d. After receiving the application for tax deferral sent by the Provincial Department of Taxation (in case tax deferral is requested because of some special difficulties), the Tax Enforcement Agency, which is affiliated to General Department of Taxation, shall:

- If the application is satisfactory: Within 05 working days from the receipt of the application, the Tax Enforcement Agency shall send a draft report to General Department of Taxation, the Ministry of Finance, and the Prime Minister, then seek opinions for relevant units affiliated to General Department of Taxation and the Ministry of Finance.

- If the application is satisfactory: Within 05 working days from the receipt of the application, the Tax Enforcement Agency shall request General Department of Taxation to request the Provincial Department of Taxation to complete the application.

6.2.2. After an approval for tax deferral is issued, the tax debt department/unit shall send its photocopies to:

- The tax declaration and accounting department/unit for adjusting the tax payment deadline in the tax administration application;

- The participating department/unit.

6.2.3. Every day, tax officials shall write the completed tasks and time of completion it the log of each taxpayer (form No.08/QLN), and monitor the automatic update of information in the tax debt management application.

6.2.4. The tax debt department/unit shall keep all documents about tax deferral, including the application for tax deferral; additional documents, decision to reject or approve the application by the tax authority.

6.3. Collection of tax debts via tax refund and offsetting

After receiving the request for certification of the taxpayer’s tax debt from the tax declaration and accounting department/unit, the tax debt department/unit or participating department/unit shall:

- Issue a certification of tax debt according to the tax debt on the tax debt management application.

- Return documents to the tax accounting department/unit to issue a Decision on refund and offsetting.

7. Handling paid tax pending adjustment; handling bad debts (except for cancelled debts mentioned in Point 6), and some causes of differences in tax debts

7.1. Paid tax pending adjustment

7.1.1. Paid tax pending adjustment due to errors:

a. If the taxpayer fills the deposit note incorrectly: According to the tax registration, tax declaration, and list of government budget items, the tax debt department/unit or participating department/unit shall send a list of errors to the tax declaration and accounting department/unit in order to request the taxpayer to adjust the declaration and pay tax correctly.

b. If errors are made by a State Treasury or commercial bank:

The tax debt department/unit or participating department/unit shall request the head of the tax authority to order the tax declaration and accounting department/unit to:

- Request the State Treasury or the State bank to comply with regulations when making the proof of payment, provide sufficient information about TIN, budget items, tax period, and date of tax decision or penalty decision after inspection.

- Request the State Treasury to provide sufficient information on the List of proof of payment sent to the tax authority such as names, TINs of taxpayer, dates of documents, budget items, tax periods, and date of tax decisions, etc.

- Request the State Treasury and commercial bank to adjust the incorrect tax amounts that have been paid.

c. If errors are made by the tax authority:

If errors are made because information is entered incorrectly, the tax debt department/unit or participating department/unit shall request the tax declaration and accounting department/unit to make adjustments.

7.1.2. If tax has been paid but documents are delayed or lost, the tax debt department/unit or participating department/unit shall send notify the tax declaration and accounting department/unit and inspection department/unit in order to identify the taxpayer’s proof of tax payment at the State Treasury or commercial bank in order to reduce the taxpayer’s tax debt on the tax administration application.

7.1.3. With regard to the amounts paid by recording budget revenues - expenditures, the tax debt department/unit or participating department/unit shall request the tax declaration and accounting department/unit and tax inspection department/unit to determine the deadline for payment, then adjust the deadline for paying tax on the tax administration applications accordingly.

7.1.4. If the errors are due to an upgrade to the tax administration application

The tax debt department/unit or participating department/unit shall cooperate with the tax declaration and accounting department/unit to find the debts due to such errors, and request the IT department/unit to rectify the application.

7.2. Bad debts

7.2.1. With regard to tax debts owed by taxpayers that are, by law, considered dead, missing, incapable of civil acts, and requests for tax debt cancellations are not made as prescribed in Point 6.1, Section II, Part B of this document, the tax debt department/unit or participating department/unit shall:

a. Request the head of the tax authority to order the tax inspection departments/units, tax debt departments/units, inter-commune tax units to verify such cases.

b. Suggest measures for handling tax debts according to the verification result:

- Propose solutions for tax collection if the taxpayer is still living locally and has property;

- Follow the instruction in Point 6.1, Section II, Part B of this document if the taxpayer is dead, missing, or incapable of civil acts.

7.2.2. With regard to tax debts owed by taxpayers involved in criminal liability:

a. Tax officials shall report taxpayer’s status to heads of the tax authority.

b. The tax debt department/unit or participating department/unit shall notify relevant competent authorities of the tax debts in order to handle the case after having the conclusion of a legal authority or a court’s judgment.

c. After having an investigation order or court’s order, if the taxpayer has not pay tax to government budget, tax officials shall implement the measures for urging payment of tax debts.

7.2.3. With regard to tax debts of any taxpayer who has submits a petition for shutdown or has shut down the business operation and has not fulfilled tax obligation, the tax debt department/unit or participating department/unit shall:

a. Request the heads of the tax authority  to order the tax inspection department/unit to verify information about the taxpayer.

b. Suggest measures for handling tax debts according to the verification result:

- If the taxpayer is still doing business locally, the tax debt department/unit or participating department/unit shall be in charge of tax debt collection.

- If the taxpayer no longer does business locally, the tax debt department/unit or participating department/unit shall monitor and propose solutions for such tax debts.

7.2.4. Tax debts owed by taxpayers that have approved tax dissolution decisions

a. Tax officials shall report taxpayer’s status to heads of the tax authority.

b. The tax debt department/unit or participating department/unit shall notify the owner of the private company, the Board of members or owner of the company, the Executive Board that directly organizes asset liquidation (if any), the business registration authority, people with relevant benefits and obligations  of the tax debts in order to make a solution for settling tax debts.

c. If the taxpayer has not paid tax, tax officials shall implement the measures for collecting tax debts.

7.2.5. With regard to tax debts owed by taxpayers who go bankrupt:

a. Tax officials shall report taxpayer’s status to heads of the tax authority.

b. The tax debt department/unit or participating department/unit shall notify the court, business registration authority, the creditors, people having relevant benefits and obligations of the tax debts in accordance with Company law and the Law on Bankruptcy.

c. After having a court’s decision, the tax debt department/unit or participating department/unit shall implement the procedures for collecting tax debts accordingly.

7.2.6. Other tax debts: keep a log of tax debts.

7.3. Log keeping

Tax officials shall write the completed tasks and time of completion it the log of each taxpayer (form No.08/QLN), and monitor the automatic update of information in the tax debt management application.

8. Collection of tax debts owed non-resident constructors, branches, authorized collector

8.1. With regard to the debts owed by units that are not located in the administrative division such as non-resident constructors, branches (hereinafter referred to as non-resident taxpayers):

- At the Provincial Department of Taxation or Sub-department of taxation of the administrative division where the non-resident taxpayer operate (hereinafter referred to as local tax authorities):

+ The tax debt department/unit or participating department/unit shall cooperate with the tax inspection department/unit and tax declaration department/unit in making a list of indebted non-resident taxpayers operating locally, the request the tax authorities of the administrative divisions where their headquarters are located to cooperate in collecting the debts (form (10/QLN).

+ After receiving the request from the Provincial Departments of Taxation or Sub-departments of taxation of the administrative divisions where the non-resident taxpayers’ headquarters are located, the tax declaration and accounting departments/units shall enter data and adjust their tax debts.

- According to the request for cooperation sent by local tax authorities, the tax debt department/unit, participating department/unit, or tax inspection department/unit shall compare and verify the revenue earned and paid tax on the tax declaration and deposit note:.

+ If tax is declared and paid sufficiently, local tax authorities shall be notified in order to reduce tax debt on the logbook and eliminate repeated debts.

+ If the non-resident taxpayer’s headquarter has not declared and paid tax, the Provincial Department of Taxation or Sub-department of taxation shall request the taxpayer to make an additional declaration (if the time limit has not expired) and immediately pay the tax arrears.

+ If the non-resident taxpayer has declared tax at the tax authority where the taxpayer’s headquarter is located and provisionally paid tax at the local tax authorities, the tax debt department/unit or participating department/unit (where the taxpayer’s headquarter is located) shall request the taxpayer to check the documents submitted to local tax authorities in order for tax declaration and accounting department/unit  to make adjustments.

8.2. Authorized collectors

- Tax authorities shall do tax accounting according to the tax payment receipts submitted by authorized collectors to tax authorities and deposit notes (certified by State Treasuries or commercial banks). If unpaid tax is found, inter-commune tax units shall determine the tax debts and propose measures for tax collection.

- Apart from providing instructions and performing the tasks in the tax collection authorization contract, inter-commune tax units shall also inspect and supervise tax collection and tax enforcement carried out by authorized collectors.

9. Reporting debt management

9.1. Reports shall be made using the forms provided in this document

9.1.1. At Sub-departments of taxation

a. The tax debt unit and participating unit shall make the following reports:

- Summary report on tax debt classification using forms 01/QLN and 02/QLN.

- Tax debt collection report using form 05/QLN.

- List of taxpayers owing big debts using form 13/QLN.

- Statistical report on tax collection measures taken using form 14/QLN.

The aforesaid reports shall be sent to the tax enforcement unit for summarization purpose.

b. The tax enforcement unit shall make the following reports:

- Summary report on tax debt classification using forms 01/QLN and 02/QLN.

- Monthly tax debt management and tax enforcement report using form 04/QLN.

- Tax debt collection report using form 05/QLN.

- Tax debt cancellation report using form 06/QLN.

- Report on tax enforcement decisions using form 11/QLN.

- List of taxpayers owing big debts using form 13/QLN.

- Statistical report on tax collection measures taken using form 14/QLN.

- List of taxpayers subject to tax enforcement in the period (using form 20/CCNT enclosed with the tax enforcement procedure).

- List of decisions on tax enforcement (using form 23/CCNT enclosed with the tax enforcement procedure).

9.1.2. At Provincial Departments of Taxation

a. The tax debt department and participating department shall make the following reports:

- Summary report on tax debt classification using forms 01/QLN and 02/QLN.

- Tax debt collection report using form 05/QLN.

- List of taxpayers owing big debts using form 13/QLN.

- Statistical report on tax collection measures taken using form 14/QLN.

The aforesaid reports shall be sent to the tax debt department for summarization purpose.

b. After receiving reports from the participating department and Sub-departments of taxation, the tax debt department shall make the following reports:

- Summary report on debt classification using forms 01/QLN and 02/QLN.

- Monthly tax debt management and tax enforcement report using form 04/QLN.

- Tax debt collection report using form 05/QLN.

- Tax debt cancellation report using form 06/QLN.

- Report on tax enforcement decisions using form 11/QLN.

- List of taxpayers owing big debts using form 13/QLN.

- Statistical report on tax collection measures taken using form 14/QLN.

- List of taxpayers subject to tax enforcement in the period (using form 20/CCNT enclosed with the tax enforcement procedure).

- List of decisions on tax enforcement (using form 23/CCNT enclosed with the tax enforcement procedure).

9.1.3. At General Department of Taxation

- Summary report on tax debt classification using forms 01/QLN

- Monthly tax debt management and tax enforcement report using form 04/QLN.

- Tax debt collection report using form 05/QLN.

- Tax debt cancellation report using form 06/QLN.

- List of taxpayers owing big debts using form 13/QLN.

9.2. Reporting period

9.2.1. Every month, Provincial Departments of Taxation and Sub-departments of taxation shall submit the following reports to their superior tax authorities:

+ Summary report on tax debt classification using form 01/QLN;

+ Monthly tax debt management and tax enforcement report using form 04/QLN;

+ Tax debt collection report using form 05/QLN;

+ Report on tax enforcement decisions using form 11/QLN.

+ List of taxpayers owing big debts using form 13/QLN.

+ Statistical report on tax collection measures taken using form 14/QLN.

+ Summary report on decisions on tax enforcement (using form 23/CCNT enclosed with the tax enforcement procedure).

9.2.1. Every year, Provincial Departments of Taxation and Sub-departments of taxation shall submit the tax debt cancellation reports (form 06/QLN) to their superior tax authorities.

9.2.3. Reporting deadline

- Deadlines for submitting monthly reports:

+ Sub-departments of taxation shall submit monthly reports to the Provincial Department of Taxation by the 15^th of the next month.

+ Provincial Departments of Taxation shall submit monthly reports to General Department of Taxation by the 20^th of the next month.

- Deadlines for submitting annual reports:

+ Sub-departments of taxation shall annual reports to the Provincial Department of Taxation by the January 15 of the next year.

+ Provincial Departments of Taxation shall submit annual reports to General Department of Taxation by the January 20 of the next year.

10. Retention of documents about debt management

10.1. The debt management unit shall:

Retain reports of the whole tax authority: summary report on tax debt classification, tax debt collection report, tax debt cancellation report, tax enforcement report, list of taxpayers subject to tax enforcement in the period, summary report on tax enforcement, and report on tax enforcement decision.

10.2. Participating units shall:

Retain their reports: Summary report on tax debt classification, tax debt collection report.

10.3. Taxpayers’ profiles

Every taxpayer’s profile shall be retained, including: notifications of tax debt and late payment fine, decisions on measures for tax settlement, decisions on tax debt cancellation, approvals for tax deferral, and other documents about the taxpayers’ debts.

10.4. The tax debt log and list of taxpayers subject to enforcement in the period shall be printed at the request of the head of the tax authority, superior tax authority, or another competent authority.

C. IMPLEMENTATION

1. General Department of Taxation

a. Provide instructions and carry out inspections at the Provincial Departments of Taxation, Sub-departments of taxation,  departments and units affiliated to General Department of Taxation.

b. Summarize and assess the tax debt management.

c. Propose solutions and policies on effective tax debt management to the Ministry of Finance, the Government, and the National Assembly.

d. Revise the procedures to suit actuality.

dd. Develop and apply information technology to support tax debt management in a scientific, convenient, and effective way.

2. Provincial Departments of Taxation

a. The tax debt department shall provide the head of the Provincial Department of Taxation with consultancy on:

- Giving tasks and coordinating the departments of the Provincial Department of Taxation.

- Provide instructions and carry out inspections at the departments and local Sub-departments of taxation.

b. Summarize and assess the tax debt management locally every six months.

c. Propose solutions for effective tax debt management to General Department of Taxation, the People’s Committee, and agencies at the same level.

d. Suggest adjustments to the debt management procedures, policies, and items on the forms provided in this document in order to deal with particular cases during tax debt management at the Provincial Department of Taxation and Sub-departments of taxation.

dd. Participate in the development and app of information technology to support tax debt management in a scientific, convenient, and effective way.

3. Sub-departments of taxation

a. The tax debt department shall provide the head of the Sub-department of taxation with consultancy on:

- Giving tasks and coordinating the units of the Sub-department of taxation.

- Provide instructions and inspect the adherence to this document of the local units.

- Request the head of the Sub-department of taxation to order inter-commune tax units to request the authorized collector to collect tax debts and transfer the collected amounts.

b. Summarize and assess the tax debt management locally every six months.

c. Propose solutions for effective tax debt management to the Provincial Department of Taxation, the People’s Committee, and agencies at the same level.

d. Suggest adjustments to the debt management procedures, policies, and items on the forms provided in this document in order to deal with particular cases during tax debt management at the Sub-department of taxation.

dd. Participate in the development and app of information technology to support tax debt management in a scientific, convenient, and effective way./.

APPENDIX 1

REFERENCE FOR TAX DEBT MANAGEMENT PROCEDURE

1. Taxpayers

Pursuant to Clause 1, Article 2, Chapter I of the Law on Tax administration, taxpayers include:

- Organizations, households, individuals paying tax in accordance with regulations of law on taxation;

- Organizations, households, individuals paying other amounts to government budget (hereinafter referred to as tax), which are received by tax authorities as prescribed by law;

- Organizations and individuals that withhold tax and follow tax procedures on behalf of taxpayers.

2. Tax authorities

Pursuant to Point a, Clause 2, Article 2, Chapter I of the Law on Tax administration, tax authorities include General Department of Taxation, Provincial Departments of Taxation, and Sub-departments of taxation.

3. Tax officials

Pursuant to Clause 3 Article 2 of the Law on Tax administration, tax officials include officials of tax authorities and customs authorities.

4. Tax Enforcement Agency

Pursuant to Article 5 of the Decision promulgated together with Decision No. 106/QĐ-BTC dated January 14, 2010 of the Minister of Finance, Tax Enforcement Agency shall:

- Request the Director of the General Department of Taxation to consider:

+ Instructions on tax debt management, tax deferral, tax debt cancellation, fine, enforcement of fine tax and fine payment;

+ Annual plans for tax debt management, tax enforcement, cancellation of tax debts and fines;

+ Results of verification of applications for tax deferral, cancellation of tax debts and fines.

- Provide instructions on tax debt management, tax deferral, tax debt cancellation, fine, enforcement of tax and fine payment for tax authorities.

- Classify tax debts, analyze and assess the tax debt management, enforcement of tax and fine payment by tax authorities.

- Propose measures for improving the quality and effectiveness of tax debt management and tax enforcement.

- Perform other tasks given by the Director of the General Department of Taxation.

5. Tax debt department at the Provincial Department of Taxation

Pursuant to Point 3, Part 1 of the Decision promulgated together with the Decision No. 502/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation, the debt and tax debt department of the Provincial Department of Taxation shall assist the Director of the Provincial Department of Taxation  in managing tax debts, enforce the payment of tax debts and fines of the taxpayers in the province.

Specific tasks:

- Make plans for tax debt collection and tax enforcement in the province;

- Provide instructions and inspect the management of tax collection and tax enforcement by Sub-departments of taxation;

- Directly monitor the debts, compile a list of debtors, and classify tax debts as prescribed; analyze the status of each taxpayer in the province;

- Collect information about the taxpayers in debt, propose measures for debt collection and tax enforcement; provide information about tax debts in the province at the request of legal authorities and the head of the Provincial Department of Taxation; announce the list of the entities that deliberately avoid paying tax debt through the mass media;

- Make a request for tax enforcement and submit measures for tax enforcement to the head of the Provincial Department of Taxation. Organize the tax enforcements or cooperate with competent authorities in tax enforcement;

- Follow the procedures for collecting tax debts and fines; monitor and report the collection of tax debts and fines; confirm the debt to government budget;

- Provide consultancy on handling applications for interest freezing, tax deferral and tax debt cancellation, and other tax debt documents (including documents transferred by Sub-departments of taxation); verify and transfer the tax debt documents to superior tax authorities and relevant authorities for cooperation in settling tax debts in the cases beyond the competence of the Provincial Department of Taxation;

- Monitor the result of tax settlement by superior tax authorities and implementation of decisions on tax debt settlement by taxpayers;

- Summarize, report, and assess the result of tax debt management and tax enforcement locally; propose solutions for improving the effectiveness of tax debt management and tax enforcement;

- Compile documents and participating in training tax officials;

- Retain, protect tax documents and legal documents under the management of the unit;

- Perform other tasks given by the Director of the Provincial Department of Taxation.

6. Tax debt unit

Pursuant to Point 3, Part 1 of the Decision promulgated together with the Decision No. 502/QĐ-TCT dated March 29, 2010 of the Director of the General Department of Taxation, the debt and tax debt unit of the Sub-department of taxation shall assist the Director of the Provincial Department of Taxation in managing tax debts, enforce the payment of tax debts and fines of the taxpayers in the district.

Specific tasks:

- Make plans for tax debt collection and tax enforcement in the district;

- Follow the procedures for collecting tax debts and fines; monitor and report the collection of tax debts and fines; confirm the debt to government budget;

- monitor the debts, compile a list of debtors, and classify tax debts as prescribed; analyze the status of each taxpayer in the district;

- Collect information about the taxpayers in debt, propose measures for debt collection and tax enforcement; provide information about tax debts in the province at the request of legal authorities and the head of the Sub-department of taxation; announce the list of the entities that avoid paying tax debt through the mass media;

- Provide consultancy on handling applications for tax deferral and tax debt cancellation, and other tax debt documents; verify and transfer the documents to competent agencies or decide the tax deferral, cancellation of tax debts and fine within their competence;

- Monitor the result of tax settlement by superior tax authorities and implementation of decisions on tax debt settlement by taxpayers;

- Verify and request competent authorities to settle irrecoverable debts; instruct taxpayers to make tax documents;

- Make requests for tax enforcement and propose measures for tax enforcement to the head of the Sub-department of taxation; cooperate with competent authorities in tax enforcement as prescribed;

- Summarize, report, and assess the result of tax debt management and tax enforcement locally; propose solutions for improving the effectiveness of tax debt management and tax enforcement;

- Retain and protect tax documents and legal documents under the management of the unit;

- Perform other tasks given by the Director of the Sub-department of taxation.

7. Responsibilities of the People’s Committees in tax administration

Pursuant to Clause 2, Article 11, Chapter I of the Law on Tax administration, the People’s Committees are responsible for:

- Requesting relevant local agencies to cooperate with tax authorities in estimating government budget revenue and collect government budgets locally;

- Inspecting the adherence to regulations of law on taxation;

- Take actions against violations; settle complaints and denunciations pertaining to legislation on taxation within their competence.

8. Responsibilities of other state authorities for tax administration

Pursuant to Article 13, Chapter I of the Law on Tax administration, other state authorities are responsible for:

- Disseminating legislation on taxation; cooperating with tax authorities in tax administration; enable taxpayers to fulfill their tax liability.

- Investigation authorities, the Procuracy, and the courts, within the area of their competence, shall initiate investigations, prosecutions, and trials against tax offences as prescribed by law, and report the results to tax authorities.

9. Legal representative of taxpayer

Pursuant to Clause 1, Article 5, Chapter I of the Law on Tax administration, the representative of the taxpayer is a legal representative or authorized representative who follows some tax procedures on behalf of the taxpayer.

10. Authorized collection

Pursuant to Article 3, Chapter I of the Government's Decree No. 85/2007/NĐ-CP dated May 25, 2007:

- Tax authorities shall authorized other organizations or individual to collect some taxes as prescribed by the Ministry of Finance.

- Tax collection shall be authorized by a contract between the head of the tax authority and the authorized collector.

- The authorized collector shall notify taxpayers and urge them to pay tax under the authorization contract; issue receipts to taxpayers when collecting tax; transfer collected tax to the account of the tax authority at State Treasury; make tax collection statements and submit tax payment receipts to the tax authority; monitor and report the new taxpayers or the cases in which local taxpayers changes their business scale or business lines.

- The tax authority shall announce the cases in which tax collection may be authorized; provide proof of tax payment; provide instructions and inspect the collection and transfer of tax by the authorized collector.

- Authorized collectors shall receive payment for collection services, which is derived from the budget of tax authorities. The Ministry of Finance shall provide guidance on payment of collection services prescribed in this Clause.

11. Procedures for dissolution

Pursuant to Article 158 of Company law No. 60/2005/QH11 dated November 29, 2005, the dissolution of a company shall be carried out as follows:

11.1. Approve the decision on dissolution. The decision on dissolution of a company shall contain:

a) Company’s name and address of its headquarter;

b) Reasons for dissolution;

c) The procedures and time limits for finalizing contracts and paying debts, which must not exceed 06 months from the day on which the dissolution is approved;

d) Solutions for fulfillment of obligations derived from employment contracts;

e) Full name and signature of the company’s legal representative.

11.2. The owner of the private company, the Board of members or owner of the company, the Executive Board shall directly organize the asset liquidation, unless the company’s charter prescribes that a separate liquidation council be established.

11.3. Within 07 working days from the approval date, the decision on dissolution shall be sent to the business registration authority, all creditors, people having relevant benefits and obligations, the company’s employees; and shall be publicly post at the company’s headquarter and branches.

If the decision must be posted on a newspaper by law, it shall be posted on at least 03 issues of a newspaper or online newspaper.

The decision on dissolution shall be sent to the creditors together with the notification of solutions for debt settlement. The notification must bear the creditor’s name and address, the debt, deadline, location, and method for payment; method and deadline for settlement of debtors’ complaints.

11.4. The company’s debts shall be paid in the following order:

a) Unpaid salaries, severance pay, social insurance prescribed by law, and other benefits of employees according to the collective labor agreement and concluded employment contracts;

b) Tax debts and other debts.

After all debts and dissolution costs are paid, the remaining amount belongs to the owner of the private company or members/shareholders, or owners of the company.

11.5. Within 07 working days from the day on which all debts are paid, the legal representative shall send the application for dissolution to the business registration authority. Within 07 working days from the receipt of the satisfactory application, the business registration authority shall remove the company’s name from the registry.

12. Tax debts owed by taxpayers facing bankruptcy

Pursuant to Article 3, Chapter I of the Law on Bankruptcy, a company or cooperative is considered facing bankruptcy when it is not able to pay the due debts at the request of creditors.

Some definitions in Article 6, Chapter I of the Law on Bankruptcy:

- Creditor of a secured debt means a creditor whose debt is secured against assets of the company, cooperative, or a third party.

- Creditor of a partly secured debt means a creditor whose debt is secured against assets of the company, cooperative, or a third party, the value of which is smaller than the debt.

- Creditor of an unsecured debt means a creditor whose debt is not secured against assets of the company, cooperative, or any third party.

Pursuant to Article 37, Chapter III of the Law on Bankruptcy on the order of asset distribution:

- If the judgment decides to initiate the liquidation, the value of assets of the company or cooperative shall be distributed in the following order:

+ Bankruptcy costs;

+ Unpaid salaries, severance pay, social insurance prescribed by law, and other benefits of employees according to the collective labor agreement and concluded employment contracts;

+ Unsecured debts shall be paid to the creditors on the list of creditors as follows: If the value of assets is sufficient to pay all the debts, each of the creditors shall have the debt cleared in full; if the value of assets is not sufficient to pay all the debts, each creditor shall have part of the debt cleared.

- If the value of assets remains after all amounts mentioned in Clause 1 of this Article are paid, such remainders shall belong to:

+ Members of the cooperative;

+ The owner of the private company;

+ Members of the company; shareholders of the joint-stock company;

+ The owner of the state-owned company.

- Where the judge decides to initiate the procedures for business resumption, the payments shall be made in the order specified in Clause 1 of this Article, unless otherwise agreed among the parties.

13. Tax payment deadline

- Tax payment date

Pursuant to Clause 1, Article 26 of Circular No. 28/2011/TT-BTC tax payment date is the day on which:

- The State Treasury, bank, or credit institution makes a certification on the deposit note (if tax is paid by wire transfer), on the note of electronic tax payment (if tax is paid electronically).

- The State Treasury, tax authority, or authorized collector makes a certification on the tax payment receipt (if tax is paid in cash)

- The tax authority offsets the overpaid tax of fine against unpaid amounts according to the Decision on refund and offsetting.

- Tax payment deadline

Pursuant to Article 42, Chapter V of the Law on Tax administration:

- If tax is calculated by the taxpayer, the deadline for paying tax is the deadline for submitting the tax declaration.

- If tax is calculated or imposed by the tax authority, the deadline for paying tax is the deadline written on the notification issued by the tax authority.

14. Procedures for tax exemption and tax reduction

Pursuant to Article 61, Section 1, Chapter VIII of the Law on Tax administration:

Tax authority shall grant tax exemption or reduction in the cases prescribed by tax laws.

Pursuant to Article 62, Section 1, Chapter VIII of the Law on Tax administration:

- IF the taxpayer determines the tax exempted or reduced himself/herself, the application shall consists of:

+ A tax declaration;

+ Documents related to the determination of exempted or reduced tax.

- If the tax exemption or reduction is decided by the tax authority, the tax authority shall consist of:

+ A written request for tax exemption or reduction, specifying the tax, reasons for tax exemption or reduction; and the amount of exempted or reduced tax;

+ Documents related to the determination of exempted or reduced tax.

- The government shall specify the cases in which the taxpayer determines the exempted or reduced tax, and the cases in which tax exemption or reduction is decided by the tax authority.

Pursuant to Article 63, Section 1, Chapter VIII of the Law on Tax administration:

- If the taxpayer determines the exempted or reduced tax, the application for tax exemption or reduction shall be submitted together with the tax declaration as prescribed in Chapter III of the Law.

- If the tax exemption or reduction is decided by the tax authority, the application for tax exemption or reduction shall be submitted as follows:

+ The application for exemption or reduction of export tax, import tax, or another tax pertaining to exported/imported goods shall be submitted to the competent customs authority;

+ The application for exemption or reduction of other taxes shall be submitted to the supervisory tax authority.

- The application for tax exemption or reduction shall be received as follows:

+ If the application for tax exemption or reduction is directly submitted at a tax authority, a tax official shall receive the application and append the seal thereon, write the receipt time and quantity of documents enclosed with the application;

+ If the application for tax exemption or reduction is directly submitted at a tax authority, a tax official shall receive the application and append the seal thereon, write the receipt time and quantity of documents enclosed with the application;

+ If the application for tax exemption or reduction is submitted electronically, it shall be received, examined by the tax authority via the electronic data processing system;

+ If the application is not satisfactory, within 03 working days from its receipt, the tax authority shall request the taxpayer to complete the application.

Pursuant to Article 64, Section 1, Chapter VIII of the Law on Tax administration:

- Within 50 days from the receipt of the satisfactory application for cancellation of tax debt or fine, the competent person shall issue a decision on debt cancellation or notification of rejection.

- If a field inspection is necessary, the deadline for deciding the tax exemption or reduction is 60 days from the receipt of the satisfactory application.

15. Tax deferral

 Pursuant to Article 27 of Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance on guidelines for the Law on Tax administration, the Government's Decree No. 85/2007/NĐ-CP dated May 25, 2007, and the Government's Decree No. 106/2010/NĐ-CP dated October 28, 2010:

15.1. Cases in which tax payment is deferred:

Deferral of tax or fine payment (hereinafter referred to as tax deferral) if the taxpayer fails to pay tax on schedule in the following cases:

a) A natural disaster, conflagration, or accident that inflicts property damage and causes the taxpayer to fails to pay tax on schedule;

b) The relocation of business premises at the request of a competent authority and causes the business operation to be suspended, productivity to reduce, or operating costs at the new business premises to increase;

c) Changes to the government’s policies directly affect the taxpayer’s business performance.

d) The taxpayer engaged in infrastructural development who is executing constructions funded by government budget is not reimbursed by government budget and thus is not able to pay tax.  

e) The taxpayer executing project of investment in infrastructure or real estate that is given or leased land by the State. However the land has not been cleared or transferred, thus the taxpayer fails to pay the land levies or land rent.

g) The taxpayer faces other difficulties as decided by the Prime Minister at the request of the Minister of Finance.

15.2. Amount of tax and fine deferred:

a) Any taxpayer facing the difficulties mentioned in Point a Clause 1 of this Article may defer the payment of unpaid tax or fine up to the date of occurrence of the natural disaster, conflagration, or accident, provided the deferred amount does not exceed the damage. The deferral period shall not exceed 02 years from the deadline for paying tax. Particularly:

- If ≤ 50% of the taxpayer’s property is damaged, the taxpayer may defer the payment of an amount of tax and fine that is corresponding to the damage for one year, provided the deferred amount does not exceed the damage.

- If over 50% of the taxpayer’s property is damaged, the taxpayer may defer the payment of the whole tax and fine for two years, provided the deferred amount does not exceed the damage.

b) Any taxpayer facing the difficulties mentioned in Points b, c, g Clause 1 of this Article may defer the payment of the part or all of the tax or fine that is incurred because of such difficulties. The deferral period shall not exceed 01 year from the deadline for paying tax.

c) Any taxpayer facing the difficulties mentioned in Point d Clause 1 of this Article may defer the payment of tax or fine equal to amount that is not reimbursed by government budget. The deferral period shall not exceed 01 year from the deadline for paying tax.

d) The taxpayer facing the difficulties mentioned in Point e Clause 1 of this Article may defer the payment of land levies or land rent with regard to the uncleared land given or leased land by the State. The amount of land levy and land rent being deferred is equal to the unpaid tax on the land that has not been cleared or transferred. The deferral period shall not exceed 01 year from the deadline for paying tax.

15.3. Procedures for tax deferral

a) In order to be granted tax deferral as prescribed in this Article, the taxpayer shall submit the application to the supervisory tax authority. The application consists of:

- A written request for tax deferral (form 02/NOPT enclosed herewith), specifying the reasons for tax deferral, the amount of tax or fine deferred; the deferral period, and the commitment to pay the tax or fine;

- Documents proving the reasons for tax deferral or a certification by a competent authority of the reasons for tax deferral.

+ In the case mentioned in Point a Clause 1 of this Article, in addition to the written request for tax deferral, it is required to have:

A damage statistics record made by the legal representative of the entity suffering damage; the legal representative is responsible for the accuracy of information;

A confirmation by the police department of the commune or Presidents of the People’s Committee of commune where the natural disaster, conflagration, or accident occurs;

+ In the case mentioned in Point b Clause 1 of this Article, in addition to the written request tax deferral, it is required to have a decision of a competent authority on the relocation of the company’s business premises.

+ In the case mentioned in Point d Clause 1 of this Article, in addition to the written request for tax deferral, it is required to have:

Photocopies of the business contract with the investor, inspection and transfer record (if any). The photocopies must be certified by the taxpayer.

The investor’s written certification of total investment, the investor’s debt, the works invested with the capital covered by government budget estimate.

+ In the case mentioned in Point e Clause 1 of this Article, in addition to the written request for tax deferral, it is required to have:

A confirmation by the People’s Committee of the commune that project is not executed because the given land has not been cleared or transferred.

b) Within 10 working days from the receipt of the satisfactory application from the taxpayer, the supervisory tax authority shall examine the application and verify the taxpayer’s difficulties to decide whether to approve or reject the tax deferral.

The written approval for tax deferral shall be made using form 03/NOPT enclosed herewith.

The written rejection shall be made using form 04/NOPT enclosed herewith.

If the application is not satisfactory as prescribed, within 03 working days form the its receipt, the tax authority shall request the taxpayer, in writing, to complete the application. The taxpayer shall complete the application within 05 working days from the receipt of the request from the tax authority. Otherwise, the application shall be rejected.

c) In the case mentioned in Point g Clause 1 of this Article, the supervisory tax authority shall examine the application and transfer it to the superior tax authority. The superior tax authority shall send the application to the Ministry of Finance for submission to the Prime Minister.

15.4. During the deferral period, the taxpayer shall not incur any administrative penalties for late payment of the deferred tax. After the deferral period, the taxpayer shall pay tax as prescribed. Otherwise, the taxpayer shall incur administrative penalties for violations against tax laws or face criminal prosecution as prescribed by law.

16. Cancellation of tax debts and fines

Pursuant to Article 65, Section 2, Chapter VIII of the Law on Tax administration, tax debts and fines shall be cancelled in the following cases:

- The company that is declared bankrupt, has settle all payments as prescribed by regulations of law on bankruptcy, and the remaining property is not sufficient to pay tax of fines.

- The individual is, by law, considered dead, missing, incapable of civil acts, and has not property to pay tax or fines.

Pursuant to Article 66, Section 2, Chapter VIII of the Law on Tax administration on applications for cancellation of tax debts and fines:

An application for cancellation of tax debt or and fine consists of:

- A written request for cancellation of tax debt or fines made by the supervisory tax authority of the taxpayer, who is eligible for cancellation;

- The terminal tax declaration (if the company is declared bankrupt);

- Documents pertaining to the request for cancellation of tax debt or fine.

Pursuant to Article 67, Section 2, Chapter VIII of the Law on Tax administration:

- The Minister of Finance shall decide the cancellation of tax debts and fines in the cases mentioned in Article 65 of the Law.

- The Minister of Finance shall report the cancelled tax and fines annually to the National Assembly when the Government requests the National Assembly to approve the annual government budget statement.

Pursuant to Article 68, Section 2, Chapter VIII of the Law on Tax administration:

- The supervisory tax authority of the taxpayer shall directly compile and send the application for cancellation of tax debt or fine to the superior tax authority.

- If the application is not satisfactory, within 10 working days from its receipt, the superior tax authority shall request the applicant to complete the application.

- Within 50 days from the receipt of the satisfactory application for cancellation of tax debt or fine, the competent person shall issue a decision on debt cancellation or notification of rejection.

17.  Offsetting overpaid tax or fine to unpaid tax or fine, including offsetting taxes against each other

Pursuant to Point a Clause 2 Article 28 of Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance on guidelines for the Law on Tax administration, the Government's Decree No. 85/2007/NĐ-CP dated May 25, 2007 and the Government's Decree No. 106/2010/NĐ-CP dated October 28, 2010:

- If the taxpayer that is both eligible to claim a refund and obliged to pay other amounts wishes to offset the refunded amount against the amounts payable, the taxpayer shall make an application for offsetting using form No. 01/ĐNHT enclosed herewith, on which specify the amount being offset, then submit it to the tax authority for consideration. The tax authority shall issue a decision on tax refund and offsetting using form No. 02/QĐHT enclosed herewith in order to both refund tax and collect the unpaid tax and fines, then send it to the taxpayer.

If the taxpayer registers the taxes (except for value-added tax and personal income tax) in an administrative division and pay them in other administrative divisions, such taxpayer may make the annual tax declaration and follow the procedures for tax refund at the tax authority where the tax is declared.

If overpaid amounts are refunded according to the ratio of tax payable in the administrative division of the headquarter and to tax payable in other administrative divisions, the refund shall be offset against other payables to government budget according to such ration.

- After offsetting, if the refund is positive, the tax authority shall make an order for refund (form No. 01/LHT enclosed thereto) and send it to the State Treasury at the same level in order to refund the amount to the taxpayer (the refund amount is the same as the amount mentioned in Article 3 of the Decision on refund and offsetting).

If the taxpayer registers the taxes (except for value-added tax and personal income tax) in an administrative division and pay them in other administrative divisions, such taxpayer may make the annual tax declaration and follow the procedures for tax refund at the tax authority where the tax is declared.

- If the tax authority finds that the taxpayer is still obliged to pay other taxes but the taxpayer does not wish to offset the refund against the payables on the Request for refund, the tax authority shall make the offsetting on the Decision on refund and offsetting

18. Proof of payment

Pursuant to Point 2, Section I, Part B of Circular No. 128/2008/TT-BTC dated December 24, 2008 on guidelines for revenue collection and management of State budget revenues via State Treasury:

18.1. Payment order:

A payment order (form C1-01/NS enclosed herewith) is issued by the collector to request the State Treasury, bank, or credit institution where the payer’s account is open to transfer money form the payer’s account to government budget (or to the collector’s account before transferring to government budget) as prescribed by the Law on State budget and the Law on Tax administration.

18.2. Deposit note:

- Deposit note is a proof of payment, the form of which is provided by the Ministry of Finance;

- The deposit note is used when:

+ Payers of taxes, fees, charges, and other amounts (hereinafter referred to as taxpayers) pay money to State Treasury, commercial banks, other credit institutions, and authorized collectors;

+ Collectors or authorized collectors pay the collect amounts to the State Treasury or banks where the State Treasury’s accounts are opened.

+ Taxpayers pay money to the collectors’ accounts (before such amount is transferred to government budget);      

- Deposit notes shall:

+ Be printed by taxpayers themselves;

+ Be printed by the State Treasury and issued to taxpayers that pay money at the State Treasury;

+ Printed and issued to taxpayers by banks or authorized collectors;

- Types of deposit notes:

+ Deposit note (form C1-02/NS enclosed herewith);

+ Foreign currency deposit note (form C1-03/NS enclosed herewith);

+ Deposit note converted from an electronic document (form C1-09/NS enclosed herewith);

- A deposit note shall contain:

+ Name, TIN, and address of the taxpayer.  The address must contain the commune, district, and province where the company, organization, or business household is registered, where the individual resides, or where the liability is incurred.

Where an organization or individual pays money on behalf of the taxpayer, name, TIN (if any), and address of the authorized payer must be specified on the deposit note. The address must contain the commune, district, and province where the company or organization is registered, or where the individual or business household resides. If the payer is also the taxpayer, information shall be written in the section for taxpayers. Taxpayers and authorized payers (if any) shall be referred to as taxpayers.

+ Name of the State Treasury or commercial bank where money is deposited, or the bank where the State Treasury’s account is opened.

+ The collector that monitors the taxpayer (tax authority, customs authority, or finance tax authority), and ID number of the collector;

+ Number and date of the customs declaration, code of export or import type (or a list of receipts of the collector). Each tax declaration shall have a separate deposit note;

+ Details of the payment: amount, description, government budget item, and tax period.

18.3. List of paid taxes:

-  List of paid taxes (form 01/BKNT enclosed herewith) is a document used by the taxpayer to pay money to the State Treasury (or bank) where the Tax Collection Modernization Project is executed by the tax authority, State Treasury, customs authority, and finance authority (hereinafter referred to as tax information system) The List of paid taxes shall contain the same information as the deposit note.

- The List of paid taxes is the basis for the State Treasury (or bank) to enter information into the tax management application;

- If the tax database does not contain sufficient information about the taxpayer, the State Treasury shall request the taxpayer to provide sufficient information on the List of paid taxes in order to be entered into the application, then print the deposit note. The taxpayer is not required to make the deposit note.

18.4. Receipt

18.4.1. Cases in which receipts are used:

- The collector is requested to collect clash; an entity is authorized by the collector to collect tax, fees, charges, fines;

- A competent authorities issue a decision on administrative penalties and collect cash;

- The State Treasury directly collects some fees, charges, fine; an organization is authorized by the State Treasury to collect fees, charges, fine. 

18.4.2. Types of receipts:

- Receipts without preprinted amount;

- Receipts with preprinted amount; 

- Receipts made and printed by computers (including receipts with preprinted amounts payables used by collector and authorized collector).

18.4.3. Issuance, management, and use of receipts:

- The Ministry of Finance shall provide forms of receipts without preprinted amount, receipts printed by computers, and receipts with preprinted face values. Receipts shall be used by collectors, the State Treasury, and banks that participate in the tax information system according to this Circular (form C1-10/NS enclosed herewith) and amendments thereto issued by the Ministry of Finance;

- General Department of Taxation shall uniformly issue and management receipts without preprinted amount, receipts with preprinted amount, receipts printed by computers, and print the amounts payable to the collectors or authorized collectors.

Ax authorities shall provide receipts for State Treasuries at the same level, the entities authorized to collect with receipts, and direct collectors. Receipt users shall comply with the regulations on management and use of receipts promulgated by the Ministry of Finance and General Department of Taxation, settle the receipts with the tax authorities that provide them. Tax authorities shall instruct the units to finalize and destroy receipts as prescribed;

- If the State Treasury uses receipts printed by computers to collect money directly, the State Treasury shall print, manage, and use receipts as prescribed by the Ministry of Finance;

- When transferring the collected amount to the State Treasury or bank where the State Treasury’s account is opened, the collector or authorized collector shall make a List of receipts (form 02/BK-BLT or form 03/KB-BLMG- if the receipt has preprinted amount), and make deposit notes accordingly.

18.5. Recovered documents:

- Recovered documents are paper documents printed by computers from the electronic data transmitted (via the network, storage devices, etc.) between organizations and units that exchange government budget revenue information. Recovered documents must ensure the accuracy and sufficiency of information as prescribed. 

- Recovered documents have the same legal validity as the original ones. If necessary, recovered documents shall bear the signature or seal of a competent persons and the unit that prints the recovered documents for confirmation of their legal validity. The Ministry of Finance shall authorize the agencies participating in the government budget data transmission system (tax authorities, customs authorities, State Treasuries) to specify the types of recovered documents that need the signature and seal of the printing unit.

- Recovered documents shall be transmitted, received, printed, and used in accordance with regulations on electronic transactions;

- Any recovered document that does not ensure the accuracy and sufficiency of information, or does not bear the signature or seal (if required) is not valid and thus cannot replace the original one.

19. Notification of unpaid tax and late payment fine

Pursuant to Clause 1 Article 31 of the Government's Decree No. 98/2007/NĐ-CP dated June 07, 2007 on actions against tax offences and enforcement of tax decisions, enforced tax decisions include: notifications of unpaid tax and fines; notifications of tax imposition; decisions on administrative penalties for tax offenses; decisions on implementation of remedial measures; decisions on compensation; and other administrative tax decisions.

20. Late payment fine

Pursuant to Section II, Part B of Circular No. 61/2007/TT-BTC dated June 14, 2007 of the Ministry of Finance on actions against violations against tax laws:

20.1. A taxpayer shall incur a late payment fine when:

20.1.1. Paying tax after the deadline, extended deadline, or the deadline written in the notification of the tax authority or decision on penalties for tax offenses issued by the tax authority.

20.1.2. Paying tax insufficiently because of incorrect declaration of the tax payable, exempted, reduced, or refunded in the previous periods, provided the taxpayer finds the errors and pays the tax arrears to government budget before receiving the decision on tax inspection issued by a competent authority.

 20.2. The fine shall be 0.05% per day on the tax paid behind schedule.

The length of late payment period include days off and public holidays, begins on the day succeeding the deadline for paying tax extended deadline, or the deadline written in the notification of the tax authority or decision on penalties for tax offenses issued by the tax authority, and ends on the day on which tax is paid in full according to the payment note.

20.3. Taxpayers shall determines the late payment fine themselves. 23.2. Late payment fine depends on the amount of tax paid behind schedule, the length of late payment period, and the fine rates prescribed in 23.2.

 If the taxpayer fails to determine the fine or determines the fine incorrectly, the tax authority shall determine the fine and notify the taxpayer.

 20.4. If the taxpayer fails to pay tax and late payment fine after 30 days from the deadline for paying tax, the tax authority shall notify the taxpayer of the unpaid tax and late payment fine.

Every month, the tax authority shall notify the unpaid tax and fine up to the notified month if the taxpayer fails to pay tax and fine of the previous months by the deadline for paying tax of the next period.

20.5. The taxpayer shall not incur a late payment fine on the unpaid tax during tax deferral period.

21. Time limit for imposition of penalties for tax offenses

Pursuant to Clause 1, Section IV, Part A of Circular No. 61/2007/TT-BTC dated June 14, 2007 on actions against tax offenses:

21.1. The time limit for impose penalties for tax evasion or tax fraud that is not liable to criminal prosecutions, late tax payment, insufficient tax declaration is 05 years from the day on which the violation is committed until the day on which the violation is found and recorded (unless a record is not required).

21.2. The taxpayer shall not incur fines after the time limit for penalty imposition expires, but still have to pay tax arrears to government budget.

22. Exemption of penalties for tax offences and authority to grant exemption

Pursuant to Section XIII, Part E of Circular No. 61/2007/TT-BTC dated June 14, 2007 of the Ministry of Finance on actions against violations against tax laws:

- A taxpayer that incurs penalties for tax offences may request an exemption of penalties in the case of a natural disaster, conflagration, accident or another force majeure event. The maximum amount being exempt shall not exceed the value of damaged goods or property.

- An application for exemption of penalties for tax offences consists of:

+ A written request for exemption of penalties specifying the reasons.

+ A written confirmation of the value of damaged goods or property due to the natural disaster, conflagration, accident, or other force majeure events.

+ An damage statistics record made by the legal representative of the entity suffering damage in cooperation with the police department of the ward or the President of the People’s Committee of the commune.

The damage statistics record must specify the value of damaged goods and property, the cause

+ A claim for damages upheld by the insurer (if any).

+ Documents that determine the entities responsible for paying compensation (if any).

- The issuer of the penalty decision shall consider granting exemption of penalties for tax offences when receiving the application for exemption from the taxpayer in the cases within their competence or inferior units.

The decision on exemption of penalties for tax offenses shall contain the date of decision; full name and position of the issuer; full name, address, and occupation of the person granted exemption; reasons for exemption, the violations exempt from penalties, and signature of the issuer.

- Exemption of penalties for tax offenses shall not be granted if the penalty decision has been implemented or the time limit for settling complaints has expired.

23. Enforcement of tax decision

Pursuant to Clause 9, Article 5, Chapter I of the Law on Tax administration:

Enforcement of tax decision means the implementation of measures in the Law and other regulations to force the taxpayer to pay tax and fines in full.

Pursuant to Article 62, Chapter XI of the Law on Tax administration, a tax decision shall be enforced in the following cases:

- The taxpayer owes tax or fines for tax offences for more than 90 days from the deadline for tax payment.

- The taxpayer still owes tax or fines for tax offences after the deadline for tax payment.

- The taxpayer still owes tax, fines, and attempts to liquidate his/her property or make a getaway.

Pursuant to Clause 1, Article 93, Chapter XI of the Law on Tax administration, enforcement measures include:

- Extracting money from the taxpayer’s account at the State Treasury, commercial bank, or credit institution; requesting blocking of accounts;

- Deduct the payment from the taxpayer’s wage or income;

- Distrant the taxpayer’s property and sell it at auction until tax and fines are collected in full;

- Collecting the taxpayer’s money or confiscating the taxpayer’s property that is held by other entities;

- Suspending customs procedures for imported goods;

- Revoking TIN; suspending the use of invoices;

- Revoking the certificate of business registration, license for establishment and operation, or practice certificates

Pursuant to Clause 1, Article 31, Section 1, Chapter II of the Government's Decree No. 98/2007/NĐ-CP dated June 07, 2007, enforced tax decisions include: notifications of unpaid tax and fines; notifications of tax imposition; decisions on administrative penalties for tax offenses; decisions on implementation of remedial measures; decisions on compensation; and other administrative tax decisions.