RESOLUTION

TAX DEBT RELIEF AND CANCELLATION OF LATE PAYMENT FINES AND INTEREST FOR INSOLVENT TAXPAYERS

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Organization of the National Assembly No. 57/2014/QH13;

Pursuant to the Law on Promulgation of Legislative Documents No. 80/2015/QH13;

HEREBY RESOLVES:

Article 1. Scope

...

...

...

Article 2. Regulated entities

1. Taxpayers that are eligible for tax debt relief and cancellation of late payment fines and interest prescribed in Article 4 hereof.

2. Tax authorities, tax officials and persons who have the power to settle debts as prescribed in this Resolution.

3. Other relevant organizations and individuals.

Article 3. Rules for debt settlement

1. Debt settlement is carried out in accordance with regulations of law and eligibility of the debtors, and intra vires; in accordance with regulations on conditions, applications, procedures and responsibilities of relevant individuals.

2. Publicity and transparency are ensured; inspection and supervision by competent organizations and individuals, and supervision by the people are carried out.

3. Taxpayers are enabled to have their difficulties resolved; misuse of policies for personal gain or delays in paying tax debt are prevented and strictly handled.

4. If a competent authority or tax authority finds that the debt relief or cancellation is carried against the law or the taxpayer that has had the debt cancelled resumes the business operation or establishes a new business, except for that specified in Clauses 6 and 7 Article 4 hereof, the debt relief decision or debt cancellation debt (if any) and the cancelled debt shall be paid to the State budget.

...

...

...

A taxpayer that is unable to pay outstanding tax, late payment interest or fine that is incurred before July 1, 2020 will be eligible for debt settlement if:

1. the taxpayer is dead or declared dead, missing or incapacitated by the court.

2. the taxpayer submits a dissolution decision to the tax authority or business registration authority, the business registration authority has posted a notice on the national business registration portal but the taxpayer has not completed the dissolution procedures;

3. the taxpayer has filed for bankruptcy or has been requested to file for bankruptcy in accordance with bankruptcy laws;

4. the taxpayer no longer does business at the registered address, the tax authority and the People’s Committee of the commune have confirmed that the taxpayer is no longer present at the registered address;

5. the taxpayer’s certificate of business registration, certificate of enterprise registration, certificate of cooperative registration, license for establishment and operation or practicing certificate has been revoked by a competent authority, whether such revocation is requested by the tax authority or not.

6. the taxpayer suffers physical damage caused by a natural disaster, epidemic, fire or accident;

7. the taxpayer provides goods/services which are directly covered by state budget, including sub-contractors specified in the contract with the investor, and are directly paid for by the investor and such goods/services are not yet to be paid for.

Article 5. Debt settlement measures

...

...

...

Eligibility requirements for tax debt relief are specified in Clause 2 of this Article.

2. In order to cancel late payment fines and interest accrued by July 01, 2020 for the entities mentioned in Clauses 1, 2, 3, 4 and 5 Article 4 hereof, the following eligibility requirements shall be complied with:

a) Regarding the taxpayer specified in Clause 1 Article 4 hereof, the death certificate or death notice or the court’s declaration that the taxpayer is dead, missing or incapacitated or an equivalent document must be provided;

b) Regarding the taxpayer specified in Clause 2 Article 4 hereof, a dissolution decision or a notice received from business registration authority regarding completion of the dissolution procedures on the national business registration portal must be provided;

c) The taxpayer specified in Clause 3 Article 4 hereof has filed for bankruptcy or the Court has issued the notice of receipt of the bankruptcy filing;

d) The taxpayer specified in Clauses 4 and 5 Article 4 hereof no longer does business, the tax authority and the People’s Committee of the commune have confirmed that the taxpayer is no longer present at the registered address or the taxpayer’s certificate of business registration, certificate of enterprise registration, certificate of cooperative registration, license for establishment and operation or practicing certificate has been revoked by a competent authority, whether such revocation is requested by the tax authority or not;

3. In order to cancel late payment fines and interest accrued by July 01, 2020 for the entity mentioned in Clause 6 Article 4 hereof, the following eligibility requirements shall be complied with:

a) A competent authority’s confirmation stating that the taxpayer suffers physical damage caused by a natural disaster, epidemic, fire or accident and date and location must be provided;

b) The taxpayer has not been yet exempt from paying late payment interest from the effective date of the Law on Amendments to some Articles of the Law on Tax Administration No. 21/2012/QH13;

...

...

...

d) Only the late payment fine and interest on the amount of tax that cannot be paid due to the natural disaster, epidemic, fire or accident shall be cancelled and must not exceed the damaged property or goods after deducting compensation and insurance payout (if any).

4. In order to cancel late payment fines and interest accrued by July 01, 2020 for the entity mentioned in Clause 7 Article 4 hereof, the following eligibility requirements shall be complied with:

a) There must be a written confirmation made by the state budget user stating that the taxpayer has not been paid for, overdue amount and period of late payment to the taxpayer.

b) There must be a business contract signed with the state budget user, the sub-contractor must be clearly specified in the contract or contract appendix and directly paid for by the state budget user but has not yet been paid for, and there must be a state-funded work or work item commissioning record or goods/service invoice;

c) The late payment fine and interest cancelled are incurred during the period of late payment by state budget and the tax debt on which the late payment fine and interest are charged does not exceed the overdue amount payable by state budget

5. Regarding the debts that are not governed by this Article shall comply with the Law on Tax Administration No. 38/2019/QH14.

Article 6. Debt settlement documents, procedures and power

1. Heads of supervisory tax authorities of taxpayers shall decide the tax debt relief cases.

2. The power to cancel late payment fines and interest of enterprises and organizations:

...

...

...

b) The Minister of Finance shall decide to cancel a late payment fine or late payment interest of from VND 10 billion to less than VND 15 billion;

c) The Director General of the General Department of Taxation and Director General of the General Department of Vietnam Customs shall decide to cancel a late payment fine or late payment interest of from VND 05 billion to less than VND 10 billion;

d) The provincial People’s Committee shall decide to cancel a late payment fine or late payment interest of less than VND 05 billion.

3. The provincial People’s Committee shall decide to cancel late payment fines and late payment interest of individuals, individual businesses, households and household businesses.

4. The Minister of Finance shall provide for debt settlement documents and procedures.

Article 7. Responsibilities of relevant organizations and authorities

1. The Ministry of Finance shall:

a) provide guidance on completion of debt settlement documents and procedures as prescribed in Clause 4 Article 6 hereof;

b) direct and instruct tax authorities to settle debts as prescribed;

...

...

...

2. People’s Committees of provinces shall:

a) direct the inferior People’s Committees and specialized agencies of People's Committees of provinces to cooperate with tax authorities in confirming and settling debts and inspecting the implementation of this Resolution;

b) submit annual reports on debt settlement to the People’s Councils at the same level when submitting the local budget statement to the People's Councils for approval.

3. Tax authorities shall:

a) inspect and determine tax debtors, tax debts, late payment fines and interest; receive and prepare debt settlement documents within their power or request a competent authority to do so as prescribed in this Resolution;

b) inspect the debt settlement to ensure publicity and transparency and avoid loss of budget;

c) publish tax debt relief decisions and decisions on cancellation of late payment fines and interest on their websites.

4. Business registration authorities shall:

a) provide information that taxpayers have dissolution decisions;

...

...

...

c) provide tax authorities with the decision on or notice of revocation of certificates of business registration, certificates of enterprise registration, certificates of cooperative registration or certificates of household business registration of taxpayers that no longer do business.

5. Police authorities of areas where taxpayers’ registered addresses are available shall:

a) cooperate with tax authorities in reviewing documents of taxpayers who are dead or declared dead, missing or incapacitated by the court or no longer present at residences;

b) cooperate with tax authorities in verifying the information that taxpayers are no longer present at the registered addresses;

6. Credit institutions shall provide information about accounts and account balance changes at the request of tax authorities.

7. The Court that has the power to issue the notice of receipt of the bankruptcy filing shall assume the following responsibilities at the request of tax authorities:

a) provide tax authorities with information that taxpayers have filed for bankruptcy or been requested to file for bankruptcy;

b) provide tax authorities with information about bankruptcy resolution.

8. The State Audit Office of Vietnam shall audit debt settlement by tax authorities in accordance with regulations of this Resolution and regulations of law on State Audit Office of Vietnam.

...

...

...

1. This Resolution comes into force from July 01, 2020 and is implemented within 03 years from its effective date.

2. The Government shall organize the implementation of this Resolution and submit an annual report on debt settlement to the National Assembly when submitting the state budget statement to the National Assembly for approval, and submit a final report on implementation of this Resolution.

3. The Standing Committee of National Assembly, Central Committee of the Vietnamese Fatherland Front, Ethnic Minorities Council, Committees of the National Assembly, delegation of the National Assembly, National Assembly delegates and People’s Councils at all levels shall supervise the implementation of this Resolution in accordance with regulations of law.

This Resolution is adopted by the 14th National Assembly of Socialist Republic of Vietnam on this 26th of November 2019 during its 8th session.

PRESIDENT OF THE NATIONAL ASSEMBLY




Nguyen Thi Kim Ngan

Nghị quyết 94/2019/QH14 về khoanh nợ tiền thuế, xóa nợ tiền phạt chậm nộp, tiền chậm nộp đối với người nộp thuế không còn khả năng nộp ngân sách nhà nước do Quốc hội ban hành