Recently, according to the statistics on the tax management system (TMS), the tax arrears (tax payment, land rental) in the first quarter of 2023 has increased compared to that of the end of 2022. Accordingly, in order to reduce tax debts, on April 24, 2023, the General Department of Taxation issued Official Letter No. 1489/TCT-QLN on the implementation of measures to collect and settle tax arrears with various methods from urging, reminding to drastic enforcement, even requesting competent agencies for strict measures to settle tax debt.
Hereinafter, ATA Legal Services would like to update some oustanding contents in Official Letter No. 1489/TCT-QLN as follows:
1. Drastically and continuously implementing appropriate measures to urge and enforce the repayment of tax debt as soon as its occurance
- To implement immediately, possibly at the same time and in parallel measures to remind and urge tax payment: calling, texting, emailing, inviting to work, issuing notices of tax arrears in case the tax arrears last less than 90 days.
- To immediately apply coercive measures and information disclosure when it is subject to coercion. In case the coercive measure expires but the tax debt has not been collected or has not been fully collected, other appropriate coercive measures shall be applied.
2. Strengthening the application of exit postponement measure to individuals and the legal representatives of enterprises that have not yet fulfilled their tax payment obligations.
3. Debt cancellation is only applied to branches, representative offices and business locations if the head office is no longer in operation
- In case of debt cancellation for branches, representative offices or business locations: It is required a written certification of the People's Committee of the commune, ward or town where the head office is registered on its business; or the decision on debt cancellation of the head office.
- Debt charge-off shall not be applied to branches, representative offices, business locations that are having business cessation while the head office is still operating. If debt charge-off has been carried out but it is found that the head office is still operating, the debt charge-off shall be cancelled.
4. Proposing land recovery in cases of arrears of land use levies, land rents or grants of mineral exploitation rights that have been forcibly applied but not observed.
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