Collect information to implement new regulations on freezing and remission of import and export tax debts

	Six Customs Departments reach an excess in the work of revenue collection
	Mr. Luu Manh Tuong, Director of Import – Export Duty Department: 1,854 billion VND collected from loss-prevention measures
	Hanoi Customs achieved 67% in tax recovery and processing tax debts

Currently, Customs Departments have actively inspected, reviewed, verified and collected information and documents to ensure timely handling of debt freezing under new regulations. Photo: T.Trang.

New regulations on debt freezing and remission

The 7th session of the 14th National Assembly approved the Law on Tax Administration No. 38/2019 / QH14 (effective from July 1, 2020), which includes new regulations on tax debt freezing and amends 10 year-debt remission in accordance with reality and also stipulates the transition of debt remission before July 1, 2020.

Specifically, Article 83 stipulates cases of debt tax freezing including:

The taxpayer is dead, is declared as dead by the Court, is missing or loses their civil act capacity.

The debt freezing period shall be calculated from the date of issuance of the death certificate or other valid substitute documents in accordance with the law on civil status or the date of court's decision declaring dead or missing or loss of civil act capacity.

The taxpayer has a decision on dissolution and send it to the tax administration agency and business registration agency to implement dissolution procedures, and business registration agency has released a notice that the taxpayer is in dissolution process on the national information system on business registration but the taxpayer has not completed dissolution procedures.

The debt freezing period shall be calculated from the date when business registration agencies are notified that the taxpayers are in dissolution process on the national information system on business registration.

The taxpayer has submitted an application for opening bankruptcy procedures or has been enforced to submit application for open bankruptcy procedures according to the provisions of the Bankruptcy Law.

The debt freezing period is calculated from the date the court notifies the handling of application for opening of bankruptcy procedures or the taxpayer has sent the bankruptcy dossier to the tax administration agency but is in the process of payment and debt handling in accordance with the Bankruptcy Law.

The taxpayer no longer operates at the business address registered with the business registration agency. The tax administration agency has collaborated with the commune-level People's Committee where the taxpayer’s business address is located to check and verify information that the taxpayer is absent from the area and notified that the taxpayer or the taxpayer’s representative is absent at the address registered with the tax administration agency

The debt freezing period is calculated from the date the tax administration agency has issued a notice that the taxpayer or the taxpayer’s representative is absent the business address or contact address registered with the tax administration agency.

The taxpayer has business registration certificate, corporate registration certificate, cooperative registration certificate, establishment and operation permit and practice license that will be revoked by a competent authority under the request of the tax administration agency or have been revoked by a competent authority.

The debt freezing period shall be calculated from the date that the tax administration agency issues a written request to a competent authority for revocation or from the effective date of decision on revocation of the business registration certificate or corporate registration certificate, cooperative registration certificate, establishment and operation permit, practice license.

In addition, Clause 3, Article 85 on 10-year debt remission of the Law on Tax Administration No. 38/2019 / QH14 stipulates: “Tax debts, late payment fines and fines of taxpayers are not in the case described in Clauses 1 and 2 of this Article and are enforced by the tax administration agency according to provisions at Point g, Clause 1, Article 125 of this Law and these tax debts and late payment fines and fines are over 10 years from the expiry date of the tax payment but cannot be recoverable.

“For the taxpayer as a business individual, an owner of business household, an owner of a private enterprise and one-member limited liability company with eliminated tax debts, late payment fines and fines described in this clause, before returning to production or business or setting up a new production or business establishment, the taxpayer must pay the State the eliminated tax debts, late payment fines and fines”.

“Along with that, Article 152 on transitional provision of Law No. 38 also stipulates that "For tax debts which are exempted, reduced, eliminated arising before July 1, 2020, shall be handled according to the Law on Tax Administration No. 78/2006 / QH11 which has been amended and supplemented according to Law No. 21/2012 / QH13, Law No. 71/2014 / QH13 and Law No. 106/2016 / QH13.

Tax debts by June 30, 2020 will be handled according to the provisions of this Law, except for the cases prescribed in Clause 1 of this Article.”

How will the Customs Agency implement?

To ensure timely handling of debts after the Government and the Ministry of Finance issue a guiding document, the General Department of Customs has also instructed provincial and city customs to prepare some tasks.

Specifically, regarding tax debt freezing, the General Department of Customs has required units to inspect, review, verify and collect information and documents to ensure timely handling of debt freezing in accordance with Article 83 of the Law when a guiding document and a report on cases of possible debt freezing are issued.

For more than ten–year debts, the General Department of Customs requires the units to complete the application as prescribed in Clause 69 Article 1 of Circular No. 39/2018 / TT-BTC and the Dispatch No. 4801 / TXNK-DTQLT dated August 22, 2018 to submit to the General Department of Customs for consideration of remission for more than ten-year debts eligible for debt remission in accordance with Clause 20, Article 1 of Law No. 21/2012 / QH13.

At the same time, collecting and verifying information and documents to clarify whether the enterprise has been enforced to be revoked business registration certificates/corporate registration certificate/cooperative registration certificate / investment registration certificate/establishment and operation license/practice license or not for debts ineligible for debt remission as stipulated in Clause 20 Article 1 Law No. 21/2012/QH13. Thereby, the units prepare to complete the debt remission applicationaccording to the provisions of Article 86 of the Tax Administration Law No. 38/2019/QH14 and report the cases of possible debt remission under the provisions of Clause 3 of Article 85 of this new law.

Review mistake when paying tax into State budget of enterprises

Particularly for debts incurred before July 1, 2007, the General Department requests units to continue reviewing, collecting documents and completing debt remission application as prescribed in Circular 179/2013 / TT- BTC on December 2, 2013 and report cases of possible debt remission