On December 2, 2024, the GDC issued Official Dispatch No. 6039/TCHQ-TXNK providing guidance on tax debt handling. Key points include:
Regarding voluntary repayment of tax debts that have been charged off or canceled:
Pursuant to Article 18.2 of Circular 69/2020/TT-BTC, taxpayers whose debts have been deferred or written off but voluntarily repay the debt will not be subject to revocation of the charge-off or cancellation of debt decision.
The GDC notes the inadequacies in the above regulations and will propose amendments to the law to ensure legality.
Regarding late payment interest after termination of tax debt charge-off decisions:
Currently, there is an inconsistency between the provisions of Article 59.2 of the Law on Tax Administration and Article 23.3 of Decree No. 126/2020/ND-CP. The GDC recognizes this issue and is proposing amendments to cover all potential scenarios involving late payment.
The GDC shall guide enterprises to temporarily apply the provisions of Article 23.3 of Decree 126/2020/ND-CP for implementation. Accordingly, the tax administration agency will calculate late payment interest for enterprises from the date of issuance of the decision terminating the tax debt charge-off until the taxpayer fully pays the outstanding tax debt into the state budget.
Until amendments are made to Point b, Clause 2, Article 59 of the Law on Tax Administration No. 38/2019/QH14, relevant entities are advised to act in accordance with Clause 3, Article 23 of Decree 126/2020/ND-CP.
Application of tax debt cancellation provisions:
For tax debts incurred before July 1, 2020 but the business registration certificate is revoked after July 1, 2020:
Under Article 152.1 of the Law on Tax Administration 2019.
Accordingly, the cancellation of tax debts applies to:
- Tax debts exceeding 10 years past the payment deadline and deemed uncollectible.
- Enterprises subjected to enforcement measures by tax authorities, such as:
- Deduction of funds from the enterprise’s bank account for tax payment.
- Garnishment of wages or income.
- Suspension of customs clearance for imported/exported goods.
- Seizure and auction of assets.
- Confiscation of money and other assets.
- Revocation of the Enterprise Registration Certificate (ERC) or Investment Registration Certificate (IRC).
For tax debts incurred from July 1, 2020:
Under Article 85.3 of the Law on Tax Administration 2019.
Accordingly, the cancellation of tax debts applies to:
- Tax debts exceeding 10 years past the payment deadline and deemed uncollectible.
- Enterprises subjected to enforcement measures by tax authorities, such as revocation of the ERC or IRC.
(According to Official Letter No. 6039/TCHQ-TXNK dated December 2, 2024)
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