Circular No. 09/TC-TCT guiding the handling of overdue export tax and import tax debts and late payment penalties for export tax and import tax.

CIRCULAR

MINISTRY OF FINANCE DECREE NO. 09 TC/TCT OF JANUARY 24, 1995 GUIDING THE HANDLING OF OVERDUE EXPORT AND IMPORT TAXES AND PENALTIES FOR DELAYED PAYMENT OF EXPORT AND IMPORT TAXES.

TO IMPLEMENT THE DIRECTIVES OF THE PRIME MINISTER IN OFFICIAL LETTER NO. 3934/KTTH OF JULY 18, 1994 AND OFFICIAL LETTER NO. 6412/KTTH OF NOVEMBER 16, 1994 OF THE GOVERNMENT ON THE HANDLING OF OVERDUE EXPORT AND IMPORT TAXES; TO STRICTLY ENFORCE THE LAW ON TAXES AND SIMULTANEOUSLY TO CREATE CONDITIONS TO SUPPORT ENTERPRISES ENGAGED IN EXPORT AND IMPORT BUSINESS TO RESOLVE OVERDUE EXPORT AND IMPORT TAXES PERMANENTLY, THE MINISTRY OF FINANCE GUIDES SPECIFICALLY THE HANDLING OF OVERDUE EXPORT AND IMPORT TAXES AND PENALTIES FOR DELAYED PAYMENT OF EXPORT AND IMPORT TAXES AS FOLLOWS:

I. HANDLING OF OVERDUE EXPORT AND IMPORT TAXES:

1\. For units with goods for export and import that have registered customs declarations for export and import goods with customs authorities before April 1, 1992, but still owe export and import taxes up to now, they shall be handled specifically as follows:

a\. For units that have been dissolved but still owe export and import taxes, the People's Committee of the Province or City or the Ministry in charge shall direct the liquidation committee of the dissolved units or the debt settlement committee (for units that were dissolved previously) to settle the debts of the dissolved unit according to the priority order specified in Point 3, Section II of Circular No. 54 TC/CN dated November 13, 1990 of the Ministry of Finance guiding financial handling when dissolving state-owned enterprises.

In cases where the liquidation funds are insufficient to pay off the overdue export and import taxes, the local Customs Bureau shall coordinate with the liquidation committee, the Department of Finance and Prices to report to the Provincial or Municipal People's Committee (or the Ministry in charge), the Ministry of Finance, and the General Customs Department for consideration to waive the tax debt for the unit.

b\. For units that are still operating (including units that have been dissolved and merged into other units, or units that have been split into several other units) but still owe export and import taxes from consignments declared before April 1, 1992, they shall be handled as follows:

b.1\. For units with tax arrears under 1 billion VND who find it difficult to pay the entire amount at once into the State budget, they may register a payment plan for the old tax arrears. However, the minimum monthly payment must be 150 million VND until all tax arrears are paid off.

b.2\. For units with tax arrears of 1 billion VND or more who find it difficult to pay the entire amount at once into the State budget, they may commit to registering a plan to pay off the entire tax arrears, but the latest deadline for paying off all tax arrears into the State budget is November 15, 1995.

The registration of commitments to plans for paying off tax arrears arising before April 1, 1992 must be carried out nationwide simultaneously according to the guidelines and unified forms prescribed by the General Customs Department. Any violation of the commitment plan for tax payment or registration of the tax payment plan not in accordance with regulations must be strictly enforced according to the Law.

c\. For units that have accepted agency for export and import of goods for other units and still owe taxes arising before April 1, 1992, the customs authority needs to distinguish between:

- The amount of export and import taxes still owed on consignments received for agency export and import for other units (with a confirmation statement of debt between the agency units and the units providing goods for agency export and import).

- The amount of export and import taxes still owed on consignments exported and imported by the unit itself.

Based on this, the customs authority will monitor and urge the collection of overdue taxes.

c.1\. In cases where the unit still owes taxes on consignments received for agency export and import for other units, if the following conditions are met, the tax arrears can be transferred to the unit providing goods for agency export and import for the customs authority to monitor and urge the collection of taxes:

+ The unit providing goods for agency export and import must be a unit with the function of directly engaging in export and import business.

+ The unit providing goods for agency export and import must commit to registering a plan to pay off tax arrears according to the provisions of Point b, Section 1, Part I of this Circular.

+ It must be agreed by the customs authority where the unit still owes taxes to transfer the debt to the unit providing goods for agency export and import.

During implementation, if the unit providing goods for agency export and import violates the tax payment plan already committed to, it will be subject to compulsory enforcement according to the Law.

c.2\. In cases where the unit providing goods for agency export and import still owes taxes, the unit providing agency must also commit to registering a plan to pay off tax arrears according to the provisions of Point b, Section 1, Part I of this Circular before the customs authority allows the processing of export and import procedures for consignments provided for agency export and import through another unit.

Any violation of the committed tax payment plan will be subject to compulsory enforcement according to the Law.

c.3\. In cases where the agency unit still owes taxes on consignments of agency export and import from a unit providing agency that has been dissolved and has a confirmed debt statement with the Central Debt Settlement Committee, the debt can be waived until the Debt Settlement Committee resolves the debt for the agency unit.

d\. In cases where a unit has been merged with another unit that has been dissolved but still owes outstanding export and import taxes, the receiving unit must also register a plan and pay taxes according to the provisions of Point b, Section I, Part I of this Circular for the outstanding taxes of the dissolved unit.

2\. For units with customs declarations for export and import goods registered with customs authorities from April 1, 1992 onwards, the local Customs Bureau must firmly require these units to immediately pay the full amount of overdue export and import taxes and the penalty for delayed payment of export and import taxes into the State budget. Any failure to pay taxes and penalties for delayed payment of taxes within the prescribed deadlines will be subject to compulsory measures according to the Law.

In cases where units accepting agency for export and import or going through agency for export and import still owe export and import taxes and penalties for delayed payment of taxes from customs declarations registered from April 1, 1992 onwards, they shall be handled as follows:

In the case where units entrusted with import and export (XNK) or those entrusting others with XNK still owe import and export taxes (XNK) and late payment penalties for customs declarations registered from April 1, 1992, onwards, the matter shall be handled as follows:

a/ In the case where a unit still owes taxes and late payment penalties for import and export taxes (XNK) that fall under compulsory enforcement according to the Law entrusts XNK to another unit that does not owe such taxes and penalties (with an attached XNK Entrustment Contract), it will be permitted by the Customs Authority to handle import and export procedures for the entrusted XNK consignments on condition that the unit must immediately pay the full amount of XNK tax due for that consignment before handling the receipt procedure.

b/ In the case where the unit receiving the XNK entrustment does not have overdue debts and penalties that fall under compulsory enforcement but accepts XNK entrustment from other units that owe taxes and late payment penalties for XNK that must be compulsorily collected according to the Law, the Customs Authority will also implement compulsory measures for the XNK consignment entrusted.

II/ HANDLING OF LATE PAYMENT PENALTIES FOR EXPORT TAXES AND IMPORT TAXES

The handling of late payment penalties for export taxes and import taxes shall be carried out in accordance with the spirit of Circular No. 52 TC/TCT dated June 15, 1994, issued by the Ministry of Finance, guiding the handling of late payment penalties for export taxes and import taxes.

The Ministry of Finance guides the examination and exemption of late payment penalties for export and import consignments from April 1, 1992 to September 1, 1993 if the tax arrears have been fully paid but the unit still faces difficulties due to objective reasons, specifically as follows:

1/ Cases facing difficulties due to objective reasons are eligible for exemption from late payment penalties:

- Cases where refunds of paid export and import taxes (in the form of direct support from the Central Budget to the unit) are resolved.

- Units established (through mergers or dissolution of old units) with newly generated late payment penalties arising from the export and import consignments of dissolved units (with attached establishment decisions and dissolution settlement records).

- Units established through splitting one unit into several new units.

- Units facing difficulties due to natural disasters such as typhoons and floods causing damage to goods and assets of the unit.

- Late payment penalties arising from entrusted export and import consignments where the entrusting unit has declared bankruptcy or dissolution, provided that the entrusting unit has not paid the required taxes on time leading to late payment penalties, but has not yet paid these penalties to the entrusted unit for submission to the budget.

2/ Procedures for examining and exempting late payment penalties:

- A letter requesting exemption from late payment penalties from the unit, with verification and confirmation from the Local Tax Department and recommendations from the Provincial People's Committee or the main managing ministry.

- A comparison of late payment penalties between the unit and the Customs Authority where the unit still owes late payment penalties (confirmed as having fully paid off tax arrears).

3/ For cases eligible for exemption from late payment penalties for export and import taxes, if the unit has already paid part or all of the late payment penalties into the budget, they will be refunded by offsetting against the tax payable or late payment penalties due in subsequent periods.

The Ministry of Finance examines and resolves each specific case for exemption from late payment penalties.

The General Customs Department directs and provides detailed guidance for provincial customs offices to uniformly implement this circular and promptly notify export and import units still owing taxes and penalties to register and commit to fully comply with the provisions of this circular.

This circular takes effect from the date of issuance.