This Circular guides the cancellation of tax and penalty debts that are unrecoverable arising before July 1, 2007 for specific entities. Provisions regarding authority, documentation, and processing time are clearly stated.
适用范围
Households, individuals; state-owned enterprises that have been dissolved; enterprises undergoing shareholding reform; state-owned enterprises implementing ownership transfer through assignment or sale.
要点
- Households and individuals with tax and penalty debts of VND 10 billion or more must obtain approval from the Prime Minister; those under VND 5 billion are decided by the General Department of Taxation.
- State-owned enterprises that have been dissolved with tax and penalty debts of VND 10 billion or more must obtain approval from the Prime Minister; those between VND 5 billion and less than VND 10 billion are decided by the Minister of Finance; those under VND 5 billion are decided by the General Department of Taxation/General Department of Customs.
- Enterprises undergoing shareholding reform and state-owned enterprises implementing ownership transfer through assignment or sale with tax and penalty debts of VND 10 billion or more must obtain approval from the Prime Minister; those between VND 5 billion and less than VND 10 billion are decided by the Minister of Finance; those under VND 5 billion are decided by the General Department of Taxation/General Department of Customs.
- Authority to cancel debts is delegated to the Prime Minister, the Minister of Finance, and other competent authorities.
- The application dossier for debt cancellation must include all required documents as stipulated in this Circular.
🌐 本文件的社会影响
- Positive impact: Helps reduce the tax burden for struggling entities unable to pay.
- Negative impact: May reduce state budget revenue if the debt cancellation process is inadequately controlled.
❓ 常见问题
How is the procedure for debt cancellation for taxes and penalties carried out?
Households, individuals, or enterprises need to prepare a complete dossier according to the provisions of this Circular and submit it to the tax management agency. The dossier will be reviewed and the decision on debt cancellation will be made based on the authority of each level.
How long does the procedure for debt cancellation for taxes and penalties take?
The tax management agency must resolve the dossier within 15 working days from the date of receipt of all necessary documents. In cases requiring additional documentation, this period may be extended by an additional 10 days.
Who has the authority to cancel tax and penalty debts?
The Prime Minister cancels debts of VND 10 billion or more; the Minister of Finance cancels debts between VND 5 billion and less than VND 10 billion; the General Department of Taxation/General Department of Customs cancels debts under VND 5 billion.
What should the application dossier for debt cancellation include?
The dossier must include an application letter, dissolution decision (if applicable for dissolved state-owned enterprises), confirmation of outstanding tax and penalty amounts, and other required documents as stipulated in this Circular.
Is there a deadline for debt cancellation?
This Circular takes effect from January 17, 2014. Cases arising before July 1, 2007 are subject to the provisions of this Circular.
全文
CIRCULAR
Guidelines for Implementing the Write-off of Tax Debts and Penalties Unrecoverable Arising Before July 1, 2007 Unrecoverable
Arising before July 1, 2007
________________
Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006;
Pursuant to the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012;
Pursuant to the Government Decree No. 83/2013/NĐ-CP dated July 22, 2013 detailing the implementation of certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration;
Pursuant to the Government Decree No. 118/2008/NĐ-CP dated November 27, 2008 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
At the proposal of the Director General of the State Revenue总局局长的提议；
The Minister of Finance issues this Circular guiding the implementation of the write-off of tax debts and penalties (hereinafter referred to as the write-off) arising before July 1, 2007 that are unrecoverable under Article 55 of the Government Decree No. 83/2013/NĐ-CP dated July 22, 2013 mentioned above.
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation
1. Tax debts and penalties arising before July 1, 2007 that remain unpaid and are unrecoverable, including amounts of tax and penalties due but discovered and determined for collection after July 1, 2007.
2. Taxes subject to write-off include: business license tax, turnover tax, value-added tax, special consumption tax, export tax, import tax, land tax, income tax, corporate income tax, high-income earners' income tax, resource tax, agricultural land use tax.
3. Penalties subject to write-off include: late payment penalties, administrative violations in the field of taxation.
4. In cases where tax debts and penalties arising before July 1, 2007 are written off, the corresponding late payment penalties and arrears on the tax and penalties being written off shall also be written off.
Article 2. Applicability
1. Households and individuals still owing tax debts and penalties arising before July 1, 2007.
2. State-owned enterprises with a dissolution decision from the competent authority still owing tax debts and penalties arising before July 1, 2007 (including tax debts and penalties owed by branches and units under their accounting control).
3. State-owned enterprises that have completed privatization according to Government Decrees No. 44/1998/NĐ-CP dated June 29, 1998, No. 64/2002/NĐ-CP dated June 19, 2002, and No. 187/2004/NĐ-CP dated November 16, 2004 regarding the conversion of state-owned enterprises into joint-stock companies.
4. State-owned enterprises implementing transfer or sale according to Government Decrees No. 103/1999/NĐ-CP dated September 10, 1999, and No. 80/2005/NĐ-CP dated June 22, 2005 concerning the transfer, sale, lease, and management contracting of state-owned enterprises.
5. State-owned enterprises defined in Clause 2, Article 4 of the Enterprise Law No. 60/2005/QH11 dated November 29, 2005.
Article 3. Conditions for Application
1. For households and individuals mentioned in Clause 1, Article 2 of this Circular, they must meet the following conditions: encountering difficulties, unable to pay the outstanding tax debt, and having ceased operations.
2. For state-owned enterprises mentioned in Clause 2, Article 2 of this Circular that have been dissolved, the following conditions must be met:
a) The enterprise is an independent accounting entity.
b) It has received a dissolution decision from the competent authority.
3. For enterprises undergoing privatization mentioned in Clause 3, Article 2 of this Circular, the following conditions must be met:
a) They have implemented privatization according to Government Decrees No. 44/1998/NĐ-CP dated June 29, 1998, No. 64/2002/NĐ-CP dated June 19, 2002, and No. 187/2004/NĐ-CP dated November 16, 2004 regarding the conversion of state-owned enterprises into joint-stock companies.
b) They have obtained a business registration certificate for the establishment of a joint-stock company.
c) The tax and penalty amounts proposed for write-off were not included in the state capital reduction at the time of determining the enterprise's value for privatization or when the enterprise officially became a joint-stock company.
4. For state-owned enterprises implementing ownership transformation through transfer or sale as mentioned in Clause 4, Article 2 of this Circular, the following conditions must be met:
a) They have implemented transfer or sale according to Government Decrees No. 103/1999/NĐ-CP dated September 10, 1999, and No. 80/2005/NĐ-CP dated June 22, 2005 concerning the transfer, sale, management contracting, and leasing of state-owned enterprises.
b) They have obtained a business registration certificate for the establishment of the enterprise.
c) The tax and penalty amounts proposed for write-off were not included in the enterprise's value for transfer or sale.
Article 4. Authority to Write Off Debts
1. The Prime Minister shall write off debts for cases where taxpayers owe tax arrears, late payment penalties, and fines amounting to VND 10 billion or more.
2. The Minister of Finance shall write off debts for cases where taxpayers owe tax arrears, late payment penalties, and fines ranging from VND 5 billion to less than VND 10 billion.
3. The Director of the General Department of Taxation and the Director of the General Department of Customs shall write off debts for cases where taxpayers owe tax arrears, late payment penalties, and fines under VND 5 billion.
a) The Director of the General Department of Taxation shall write off debts for applications to write off tax arrears, late payment penalties, and fines arising from domestic production and business activities; applications requesting to write off both tax arrears, late payment penalties, and fines from domestic production and business activities and tax arrears, late payment penalties, and fines from exported and imported goods.
b) The Director of the General Department of Customs shall write off debts for applications solely requesting to write off tax arrears, late payment penalties, and fines from exported and imported goods.
4. The authority to write off tax arrears, late payment penalties, and fines shall be based on the total amount of tax arrears, late payment penalties, and fines stated in the application to write off tax arrears and fines.
Chapter II
APPLICATIONS TO WRITE OFF DEBTS
Article 5. For debtors who are households and individuals as specified in Clause 1, Article 3 of this Circular
1. An application to write off debts from the Tax Revenue Collection Office accompanied by a list of households and individuals applying to write off debts with confirmation from the People's Committee of the commune, ward, or town (Form No. 01, 01a, 01b issued pursuant to this Circular).
2. An application to write off debts from the Tax Department (Form No. 02 and 02a issued pursuant to this Circular).
Article 6. For debtors who are state-owned enterprises that have been dissolved as specified in Clause 2, Article 3 of this Circular
1. An application to write off debts from the direct tax management agency managing the taxpayer (Form No. 03 and 03a issued pursuant to this Circular).
2. The decision to dissolve issued by the competent authority. The dissolution decision must be the original or a certified copy bearing the signature and seal of the issuing authority or the tax management agency.
In case the dissolution decision is lost, there must be a confirmation from the People's Committee of the province or city regarding the dissolution of the state-owned enterprise and its cessation of operations.
3. In case the state-owned enterprise that has been dissolved has branches, stores, or units operating under dependent accounting in other localities, there must be a confirmation of the outstanding tax and fine amounts from the tax or customs agencies in the locality where the branch, store, or unit is located.
Article 7. For debtors who are state-owned enterprises that have completed privatization as specified in Clause 3, Article 3 of this Circular
1. An application to write off debts from the direct tax management agency managing the taxpayer, confirming the outstanding tax and fine amounts arising before July 1, 2007, which have not been reduced from state capital (Form No. 04 and 04a issued pursuant to this Circular).
2. An application to write off debts from the enterprise sent to the direct tax management agency, stating the amount of tax and fines requested to be written off, the basis for writing off, and the reasons why the tax and fine amounts requested to be written off have not been reduced from state capital (Form No. 05 and 05a issued pursuant to this Circular).
If the tax and fine amounts requested to be written off arise solely from domestic production and business activities or include both domestic production and business activities and exported and imported goods, the enterprise shall send the application to write off debts to the direct tax management agency.
If the tax and fine amounts requested to be written off arise solely from exported and imported goods at one Customs Bureau, the enterprise shall send the application to write off debts to that Customs Bureau.
If the tax and fine amounts requested to be written off arise solely from exported and imported goods but from multiple export and import declarations at different Customs Bureaus, the enterprise shall send the application to write off debts to each Customs Bureau where the tax and fine amounts are requested to be written off. The Customs Bureau receiving the application shall review and submit the write-off application to the General Department of Customs.
3. A confirmation document from the competent state agency regarding the value of the enterprise for the tax and fine amounts requested to be written off which have not been reduced from state capital.
4. The decision of the competent state agency regarding the implementation of the privatization of the state-owned enterprise.
5. Certificate of business registration for establishing a joint-stock company.
6. Minutes determining the value of the enterprise (accompanied by a detailed report on liabilities).
7. Decision announcing the value of the enterprise and the value of the enterprise when converted into a joint-stock company by the competent authority.
In case these decisions have not yet been made, the confirmation document from the competent state agency as stipulated in Clause 3 of this Article must clearly state that such decisions have not been made and provide the reasons.
8. Final tax settlement and financial statements when determining the value of the enterprise and when officially converting to a joint-stock company.
9. Confirmation of the tax and fine amounts requested to be written off that are still owed by the Customs Agency (for cases requesting to write off both domestic tax arrears, late payment penalties, and fines and those from exported and imported goods).
10. Minutes transferring capital and assets from the state-owned enterprise to the joint-stock company.
In case these minutes have not yet been prepared, the confirmation document from the competent state agency as stipulated in Clause 3 of this Article must confirm that there are no minutes of the transfer of capital and assets from the enterprise and provide the reasons.
11. Notifications on the implementation of tax payments, late payment penalties, and late payment fines at the time of requesting to write off tax arrears and fines.
12. Minutes of tax inspection (inspection conclusion) or decision on tax assessment (for cases of tax assessment).
The documents stipulated in Clauses 4, 5, 6, 7, 8, 10, 11, and 12 of this Article must be certified copies bearing the signature and seal of the enterprise.
Article 8. For debt cancellation objects that are state-owned enterprises undergoing ownership transfer through the form of assignment or sale as prescribed in Clause 4, Article 3 of this Circular
1. The request document for tax and fine debt cancellation issued by the direct tax management agency managing the taxpayer, confirming the amount of tax and fines arising before July 1, 2007, which remain unpaid and not included in the enterprise value for assignment or sale (Model No. 04 and 04a issued under this Circular).
2. The request document for debt cancellation sent by the enterprise to the direct tax management agency, specifying the amount of tax requested for cancellation; grounds for cancellation; reasons why the amount of tax and fines requested for cancellation are not included in the enterprise value for assignment or sale (Model No. 05 and 05a issued under this Circular).
In cases where the tax and fine amounts requested for cancellation arise solely from domestic production and business activities, or include both domestic production and business tax and fines and export-import tax and fines, the enterprise shall send the request document for debt cancellation to the direct tax management agency.
In cases where the tax and fine amounts requested for cancellation arise solely from export-import goods at one Customs Department, the enterprise shall submit the debt cancellation dossier to that Customs Department.
In cases where the tax and fine amounts requested for cancellation arise solely from export-import goods but from multiple export-import declarations at different Customs Departments, the enterprise shall send the request document for debt cancellation to each Customs Department where the tax and fine amounts requested for cancellation are located. The Customs Department receiving the document shall review and forward it to the General Department of Customs.
3. The confirmation document from the competent state authority regarding the enterprise value, stating that the tax and fine amounts requested for cancellation are not included in the enterprise value for assignment or sale.
4. The decision of the competent authority on the implementation of the assignment or sale of state-owned enterprises.
5. Business registration certificate establishing the enterprise.
6. Tax settlement and financial reports when determining the enterprise value for assignment or sale.
7. Minutes of the enterprise value determination (accompanied by detailed accounts payable report).
8. Purchase and sale contract or assignment contract of the enterprise.
9. Confirmation of the outstanding tax and fine amounts requested for cancellation from the Customs Department (for cases where the tax and fine amounts requested for cancellation include both domestic and export-import tax and fines).
10. Notifications regarding the payment of overdue tax, late payment interest, and late payment penalties at the time of requesting tax and fine cancellation.
11. Inspection minutes (inspection conclusion) or decision on tax assessment (for cases involving tax assessment).
Documents specified in Clause 4, 5, 6, 7, 8, 10, and 11 of this Article shall be copies signed and stamped by the enterprise.
Chapter III
PROCEDURE AND TIME LIMIT FOR HANDLING DEBT CANCELLATION DOSSIER
Article 9. Regarding the debt cancellation dossier as stipulated in Article 5 of this Circular
1. The District Tax Office compiles a list of households and individuals requesting debt cancellation, reports to the People's Committee of the commune, ward, town for confirmation; sends a letter to the Provincial Tax Department requesting consideration for tax and fine cancellation.
2. The Provincial Tax Department has the responsibility
a) To review the dossier submitted by the District Tax Office
- For dossiers that are complete and meet the conditions for debt cancellation, the Provincial Tax Department prepares a letter requesting tax and fine cancellation and sends the entire dossier to the General Department of Taxation.
- For cases where the dossier is not established correctly or completely as prescribed in this Circular, the Provincial Tax Department notifies the District Tax Office to supplement the dossier (Model No. 06 issued under this Circular).
- For cases where households and individuals do not qualify for debt cancellation, they are excluded from the list of requests for cancellation and notified to the District Tax Office to ensure timely and full collection into the State budget (Model No. 14 and 14a issued under this Circular).
b) Compiles a list of households and individuals under management who are eligible for debt cancellation, with confirmation from the People's Committee of the commune, ward, town, and sends a letter requesting debt cancellation to the General Department of Taxation.
3. The General Department of Taxation has the responsibility to review the dossier submitted by the Provincial Tax Department
a) For dossiers that are complete and meet the conditions for tax and fine cancellation, the General Department of Taxation will proceed
- For households and individuals with tax, late payment interest, and fines requested for cancellation of VND 10 billion or more: The General Department of Taxation drafts a proposal and Decision of the Prime Minister for the Ministry of Finance to consider and submit to the Prime Minister for approval.
- For households and individuals with tax, late payment interest, and fines requested for cancellation between VND 5 billion and less than VND 10 billion: The General Department of Taxation drafts a proposal and Decision of the Minister of Finance for the Minister of Finance to approve (Model No. 07 and 07a issued under this Circular).
- For households and individuals with tax, late payment interest, and fines requested for cancellation below VND 5 billion: The General Department of Taxation issues a decision to cancel tax and fine debts (Model No. 08 and 08a issued under this Circular).
b) For dossiers that are not established correctly or completely as prescribed in this Circular, the General Department of Taxation notifies the Provincial Tax Department to supplement (Model No. 06 issued under this Circular).
c) For households and individuals who do not qualify for debt cancellation, they are excluded from the list of requests for cancellation and notified to the Provincial Tax Department to ensure timely and full collection into the State budget (Model No. 14 and 14a issued under this Circular).
Article 10. Regarding the debt cancellation dossier prescribed in Article 6 of this Circular
1. The Provincial Tax Service/Customs Service shall be responsible for examining the dossier
For dossiers that are complete and meet the conditions for debt cancellation, the Provincial Tax Service/Customs Service shall draft a letter requesting debt cancellation of tax, fines, and penalties, and submit the entire dossier to the General Department of Taxation/General Department of Customs.
2. The General Department of Taxation/General Department of Customs shall be responsible for examining the dossier
a) For dossiers that are complete, fall within the scope, and meet the conditions for debt cancellation, the General Department of Taxation/General Department of Customs shall implement
- For state-owned enterprises that have been dissolved with tax, late payment fees, and fines exceeding VND 10 billion (ten billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall draft a report and Decision of the Prime Minister for the Ministry of Finance to consider and submit to the Prime Minister for decision.
- For state-owned enterprises that have been dissolved with tax, late payment fees, and fines between VND 5 billion (five billion) and less than VND 10 billion (ten billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall draft a report and Decision of the Minister of Finance for the Minister of Finance to decide (Form No. 09 issued pursuant to this Circular).
- For state-owned enterprises that have been dissolved with tax, late payment fees, and fines below VND 5 billion (five billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall issue a decision on debt cancellation (Form No. 10 issued pursuant to this Circular).
b) For dossiers not established correctly and completely as prescribed in this Circular, the General Department of Taxation/General Department of Customs shall notify the Provincial Tax Service/Customs Service to supplement the dossier (Form No. 06 issued pursuant to this Circular).
c) For state-owned enterprises that have been dissolved and do not fall within the scope or do not meet the conditions for debt cancellation, the General Department of Taxation/General Department of Customs shall notify the Provincial Tax Service/Customs Service to promptly collect all taxes due into the State budget (Form No. 13 issued pursuant to this Circular).
Article 11. Regarding the tax debt cancellation dossier prescribed in Articles 7 and 8 of this Circular
1. The Provincial Tax Service/Customs Service shall receive the request letter and dossier from the enterprise and be responsible for examining the dossier
a) For dossiers that are complete and meet the conditions for tax debt cancellation, the Provincial Tax Service/Customs Service shall draft a letter requesting tax debt cancellation and submit the entire dossier to the General Department of Taxation/General Department of Customs.
b) For dossiers not established correctly and completely as prescribed, the Provincial Tax Service/Customs Service shall notify the enterprise to supplement the dossier (Form No. 06 issued pursuant to this Circular).
c) For cases not falling within the scope or not meeting the conditions for debt cancellation, the Provincial Tax Service/Customs Service shall notify the enterprise to pay the State budget (Form No. 13 issued pursuant to this Circular).
2. The General Department of Taxation/General Department of Customs shall be responsible for examining the dossier
a) For dossiers that are complete, fall within the scope, and meet the conditions for tax debt cancellation, the General Department of Taxation/General Department of Customs shall implement
- For cases prescribed in Articles 7 and 8 of this Circular with tax, late payment fees, and fines exceeding VND 10 billion (ten billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall draft a report and Decision of the Prime Minister for the Ministry of Finance to consider and submit to the Prime Minister for decision.
- For cases prescribed in Articles 7 and 8 of this Circular with tax, late payment fees, and fines between VND 5 billion (five billion) and less than VND 10 billion (ten billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall draft a report and Decision of the Minister of Finance for the Minister of Finance to decide (Form No. 11 issued pursuant to this Circular).
- For cases prescribed in Articles 7 and 8 of this Circular with tax, late payment fees, and fines below VND 5 billion (five billion) requested for debt cancellation: The General Department of Taxation/General Department of Customs shall issue a decision on debt cancellation (Form No. 12 issued pursuant to this Circular).
b) For dossiers not established correctly and completely as prescribed, the General Department of Taxation/General Department of Customs shall notify the Provincial Tax Service/Customs Service to notify the enterprise to complete the dossier (Form No. 06 issued pursuant to this Circular).
c) For cases not falling within the scope or not meeting the conditions for debt cancellation, the General Department of Taxation/General Department of Customs shall notify the Provincial Tax Service/Customs Service to promptly collect all taxes due into the State budget (Form No. 13 issued pursuant to this Circular).
Article 12. Time for processing files
1. The tax management agency shall be responsible for examining the file and proposing to the higher-level tax management agency to consider writing off debts within 15 (fifteen) working days from the date of receiving all necessary documents.
2. In cases where the debt write-off files for taxes and fines are not established correctly or completely, the agency receiving the file must notify the enterprise or the agency that established the file to complete the file within 10 (ten) working days from the date of receiving the file.
3. Within 60 (sixty) working days from the date of receiving all necessary debt write-off files for taxes and fines, the authorized person must issue a decision to write off tax debts or notify that it does not fall within the scope, subject, or does not meet the conditions for writing off tax debts.
Chapter IV
IMPLEMENTATION
Article 13. Publicizing the subjects eligible for tax and fine debt write-off
1. For households and individuals: The decision to write off tax and fine debts shall be publicly announced at the People's Committee of the commune, ward, or town confirmed on the list requesting the write-off of tax and fine debts for households and individuals.
2. For other cases: The decision to write off tax and fine debts shall be published publicly on the website of the tax management agency with the request for debt write-off for taxpayers.
Article 14. Effective Date
1. This Circular takes effect from January 17, 2014.
2. Repeal Circular No. 34/2010/TT-BTC dated March 12, 2010 of the Ministry of Finance guiding the implementation of tax debt write-off and other State budget payments due for state-owned enterprises undergoing restructuring and conversion before July 1, 2007.
3. During the implementation process, if there are any difficulties, agencies and units are requested to promptly report to the Ministry of Finance for research and resolution./.
DEPUTY MINISTER
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