Resolution No. 94/2019/QH14 on writing off tax debts, canceling late payment fines, and late payment penalties for taxpayers unable to pay the state budget

Clause 1. Ensuring compliance with legal provisions, correct target identification, appropriate authority; ensuring conditions, documents, procedures, formalities, and accountability of individuals involved as prescribed by law.

Clause 2. Ensuring transparency and clarity; ensuring oversight by authorized agencies, organizations, and individuals, and public supervision.

Clause 3. Creating conditions to resolve difficulties for taxpayers; preventing, blocking, and strictly dealing with those who abuse policies for personal gain or intentionally delay payments or incur tax arrears.

Clause 4. In cases where the authorized agency or tax management agency discovers incorrect debt write-offs or cancellations, or if taxpayers who have had their debts canceled resume business operations or establish new production and business establishments, except for the categories specified in Clause 6 and Clause 7 of Article 4 of this Resolution, the decision to write off or cancel debts must be revoked and the canceled debts must be recovered into the state budget.

Article 4. Eligible Debt Handlers

The eligible debt handlers are taxpayers owing taxes, late payment penalties, and late payment interest, and fall under one of the following circumstances arising before July 1, 2020, and are no longer capable of paying state budget revenues:

Article 5. Measures for Handling Debts

Clause 1. Write off tax debts from July 1, 2020, for the categories specified in Clauses 1, 2, 3, 4, and 5 of Article 4 of this Resolution.

Conditions for writing off tax debts for each category shall be applied according to the provisions of Clause 2 of this Article.

Clause 2. Cancel late payment penalties and late payment interest owed before July 1, 2020, for the categories specified in Clauses 1, 2, 3, 4, and 5 of Article 4 of this Resolution, provided that the following conditions are met:

Point a. Taxpayers specified in Clause 1 of Article 4 of this Resolution have a death certificate, death notice, court declaration of death, disappearance, loss of civil capacity, or other documents replacing the death notice as prescribed by law.

Point b. Taxpayers specified in Clause 2 of Article 4 of this Resolution have a dissolution decision or notification from the business registration agency regarding the taxpayer's dissolution process on the national business registration information system.

Point c. Taxpayers specified in Clause 3 of Article 4 of this Resolution have submitted a request to initiate bankruptcy proceedings or the court has issued a notice accepting the request to initiate bankruptcy proceedings.

Point d. Taxpayers specified in Clauses 4 and 5 of Article 4 of this Resolution are no longer engaged in production and business activities and have a confirmation record between the tax management agency and the People's Committee of the commune, ward, town where the taxpayer's registered office or contact address is located, confirming that the taxpayer is not operating at the registered business address or contact address, or the tax management agency has requested the competent authority to revoke the business registration certificate, enterprise registration certificate, cooperative registration certificate, business household registration certificate, establishment and operation permit, or professional practice permit.

Clause 3. Cancel late payment penalties and late payment interest owed before July 1, 2020, for the category specified in Clause 6 of Article 4 of this Resolution, provided that the following conditions are met:

Point a. There is a confirmation from the competent authority regarding the taxpayer being affected by natural disasters, catastrophes, epidemics, fires, or unexpected accidents, including the time and location of occurrence.

Point b. Not having been granted exemption from late payment interest since the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration No. 21/2012/QH13 took effect.

Point c. There is a valuation report of material losses caused by the taxpayer, confirmed by an independent auditing organization, appraisal agency, or insurance company.

Point d. The amount of late payment penalties and late payment interest to be canceled is based on the tax debt arising from natural disasters, catastrophes, epidemics, fires, or unexpected accidents that cannot be collected, and does not exceed the value of the damaged assets or goods minus any compensation or insurance payments (if applicable).

Clause 4. Cancel late payment penalties and late payment interest owed before July 1, 2020, for the category specified in Clause 7 of Article 4 of this Resolution, provided that the following conditions are met:

Point a. There is a confirmation letter from the state budget fund user unit regarding the taxpayer not being paid, the unpaid amount, and the period of delayed payment.

Point b. There is an economic contract signed with the state budget fund user unit, for subcontractors, it must be clearly stated in the contract or its annex and directly paid by the state budget fund user unit but not yet paid, along with the completion acceptance record of the project or project component funded by the state budget or supply invoices.

Point c. The amount of late payment penalties and late payment interest to be canceled is based on the tax debt, but the tax debt does not exceed the amount of the state budget delayed payment to the taxpayer, and the amount canceled occurs during the period of state budget delayed payment.

Clause 5. For debts not covered by the provisions of this Article, they shall be handled in accordance with the Law on Tax Administration No. 38/2019/QH14.

Clause 1. The head of the tax management agency directly managing the taxpayer decides on the tax debt write-off.

2. The authority to waive late payment fines and late payment fees for enterprises and organizations is prescribed as follows:

a) The Prime Minister decides to waive late payment fines and late payment fees from VND 15 billion upwards;

b) The Minister of Finance decides to waive late payment fines and late payment fees from VND 10 billion up to under VND 15 billion;

c) The Director of the General Tax Department and the Director of the General Customs Department decide to waive late payment fines and late payment fees from VND 5 billion up to under VND 10 billion;

d) The Chairman of the People's Committee at provincial level decides to waive late payment fines and late payment fees under VND 5 billion.

3. The Chairman of the People's Committee at provincial level decides to waive late payment fines and late payment fees for individuals, individual businesses, households, and business households.

4. The Minister of Finance shall prescribe the dossier and procedures for handling debts.

Article 7. Responsibilities of relevant agencies and organizations

1. The Ministry of Finance shall have the following responsibilities:

a) Guide the dossier, procedures, and processes for handling debts as stipulated in Clause 4, Article 6 of this Resolution;

b) Direct and guide tax management agencies to handle debts in accordance with regulations;

c) Summarize and report to the Government on the situation of debt handling to be reported to the National Assembly by the Government.

2. The People's Committee at provincial level shall have the following responsibilities:

a) Direct the People's Committees at lower levels and specialized agencies of the People's Committee at provincial level to cooperate with tax management agencies in confirming, handling debts, inspecting, and checking compliance with this Resolution;

b) Report to the People's Council at the same level annually on the results of debt handling when submitting the People's Council for approval of the local budget settlement.

3. Tax management agencies shall have the following responsibilities:

a) Inspect and determine debtors and amounts of tax arrears, late payment fines, and late payment fees; receive and prepare dossiers for debt handling within their authority or refer to competent authorities for debt handling as prescribed by this Resolution;

b) Conduct inspections and checks on debt handling to ensure transparency, correct targeting, and prevent budget losses;

c) Publicize decisions to write off tax arrears and decisions to waive late payment fines and late payment fees on the electronic information website of the tax management agency.

4. Business registration agencies shall have the following responsibilities:

a) Provide tax management agencies with information about taxpayers who have dissolution decisions;

b) Cooperate with tax management agencies to recover business registration certificates, enterprise registration certificates, cooperative registration certificates, or household business registration certificates from taxpayers who are no longer engaged in production or business activities;

c) Provide tax management agencies with decisions or notifications regarding the recovery of business registration certificates, enterprise registration certificates, cooperative registration certificates, or household business registration certificates from taxpayers who are no longer engaged in production or business activities.

5. Police agencies in the locality where taxpayers have registered their business headquarters or contact addresses with tax management agencies shall have the following responsibilities:

a) Collaborate with tax management agencies to review files of taxpayers who have died, been declared dead by courts, are missing, or have lost civil capacity, or have left their place of residence;

b) Collaborate with tax management agencies to verify information on taxpayers who are no longer operating at the registered business address or contact address with tax management agencies.

6. Credit institutions provide information on accounts and account balance movements of taxpayers upon request by tax management agencies.

7. Courts with jurisdiction over bankruptcy proceedings shall have the following responsibilities upon request by tax management agencies:

a) Provide tax management agencies with information on taxpayers who have filed for bankruptcy or have been subject to bankruptcy filings by related parties;

b) Provide tax management agencies with information on the implementation of bankruptcy proceedings by taxpayers undergoing bankruptcy.

8. The State Audit Agency shall conduct audits on debt handling by tax management agencies in accordance with this Resolution and laws on state audit.

Article 8. Implementation clause

1. This Resolution takes effect from July 1, 2020, and shall be implemented within a period of three years from the date it takes effect.

2. The Government shall be responsible for implementing this Resolution and report to the National Assembly annually on the results of debt handling when submitting the National Assembly for approval of the state budget settlement, and reporting on the implementation of this Resolution.

3. The Standing Committee of the National Assembly, the Vietnam Fatherland Front Central Committee, the Ethnic Council, the Committees of the National Assembly, the Delegations of the National Assembly, National Assembly deputies, and People's Councils at all levels shall supervise the implementation of this Resolution to ensure compliance with the law.

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This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the fourteenth session, eighth meeting, on November 26, 2019.