DECREE NO. 98/2007/ND-CP REGULATING THE HANDLING OF VIOLATIONS OF TAX LAWS AND FORCING THE IMPLEMENTATION OF ADMINISTRATIVE DECISIONS ON TAXES

DECREE

Rules on handling violations of tax laws and enforcement

administrative tax decision

_______________

 

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Tax Administration dated November 29, 2006;

Based on the Administrative Violation Handling Ordinance dated July 2, 2002.

Considering the proposal of the Minister of Finance,

DECREE

Chapter I

HANDLING VIOLATIONS OF TAX LAWS

Section 1: GENERAL PROVISIONS ON HANDLING VIOLATIONS OF TAX LAWS

Article 1. Scope of Regulation and Applicability

2. Applicability:

This Chapter provides for principles, jurisdiction, acts of violation, levels and measures to handle violations of tax laws; procedures and formalities to implement provisions on handling violations of tax laws as stipulated in the Tax Administration Law and laws on handling administrative violations.

The handling of violations of tax laws concerning exported and imported goods shall be carried out according to separate regulations of the Government.

2. Subjects subject to handling of violations of tax laws include:

a) Tax payers who commit acts violating tax laws;

b) Tax authorities, tax management officials who violate tax laws;

c) Authorities and persons responsible for handling violations of tax laws;

d) State agencies, organizations, and other individuals related to the handling of violations of tax laws.

Article 2. Principles for handling violations of tax laws

1. All acts violating tax laws must be detected and stopped immediately. Handling of violations of tax laws must be conducted promptly, openly, transparently, and thoroughly. All consequences caused by violations of tax laws must be remedied in accordance with the provisions of the law.

2. Individuals and organizations shall only be subject to handling of violations when they have committed acts violating tax laws as prescribed in laws, ordinances, and regulatory legal documents on taxes; violations of the Tax Administration Law and this Decree.

3. A single act violating tax laws shall only be penalized once, specifically as follows:

a) An act violating tax laws that has been decided to be penalized by an authorized person or recorded in a penalty decision record shall not be recorded again or issued another penalty decision for that act. In cases where the act of violation continues despite being ordered to stop by an authorized person, stricter measures shall be applied as provided for in Article 3 of this Decree;

b) In cases where an act violating tax laws shows signs of criminal offenses and has been transferred for criminal prosecution while there was already a decision on administrative penalties for tax violations, the person issuing the penalty decision must revoke the penalty decision; if no penalty decision has been issued, then no penalty for violation of tax laws shall be imposed on that act.

4. When multiple people jointly commit an act violating tax laws, each violator shall be penalized for that act.

5. When a person commits multiple acts violating tax laws, penalties shall be imposed for each individual act of violation.

6. Authorized persons handling violations of tax laws must base their penalty decisions on the nature and degree of violation, the background of the violator, aggravating and mitigating circumstances, for each person committing the same act of violation of tax laws.

Article 3. Aggravating Circumstances

1. Organized violation.

2. Repeated violation.

3. Recidivism within one year from the date of completion of the execution of the penalty decision or from the expiration date of the enforcement period of the penalty decision, committing a tax law violation that has been penalized.

4. Inciting, enticing minors to violate, compelling dependent individuals to violate.

5. Violation while intoxicated due to alcohol, beer, or other stimulants.

6. Exploiting positions or powers to violate.

7. Exploiting war conditions, natural disasters, or other special objective difficulties to violate.

8. Violation during the period of serving a criminal sentence or executing a decision on handling violations of tax laws.

9. Continuing to carry out the act of violation despite requests from authorized persons to stop it.

10. After committing a violation of tax laws, taking actions to evade or conceal the violation.

Article 4. Mitigating Circumstances

1. The violator has taken measures to prevent, reduce the harm caused by the violation, or remedied the consequences and compensated for losses.

2. The violator voluntarily reported, sincerely admitted mistakes, and declared and corrected errors.

3. The violator was compelled or materially or mentally dependent.

4. The violator is a pregnant woman, elderly person, minor aged from 16 to under 18 years old, or a person with illness or disability that limits their ability to recognize or control their behavior.

5. The violation occurred in particularly difficult circumstances not caused by themselves.

6. The violation was due to lack of knowledge of tax policies and laws.

7. The violation occurred in a state of mental agitation caused by unlawful actions of others.

Article 5. Statute of Limitations for Tax Law Violations

1. For violations of tax procedures, the statute of limitations for punishment is two years, counted from the date the violation was committed.

2. For tax evasion, tax fraud not reaching the level of criminal prosecution, delayed tax payment, underreporting tax obligations, the statute of limitations for punishment is five years, counted from the date the violation was committed.

The date of determining tax evasion or tax fraud is the day following the last day of the tax declaration period for the tax period during which the taxpayer committed tax evasion or tax fraud, or the day following the decision of the competent authority to refund, exempt, or reduce taxes.

3. For individuals who have been indicted, prosecuted, or had a decision made to bring them to trial under criminal procedure, subsequently having a decision to terminate the investigation or close the case but the violation shows signs of violating tax laws, within three days from the date of the decision to terminate the investigation or close the case, the authority issuing the decision must send the decision and case file to the authority responsible for handling tax law violations. In this case, the statute of limitations for handling violations is three months, counted from the date the authority responsible for handling tax law violations receives the termination decision and case file.

4. Within the statute of limitations prescribed in Clauses 1, 2, and Clause 3 of this Article, if the taxpayer continues to commit new violations of the same nature as the previous violation or intentionally avoids or obstructs punishment, then the statute of limitations prescribed in Clauses 1, 2, and Clause 3 of this Article will not be applied, and the statute of limitations for punishing tax law violations will be recalculated from the date of committing the new violation or the date of ending the avoidance or obstruction of punishment.

Article 6. Forms of Punishment for Tax Law Violations

1. For each tax law violation, the violator, whether an individual or organization, shall bear one of the following forms of punishment:

a) Warning:

The form of warning punishment is decided in writing and applied to:

- First-time or second-time violations with mitigating circumstances regarding less serious tax procedure violations;

- Tax procedure violations carried out by minors aged from 14 to under 16 years old.

b) Fine:

The form of monetary fine is specifically defined for each tax law violation as follows:

- A fixed amount fine for tax procedure violations, with the maximum fine not exceeding 100 million VND. When imposing a fine, the specific amount of the fine for a tax procedure violation is the average of the fine range specified for that violation; if there are mitigating circumstances, the fine amount may be reduced, but it cannot be reduced below the minimum of the fine range; if there are aggravating circumstances, the fine amount may be increased but cannot exceed the maximum of the fine range;

- A fine of 0.05% per day calculated on the amount of overdue tax for late tax payments or fines;

- A fine of 10% of the amount of underreported tax for incorrect declarations leading to underpayment of tax or overpayment of refunds;

- A fine corresponding to the amount not deposited into the state budget account for violations as stipulated in Point b, Clause 1, Article 114 of the Tax Administration Law;

- A fine of one to three times the amount of evaded tax for tax evasion or tax fraud.

When determining the fine amount for taxpayers who violate and have both aggravating and mitigating circumstances, the aggravating circumstances are reduced according to the principle that if there are two mitigating circumstances, one aggravating circumstance is reduced. After reducing according to the above principle, if there remains one aggravating circumstance and one mitigating circumstance, the authority responsible for handling the case considers applying the fine amount for a case with one aggravating circumstance or a case without aggravating or mitigating circumstances. For tax procedure violations, each aggravating or mitigating circumstance increases or decreases the average fine by 20%.

2. Depending on the nature and severity of the violation, organizations or individuals violating tax laws may also be subject to supplementary punishment in the form of confiscation of property or means used to commit the violation.

3. Measures to remedy consequences:

In addition to the forms of punishment prescribed in this Article, taxpayers violating the provisions in Section 2 of Chapter 2 may also be subject to the following measures to remedy consequences:

a) Compel the payment of all overdue tax, underpaid tax, evaded tax, or fraudulent tax into the state budget if the statute of limitations prescribed in Article 5 of this Decree has expired;

b) Compel the destruction of invoices, documents, accounting books printed or issued in violation of the law, except for invoices, documents, accounting books that are evidence to be retained for the handling of the violation case.

Section 2: PENALTIES FOR VIOLATIONS OF TAX LAWS AGAINST TAXPAYERS

WITH RESPECT TO TAXPAYERS

Article 7. Penalties for the act of submitting tax registration documents late or failing to report changes in information within the prescribed time limit

1. A warning or a fine of from VND 100,000 to VND 1,000,000 shall be imposed on the act of submitting tax registration documents or reporting changes in information in tax registration documents to the tax authority beyond the prescribed time limit from 10 to 20 days.

2. A fine of from VND 200,000 to VND 2,000,000 shall be imposed on the act of submitting tax registration documents or reporting changes in information in tax registration documents to the tax authority beyond the prescribed time limit of more than 20 days.

Article 8. Sanctions for the act of failing to fully declare all contents in tax declaration files

The act of declaring incorrectly or incompletely the contents in the tax declaration form as stipulated in Article 31 of the Law on Tax Administration (except in cases where taxpayers are allowed to supplement declarations according to regulations) discovered after the prescribed deadline for submitting the tax declaration form:

1. A warning or a fine of from VND 100,000 to VND 1,000,000 shall be imposed on the act of preparing a tax declaration form that omits or incorrectly records items on the invoice detail sheet for goods and services purchased and sold or on other related documents.

2. A warning or a fine of from VND 150,000 to VND 1,500,000 shall be imposed on the act of preparing a tax declaration form that omits or incorrectly records items on invoices, economic contracts, and other related documents.

3. A fine of from VND 200,000 to VND 2,000,000 shall be imposed on the act of preparing a tax declaration form that omits or incorrectly records items on the tax declaration form or the final tax settlement declaration form.

4. A fine of from VND 500,000 to VND 3,000,000 shall be imposed on the case where there are multiple violations simultaneously as stipulated in Clauses 1, 2, and 3 of this Article.

Article 9. Sanctions for late submission of tax declaration files beyond the prescribed deadline

1. A warning or a fine of from VND 100,000 to VND 1,000,000 shall be imposed on the act of submitting a tax declaration form beyond the prescribed time limit from 05 to 10 days.

2. A fine of from VND 200,000 to VND 2,000,000 shall be imposed on the act of submitting a tax declaration form beyond the prescribed time limit from 10 to 20 days.

3. A fine of from VND 300,000 to VND 3,000,000 shall be imposed on the act of submitting a tax declaration form beyond the prescribed time limit from 20 to 30 days.

4. A fine of from VND 400,000 to VND 4,000,000 shall be imposed on the act of submitting a tax declaration form beyond the prescribed time limit from 30 to 40 days.

5. A fine of from VND 500,000 to VND 5,000,000 shall be imposed on the act of submitting a tax declaration form beyond the prescribed time limit from 40 to 90 days.

6. The deadline for submitting a tax declaration form as stipulated in this Article includes the extended period for submitting a tax declaration form as stipulated in Article 33 of the Law on Tax Administration.

7. The penalties stipulated in this Article shall not apply to cases where tax payment is extended according to tax management laws.

Article 10. Penalties for acts violating regulations on providing information related to determining tax obligations

Acts of violating the system of providing information related to determining tax obligations but not falling under the category of underreporting taxes, evading taxes, or tax fraud shall be penalized as follows depending on the nature and degree of violation:

1. A warning or a fine of from VND 100,000 to VND 1,000,000 shall be imposed on any of the following acts:

a) Providing information, documents, and legal files related to tax registration as notified by the tax authority beyond the prescribed time limit of five working days or more;

b) Providing information, documents, and accounting books related to determining tax obligations as notified by the tax authority beyond the prescribed time limit of five working days or more;

c) Providing incorrect or misleading information, documents, and accounting books related to determining tax obligations beyond the prescribed time limit as requested by the tax authority.

2. A fine of from VND 200,000 to VND 2,000,000 shall be imposed on any of the following acts:

a) Failing to provide complete and accurate information, documents, and accounting books related to determining tax obligations during the tax declaration period; account numbers and account balances when requested by the competent authority;

b) Failing to provide complete and correct items and figures related to tax obligations required to be registered according to the prescribed system, discovered but not reducing the obligation to the state budget;

c) Failing to provide complete and accurate information, documents related to bank accounts, other credit institutions, State Treasury within three working days from the date the tax authority requests.

Article 11. Penalties for violations concerning compliance with decisions on tax inspection, audit, enforcement of administrative tax decisions, and violation of invoice and document systems for goods in transit

1. A fine of VND 200,000 to VND 2,000,000 shall be imposed for any of the following acts:

a) Refusing to accept decisions on audit, inspection, or enforcement of administrative tax decisions;

b) Failing to comply with decisions on audit, inspection, or enforcement of administrative tax decisions beyond three working days from the date such decisions must be complied with;

c) Refusing, delaying, or evading the provision of files, documents, invoices, vouchers, accounting books related to tax obligations beyond six hours from the time of receiving the request of the competent authority during the audit or inspection at the taxpayer's premises;

d) Providing inaccurate information, documents, or accounting books related to the determination of tax obligations upon the request of the competent authority during the audit or inspection at the taxpayer's premises.

2. A fine of VND 500,000 to VND 5,000,000 shall be imposed for any of the following acts:

a) Failing to provide data, documents, or accounting books related to the determination of tax obligations when requested by the competent authority during the audit or inspection at the taxpayer's premises;

b) Failing to implement or implementing incorrectly decisions on sealing files, documents, safes, warehouses, materials, raw materials, machinery, equipment, workshops serving as bases for verifying tax obligations;

c) Arbitrarily removing or changing seals legally established by the competent authority serving as bases for verifying tax obligations;

d) Failing to sign the Inspection Report within five working days from the end of the inspection or audit.

đ) Failing to comply with the conclusions of the inspection and audit of tax, and enforcement of administrative decisions on tax by the competent authority.

3. Violations of the invoice and document system for goods in transit shall be penalized as follows:

a) A fine of VND 200,000 to VND 2,000,000 shall be imposed if the legal invoice or voucher for the consignment cannot be provided within twelve hours from the time the competent authority discovers the violation;

b) A fine of VND 300,000 to VND 3,000,000 shall be imposed if the legal invoice or voucher for the consignment cannot be provided between twelve and twenty-four hours from the time the competent authority discovers the violation;

c) A fine of VND 1,000,000 to VND 5,000,000 shall be imposed if the legal invoice or voucher for the consignment cannot be provided more than twenty-four hours from the time the competent authority discovers the violation but before a penalty decision is issued.

If the invoice or voucher is provided after the tax authority has issued a penalty decision or if the invoice or voucher cannot be provided within the period specified herein, the act of tax evasion shall be penalized. However, if the tax payment voucher for the consignment can be provided within the appeal period, only the fine specified herein shall be imposed without penalizing the act of tax evasion.

Article 12. Penalty for late payment of tax

1. The violations subject to penalty for late payment of tax by taxpayers include:

a) Paying tax later than the prescribed deadline, the extended payment deadline, or the deadline stated in the tax authority's notification or decision on handling violations of tax laws;

b) Underpaying tax due to incorrect declaration of the amount of tax payable, tax exemptions, tax reductions, or tax refunds for previous tax periods, but the taxpayer has voluntarily discovered the error and paid the underpaid tax amount into the state budget before receiving the tax inspection or audit decision from the competent state agency.

2. The penalty rate is 0.05% per day calculated on the amount of late-paid tax for the violation stipulated in Clause 1 of this Article.

The number of days of late payment includes holidays and rest days according to the established system and is counted from the day following the last day of the tax payment deadline, the extended payment deadline, or the deadline stated in the notification or decision of the tax authority until the day the taxpayer voluntarily pays the late tax into the state budget.

3. In cases where the taxpayer can self-determine the amount of late payment penalty, they shall declare and pay the tax penalty into the state budget in accordance with Clause 2 of this Article.

If the taxpayer cannot self-determine or does not correctly determine the amount of late payment penalty, the tax authority will determine the amount of the late payment penalty and notify the taxpayer.

4. After thirty days from the end of the tax payment deadline, if the taxpayer has not paid the tax and the late payment penalty, the tax authority will notify the taxpayer of the outstanding tax and the late payment penalty.

5. Taxpayers are not subject to late payment penalties on the amount of tax owed during the extended payment period.

Article 13. Penalty for incorrect declaration leading to underpayment of tax or over-refund of tax

1. Acts of false declaration leading to underpayment of tax due or overpayment of tax refund, including:

a) Incorrect declaration leading to underpayment of tax or over-refund of tax, over-exemption, or over-reduction, but the taxpayer has promptly, fully, and truthfully recorded the economic transactions generating tax obligations in their accounting books, invoices, and vouchers;

b) Incorrect declaration by the taxpayer resulting in underpayment of tax or over-refund of tax, over-exemption, or over-reduction, which does not fall under point a of Clause 1 of this Article, but when discovered by the competent authority, the violator has voluntarily paid the under-declared tax amount into the state budget before the tax authority issues the inspection report or audit conclusion;

c) Incorrect declaration by the taxpayer resulting in underpayment of tax or over-refund of tax, over-exemption, or over-reduction, which has been determined by the competent authority in the inspection report or audit conclusion as fraudulent tax evasion, but if it is the first offense, there are mitigating circumstances, and the taxpayer has voluntarily paid the under-declared tax amount into the state budget before the competent authority issues the decision on handling, the tax authority will record the inspection report to re-evaluate the under-declaration of tax;

d) Using illegal invoices or documents to account for the value of purchased goods or services to reduce the amount of tax payable or increase the tax refund, tax exemption, or tax reduction, but when the tax authority discovers this, the buyer proves that the error in using illegal invoices was the seller's responsibility and the buyer has fully accounted for the transaction according to regulations.

2. The penalty rate for the violations stipulated in Clause 1 of this Article is 10% calculated on the amount of under-declared tax or over-refunded tax, over-exempted tax, or over-reduced tax, higher than the legal tax rate.

3. The tax authority will determine the amount of underpaid tax, the penalty amount, the number of days of late payment, and the late payment penalty, and issue a penalty decision against the taxpayer.

Article 14. Sanctions for tax evasion and fraud

Taxpayers who commit acts of tax evasion or fraud as stipulated in Article 108 of the Law on Tax Administration, in addition to paying the full amount of taxes evaded or fraudulently avoided, shall also be subject to sanctions based on the number of times such acts occur, calculated according to the amount of taxes evaded or fraudulently avoided, as follows:

1. A fine of one time the amount of taxes evaded or fraudulently avoided shall be imposed on taxpayers who violate for the first time and do not fall under the cases specified in Article 13 of this Decree, or who violate for the second time with two or more mitigating circumstances when committing any of the following violations:

a) Failure to submit tax registration documents; failure to submit tax declaration forms or submitting them later than ninety (90) days from the deadline for submission of tax declaration forms as prescribed in Clauses 1, 2, 3, and Clause 5, Article 32 of the Law on Tax Administration, or later than the deadline for extended submission of tax declaration forms as prescribed in Article 33 of the Law on Tax Administration;

In the case where provisional tax declaration forms are submitted late by more than ninety (90) days compared to the prescribed deadline but still within the deadline for annual settlement tax declaration forms, the violation of tax evasion as provided in this Article will not be sanctioned, but instead, the violation of tax declaration procedures as stipulated in Article 9 of this Decree will be sanctioned.

b) Failure to provide valid invoices or other supporting documents or providing them after the prescribed deadline for goods being transported;

c) Using illegal invoices or supporting documents to record the value of goods or raw materials input, thereby reducing the amount of tax payable or increasing the amount of tax exempted, reduced, or deductible;

d) Preparing false procedures or documents for the cancellation of materials or goods, thereby reducing the amount of tax payable or increasing the amount of tax refundable or exempted;

đ) Issuing sales invoices or service invoices incorrectly regarding quantity or value, thereby declaring lower tax amounts than actual;

e) Using fake invoices, expired invoices, or invoices issued by other individuals or organizations to sell goods or provide services and declare incomplete tax amounts payable, but not falling under the cases specified in Points a, b, and c, Clause 1, Article 13 of this Decree;

g) Failing to record in accounting books the income and expenses related to determining the amount of tax payable;

h) Not issuing invoices when selling goods or services or recording a lower value on sales invoices than the actual payment received for goods or services sold, which is discovered after the deadline for submitting tax declaration forms;

i) Using illegal invoices or supporting documents to record fictitious values of purchased goods or services, thereby reducing the amount of tax payable or increasing the amount of tax exempted, reduced, or deductible;

k) Using tax-exempt goods (including those that are not subject to tax) for purposes other than those specified without declaring tax;

l) Altering or erasing accounting records or ledgers to reduce the amount of tax payable or increase the amount of tax refundable, exempted, or reduced;

m) Destroying accounting records or ledgers to reduce the amount of tax payable or increase the amount of tax refundable, exempted, or reduced;

n) Using illegal invoices, supporting documents, or materials in other situations to determine incorrect amounts of tax payable or tax refundable.

2. A fine of one and a half times the amount of taxes evaded or fraudulently avoided shall be imposed on taxpayers who commit any of the violations specified in Clause 1 of this Article, in the following cases: first-time violation, with aggravating circumstances, or second-time violation with one mitigating circumstance.

3. A fine of two times the amount of taxes evaded shall be imposed on taxpayers who commit any of the violations specified in Clause 1 of this Article, in the following cases: second-time violation without mitigating circumstances, or third-time violation with one mitigating circumstance.

4. A fine of two and a half times the amount of taxes evaded shall be imposed on taxpayers who commit any of the violations specified in Clause 1 of this Article, in the following cases: second-time violation with one aggravating circumstance, or third-time violation without mitigating circumstances.

5. A fine of three times the amount of taxes evaded shall be imposed on taxpayers who commit any of the violations specified in Clause 1 of this Article, in the following cases: second-time violation with two or more aggravating circumstances, or third-time violation with one aggravating circumstance, or fourth-time violation or subsequent violations.

6. The determination of the number of aggravating or mitigating circumstances for applying the fines specified in Clauses 2, 3, 4, and Clause 5 of this Article shall be carried out according to the principles stipulated in Point b, Clause 1, Article 6 of this Decree.

The amount of taxes evaded as specified in Clauses 1, 2, 3, 4, and Clause 5 of this Article is the amount of taxes payable to the state budget according to the law that the taxpayer fails to pay due to committing any of the acts of tax evasion or fraud as stipulated in Article 108 of the Law on Tax Administration, which is detected and determined by the competent authority in the inspection report or audit conclusion.

Violations specified in this Article, whether discovered during the period for submitting tax declaration forms or discovered after the deadline for submitting tax declaration forms, but do not result in a reduction in the amount of tax payable or an increase in the amount of tax refundable or exempted, shall only be sanctioned for procedural tax violations.

Mục 3: PROCEDURES FOR HANDLING VIOLATIONS OF TAX LAWS BY TAX AUTHORITIES, TAX OFFICERS, BANKS, CREDIT ORGANIZATIONS AND RELATED ENTITIES AND INDIVIDUALS

Article 15. Handling violations of tax laws by tax authorities and tax officers

1. The handling of violations of tax laws by tax authorities and tax officers shall be carried out in accordance with the provisions of Articles 112 and 113 of the Law on Tax Administration.

2. The Ministry of Finance shall provide guidance on the procedures and formalities for handling violations of tax laws by tax authorities and tax officers as stipulated in Clause 1 of this Article.

Article 16. Handling violations by commercial banks, other credit organizations, and guarantors of tax payment

1. In cases where commercial banks and other credit organizations fail to fulfill their responsibility to transfer funds from the taxpayer's account to the state budget account for the amount of tax and fines due according to the tax authority's request, they shall be handled as follows depending on specific circumstances:

a) Commercial banks and other credit organizations shall not be subject to penalties if, at that time, the depositor's account has no balance or all balances have been transferred to the state budget account but still fall short of the amount of tax and fines due by the taxpayer;

b) Commercial banks and other credit organizations shall be subject to penalties if, at that time, the depositor's account has sufficient or excess balance compared to the amount of tax and fines due by the taxpayer, but the bank fails to transfer the full or corresponding portion of the amount due from the depositor's account. Within ten days from the expiration date of the transfer from the depositor's account at the bank or credit organization, the tax authority must issue a violation notice and impose a fine equivalent to the amount not transferred to the state budget account. In such cases, the tax authority must still take measures to collect the full amount of tax and fines from the taxpayer.

2. Guarantors of tax obligations must pay the tax and fines on behalf of the taxpayer guaranteed if the taxpayer fails to deposit the tax into the state budget account or violates tax laws.

Article 17. Handling violations of tax laws by related entities and individuals

1. Entities and individuals involved who collude or cover up for taxpayers to evade taxes or commit tax fraud, or fail to comply with administrative enforcement decisions on taxes, shall be fined between two million and eight million dong depending on the nature and severity of the violation. If the violation constitutes a criminal offense, criminal liability will be pursued according to the law.

2. Entities and individuals who fail to fulfill their responsibilities as prescribed in Articles 89, 98, and 100 of the Law on Tax Administration shall be subject to administrative penalties or criminal liability according to the law depending on the nature and severity of the violation.

If the State Treasury Department fails to transfer the amount of tax and fines owed by the taxpayer to the state budget account as requested by the tax authority, it shall be penalized as provided in point b, Clause 1, Article 16 of this Decree.

Section 4: COMPETENCE AND PROCEDURES FOR HANDLING TAX LAW VIOLATIONS AND ENFORCING DECISIONS ON VIOLATION HANDLING

Article 18. Competence of Tax Authorities to Handle Violations of Tax Law

1. Tax Officers performing their duties have the right:

a) To issue warnings;

b) To impose a fine of up to 100,000 dong for violations of tax procedures as stipulated in this Decree.

2. The Head of the Tax Station, the Team Leader of the Tax Team within the scope of their functions and tasks have the right:

a) To issue warnings;

b) To impose a fine of up to 2,000,000 dong for violations of tax procedures as stipulated in this Decree.

3. The Director of the Tax Revenue Office, within the scope of their management area, has the right:

a) To issue warnings;

b) To impose a fine of up to 10,000,000 dong for violations as prescribed in Articles 7, 8, 9, 10, and Article 11 of this Decree;

c) To impose a fine for violations as prescribed in Articles 12, 13, 14, 16, and Article 17 of this Decree;

d) To confiscate property and means used to commit violations of tax laws;

đ) To apply measures to remedy consequences as prescribed in Clause 3, Article 6 of this Decree.

4. The Director of the Provincial Tax Department, within the scope of their management area, has the right:

a) To issue warnings;

b) To impose a fine of up to 100,000,000 dong for violations of tax procedures as prescribed in Articles 7, 8, 9, 10, and Article 11 of this Decree;

c) To impose a fine for violations as prescribed in Articles 12, 13, 14, 16, and Article 17 of this Decree;

d) To confiscate property and means used to commit violations of tax laws;

đ) To apply measures to remedy consequences as prescribed in Clause 3, Article 6 of this Decree.

Article 19. Competence of Chairpersons of People's Committees at all levels to Impose Penalties for Violations of Tax Law:

The competence of Chairpersons of People's Committees at all levels to impose penalties for violations of tax law shall be implemented in accordance with the provisions of the law on administrative violation handling.

Article 20. Delegation and Division of Competence to Impose Penalties for Violations of Tax Law

The delegation to impose penalties for violations of tax law and the division of competence to impose penalties for violations of tax law shall be carried out in accordance with the provisions of the law on administrative violation handling.

Article 21. Suspension of Violation Acts

Upon discovering a violation of tax law, the person authorized to handle the violation must immediately issue a decision to suspend the violation act. The suspension decision may be in writing or other forms depending on the specific case of violation. In cases where the violation does not fall within the jurisdiction or exceeds the jurisdiction of the handling authority, the person who discovers the violation must promptly prepare a record according to the prescribed format and transfer it to the person authorized to issue a penalty suspension decision and proceed with handling in accordance with this Decree.

Article 22. Preparation of Records of Violations of Tax Law

The preparation of records of violations of tax law is regulated as follows:

1. The person authorized to perform official duties who discovers a violation of tax law must prepare a record according to the prescribed format and promptly transfer it to the person authorized to impose penalties. The record must contain all signatures required by the law on administrative violation handling; if the violator does not sign the violation record, the preparer must clearly state the reason in the record and bear legal responsibility for the contents recorded in the record;

2. If the preparer of the record does not have the authority to impose penalties, the head of that person is also the person authorized to impose penalties and must sign the record; if necessary, verification must be conducted before signing the record;

3. Cases where a record is not required when issuing a penalty decision:

a) The taxpayer has committed a violation of tax law which has been discovered, recorded in the inspection report, and concluded in the inspection conclusion by the tax authority;

b) The taxpayer has failed to pay taxes on time, as recorded in the tax payment notice and late payment fine issued by the tax authority.

Article 23. Time limit for issuing penalty decisions

The time limit for issuing penalty decisions shall be as follows:

1. For simple cases where the violation is clear and does not require further verification, the decision to impose penalties must be issued within no more than 10 days from the date of recording the violation in the administrative violation record.

2. For cases with complex circumstances such as items or means requiring examination, or where it is necessary to clearly identify the violator of tax laws or other complex circumstances, the time limit for issuing penalty decisions is 30 days from the date of recording the violation.

3. In cases where additional time is deemed necessary for verification and evidence collection, the person authorized to impose penalties must report in writing to their direct superior at least 10 days before the end of the time limit specified in Clause 2 of this Article to request an extension; the extension must be in writing; the extended period shall not exceed 30 days.

4. Except for decisions to apply expulsion as a form of penalty, the person authorized to impose penalties may not issue penalty decisions in the following cases:

a) When the time limit specified in Clause 1 of this Article has expired;

b) When the time limit for issuing penalty decisions specified in Clause 2 of this Article has expired without requesting an extension or when an extension was requested but not granted by the competent authority;

c) When the time limit granted by the competent authority for an extension has expired.

Article 24. Penalty Decision for Violation of Tax Laws

The penalty decision for violation of tax laws must be in written form.

The form, content, procedure, and process for issuing a penalty decision for violation of tax laws must comply with the provisions of the law on handling administrative violations.

Article 25. Exemption from Penalty for Violation of Tax Laws and Authority to Grant Exemption

1. A taxpayer who is subject to a penalty for violation of tax laws has the right to request exemption from such penalty in cases of natural disasters, fire, unexpected accidents, or other force majeure situations. The maximum amount of the exemption shall not exceed the value of the damaged property or goods.

2. The application for exemption from penalty for violation of tax laws shall include:

a) A letter requesting exemption from penalty, specifying the reasons for the request;

b) A document determining the value of the damaged property or goods due to natural disasters, fire, unexpected accidents, or other force majeure situations;

c) An inventory record of the value of the damaged property or goods, prepared jointly by the legal representative of the organization or individual suffering damage and the police agency or the Chairman of the People's Committee of the commune for inspection and confirmation.

In the inventory record of damage, the value of the damaged property or goods, the cause of the damage, the responsibility of the organization or individual for the damage, and the quantity, type, and recoverable value of the damaged property or goods must be clearly stated.

d) Compensation claim documents accepted by the insurance company for compensation (if applicable);

đ) Documents stipulating the responsibility of organizations or individuals to compensate for damages (if applicable).

3. The head of the tax authority is responsible for considering the exemption from penalty for violation of tax laws upon receipt of the application for exemption from penalty submitted by the taxpayer for cases within their jurisdiction or that of subordinate authorities according to the law on handling administrative violations.

4. No exemption from penalty for violation of tax laws shall be granted in cases where the penalty decision for violation of tax laws has been fully executed or where the statute of limitations for lodging complaints or appeals has expired according to the law.

Article 26. Enforcement of Decisions on Administrative Sanctions for Violations of Tax Law

The enforcement of decisions on administrative sanctions for violations of tax law shall be regulated as follows:

1. Individuals and organizations subject to administrative sanctions must comply with the decision on administrative sanctions for violations of tax law within ten days from the date they receive the decision, except where otherwise provided by law. After issuing the decision on administrative sanctions, the authority issuing the decision must deliver it to the person subject to administrative sanctions or notify them to come and collect it; the time when the person subject to administrative sanctions receives the decision on administrative sanctions shall be considered as the time of delivery of the decision on administrative sanctions.

In cases where individuals are fined VND 500,000 or more and are experiencing particular economic difficulties, the authority issuing the decision on administrative sanctions may decide to postpone the enforcement of the decision on administrative sanctions for a period not exceeding three months from the date of issuance of the decision on administrative sanctions.

The Ministry of Finance shall provide guidance on procedures for handling cases to ensure the implementation of decisions on administrative sanctions in cases where the person subject to administrative sanctions does not receive the decision on administrative sanctions for violations of tax law and procedures for postponing the enforcement of decisions on administrative sanctions as stipulated herein.

2. If, after one year, the authority cannot deliver the decision on administrative sanctions to the person subject to administrative sanctions due to their failure to come and collect it and their address being unknown or other objective reasons, the authority that issued the decision on administrative sanctions shall issue a decision to suspend the execution of the forms of administrative sanctions and measures to remedy consequences recorded in the decision against such person, except for the form of confiscation of objects and means violating tax law; for objects and means violating tax law currently under temporary detention, the provisions of the law on handling administrative violations shall apply. The state budget shall cover the costs of implementing these measures or be deducted from the proceeds of the sale of confiscated objects and means (if any).

Article 27. Decision on Compulsory Remedial Measures in Cases Where No Decision on Administrative Sanctions for Violations of Tax Law Is Issued

The decision on compulsory remedial measures must be expressed in writing.

The form, content, procedure, and process for issuing a penalty decision for violation of tax laws must comply with the provisions of the law on handling administrative violations.

Article 29. Transfer of Case Files of Tax Law Violators Indicating Criminal Offenses for Criminal Prosecution

The transfer of decisions on administrative sanctions for violations of tax law for enforcement shall be regulated as follows:

1. In cases where individuals or organizations violate tax laws at administrative units within this province but reside or have their headquarters in another province and do not have conditions to comply with the decision on administrative sanctions at the place of violation, the decision shall be transferred to the tax authority at the same level where the individual resides or the organization has its headquarters to organize enforcement.

2. In cases where violations occur in mountainous, island, or remote areas where travel is difficult and individuals or organizations violating tax laws do not have conditions to comply with the decision on administrative sanctions at the place of violation, the decision shall be transferred to the authority at the same level as the authority issuing the decision on administrative sanctions where the individual resides or the organization has its headquarters to organize enforcement.

Article 29. Transfer of Case Files of Tax Law Violators Indicating Criminal Offenses for Criminal Prosecution

1. During the process of handling violations of tax laws, if it is found that organizations or individuals violating tax laws indicate criminal offenses, the authority with jurisdiction must transfer the case file to the competent criminal prosecution agency within ten days from the date of discovering the indication of criminal offenses.

2. For cases where a decision on handling violations of tax laws has been issued, and subsequently, it is discovered that the violation indicates criminal offenses within the statute of limitations for criminal prosecution, the authority that issued the decision on handling violations of tax laws must revoke the decision and within three days from the date of revoking the decision, transfer the case file on handling violations to the competent criminal prosecution agency.

The tax authority shall transfer the original case file of the tax law violation to the criminal prosecution agency within five days from the date of receiving notification about the decision to initiate a criminal investigation.

3. In cases where the tax authority has transferred the case file to the criminal prosecution agency, but beyond three days from the expiration date of the decision to initiate or not initiate a criminal investigation as stipulated in Article 103 of the Criminal Procedure Code, the tax authority has not received notification from the competent authority pursuing criminal responsibility regarding the initiation or non-initiation of the criminal case, the authority imposing administrative sanctions for violations of tax laws must issue a decision on administrative sanctions according to the Law on Tax Administration.

Article 30. Returning the case file for tax law violations for administrative punishment

1. In cases where the case file on tax law violations has been transferred to the criminal proceedings agency, if the competent authority of the criminal proceedings agency finds that the violation does not have sufficient characteristics to constitute a crime, it must issue a decision not to initiate a criminal case in accordance with Article 103 of the Criminal Procedure Code. Within three days from the date of issuing the decision not to initiate a criminal case, the criminal proceedings agency must transfer the decision not to initiate a criminal case along with the case file on violations to the competent tax authority for handling tax law violations.

2. In cases where an individual has been indicted, prosecuted, or there is a decision to bring them to trial through criminal proceedings, but later there is a decision to suspend investigation or terminate the case, within three days from the date of issuing the decision to suspend investigation or terminate the case, the criminal proceedings agency must transfer the decision to suspend investigation or terminate the case along with the case file on violations to the competent tax authority for handling tax law violations.

3. After receiving the case files as stipulated in Clause 1 and Clause 2 of this Article, the competent tax authority imposing penalties must issue a penalty decision for each case in accordance with Article 23 of this Decree.

Chapter II

FOR THE ENFORCEMENT OF ADMINISTRATIVE TAX DECISIONS

PART 1: GENERAL PROVISIONS ON ENFORCEMENT OF ADMINISTRATIVE DECISIONS ON TAXES

Article 31. Scope of Regulation and Applicability

1. Scope of regulation: This Chapter regulates the principles, authorities, procedures, and formalities for enforcing administrative decisions on taxes against organizations and individuals who have exceeded the deadline for compliance or the deadline for deferred compliance with administrative tax decisions as prescribed by the Law on Tax Administration, except for the measure of suspending customs procedures for imported goods.

Administrative tax decisions subject to enforcement include: notification of overdue tax and fines; notification of tax assessment; administrative penalty decision on tax; decision to apply measures to remedy consequences under the law on administrative violations related to tax; decision on compensation; other administrative tax decisions as prescribed by law.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Taxpayer subject to enforcement of administrative tax decisions as prescribed by the Law on Tax Administration;

b) Tax authority, tax officials subject to enforcement of administrative tax decisions;

c) Authority and responsibility holder for enforcing administrative tax decisions;

d) State agencies, organizations, and other individuals related to the implementation of enforcement of administrative tax decisions.

Article 32. Cases Subject to Enforcement of Administrative Tax Decisions

1. Cases subject to enforcement of administrative tax decisions for taxpayers as stipulated in Article 92 of the Law on Tax Administration.

2. Commercial banks, other credit institutions, guarantors of tax payment failing to comply with administrative penalty decisions on tax law violations as prescribed by the Law on Tax Administration.

3. Guarantor performing the tax payment obligation on behalf of the taxpayer in lieu of the taxpayer when the taxpayer fails to deposit tax payments into the state budget account or violates Clause 2 of Article 114 of the Law on Tax Administration.

4. National Treasury failing to implement the deduction from the account of the entity subject to enforcement into the state budget according to the administrative penalty decision on tax law violations issued by the tax authority.

5. Organizations and individuals related to non-compliance with administrative decisions on tax law violations issued by the competent authority.

Article 33. Compulsory Measures

The compulsory measures for enforcing administrative tax decisions include:

1. Seizing money from the account of the subject being enforced against at the State Treasury, commercial banks, or other credit institutions; requesting the freezing of accounts.

2. Deducting part of salary or income.

3. Seizing assets and auctioning seized assets according to the law to collect overdue taxes, fines, and deposit them into the state budget.

4. Collecting money or other property of the subject being enforced against that is held by other organizations or individuals.

5. Confiscating objects and means used to commit violations of tax laws.

6. Revoking tax identification numbers; suspending the use of invoices.

7. Revoking business licenses, establishment and operation permits, and professional practice permits.

Article 34. Sources of Money for Deduction and Seized Assets for Organizations Subject to Compulsory Enforcement of Administrative Tax Decisions

The sources of money for deduction and seized assets for organizations subject to compulsory enforcement of administrative tax decisions shall be carried out in accordance with the provisions of the law on handling administrative violations and related laws.

Article 35. Authority to Decide on Compulsory Enforcement

The following persons have the authority to issue a decision on one of the compulsory measures for enforcing administrative tax decisions stipulated in Article 33 of this Decree and are responsible for organizing the enforcement of their own administrative penalty decisions and those of subordinate levels:

1. Heads of tax authorities at all levels have the authority to issue decisions on compulsory enforcement of administrative tax decisions as stipulated in Clauses 1, 2, 3, 4, 5, and Clause 6 of Article 33 of this Decree.

2. Chairpersons of People's Committees at district and provincial levels have the authority to issue decisions on compulsory enforcement of administrative penalty decisions for tax law violations within their jurisdiction.

3. In cases where the violator is subject to compulsory measures as stipulated in Clause 7 of Article 33 of this Decree, the tax authority shall handle the case, prepare files and documents, and notify and transfer them to the competent authority for handling according to regulations.

Article 36. Principles for Issuing Compulsory Enforcement Decisions and Organizing the Enforcement of Administrative Tax Decisions of Subordinate Levels

Persons with authority as stipulated in Clauses 3 and 4 of Article 18 of this Decree have the authority to issue compulsory enforcement decisions and organize the enforcement of administrative tax decisions of subordinate levels in the following cases:

1. The subordinate level does not have the authority to issue compulsory enforcement decisions.

2. The subordinate level has the authority to issue compulsory enforcement decisions but lacks the necessary personnel and equipment to enforce the compulsory enforcement decision and has submitted a written request to the superior level to issue the compulsory enforcement decision.

3. The enforcement of the compulsory enforcement decision involves multiple localities, organizations, and individuals.

Article 37. Compulsory Enforcement Decision

1. Compulsory enforcement of administrative tax decisions can only be implemented when there is a compulsory enforcement decision issued by the person with authority as stipulated in Article 35 of this Decree.

2. A compulsory enforcement decision for administrative tax decisions includes the following main contents: date of issuance; basis for issuing the compulsory enforcement decision; name, position, and unit of the person issuing the compulsory enforcement decision; name and place of residence or headquarters of the subject being enforced against; reasons and compulsory measures; time and location of enforcement; leading agency implementing the decision; agencies responsible for coordination; signature of the person issuing the decision; seal of the agency issuing the compulsory enforcement decision.

3. The compulsory enforcement decision for administrative tax decisions must be sent to the subject being enforced against and relevant organizations and individuals five working days before the enforcement takes place; the decision must also be sent to the higher-level tax authority; in cases where compulsory enforcement is carried out using the method stipulated in Clause 3 of Article 33 of this Decree, the decision must be sent to the Chairman of the People's Committee of the commune, ward, or town where the enforcement will take place before it is implemented.

Article 38. Responsibility for organizing the enforcement of compulsory execution decisions

1. The person issuing the compulsory execution decision to enforce administrative tax decisions shall be responsible for organizing the implementation of such compulsory execution decision.

2. The People's Committee of communes, wards, and towns where the object subject to compulsory execution is located shall be responsible for directing relevant agencies to coordinate with tax authorities to implement the compulsory execution of administrative tax decisions.

3. Public security forces shall be responsible for ensuring order, safety, and supporting tax authorities during the compulsory execution process when requested by the person issuing the compulsory execution decision to enforce administrative tax decisions.

4. Organizations and individuals related to the object subject to compulsory execution of administrative tax decisions shall be responsible for coordinating to implement the compulsory execution when requested by the person issuing the compulsory execution decision.

Article 39. Time limit for enforcing compulsory execution decisions

1. An administrative tax compulsory execution decision shall be effective for one year from the date of issuance.

2. In cases where individuals or organizations subject to compulsory execution intentionally evade or delay the enforcement of the compulsory execution decision, the time limit for enforcement shall be recalculated from the point at which the evasive or delaying actions cease.

3. The measures for compulsory execution of administrative tax decisions specified in Clause 1 of this Article shall terminate their effectiveness upon full payment of the taxes and fines subject to compulsory execution into the State budget. The basis for terminating the effectiveness of the tax compulsory execution decision is the payment receipt issued by the person subject to compulsory execution, confirmed by the Treasury Office or authorized tax collection agency, commercial bank, or other financial institution that has deducted funds from the account of the person subject to compulsory execution.

Section 2: COMPULSORY EXECUTION BY WITHDRAWING FUNDS FROM DEPOSIT ACCOUNTS

FROM THE SAVINGS ACCOUNT

Article 40. Objects Subject to Compulsory Execution by Withdrawing Funds from Deposit Accounts

Compulsory execution by withdrawing funds from deposit accounts shall be applied to individuals and organizations that fail to voluntarily comply with penalty decisions, decisions to mitigate consequences, or fail to pay enforcement costs when:

1. The individual subject to compulsory execution has deposits at the Treasury Office, commercial banks, and other credit institutions in Vietnam.

2. The organization subject to compulsory execution has deposits at the Treasury Office, commercial banks, and other credit institutions in Vietnam.

Article 41. Verification of Information on the Account of the Object Subject to Compulsory Execution

1. The authority issuing the compulsory execution decision to withdraw funds from deposit accounts at banks, the Treasury Office, and other credit institutions has the right to collect, verify, and request banks, the Treasury Office, credit institutions, and financial organizations to provide information about the account, the current balance in the account of the individual or organization subject to compulsory execution. At the same time, the authority issuing the compulsory execution decision shall be responsible for keeping confidential the information about the account of the object subject to compulsory execution provided by banks, credit institutions, and other financial organizations.

2. The object subject to compulsory execution shall be responsible for informing the authority issuing the compulsory execution decision about the name of the bank, the Treasury Office, credit institution, or financial organization where the account was opened, and the account number and code of the accounts held at these institutions when requested.

3. The Treasury Office, commercial banks, and other credit institutions where the person subject to compulsory execution has an account shall be responsible for informing the authority issuing the compulsory execution decision about the location of the account opening and the account number of the person subject to compulsory execution when requested.

Article 42. Decision on compulsory enforcement by means of deducting money from deposit accounts

1. A decision on compulsory enforcement by means of deducting money from deposit accounts must clearly state the date, month, year of issuance; basis for issuance; name, position, place of work of the issuer; amount deducted (recorded on the administrative penalty decision and enforcement costs up to five days before the enforcement takes place); reason for deduction; name, tax code, account number of the individual or organization subject to deduction; name, address, account number of the bank or other credit institution where the person subject to enforcement measures has an account; name, address, account number of the state budget opened at the State Treasury, method of transferring the deducted amount from the bank or other credit institution to the State Treasury; deadline for implementation; the authorized issuer of the enforcement decision signs and stamps.

2. The decision on compulsory enforcement by means of deducting money from deposit accounts must be sent to the individual or organization subject to deduction, the State Treasury, the bank or other credit institution where the organization or individual has an account, and related agencies within five days prior to the enforcement.

Article 43. Responsibilities of the State Treasury, commercial banks, and other credit institutions in Vietnam where individuals or organizations subject to enforcement have accounts

1. Provide necessary information about the account number and balance of the individual or organization subject to enforcement opened at their unit within three days from the date of receipt of the request from the authorized issuer of the deduction enforcement decision.

2. Immediately freeze the accounts of the enforcement targets upon receipt of the enforcement decision from the authorized issuer of the enforcement decision.

3. Transfer the amount of the individual or organization subject to enforcement into the state budget account opened at the State Treasury as recorded in the deduction enforcement decision for taxes, fines, and enforcement costs within five days from the date of receipt of the enforcement decision; simultaneously notify the agency that issued the enforcement decision and the individual or organization subject to enforcement.

4. Notify in writing to the agency that issued the enforcement decision when the enforcement decision becomes ineffective and the account of the individual or organization subject to enforcement does not have sufficient funds to be deducted and paid into the state budget.

5. During the implementation period of the enforcement decision, if there is a remaining balance in the account of the individual or organization subject to enforcement without being deducted and transferred to the state budget according to the enforcement decision, they will be subject to penalties under this Decree for violations of tax laws.

Article 44. Procedures for collecting deducted amounts

1. Deduction of money from the account of the individual or organization subject to administrative enforcement is carried out based on collection receipts in accordance with current regulations. Collection receipts used for deducting money from the account are sent to the relevant parties.

2. After collecting the funds, the State Treasury receiving the deducted funds has the responsibility to notify the competent authority issuing the compulsory execution decision.

PART 3: ENFORCEMENT BY MEANS OF DEDUCTING A PORTION OF SALARY OR INCOME

SALARY OR A PORTION OF INCOME

Article 45. Subjects of enforcement by means of deducting a portion of salary or income

The measure of deducting a portion of salary or income is applied to taxpayers subject to enforcement of administrative tax decisions in the following cases:

1. The individual subject to enforcement is a civil servant, public official, or an individual working and receiving salary or income at an agency or organization under a labor contract lasting six months or more.

2. The individual subject to enforcement is currently receiving monthly pension or disability benefits.

Article 46. Decision on Forced Deduction from Part of Wages or Income of Individuals

1. A decision on forced deduction from part of wages or income of individuals must clearly state the date, month, and year of issuance; basis for issuance; name, position, and workplace of the issuer; name and address of the individual subject to forced deduction from part of wages or income; name and address of the agency or organization managing the wages or income of the individual subject to forced deduction; amount to be deducted (recorded in the administrative penalty decision and enforcement costs up to five days before the enforcement of forced deduction), reasons for deduction; name and address of the State Treasury receiving the money, method of transferring the deducted amount to the treasury; time of implementation; signature of the issuer, seal of the issuing agency.

2. The decision on forced deduction shall be sent to the individual subject to forced deduction and the agency or organization directly managing the wages or income of the individual subject to forced deduction and related agencies.

Article 47. Proportion of Deduction from Part of Wages or Income of Individuals

1. Only deduct a portion of wages or income corresponding to the amount recorded in the administrative penalty decision issued by the competent authority.

2. The proportion of deduction from wages, pension, or disability allowance for individuals shall not be less than 10% and not exceed 30% of the total monthly wages or allowances of that individual; for other sources of income, the proportion of deduction shall be based on actual income but shall not exceed 50% of the total income.

Article 48. Responsibilities of Agencies, Organizations, and Employers Managing Wages or Income of Individuals Subject to Forced Deduction

Agencies or organizations managing the wages or income of individuals subject to forced deduction have the responsibility to:

1. Deduct a portion of the wages or income of the individual subject to forced deduction and transfer the deducted amount into the state budget account at the State Treasury according to the content recorded in the decision on forced execution of administrative tax decisions, starting from the nearest period of wage or income payment until the full amount of tax and penalties as stipulated in the decision on forced execution of administrative tax decisions has been deducted, while informing the issuer of the decision on forced deduction and the individual subject to forced deduction;

2. When the nearest period of wage or income payment arrives, the agency, organization, or person managing the wages or income of the individual subject to forced deduction shall deduct a portion of the wages or income of the individual subject to forced deduction according to the content recorded in the decision on forced deduction and transfer the deducted amount to the account at the State Treasury as recorded in the decision on forced deduction, while informing the competent authority issuing the decision on forced deduction;

3. In cases where the full amount of tax and penalties as stipulated in the decision on forced deduction has not been deducted and the employment contract of the individual subject to forced deduction terminates, the employer must inform the issuer of the decision on forced deduction within five working days from the date of termination of the employment contract;

4. If an agency or organization managing the wages or income of an individual subject to forced execution of administrative tax decisions intentionally fails to implement the decision on forced deduction, it shall be subject to penalties under Article 17 of this Decree for violation of tax laws.

Section 4: ENFORCEMENT BY MEANS OF ASSET SEIZURE AND PUBLIC AUCTION OF SEIZED ASSETS

Article 49. Subjects to be Subjected to Asset Seizure for Public Auction

Individuals and organizations shall be subject to asset seizure for public auction when they fail to voluntarily comply with administrative penalty decisions, fail to pay enforcement costs, including:

1. Individuals who are self-employed without a salary or fixed income managed by an organization or entity;

2. Individuals and organizations without bank accounts or with insufficient funds in their bank accounts to implement wage or income deductions or deductions from their accounts;

3. Individuals and organizations for whom enforcement measures prescribed in point a and point b, Clause 1, Article 93 of the Tax Administration Law cannot be applied or have been applied but the full amount of tax arrears and fines has not yet been collected;

4. Asset seizure shall not be applied in cases where the taxpayer is an individual undergoing medical treatment.

Article 50. Assets Not Subject to Seizure

1. For individuals subjected to administrative enforcement of tax decisions:

a) The sole residence of the individual and their family;

b) Medicines, foodstuffs necessary for the basic needs of the individual and their family;

c) Common tools of labor essential for the primary or sole means of livelihood of the individual and their family;

d) Essential clothing and household items of the individual and their family;

đ) Ritual objects; relics, medals, awards.

2. For production and business establishments:

a) Medicines, equipment, facilities, assets belonging to healthcare facilities, except when these are goods for sale; foodstuffs, utensils, assets serving meals during work hours for employees;

b) Kindergartens, schools, and equipment, facilities, items belonging to these institutions, if these are not goods for sale by the enterprise;

c) Equipment, facilities ensuring occupational safety, fire prevention, environmental pollution control;

d) Infrastructure serving public interests, security, national defense;

đ) Raw materials, finished products, semi-finished products that are hazardous chemicals prohibited from circulation;

e) Raw materials, semi-finished products within a closed production line.

3. For state agencies, political organizations, social-political organizations, and occupational social organizations (collectively referred to as agencies and organizations) operating with state budget funds, asset seizure shall not apply to assets purchased from state budget funds, instead requiring the agency or organization to submit a request to the competent authority for financial support to enforce the decision.

In cases where agencies and organizations have other legitimate revenue sources, assets invested in or purchased from such revenues shall be seized to enforce the decision, except for the following assets:

a) Medicines, equipment, facilities, assets belonging to healthcare facilities, except when these are goods for sale; foodstuffs, utensils, assets serving meals during work hours for staff;

b) Kindergartens, schools, and equipment, facilities, items belonging to these institutions, if these are not goods for sale by the agency or organization;

c) Equipment, facilities ensuring occupational safety, fire prevention, environmental pollution control;

d) Office premises.

Article 51. Decision on Forced Execution by Seizing Assets

1. A decision on forced execution by seizing assets must clearly state the date, month, and year of issuance; the basis for issuing the decision; the name, position (rank), and unit of the person issuing the decision; the name, place of residence, and headquarters of the individual or organization whose assets are to be seized; the amount of fine; the location of seizure; the signature of the person issuing the decision, and the seal of the issuing authority.

2. The seizure of assets must be notified to the individual or organization whose assets are to be seized, the People's Committee of the commune where that person resides or the organization with its headquarters located in the area, or the agency where that person works, five days prior to the enforcement of the forced execution, except in cases where the notification would hinder the seizure process.

Article 52. Procedures for Implementing the Seizure of Assets

1. The seizure of assets must be carried out during daytime hours and within administrative working hours applicable at the location where the assets are to be seized.

2. The person issuing the enforcement decision or the person assigned to implement the enforcement decision shall lead the asset seizure.

3. When carrying out the seizure of assets, there must be present the individual subject to forced execution or an adult member of their family representing the organization whose assets are to be seized, representatives of local authorities, and witnesses.

If the individual responsible for enforcing the decision on forced execution or an adult member of their family intentionally absents themselves, the seizure of assets shall still proceed but must have representatives of local authorities and witnesses present.

4. The enforcement subject has the right to request which assets should be seized first. The person in charge of the seizure must accept such requests if they do not affect the enforcement.

If the enforcement subject does not specifically request which assets should be seized first, personal property will be seized first.

5. Only common assets owned by the individual subject to forced execution and another person shall be seized if the individual subject to forced execution does not have personal assets or if their personal assets are insufficient to enforce the decision on forced execution. In cases where there is a dispute over the asset, the seizure shall still proceed and the co-owners of the seized asset shall be informed about their right to initiate legal proceedings under civil litigation procedures.

The authority conducting the seizure has the responsibility to publicly announce the time and location of the seizure so that co-owners are aware. After three months from the date of seizure, if no lawsuit is initiated, the seized asset will be auctioned off according to the provisions of the law on asset auctions.

6. Within thirty days from the date of seizure of assets, if the individual subject to forced execution of an administrative tax decision fails to pay the outstanding tax and penalties, the tax authority may sell the seized asset through auction to recover the outstanding tax and penalties.

Article 53. Record of Asset Seizure

1. The seizure of assets must be recorded in a record. The record must include the time and location of the seizure; the name and position of the person in charge of implementing the seizure; the representative of the organization subject to forced execution whose assets are being seized, the individual with assets being seized, or their legal representative; the witness; the representative of local authorities (or the agency of the individual subject to forced execution); a description of the name, condition, and characteristics of each seized asset.

2. The person in charge of implementing the seizure; the representative of the organization subject to forced execution whose assets are being seized, the individual with assets being seized, or their legal representative; the witness; the representative of local authorities (or the agency of the individual subject to forced execution) must sign the record. In case someone is absent or refuses to sign the record while present, this fact must be noted in the record along with the reason.

3. The record of asset seizure is made in two copies, one copy retained by the authority issuing the decision on forced execution, and one copy handed over to the individual whose assets are being seized or the representative of the organization subject to forced execution immediately after completing the record of asset seizure.

Article 54. Custody of Seized Assets

1. The person in charge of executing the seizure shall choose one of the following forms to preserve the seized assets:

a) Entrust the person subject to compulsory execution, relatives of the person subject to compulsory execution, or the person currently managing or using the asset to preserve it;

b) Entrust one of the co-owners to preserve it if the asset is jointly owned;

c) Entrust an organization or individual with conditions for preservation.

2. For assets such as gold, silver, precious metals, gemstones, foreign currencies, they shall be temporarily managed by the State Treasury; for assets like industrial explosives, support tools, items of historical, cultural value, national treasures, antiques, rare forest products, they shall be temporarily managed by specialized state management agencies.

3. When entrusting the custody of seized assets, the person in charge of implementing the seizure must prepare a record detailing: the date, month, year of handing over custody; the name of the person in charge of enforcing the coercive decision, the individual or representative of the organization being coerced, the person entrusted with asset custody, and the witness to the handover; the quantity and condition (quality) of the assets; the rights and obligations of the person entrusted with asset custody.

The person in charge of implementing the seizure, the person entrusted with asset custody, the individual or representative of the organization being coerced, and the witness must sign on the record. In case any party is absent or refuses to sign the record while present, this fact must be noted in the record along with the reason.

The record is handed over to the person entrusted with asset custody, the individual or representative of the organization being coerced, the witness, and the person in charge of implementing the seizure, each keeping a copy.

4. The person entrusted with the custody of the asset is entitled to reimbursement for actual and reasonable expenses incurred for the custody of the asset, except for those specified in point a of Clause 1 of this Article.

5. If the person entrusted with asset custody causes damage, theft, loss, or destruction of the assets, they shall bear responsibility for compensation and, depending on the nature and degree of violation, be subject to administrative penalties under this Decree or criminal liability according to criminal law.

Article 55. Valuation of Seized Assets

1. The valuation of seized assets shall be conducted at the residence of the individual or the office of the organization being seized or at the location where the seized assets are stored (except in cases requiring the establishment of a Valuation Committee).

2. Seized assets shall be valued based on the agreement between the person in charge of enforcing the coercive decision and the representative of the organization or individual being coerced and the co-owner in the case of joint property seizure. The time limit for parties to agree on the price does not exceed five working days from the date of seizure.

For seized assets valued at less than 500,000 VND or those prone to rapid deterioration, if the parties cannot agree on the price, the authority issuing the coercive decision shall be responsible for valuing the assets.

3. In cases where seized assets are valued at 500,000 VND or more and are difficult to value or the parties cannot agree on the price, within fifteen days from the date of seizure, the person who issued the coercive decision shall request the competent authority to establish a Valuation Committee, with the person issuing the coercive decision serving as Chair, representatives from financial agencies and related professional bodies as members.

Within seven working days from the date of establishment, the Valuation Committee must conduct the valuation. The individual whose assets were seized or the representative of the organization with seized assets may provide opinions on the valuation, but the final determination of the value rests with the Valuation Committee.

The valuation of assets is based on market prices at the time of valuation. For assets subject to unified government pricing, the valuation is based on the government-set price of the asset.

4. The valuation of assets must be recorded in a record, which includes the time and place of the valuation, the participants in the valuation, the name and value of the assets that have been valued, the signatures of the participants in the valuation, and the owner of the assets.

Article 56. Competence to establish the Asset Valuation Council

1. The Chairman of the People's Committee at the district level shall decide on the establishment of the Asset Valuation Council for cases where administrative enforcement falls within the jurisdiction of state management agencies at the district and commune levels.

2. The Chairman of the People's Committee at the provincial level shall decide on the establishment of the Asset Valuation Council for cases where administrative enforcement falls within the jurisdiction of state management agencies at the provincial level.

3. The establishment of the Asset Valuation Council in central agencies shall be decided by the Minister of the principal ministry, after reaching consensus with the Minister of Finance and relevant ministries and sectors.

Article 57. Tasks of the Asset Valuation Council

1. Studying and proposing the organization and content of the Asset Valuation Council meeting.

2. Preparing necessary documents for asset valuation.

3. Conducting asset valuation.

4. Drafting the minutes of asset valuation.

Article 58. Transfer of Seized Assets for Auction

1. For seized assets intended for auction, based on the value of the assets determined according to Article 55 of this Decree, within thirty days from the date of the decision to seize, the person in charge of enforcement shall sign a power of attorney contract for auction with organizations having the function of conducting auctions to organize the auction of the assets as follows:

a) For seized assets with a determined value under ten million dong, the person in charge of enforcement shall sign a power of attorney contract for auction with the financial agency at the district level to organize the auction;

b) For seized assets with a determined value over ten million dong, the person in charge of enforcement shall sign a power of attorney contract for auction with the Provincial Auction Service Center where the assets are located to organize the auction.

2. The Minister of Finance shall guide the determination of the starting price for auctioning the assets specified in points a and b of Clause 1 of this Article.

3. The transfer of seized assets to the responsible agency for auction must be recorded in a protocol. In the protocol, it must clearly state: the date of transfer; the transferor and transferee; signatures of the transferor and transferee; quantity and condition of the assets. The handover file for seized assets to the responsible agency for auction includes: the enforcement seizure decision; related documents concerning lawful ownership and lawful use rights (if any); the asset valuation document and the handover protocol.

4. In cases where seized assets are bulky goods or in large quantities and the Provincial Auction Service Center or the financial agency at the district level does not have storage facilities, after completing the handover procedures, a storage contract may be signed with the current holder of the assets. The costs for implementing the storage contract shall be paid from the proceeds of the auction sale.

5. When seized assets have been transferred to the responsible agency for auction, the auction process shall be carried out in accordance with the current laws on auctioning assets.

6. For jointly owned assets, when auctioned, preference shall be given to co-owners.

7. If the proceeds from the auction of seized assets exceed the amount stated in the penalty decision and the costs of enforcement measures, within ten days from the date of the auction, the agency enforcing the seizure auction shall proceed to return the excess amount to the person or entity subject to enforcement.

Article 59. Transfer of Ownership Rights to Property

1. The buyer of the seized asset recognized and protected by law shall enjoy ownership rights over the asset.

2. The competent state authority shall be responsible for processing the transfer of ownership rights to the buyer in accordance with the law.

3. The file for transferring ownership rights includes:

a) A copy of the administrative enforcement decision to seize property for auction.

b) The auction protocol;

c) Other relevant documents concerning the asset (if any).

Section 5: ENFORCEMENT BY MEANS OF COLLECTING MONEY AND PROPERTY FROM THE SUBJECT OF ENFORCEMENT HELD BY OTHER ORGANIZATIONS AND INDIVIDUALS

Article 60. Scope of Application of Measures to Collect Money and Property from the Subject of Enforcement Held by Third Parties

The measures to collect money and property from the subject of enforcement held by other organizations or individuals (hereinafter referred to as third parties) shall be applied when the following conditions are met:

1. The tax authority cannot apply the enforcement measures prescribed in points a, b, and c of Clause 1, Article 93 of the Law on Tax Administration or has already applied such measures but still has not collected the full amount of overdue taxes and fines.

2. The tax authority has grounds to determine that the third party holds a debt owed to the subject of enforcement or retains money and property belonging to the subject of enforcement.

Article 61. Principles for Collecting Money and Property from Third Parties Holding Property of the Subject of Enforcement

1. The third party owes a debt due to the subject of enforcement or retains money, property, or goods of the subject of enforcement.

2. In cases where the money or property of the subject of enforcement held by the third party is the object of security transactions or bankruptcy proceedings, the collection of money and property from the third party shall be carried out in accordance with the provisions of the law.

3. The amount of money paid by the third party into the state budget on behalf of the subject of enforcement shall be determined as the amount already paid to the subject of enforcement.

Based on the receipt of money and property from the third party, the competent authority implementing the enforcement shall notify the subject of enforcement and relevant agencies.

Article 62. Responsibilities of Third Parties Owning Debts or Retaining Money and Property of the Subject of Enforcement

1. Provide the tax authority with information about the debt or money and property retained by the subject of enforcement, specifying the amount of money, payment deadline, type of property, quantity of property, and condition of the property.

2. Upon receiving a request from the tax authority, do not transfer money or property to the subject of enforcement until the payment into the state budget or the transfer of property to the tax authority for auction procedures has been completed.

3. If unable to comply with the tax authority's request, must provide a written explanation to the tax authority within five working days from the date of receipt of the tax authority's request.

4. Organizations or individuals holding debts or retaining money and property of the subject of enforcement who fail to pay the enforced tax amount on behalf of the subject of enforcement within fifteen days from the date of receipt of the tax authority's request shall be subject to enforcement measures as stipulated in Clause 1, Article 93 of the Law on Tax Administration.

Section 6: ENFORCEMENT BY MEANS OF WITHDRAWING TAX IDENTIFICATION NUMBER, SUSPENDING USE OF INVOICES; WITHDRAWING BUSINESS REGISTRATION CERTIFICATE OR ESTABLISHMENT LICENSE AND OPERATIONS LICENSE

Article 63. Procedure for Applying Enforcement Measures

1. The enforcement measures provided for in this Section shall be implemented when the tax authority has applied the enforcement measures prescribed in points a, b, c, and d of Clause 1, Article 93 of the Law on Tax Administration but still has not collected the full amount of overdue taxes and fines.

2. When implementing the enforcement measures provided for in this Section, the competent state management agency must publicly announce it through mass media.

Article 64. Compulsory Measures for Withholding Tax Registration Numbers and Suspending the Use of Invoices

The heads of tax authorities at all levels shall apply compulsory measures for withholding tax registration numbers and suspending the use of invoices in accordance with the provisions of Article 94 of the Law on Tax Administration. When applying these compulsory measures, the heads of tax authorities at all levels must notify the subject of compulsion in writing three working days before recovering the tax registration number and issuing a decision to recover the tax registration number and suspend the use of invoices within ten days from the date of delivering the notification to the subject of compulsion.

Article 65. Compulsory Measures for Withholding Business Registration Certificates or Licenses for Establishment and Operation, and Professional Practice Licenses

When applying compulsory measures to withhold business registration certificates or licenses for establishment and operation, and professional practice licenses against taxpayers, the tax authority must send a written request to the competent state management agency to recover the business registration certificate, license for establishment and operation, and professional practice license within three days from the date of identifying the subject as being subject to compulsory measures.

Within ten days from the date of receiving the notification from the tax authority, the competent state management agency must issue a decision to recover the business registration certificate or license for establishment and operation, and professional practice license, or notify the tax authority about not recovering them.

Chapter III

IMPLEMENTING PROVISIONS

Article 66. Effective Date

1. This Decree takes effect from July 1, 2007. In cases where international treaties to which the Socialist Republic of Vietnam is a member provide provisions on handling violations of tax laws and enforcing administrative decisions on taxes that differ from the provisions of this Decree, such provisions shall be implemented according to the provisions of those international treaties.

2. Repeal Decree No. 100/2004/NĐ-CP dated February 25, 2004 of the Government on penalties for violations of tax laws.

3. Handling of tax law violations that occurred before the effective date of this Decree shall be carried out in accordance with the provisions of the laws in force at that time.

If the penalty level for the same violation prescribed in this Decree is lighter than the penalty level prescribed in previously issued regulatory legal documents prior to the effective date of this Decree, then the penalty level prescribed in this Decree shall be applied, including cases where the violation has been documented but the competent authority has not yet issued a handling decision or has issued a handling decision but it is still within the appeal period.

4. Other provisions regarding handling violations of tax laws and enforcing administrative tax decisions not specified in this Decree shall be implemented in accordance with the provisions of laws on handling administrative violations and other relevant laws.

Article 67. Guidance and Implementation Organization

The Ministry of Finance shall guide and organize the implementation of this Decree and coordinate with state agencies, political organizations, political-social organizations, social organizations, and occupational associations to publicize, educate, and mobilize the people to implement and supervise the implementation of this Decree.

Article 68. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct control of the central government, and related organizations and individuals shall be responsible for implementing this Decree./.