Integrated Document No. 16/VBHN-BTC dated October 21, 2016 of the Ministry of Finance integrates the Decree [1] on penalties for tax offences and enforcement of administrative tax decisions

THE MINISTRY OF FINANCE 

Integrated Document No. 16/VBHN-BTC dated October 21, 2016 of the Ministry of Finance integrates theDecree[1]on penalties for tax offences and enforcement of administrative tax decisions

The Government s Decree No. 129/2013/ND-CP dated October 16, 2013 on administrative penalties for tax offences and enforcement of tax decisions, which comes into force from December 15, 2013, is amended by:

The Government s Decree No. 100/2016/ND-CP dated July 01, 2016 providing guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration, which comes into force from July 01, 2016.

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

Pursuant to the Law on Actions against administrative penalties dated June 20, 2012;

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

Pursuant to the Law on the amendments to the Law on Tax administration dated November 20, 2012;

At the request of the Minister of Finance;

The Government promulgates a Decree on administrative penalties for tax offences and enforcement of administrative tax decisions[2],

Chapter 1

ADMINISTRATIVE PENALTIES FOR TAX OFFENCES

SECTION 1. GENERAL PROVISIONS

Article 1. Scope and subjects of administrative penalties for tax offences

1. Scope of regulation:

This Chapter provides for tax offences, penalties, remedial measures, the power to impose penalties and implement decisions on imposition of administrative penalties for tax offences.

Administrative tax offences include violations against the Law on Tax administration, the Law on the amendments to the Law on Tax administration (hereinafter referred to as the Law on Tax administration); taxes, land rents, water surface rents, land levy; revenues from mineral extractions and other government revenues collected by tax authorities as prescribed by law.

This Decree does not apply to administrative violations pertaining to fees, charges, invoices, and tax offences related to exports and imports.

In the cases where an international agreement to which Vietnam is a signatory prescribes administrative penalties for tax offences differently from this Decree, such international agreement shall prevail.

2. Subjects of administrative penalties for tax offences

a) Taxpayers that commit administrative tax offences;

b) Credit institutions defined by the Law on credit institutions (hereinafter referred to as “credit institutions”) that commit administrative tax offences;

c) Relevant organizations and individuals;

Article 2. Statute of limitation

1. The time limit for imposing penalties for a violation against tax procedures is 02 years from the day on which the violation is committed. The day on which the violation is committed is the day succeeding the deadline for completion of tax procedures specified in the Law on Tax administration. For electronic tax procedures, the day on which the violation is committed is the day succeeding the deadline for completion of tax procedures specified by a competent authority.

2. The time limit for imposition of penalties for tax evasion that is not liable to criminal prosecutions, understatement of tax payable or overstatement of tax refund is 05 years from the day on which the violation is committed.

The day on which the aforesaid violation is committed is the day succeeding the deadline for submitting the tax return on which tax is overstated, evaded, falsified or the day succeeding the issuance date of the decision on tax refund, tax exemption or tax reduction.

3. Where an individual has been charged or prosecuted, or a decision to bring the individual to criminal proceedings has been issued and then a decision to suspend the investigation or the case is issued, tax offences are suspected, the authority that issued the decision to suspend the investigation or the case shall send the decision together with the case file to the authority authorized to impose penalties for tax offences within 03 days from the day on which the decision on suspension was issued. In this case, the time limit for penalty imposition shall comply with Clause 1 and Clause 2 of this Article. The period during which the case is examined is included to the time limit for imposing penalties for administrative violations.

4. Time limit for collecting tax arrears

After the deadline for imposing penalties for administrative tax offences, the taxpayer will be exempt from penalties but still have to pay the outstanding tax and late payment interest accrued over the previous 10 years from the day on which the offence is discovered. The taxpayer that fails to apply for tax registration shall pay the outstanding tax and late payment interest accrued over the period before the offence is discovered.

Article 3. Penalties for administrative tax offences

1. Warnings.

A warning shall be given if the offence is not severe, under mitigating circumstances and is liable to receive a warning as prescribed.

2. Fines

a) For violations against tax procedures:

A fine of up to 200 million VND shall be imposed upon an organization that violates tax procedure. The maximum fine imposed upon an individual that violates tax procedures is 1/2 the maximum fine imposed upon an organization according to the Law on Actions against administrative violations.

The fines specified in Articles 5, 6, 7, 8 and 9 of this Decree are imposed upon organizations. The fines imposed upon individuals are 1/2 of those. Households shall incur the same level of fines as individuals.

When imposing a fine for a violation against tax procedure, it is the average level of the fine bracket for such violation. For every aggravating circumstance or mitigating circumstance, the average fine shall be respectively increased or decreased by 20%.

A mitigating circumstance shall cancel out an aggravating circumstance and vice versa. The fine must not be reduced below the minimum level of the fine bracket and must not be increased over the maximum level of the fine bracket.

b) For understatement of tax payable or overstatement of tax refund: a fine of 20% of the outstanding tax or tax refund shall be imposed, regardless the taxpayer is an organization or an individual.

c) For tax evasion: a fine of 1 - 3 times of the evaded tax shall be imposed. The fines specified in Article 11 of this Decree are imposed upon organizations. The fines imposed upon individuals are 1/2 of those.

d) A fine in proportion to the amount that is not transferred to government budget shall be imposed for the offences specified in Article 12 of this Decree.

Article 4. Cases in which penalties for administrative tax offences are exempt

1. The cases specified in Article 11 of the Law on Actions against administrative violations.

2. The taxpayer has corrected the misstatement and fully paid tax before the tax authority issues a decision on inspection visit.

SECTION 2. ADMINISTRATIVE TAX OFFENCES, PENALTIES, AND REMEDIAL MEASURES

Article 5. Penalties for late submission of the application for tax registration and late notification of changes in the application for tax registration

1. A warning shall be imposed for submitting the application for tax registration or notifying changes in the application for tax registration to the tax authority 01 - 10 days behind schedules with mitigating circumstances.

2. A fine of from 400,000 VND to 1,000,000 VND shall be imposed for submitting the application for tax registration or notifying changes in the application for tax registration to the tax authority 01 - 30 days behind schedule (except for the case specified in Clause 1 of this Article).

3. A fine of from 800,000 VND to 2,000,000 VND shall be imposed for any of the offences below:

a) Submitting the application for tax registration or notifying changes in the application for tax registration more than 30 days behind schedule.

b) Failure to notify changes in the application for tax registration.

c) Failure to submit the application for tax registration without incurring tax.

Article 6. Penalties for providing insufficient information in the tax return

If the incorrect or insufficient provision of information in the tax return specified in Article 31 of the Law on Tax administration (unless the taxpayer is permitted to make a supplementary tax return) is discovered after the deadline for submitting the tax return:

1. A fine of from 400,000 VND to 1,000,000 VND shall be imposed for making a tax return with insufficient or incorrect information on the list of sale invoices for purchased/sold goods/services or on other documents related to tax liability.

2. A fine of from 600,000 VND to 1,500,000 VND shall be imposed for making a tax return with insufficient or incorrect information on invoices and other documents related to tax liability.

3. A fine of from 800,000 VND to 2,000,000 VND shall be imposed for making a tax return with insufficient or incorrect information on the tax return or annual tax return.

4. A fine of from 1,200,000 VND to 3,000,000 VND shall be imposed for any of the offences below:

a) Commitment of the offences specified in Clause 5 Article 10 and Clause 7 Article 11 of this Decree;

b) Understatement of tax payable in the quarterly tax return before the deadline for submitting the annual tax return.

Article 7. Penalties for late submission of the tax return

1. A warning shall be given for late submission of the tax return 01 - 05 days behind schedule under mitigating circumstances.

2. A fine of from 400,000 VND to 1,000,000 VND shall be imposed for late submission of the application for tax registration 01 - 10 days behind schedule (except for the case specified in Clause 1 of this Article).

3. A fine of from 800,000 VND to 2,000,000 VND shall be imposed for late submission of the application for tax registration 10 - 20 days behind schedule.

4. A fine of from 1.200,000 VND to 3,000,000 VND shall be imposed for late submission of the application for tax registration 20 - 30 days behind schedule.

5. A fine of from 1,600,000 VND to 4,000,000 VND shall be imposed for late submission of the application for tax registration 30 - 40 days behind schedule.

6. A fine of from 2,000,000 VND to 5,000,000 VND shall be imposed for any of the offences below:

a) Submitting the tax return 40 - 60 days behind schedule;

b) Submitting the tax return 90 days behind schedule without incurring tax;

c) Failure to submit the application for tax registration without incurring tax;

d) Submitting the quarterly tax return 90 days behind schedule before the deadline for submitting the annual tax return.

7. The deadline for submitting the tax return specified in this Article is the extended deadline specified in Article 33 of the Law on Tax administration.

8. The fines specified in this Article shall not apply to the cases in which the deadline for submitting the tax return or paying tax is extended as prescribed by tax administration laws.

9. Apart from incurring the penalties specified in Clauses 1, 2, 3, 4, 5, 6 of this Article, the taxpayer shall pay a late payment interest if the late submission of the tax return leads to late payment of tax as prescribed by law.

Article 8. Penalties for violations against regulations on providing information related to the determination of tax liability

The violations against regulations on providing information related to the determination of tax liability that do not lead to insufficient tax payment or tax evasion shall incur the penalties below:

1. A fine of from 400,000 VND to 1,000,000 VND shall be imposed for any of the offences below:

a) Provision information, documents, and legal documents related to tax registration at the request of the tax authority 05 working days behind schedule or more;

b) Provision of information, documents, and accounting books related to tax calculation at the request of tax authority 05 working days behind schedule or more;

c) Provision of incorrect information, documents, and accounting books related to tax calculation at the request of the tax authority.

2. A fine of from 800,000 VND to 2,000,000 VND shall be imposed for any of the offences below:

a) Failure to provide adequate and correct information, documents, receipts, invoices, and accounting books related to tax calculation, the account numbers, deposit account balance to competent authorities on request.

b) Failure to provide adequate and correct data or information about the tax liability that must be registered that does not lead to reduction in tax liability;

a) Failure to provide adequate and correct information and documents related to the deposit accounts at credit institutions, State Treasuries, and debts owed by third parties within 03 working days from the day on which the request of the tax authority is received.

Article 9. Penalties for violations against regulations on implementation of decisions on tax inspections, enforcement of administrative tax decisions

1. A fine of from 800,000 VND to 2,000,000 VND shall be imposed for any of the offences below:

a) Refusal to receive the decision on inspection or enforcement of administrative tax decisions;

b) Failure to implement the decision on tax inspection within 03 working days from the deadline for implementation;

c) Denying, delaying, avoiding providing documents, invoices, receipts, accounting books related to tax liability within 06 working hours since the receipt of the request from of the competent authority during the inspection visit;

d) Failure to provide accurate information, documents, accounting books related to tax liability at the request of the competent authority during the inspection visit.

2. A fine of from 2,000,000 VND to 5,000,000 VND shall be imposed for any of the offences below:

a) Failure to provide information, documents and accounting books related to determination of tax liability at the request of the competent authority during the inspection visit;

b) Failure to implement or to correctly implement the decision on sealing documents, safes, warehouses, materials, machinery, equipment, workshops which is the basis for verifying tax liability;

c) Breaking or changing the seal of the competent authority without permission;

d) Failure to sign the inspection record within 05 working days from the receipt of the inspection record;

dd) Failure to implement the verdict on tax inspection or decision on enforcement of administrative tax decisions given by the competent authority.

Article 10. Penalties for understatement of tax payable or overstatement of refundable tax

1. Cases of understatement of tax payable and overstatement of refundable tax include:

a) The taxpayer understates the amount of tax payable or overstates the amount of tax refunded, exempted or reduced but the operations that incur tax are sufficiently recorded in accounting books, invoices and receipts;

b) The taxpayer mentioned in Point a Clause 1 of this Article has paid the outstanding tax when the understatement or overstatement is discovered by a competent authority before a tax offence record is made by the competent authority or a tax inspection record is made by the tax authority;

c) The false statement of the taxpayer has been confirmed and considered tax evasion by the tax inspector but it is the taxpayer’s first offence under mitigating circumstances and the taxpayer has voluntarily paid tax before a decision on penalties is issued by a competent authority. In this case, the tax authority shall make a record on insufficient tax declaration.

d) Illegal invoices and receipts are used for recording values of purchased goods and services in order to reduce the amount of tax payable or increase the amount of tax refunded, exempted or reduced but the buyer proves that the sellers are responsible for the use of illegal invoices and the purchases have been fully accounted for by the buyer.

2. The fine for any of the offences specified in Clause 1 of this Article is 20% of the outstanding tax, the excess refund, reduction, or exemption of tax as prescribed by tax laws.

3. The tax authority shall calculate outstanding tax, the number of days of late payment, late payment interest, fines and issue a decision on administrative penalties for tax offence.

4. In the cases specified in Clause 1 of this Article, the outstanding tax and late payment interest shall be paid to government budget in addition to the fines specified in Clause 2 of this Article.

5. In the cases where the taxpayer’s false statement does not lead to an increase in tax payable or a decrease in tax exempted or reduced, or tax has not been refunded, no penalty shall be imposed as prescribed in this Article and Clause 4 Article 6 of this Decree shall apply.

Article 11. Penalties for tax evasion and tax fraud

The taxpayer that evades tax according to Article 108 of the Law on Tax administration shall incur a fine imposed upon the amount of tax evaded as follows:

1. A fine equal to the amount of tax evaded shall be imposed if tax evasion is the taxpayer’s first offence and does not fall within the cases specified in Article 10 of this Decree, or it is the taxpayer’s second offence under at least 02 mitigating circumstances when the taxpayer commits any of the following offences:

a) Failure to submit the application for tax registration; failure to submit the tax return or to submit the tax return within 90 days from the deadline for tax return submission specified in Clauses 1, 2, 3 and 5 Article 32 of the Law on Tax administration or from the extended deadline for tax return submission specified in Article 33 of the Law on Tax administration, except for the cases specified in Clause 6 Article 7 of this Decree;

b) Use of illegal or invalid invoices and documents in preparation of the tax return that results in a decrease in tax payable or an increase in the amount of tax refunded, exempted or reduced;

c) Making out false documents about the destruction of goods that results in a decrease in tax payable or an increase in the amount of tax refunded, exempted or reduced;

d) Issuance of sale invoices that contain incorrect quantities or values to understate tax;

dd) Failure to record the taxable revenues in accounting books; Failure to make statements or to make correct statements that results in a decrease in tax payable or an increase in the amount of tax refunded, exempted or reduced;

e) Failure to issue invoices when selling goods or services; writing lower values of goods than the actual values on invoices that are discovered after the deadline for tax return submission;

g) Using tax-free goods, goods eligible for tax exemption for improper purposes without reporting the change of their purposes and submitting a tax return to the tax authority;

h) Falsification or erasure he accounting books or accounting documents that results in a decrease in tax payable or an increase in the amount of tax exempted or reduced;

i) Destruction of accounting books or accounting documents that leads to a decrease in tax payable or an increase in the amount of tax exempted or reduced;

k) Use of illegal invoices and documents in other cases to miscalculate the amount of tax payable or refunded;

l) The taxpayer carries on his business during the suspension period.

2. A fine equal to 1.5 times the tax evaded shall be imposed if the taxpayer commits any of the offences specified in Clause 1 of this Article for the first time under an aggravating circumstance or commits it for the second time under a mitigating circumstance.

3. A fine equal to 2 times the tax evaded shall be imposed if the taxpayer commits any of the offences specified in Clause 1 of this Article for the second time without any mitigating circumstance or commits it for the third time under a mitigating circumstance.

4. A fine of equal to 2.5 times the tax evaded shall be imposed if the taxpayer commits any of the offences specified in Clause 1 of this Article for the second time under an aggravating circumstance or commits it for the third time without any mitigating circumstance.

5. A fine of equal to 3 times the tax evaded shall be imposed if the taxpayer commits any of the offences specified in Clause 1 of this Article for the second time under two aggravating circumstances or more, or commits it for the third time under an aggravating circumstance, or commit it for the fourth time onwards.

6. Apart from the penalties for tax evasion specified in Clauses 1, 2, 3, 4, 5 of this Article, the evaded tax shall be paid without incurring late payment interest thereon.

The tax evaded is the amount of tax payable to government budget as prescribed by law, which is discovered a competent authority and specified in the inspection record.

7. If any of the offences specified in Points b, c, d, dd, e, g, h, i, k Clause 1 of this Article is discovered before the deadline for tax return submission or discovered thereafter but the amount of tax payable is not reduced, tax refund has not been given or the amount of tax eligible for refund or reduction is not increased, only the offences against tax procedures specified in Clause 4 Article 6 of this Decree shall be penalized.

Article 12. Penalties for administrative tax offences committed by credit institutions

A credit institution that fails to transfer tax, fines, interest on late payment of tax, interest on late payment of fines from the taxpayer’s account to the state account under the decision on enforcement made by the tax authority shall incur penalties if the account balance of the taxpayer is ample to pay such amounts at that time. Within 10 days from the deadline for making the transfer specified in Clause 2 Article 28 of this Decree, the tax authority shall make a record and issue a decision on penalty imposition. The fine is proportional to the amount of money that is not transferred to government budget specified in the decision on enforcement.

The credit institution is exempt from penalties in the cases specified in Point a Clause 1 Article 114 of the Law on Tax administration. In such cases, the tax authority still take measures for fully collecting tax, interest of late payment of tax, fine and interest on late payment of fine from the taxpayer.

Article 13. Penalties for administrative violations committed by relevant organizations and individuals

1. A fine of from 2,500,000 VND to 5,000,000 VND shall be imposed upon an individual, from 5,000,000 VND to 10,000,000 VND upon an organization that collaborates, conceals the tax evasion of the taxpayer, fails to implement the decision on enforcement (except for the failure to transfer money from the taxpayer’s account specified in Article 12 of this Decree). Criminal prosecution shall be initiated if signs of criminal offences are found.

2. An organization or individual that fails to provide information or provides insufficient information about tax payable by the taxpayer, the taxpayer’s account at credit institutions or State Treasuries shall face the penalties specified in Clause 1 of this Article.

3.[3]The guarantor shall pay tax, late payment interest, fines and interest on late payment of fines (if any) on the taxpayer behalf’s in accordance with the guarantee agreement if the taxpayer fails to pay them.

If the guarantor fails to pay outstanding tax, late payment interest, fines and interest on late payment of fines (if any) on the taxpayer behalf’s in accordance with the guarantee agreement when the taxpayer fails to pay or fully pay them by the deadline imposed by the tax authority, the guarantor shall pay an interest at 0.03% per day on the unpaid amounts and the payment of such amounts shall be enforced in accordance with Clause 3 Article 18 and Article 19 of this Decree. The procedures for taking enforcement measures against guarantors are similar to those applied to taxpayers.

SECTION 3. POWER TO IMPOSE PENALTIES, EXEMPT, REDUCE FINES FOR ADMINISTRATIVE TAX OFFENCES

Article 14. The power to impose penalties for administrative tax offences of tax authorities

1. Officials of tax authorities in the performance of their duties are entitled to:

a) Give warnings;

b) Impose fines of up to 1,000,000 VND for the violations pertaining to tax procedures specified in this Decree.

2. The leader of a tax team is entitled to:

a) Give warnings;

b) Impose fines of up to 5,000,000 VND for the violations pertaining to tax procedures specified in this Decree.

3. Directors of Sub-departments of taxation, within their districts, are entitled to:

a) Give warnings;

b) Impose fines of up to 5,000,000 VND for the violations specified in Articles 5, 6, 7, 8, 9 and 13 of this Decree;

c) Impose fines for the violations specified in Articles 10, 11 and 12 of this Decree;

d) Take the remedial measures specified in Clause 4 Article 10 and Clause 6 Article 11 of this Decree.

4. Directors of Departments of taxation, within their provinces, are entitled to:

a) Give warnings;

b) Impose fines of up to 140,000,000 VND for the violations pertaining to tax procedures specified in Articles 5, 6, 7, 8, 9 and 13 of this Decree;

c) Impose fines for the violations specified in Articles 10, 11 and 12 of this Decree;

d) Take the remedial measures specified in Clause 4 Article 10 and Clause 6 Article 11 of this Decree.

5. The Director of the General Department of Taxation is entitled to:

a) Give warnings;

b) Impose fines of up to 200,000,000 VND for the violations pertaining to tax procedures specified in Articles 5, 6, 7, 8, 9 and 13 of this Decree;

c) Impose fines for the violations specified in Articles 10, 11 and 13 of this Decree;

d) Take the remedial measures specified in Clause 4 Article 10 and Clause 6 Article 11 of this Decree.

6. The power to impose penalties for violations pertaining to tax procedure of the persons mentioned in Clauses 1, 2, 3, 4, and 5 of this Article is applied to violations committed by organizations. The level of fine they may impose on individuals is 1/2 of that applied to organizations. The power to impose penalties for understatement of tax payable or overstatement of tax refunded or tax evasion is specified in Clause 2 Article 109 of the Law on Tax administration.

Article 15. The power to impose penalties for administrative tax offences of Presidents of the People’s Committees

The power to impose penalties for administrative tax offences of Presidents of the People’s Committees shall comply with regulations of law on actions against administrative violations.

Article 16. Exemption, reduction of fines for administrative tax offences; exemption and reduction procedure

1. An individual that carries a fine from 3,000,000 VND or over for administrative tax offences is entitled to request a reduction or exemption of the fine if they face special or unexpected economic difficulties due to a natural disaster, conflagration, calamity, accident, epidemic or fatal disease.

The maximum reduction is the remaining fine in the decision on penalties and shall not exceed the value of damaged property, goods or treatment cost.

2. An application for fine exemption or reduction consists of:

a) A written request for fine exemption or reduction, specifying:

- The reasons for requesting the exemption or reduction;

- The values of damaged assets and goods due to the natural disaster, conflagration, calamity, accident or epidemic and the cost of treatment for the fatal disease;

- The amount of fine incurred.

b) If the damage to property or disease treatment cost is covered by an insurer, the application must be enclosed with a notarized photocopy of the certification of insurance payout for damage or treatment cost prepared by the insurer.

c) A certification made by the People’s Committee of the commune where the taxpayer resides or where damaged property is located. In the cases where the offender is an individual who suffers from a fatal disease, it is required to have a certification of the medical facility and documents proving the treatment cost.

3. The procedures and power to decide fine exemption or reduction are specified in Clause 2 Article 77 of the Law on Actions against administrative violations.

4. No reduction of exemption shall be given if the decision on penalties for administrative tax offences has been implemented or the time limit for resolving complaints has expired as prescribed by law.

Chapter 2

ENFORCEMENT OF ADMINISTRATIVE TAX DECISIONS

SECTION 1. GENERAL PROVISIONS

Article 17. Scope of adjustment and subject of application

1. Scope of adjustment

This Chapter provides for cases of enforcement, measures for enforcement of administrative tax decisions, principles, power, procedure for taking measures for enforcement of administrative tax decisions (except for suspension of export and import procedures).

The enforcement specified in this Article is applied to administrative tax decisions, including: decision on penalties for administrative tax offences, decision on remedial measures, decisions on compensation for damage, and other administrative tax decisions as prescribed by law, notification on tax imposition, notification of outstanding tax, notification of interest on late payment of tax.

2. Subject of application

a) The organizations and individuals against which enforcement measures are taken as prescribed by the Law on Tax administration;

b) Tax authorities and tax officials;

c) The persons authorized and having responsibility to enforce administrative tax decisions;

d) Regulatory bodies, organizations and individuals involved in enforcement of administrative tax decisions.

Article 18. Cases of enforcement of administrative tax decisions

1. The cases in which an administrative tax decision is enforced:

a) A taxpayer owes tax and interest on late payment of tax over 90 days from the deadline for paying tax or the extended deadline for paying tax;

b) A taxpayer that owes tax, interest on late payment of tax and fines is suspected of liquidating his/her property or making an escape;

c) A taxpayer fails to comply with the decision on penalty imposition within 10 days from the day on which the decision is received. If the taxpayer fails to implement the decision on penalty imposition within a time limit that is longer than 10 days, the decision shall be enforced (unless it is suspended).

2. A credit institution fails to comply with the decision on administrative penalties for tax offences according to the Law on Tax administration and the Law on Actions against administrative violations.

3. In the cases where guarantee for payment of tax, interest on late payment of tax, fines and interest on late payment of fines is offered and the taxpayer fails to pay them to government budget by the deadline, the guarantor shall make pay them on the taxpayer’s behalf. If those amounts are not fully paid after 90 days from the deadline, enforcement measure will be taken against the guarantor in accordance with the Law on Tax administration and the Law on Actions against administrative violations.

4. The State Treasury fails to transfer money from the account of the entity against which the enforcement measure is taken (hereinafter referred to as “subject”) to government budget under the decision on administrative penalties for tax offences issued by the tax authority.

5. A relevant organization or individual fails to comply with the decision on penalty imposition issued by a competent authority.

6. Where the tax authority issues a decision to allow the taxpayer to pay outstanding tax and fines by installments according to the decrees elaborating the implementation of the Law on Tax administration, the Law on the amendments to the Law on Tax administration, and Article 79 of the Law on Handling administrative violations, enforcement measures shall not be taken during the payment term.

Article 19. Enforcement measures

The measures for enforcing administrative tax decisions include:

1. Forcible withdrawal of money from the subject’s account at the State Treasury or credit institution; request for account freezing.

2. Deduction from the subject’s salary or income.

3. Invalidation of invoices.

4. Foreclosure of property and selling foreclosed property at auction to collect outstanding tax, interest on late payment of tax, fines, interest on late payment of fines.

5. Collection of the subject’s money or other property held by another organization or individual.

6. Revocation of the Certificate of Business registration, Certificate of Enterprise registration, license for establishment and operation or practice certificate.

7. The application for the enforcement measures specified in Clauses 1, 2, 3, 4, 5 and 6 is specified in Sections 2, 3, 4, 5, 6, and 7 of this Chapter. If a decision to take the next measure has been issued but the conditions for taking the previous measure are satisfied, the issuer of the enforcement decision is entitled to take the previous measure to collect tax and fines in full.

In the cases where a taxpayer that owes outstanding tax, interest on late payment of tax, fines, or interest on late payment of fines is suspected of making an escape or liquidating his/her property, the person authorized to issue the enforcement decision shall take appropriate enforcement measures to ensure payment of outstanding tax.

The Ministry of Finance shall specify the procedures and time limit for each enforcement measure, for identifying taxpayers suspected of making an escape or liquidating their property.

Article 20. Sources of money and foreclosed property of subjects that are organizations

The sources of money and foreclosed property of an organization against which the enforcement measure is taken shall comply with regulations of law on penalties for administrative violations and relevant laws.

Article 21. The power to decide enforcement of administrative tax decisions

The following persons are entitled to issue decisions on enforcement of administrative tax decisions specified in Article 19 of this Decree and are responsible for organizing the enforcement thereof:

1. Directors of Sub-departments of taxations, Directors of Departments of Taxation, the Director of the General Department of Taxation are entitled to decide enforcement of administrative tax decisions and take the enforcement measures specified in Clauses 1, 2, 3, 4, 5 Article 19 of this Decree.

2. Presidents of the People’s Committees of districts and provinces are entitled to decide the enforcement of decision on penalties for administrative tax offences within their districts and provinces.

3. In the cases where an enforcement measure specified in Clause 6 Article 19 of this Decree is taken, the tax authority will request the agency that issued the Business certificates, Certificate of Business registration, license for establishment or practice certificate to revoke it.

Article 22. The power to decide enforcement of administrative tax decisions

1. The persons mentioned in Article 21 of this Decree are entitled to issue decision on enforcement of administrative tax decisions they issue or their inferiors issue without adequate resources to carry out and request the superior agency in writing to issue the decision on enforcement.

2. The Directors of Departments of Taxation shall issue enforcement decision if the subject is under the management of multiple sub-departments of taxation in the same province.

3. The Director of the General Department of Taxation shall issue the enforcement decision if the subject is under the management of multiple Departments of Taxation.

Article 23. Responsibility to implement decisions on enforcement

1. The person that issues an enforcement decision is responsible for organizing the implementation thereof.

The person that issues an enforcement decision shall immediately send it to relevant organizations and individuals and organize the enforcement thereof.

2. The organization or individual that receives the enforcement decision shall implement it and pay the cost of enforcement.

3. The People’s Committee of the commune where the subject is situated shall direct relevant agencies to cooperate with the tax authority in the enforcement of administrative tax decisions.

4. The police are responsible for assurance of order, safety and shall cooperate with the tax authority during the enforcement at the request of the person that issues the enforcement decision.

5. The organizations and individuals related to the subject shall cooperate in the enforcement at the request of the person that issues the enforcement decision.

Article 24. Time limits for implementing enforcement decisions

1. An enforcement decision is effective for 01 year from its issuance date. He decisions on enforcement of administrative tax decisions by withdrawing money from the subject’s account are effective within 30 days from its issuance date.

2. If the subject deliberately avoids or delays the implementation of the enforcement decision, its effect will be reset on the day the avoidance or delay is stopped.

3. The measures for enforcement of administrative tax decisions specified in Clause 1 of this Article are terminated when the enforced tax, interest on late payment of tax, fines, interest on late payment of fines are paid to government budget. The basis for terminating an enforcement decision is the documents proving the full payment of tax, interest on late payment of tax, fines, interest on late payment of fines to government budget that are certified by State Treasuries, tax collectors or the credit institutions that withdraw money from the subject’s account.

SECTION 2. FORCIBLE WITHDRAWAL OF MONEY FROM TAXPAYER’S ACCOUNTS; REQUEST FOR ACCOUNT FREEZING

Article 25. Subjects

The organization or individual that fails to comply with the decisions on penalty imposition, decisions on remedial measures, other administrative tax decisions or fails to pay the enforcement cost shall have money withdrawn from their accounts at credit institutions and State Treasuries.

Article 26. Verifying information about subject’s accounts

1. The taxpayer shall notify the tax authority of the account numbers and the credit institutions and State Treasuries where their accounts are opened.

2. The person entitled to issue the decision to withdraw money from the subject’s accounts at credit institutions and State Treasuries are entitled to request credit institutions and State Treasuries in writing to provide information about the subject’s account numbers and balance.

The person entitled to issue the decision on enforcement is responsible for the confidentiality of the information about the subject’s accounts, which is provided by credit institutions and State Treasuries.

Article 27. Decision on forcible withdrawal of money

1. The decision on forcible withdrawal of money must specify its issuance date, its basis, full name and workplace of the decision issuer, the amount of money being withdrawn (written on the decision on administrative penalties and the cost of enforcement until the end of the 5-day time limit before the enforcement); the reasons for withdrawal; full name, tax identification number (TIN), account numbers, names and addresses of the credit institutions where the accounts are opened; state account numbers; names, addresses of State Treasuries where state accounts are opened, method of transfer; deadline for implementation; signature and seal of the issuer of the decision on enforcement.

2. If the subject’s accounts must be frozen, the decision on enforcement must specify whether the account is fully or partially frozen, which is equal to the amount of money withdrawn from the account to enforce the tax decision.

3. The decision on enforcement by withdrawing money from accounts shall be sent to the organization or individual whose money is withdrawn, the State Treasuries and credit institutions where the accounts are opened and relevant agencies at least 05 days before the enforcement.

Article 28. Responsibilities of State Treasuries and credit institutions where the subject’s accounts opened

1. Provide necessary information about the numbers and balance of the subject’s accounts within 03 working days from the receipt of the request from the issuer of the decision on enforcement.

2. Transfer money to the state account at a State Treasury written in the decision on enforcement within 05 days from the day on which the decision on enforcement is received and notify the transfer to the agency that issued the decision on enforcement and the subject.

3. If the account balance is smaller than the amount payable, it is still transferred to the state account written in the decision on enforcement and the subject shall be notified of the transfer. The transfer shall be made without the consent of the subject.

4. The subject’s account shall be partially or fully frozen upon the receipt of the decision on enforcement (if the freezing is required by the decision on enforcement).

5. Notify the agency that issued the decision on enforcement of the expiration of the decision on enforcement while the subject’s account balance is not sufficient to implement the decision.

6. If money in the subject’s account is not transferred to government budget under the decision on enforcement, penalties for administrative tax offences shall be imposed as prescribed in Article 12 of this Decree.

Article 29. Procedures for collecting money by forcible withdrawal of money

Money in the subject’s accounts shall be withdrawn according to receipt vouchers. Receipt vouchers shall be used for transferring money withdrawn from the subject’s accounts to relevant parties.

The Ministry of Finance shall specify the time and procedures for taking the enforcement measure prescribed in this Section.

SECTION 3. FORCIBLE DEDUCTION FROM SALARIES OR INCOMES

Article 30. Subjects

The enforcement by deducting the subject’s salary or income is applied to the subjects that earn salaries or incomes paid by an organization (hereinafter referred to as “income manager”) as prescribed by law.

Article 31. Decision on forcible deduction from an individual’s salary or income

1. The decision on forcible deduction from an individual’s salary or income must specify its issuance date, name and address of the income manager; the deducted amount (written on the decision on penalties for administrative violations and enforcement cost, accrued at the end of the 5-day time limit before the enforcement), the reasons for deduction, name and address of the State Treasury to which money is transferred, the method of transfer, time of transfer; signature and seal of the decision issuer.

2. The decision on enforcement shall be sent to the individual or the income manager and relevant organizations at least 05 days before the enforcement.

Article 32. Level of deduction

1. Only the amount written in the administrative tax decision shall be deducted from the taxpayer’s salary or income.

2. The deduction is at least 10% and at most 30% of the taxpayer’s total salary and monthly allowance. Deduction from other incomes shall depend on the actual incomes, but must not exceed 50% of the total income.

Article 33. Obligations of the income manager

The income manager has the responsibility to:

1. Deduct the amount payable from the subject’s salary or income and transfer it to government budget in accordance with the decision on enforcement from the latest salary or income payment period until tax, interest on late payment of tax, fines, and interest on late payment of fines are fully paid according to the decision on enforcement, notify the transfer to the issuer of the decision on enforcement and the subject;

2. Deduct the amount payable from the subject’s salary or income and transfer it to government budget in accordance with the decision on enforcement, and notify the issuer of the decision on enforcement;

3. If the subject’s labor contract is before tax, interest on late payment of tax, fines and interest on late payment of fines are fully deducted from the salary, the employer will notify the issuer of the decision on enforcement within 05 working days from the termination date of the labor contract;

4. The income manager that deliberately avoids implementing the decision on enforcement shall face administrative penalties as prescribed in Article 13 of this Decree.

SECTION 4. ENFORCEMENT BY INVALIDATION OF INVOICES

Article 34. Subjects

Invoices shall be invalidated when all conditions below are satisfied:

1. The tax authority is not able to take the enforcement measures specified in Clause 1 and Clause 2 Article 19 of this Decree, or tax, interest on late payment of tax, fines, and interest on late payment of fines are not fully collected by the deadline imposed by the Ministry of Finance, or in the cases specified in Clause 7 Article 19 of this Decree, or at the request of the customs according to the Decrees on penalties for administrative violations and enforcement of current provisions on customs.

2. The invoices are purchased from Departments of Taxation, or printed, ordered by the organization or individual; the electronic invoices of which the issuance has been announced.

Article 35. Decision on invoice invalidation

1. A decision on invoice invalidation must specify the date of the decision, basis for issuance of the decision, full name, position and workplace of the decision issuer; full name, residence address and office address of the subject, reasons for invoice invalidation, enforcement duration, the agency organizing the implementation of the decision on enforcement, cooperating agencies, signature of the decision issuer, seal of the agency that issues the decision.

2. The notice of invoice invalidation must specify the date of the notice, the basis for issuance of the notice, full name, position, and workplace of the notice issuer, full name, residence address and office address of the subject, tax code (if any); reasons for invoice invalidation, numbers of invalidated invoices.

Article 36. Procedures for invoice invalidation

1. The head of the tax authority shall notify the subject at least 03 working days before issuing the notice of invoice invalidation.

2. When taking this measure, the tax authority must issue a decision on enforcement and announce the numbers of invalidated invoices through mass media.

3. The tax authority shall announce the termination of this enforcement measure when the subject sufficiently pays the outstanding tax, interest on late payment of tax, fines, and interest on late payment of fines to government budget (unless the time limit for implementing the decision on enforcement is over according to Clause 1 Article 24 of this Decree).

4. In the cases where the customs authority requests the tax authority to issue a decision on enforcement by invoice invalidation, the tax authority shall follow the procedures specified in Clauses 1, 2, and 3 of this Article and send it to the customs authority. The customs authority shall immediately notify the tax authority when outstanding tax, interest on late payment of tax, fines, and interest on late payment of fines are fully collected for the tax authority to announce the termination of enforcement.

The Ministry of Finance shall specify the procedures for taking this enforcement measure.

SECTION 5. FORECLOSURE OF PROPERTY, SALE OF FORECLOSED PROPERTY AT AUCTION

Article 37. Subjects

Organizations and individuals having their property foreclosed for sale at auction when they fail to voluntarily implement the administrative tax decisions or fail to pay the enforcement costs include:

1. Freelance workers without salary or income managers.

2. The organizations and individuals without accounts at credit institutions or whose account balance is not sufficient to deduct.

3. The organizations and individuals that are not subject to the enforcement measures specified in Clauses 1, 2, and 3, Article 19 of this Decree, or fines, interest on late payment of tax, fines and interest on late payment of fines are not fully collected after taking such measures, or in the cases in Clause 7 Article 19 of this Decree.

4. Property shall not be foreclosed if the taxpayer is an individual undergoing medical treatment at a legally established medical facility.

Article 38. The following types of property shall not be foreclosed

1. For individuals:

a) The only house of the subject and his/her family;

b) Drugs, food serving essential needs of the subject and his/her family;

c) Necessary working instruments as the primary or only means of subsistence of the subject and his/her family;

d) Clothes and primary appliances of the subject and his/her family;

dd) Objects of worship; relics, medals, certificates of merit.

2. For businesses:

a) Drugs, equipment, instruments and property that belong to medical facilities, unless they are for sale; food, instruments and property serving mid-shift meals of workers;

b) Kindergartens, schools and the equipment, instruments that belong to such facilities, unless they are for sale;

c) Equipment, instruments and tools for assurance of occupational safety, fire safety, and prevention of environmental pollution;

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

dd) Materials, finished products, semi-finished products being harmful chemicals banned from selling;

e) Materials and semi-finished products in a closed production line.

3. For regulatory bodies, political organizations, socio-political organizations, socio-professional organizations (hereinafter referred to as agencies and organizations) that are funded by government budget, the property bought with government budget shall not be foreclosed. The agency or organization shall request competent authorities in writing to provide financial supports to implement the decision on enforcement.

In the cases where an organization earns incomes from other legitimate operations, the property bought with such incomes shall be foreclosed, except for:

a) Drugs, equipment, instruments and property that belong to medical facilities, unless they are for sale; food, instruments and property serving mid-shift meals of officials;

b) Kindergartens, schools and the equipment, instruments that belong to such facilities, unless they are for sale;

c) Equipment, instruments and tools for assurance of occupational safety, fire safety, and prevention of environmental pollution;

d) Office premises.

Article 39. Decision on property foreclosure

1. The decision on property foreclosure must specify its issuance date, basis for decision, full name, position and workplace of the decision issuer; full name, residence address, office address of the property owner; the amount of fines, location of foreclosure, signature of the decision issuer, seal of the agency that issues the decision.

2. The property foreclosure must be notified to the property owner, the People’s Committees of the commune where the individual resides or the organization is situated at least 05 days before the enforcement, unless the notification would obstruct the foreclosure.

Article 40. Procedures for property foreclosure

1. Property shall be foreclosure in daylight and during working hours.

2. The issuer of the decision or the person assigned to sign it shall organize the foreclosure.

3. The subject or an adult in his/her family, the representative of the organization that has its property foreclosed, the representative of the local government and witnesses must be present during the foreclosure.

If the individual or adult in his family is deliberately absent, the property foreclosure will be carried out at the presence of the representative of the local governments and the witnesses.

4. The subject is entitled to decide which property to be foreclosed first. The person that organizes the foreclosure must accept such request if it does not affect the foreclosure.

If the subject does not decide which property to be foreclosed first, the property under private ownership shall be foreclosed first.

5. The property under joint ownership of the subject and other people shall only be foreclosed if the subject has no private property or his private property is not sufficient to implement the decision on enforcement. If a piece of property is under dispute, it will still be foreclosed. The joint owners of such property shall be provided with information about their rights to file lawsuits.

The agency that carries out the foreclosure shall notify the joint owners of the time and location of foreclosure. If no lawsuit is filed after 03 months from the date of foreclosure, the foreclosed property shall be sold at auction as prescribed by regulations of law on property auction.

6. If the subject fails to fully pay outstanding tax, interest on late payment of tax, fines and interest on late payment of fines within 30 days from the date of foreclosure, the tax authority is entitled to sell the foreclosed property at auction to collect such amounts.

Article 41. Record on property foreclosure

1. The property foreclosure must be recorded in writing. The record on property foreclosure must specify the time and location of property foreclosure, the full name and position of the foreclosure organizer; the representative of the organization whose property is foreclosed, the individual whose property is foreclosed or his/her representative; the witnesses; the representative of the local governments (or the workplace of the individual); names, condition, and characteristics of all foreclosed property.

2. The foreclosure organizer, the representative of the organization whose property is foreclosed, the individual whose property is foreclosed or his/her representative; the witnesses, the representative of the local governments (or the workplace of the individual) shall sign the record. If one of them is absent or refuses to sign the record, the absence or refusal and its reasons must be written in the record.

3. The record on foreclosure shall be made into 02 copies. 01 copy is kept by the agency that issues the decision on enforcement, 01 copy is sent to the individual or organization whose property is foreclosed right after the record is made.

Article 42. Transfer of foreclosed property

1. The foreclosure organizer shall select one of the following methods to preserve the foreclosed property:

a) Request the subject or his/her family or property manager or user to preserve them;

b) Request one of the joint owners to preserve the property if it is under a joint ownership;

c) Request a capable organization or individual to preserve property.

2. Property that is jewels gold, silver, precious metals, jewels or foreign currencies shall be managed by State Treasuries; Property that are being industrial explosives, gadgets, historical or cultural items, national treasures, relics or valuable forestry products shall be managed by corresponding supervisory bodies.

3. When transferring foreclosed property, the foreclosure organizer shall make a record specifying: the date of transfer, full name of the organizer, representative of the subject, the person requested to preserve property; the witnesses; quantity and condition (quality) of property; rights and obligations of the person assigned to preserve property.

The foreclosure organizer, the person assigned to preserve property, the representative of the subject, and the witnesses shall sign the record. If one of them is absent or refuses to sign the record, the absence or refusal and its reasons must be written in the record.

Each copy of the record shall be kept by the foreclosure organizer, the person assigned to preserve property, the representative of the subject and the witnesses.

4. The person assigned to preserve the property shall have the preservation cost covered, except for the persons mentioned in Point a Clause 1 of this Article.

5. In the cases where the property is damaged, swapped, lost, or destroyed, the person assigned to preserve it shall pay damages and face penalties as prescribed in this Decree or face criminal prosecution as prescribed by criminal law.

Article 43. Valuation of foreclosed property

1. The foreclosed property shall be assessed at the office of the organization or house of the individual whose property is foreclosed, or where foreclosed property is kept (unless a valuation council has to be established).

2. The foreclosed property shall be assessed under an agreement between the organizer and the representative of the subject (and the joint owner, if any). The time limit for reaching a price agreement is 05 working days from the date of foreclosure.

If an agreement on the price of the foreclosed property that is assessed at under 1,000,000 VND or quickly degenerates cannot be reached, the issuer of the decision on enforcement shall impose the price.

3. If the foreclosed property valued at 1,000,000 VND or more is hard to be assessed or the parties fail to reach an agreement on the price, the issuer of the decision on enforcement shall request the competent authority to establish a valuation council within 15 days from the date of foreclosure. The issuer of the decision on enforcement is the president of the council, the representatives of relevant finance agencies and specialized agencies are members.

Within 07 working days from the date of establishment, the valuation council shall carry out the valuation. The representative of the subject may offer opinions about the valuation, but the final decision shall be made by the valuation council.

Property shall be assessed according to current market prices at the time of valuation. The property whose prices are under the management of the State shall be assessed according to the prices imposed by the state.

4. The property valuation must be recorded in writing, specifying the time and location of valuation, participants in the valuation, names and values of the valuated property, signatures of the participants and property owners.

Article 44. Power to establish the valuation council

1. The President of the People’s Committee of the district shall decide the establishment of the valuation council if the administrative enforcement is within the competence of the government of the district or commune.

2. The President of the People’s Committee of the province shall decide the establishment of the valuation council if the administrative enforcement is within the competence of the provincial government.

3. The establishment of the valuation council at central agencies shall be decided by relevant Ministers, after reaching an agreement with the Minister of Finance and relevant Ministries.

Article 45. Tasks of the valuation council

1. Study and suggest the organization and contents of the valuation council’s meeting.

2. Prepare necessary documents for the valuation.

3. Carry out the valuation.

4. Prepare the valuation record.

Article 46. Transfer of foreclosed property for sale at auction

1. Within 03 days from the day on which the decision on foreclosure is issued, the organizer shall sign an auction contract with a professional auction organizer to sell the property at auction.

2. The transfer of the foreclosed property to the auction organizer must be recorded in writing. The record must specify: the date of transfer, the transferor, the transferee and their signatures; the quantity and condition of the property. The property transfer dossier consists of: the decision on property foreclosure, documents related to the legitimate right to ownership and right to enjoyment of the property (if any); the valuation record and transfer record.

3. If the foreclosed property is so bulky that the auction organizer cannot keep, a preservation contract may be signed with the place where the property is kept after the transfer is completed. The preservation cost shall be defrayed by the money collected from the sale of property at auction.

4. After the foreclosed property is transferred to the auction organizer, the auction shall be carried out in accordance with procedures for property auction prescribed by law.

5. If the property is under joint ownership, the joint owners shall be favored at the auction.

6. If the money collected from the auction is larger than the sum written in the decision on penalties and the enforcement cost, the difference shall be returned to the subject within 10 days from the date of auction.

Article 47. Transfer of property ownership

1. The buyer of the foreclosed property will have the ownership of such property, which is recognized and protected by law.

2. A competent state authority shall carry out the procedures for transferring the ownership to the buyer as prescribed by law.

3. An ownership transfer dossier consists of:

a) A copy of the decision on property foreclosure.

b) The auction record;

c) Other papers related to the property (if any).

SECTION 6. ENFORCEMENT BY COLLECTING THE SUBJECT’S MONEY OR PROPERTY HELD BY THIRD PARTY

Article 48. Scope

The subject’s money or property held by a third party shall be collected when all the conditions below are satisfied:

1. The tax authority fails to take the enforcement measures specified in Clauses 1, 2, 3, and 4 Article 19 of this Decree, or such measures have been taken but the outstanding tax, interest on late payment of tax, fines and interest on late payment of fines are not fully collected, or in the cases specified in Clause 7 Article 19 of this Decree.

2. The tax authority has evidence that a third party owes a debt to the subject or is holding the subject’s property or money.

Article 49. Rules for collecting the subject’s money or property held by the third party

1. The third party owes a due debt to the subject, or is holding the subject’s property or money.

2. If the subject’s money or property is held by a third party being a subject of secured transactions or bankruptcy, the money and property shall be collected from the third party in accordance with regulations of law on bankruptcy and secured transactions.

3. The amount of money paid to government budget by the third party on behalf of the subject is considered a payment on behalf of the subject.

The competent authority shall notify the subject and relevant agencies of such payment.

Article 50. Procedures for collecting the subject’s money/property held by the third party

1. The tax authority shall request the third party to provide information about such money/property or the debt owed to the subject. The third party shall submit a written explanation to the tax authority within 05 working days from the day on which the request of the tax authority is received if it fails to comply with the request.

2. Based on the information provided by the third party, the tax authority shall issue a decision to collect the subject’s money/property held by the third party or claim the debt owed to the subject.

The decision on enforcement must be immediately sent to the subject and the third party. The tax authority shall request the third party in writing to implement the decision on enforcement. The third party shall pay the outstanding tax, interest on late payment of tax, fines, and interest on late payment of fines on behalf of the subject, or transfer the subject’s property to the tax authority for foreclosure. The property foreclosure shall comply with Section 5 of this Chapter.

The tax authority shall implement the decision on enforcement in accordance with Article 24 of this Decree.

Article 51. Responsibilities of the third party

1. Provide the tax authority with information about the debt owed to the subject or the subject s money/property they are holding, specifying the amount of money, the deadline for repaying debt, categories, quantity and condition of property.

2. Do not return the money/property to the subject when receiving the written request of the tax authority until money is transferred to government budget or the property is transferred to the tax authority for sale at auction.

3. The third party shall submit a written explanation to the tax authority within 05 working days from the day on which the request of the tax authority is received if it fails to comply with the request.

4. The third party that fails to pay tax on the subject’s behalf within 15 days from the receipt of the request from the tax authority shall face the enforcement measures specified in Clause 1 Article 93 of the Law on Tax administration.

SECTION 7. ENFORCEMENT BY REVOCATION OF THE CERTIFICATE OF BUSINESS REGISTRATION, CERTIFICATE OF ENTERPRISE REGISTRATION, LICENSE FOR ESTABLISHMENT AND OPERATION OR PRACTICE CERTIFICATE

Article 52. Subjects

1. This enforcement measure will be taken if the outstanding tax, interest on late payment of tax, fines, and interest on late payment of fines are not fully collected after the tax authority takes the enforcement measures in Clauses 1, 2, 3, 4, 5 Article 19 of this Decree, or in the cases specified in Clause 7 Article 19 of this Decree.

2. When taking this enforcement measure, the competent state management authorities must make an announcement on the media.

Article 53. Procedures for revoking the Certificate of Business registration, Certificate of Enterprise registration, license for establishment and operation or practice certificate

The agency that issued the Certificate of Business registration, Certificate of Enterprise registration, license for establishment and operation or practice certificate shall be requested in writing by the tax authority to revoke it within 03 days from the day on which this enforcement measure is taken.

Within 10 days from the receipt of the aforementioned request, the certificate issuer shall issue a decision on revocation of the Certificate of Business registration, Certificate of Enterprise registration, license for establishment and operation or practice certificate, or notify the tax authority if they are not revoked.

Chapter 3

IMPLEMENTATION[4]

Article 54. Effect

1. This Decree takes effect on December 15, 2013.

2. The Government s Decree No. 98/2007/ND-CP dated June 7, 2007 and the Government s Decree No. 13/2009/ND-CP dated February 13, 2009 on penalties for tax offences and enforcement of administrative tax decisions are annulled.

3. The regulations on penalties, delay, exemption, reduction of fines, and other regulations on penalties for administrative tax offences that are favorable for the tax offences that are committed before this Decree takes effect and discovered afterwards shall be applied.

If the penalized entity files a complaint against a decision on penalties for administrative tax offences that is issued and implemented before this Decree takes effect, the case shall be handled in accordance with law when the violation is committed.

Article 55. Guidance on implementation

The Ministry of Finance shall provide guidance, organize the implementation of this Decree, and cooperate with other state agencies, political organizations, socio-political organizations, social organizations, socio-professional organizations in disseminating and supervising the implementation of this Decree.

Article 56. Implementationresponsibility

Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of central-affiliated cities and provinces, relevant organizations and individuals are responsible for the implementation of this Decree./.

Certification of the Integrated Document

The Deputy Minister

Vu Thi Mai

[1]This document is combined from:

- The Government s Decree No. 129/2013/ND-CP dated October 16, 2013 on administrative penalties for tax offences and enforcement of tax decisions, which comes into force from December 15, 2013:

- The Government s Decree No. 100/2016/ND-CP dated July 01, 2016 providing guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration, which comes into force from July 01, 2016.

This document does not supersede the aforementioned decrees.

[2]The Government s Decree No. 100/2016/ND-CP dated July 01, 2016 providing guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration was promulgated pursuant to:

The Law on Government organization dated December 25, 2001;

The Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration dated April 06, 2016;

[3]This Clause is amended by Article 4 of the Government s Decree No. 100/2016/ND-CP dated July 01, 2016 providing guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration, which comes into force from July 01, 2016.

[4]Article 5 of the Government s Decree No. 100/2016/ND-CP dated July 01, 2016 providing guidelines for the Law on amendments to the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration stipulates that:

 “Article 5. Effect and responsibility for implementation

1. This Decree comes into force from July 01, 2016, except for Clause 2 of this Article.

2. Clause 2 Article 3 of this Decree comes into force from September 01, 2016.

3. The Ministry of Finance shall provide guidance on implementation of this Decree.

4. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of central-affiliated cities and provinces, relevant organizations and individuals are responsible for the implementation of this Decree./.”