On 26 November 2019, the National Assembly issued Resolution No. 94/2019/QH14 on tax debt relief, elimination of penalties and late payment of taxes of taxpayers who are unable to fulfil the tax to the State budget (“the Resolution No. 94”). The Resolution takes effect from 01 July 2020 and is implemented within 3 years from the effective date.
According to Article 4 of the Resolution No. 94 stated that the subjects who are not unable to pay the debt of taxes, including taxpayers owing taxes, penalties for late payment, and late payment in one of the cases as below, arising before 1 July 2020:
- The taxpayer who has died, declared as dead, missed or incapable of civil behaviour.
- The taxpayer has issued a decision on dissolution and sent it to the tax authority, the business registration authority for dissolution procedures, and the business registration authority has notified on the system of National information of enterprise registration that the taxpayers are processing their dissolution procedure which has not been completed.
- The taxpayer has filed a request for the opening of bankruptcy procedures or has been lodged by the person with concerned rights and obligations in accordance with the bankruptcy law.
- Taxpayers no longer conduct business activities at registered business addresses with business registration offices and tax administration agencies in coordination with People’s Committees of communes, wards where taxpayers are headquartered for checking and verifying information about taxpayers and find out that they are not operating at the registered business address or contact address registered with tax administration agencies.
- The taxpayers have been requested by the tax administration agency to the business registration offices for revoking the business registration certificate, operation license or practising license or taxpayers have been revoked their business registration certificate, operation license or practising license as requested by the tax administration agency.
- Taxpayers suffer material damage due to natural disasters, disasters, epidemics, fires and unexpected accidents.
- Taxpayers supplying goods and services are paid directly with the State budget, including subcontractors specified in contracts signed with investors and directly paid by the investor but not yet paid.
In addition, the Resolution contains specific states on the principles of tax debt settlement, debt settlement measures and jurisdiction of debt settlement for enterprises and organizations.
