Tax debt over 3 months will be forced to withdraw money from the account

The Ministry of Finance recently issued Decision 1914 providing guidance on the use of options to handle tax arrears.

Accordingly, the General Department of Taxation has proposed solutions to implement measures to handle tax arrears in accordance with the provisions of the Law on Tax Administration.

For businesses that owe taxes for 91 days or more, the Tax Authority will forcibly withdraw money from the account and freeze the account.

One of the first measures to be applied to those who owe taxes for less than 30 days is that the tax authority will call, text, or email the business owner or legal representative to request payment of tax arrears.

In case of tax arrears of 31 days or more, the tax authority will issue 100% of tax arrears, fines and late payment notices as prescribed. This notice will be sent directly to the address of the tax debtor.

The General Department of Taxation also said that for cases where the deadline for not calculating late payment fees, tax payment extension period, and tax debt payment in installments according to the Law on Tax Administration has expired, the tax authority will issue a notice in the following month. In this case, the management agency will also organize the application of tax debt enforcement measures within the prescribed time limit.

If the tax debt notice is inconsistent with the taxpayer's accounting books, no later than 3 working days after the taxpayer's reflection, the tax authority leader must direct the reconciliation and accurate determination of the tax debt amount, and fully update the tax debt results.

For debts over 60 days old, the tax authority will issue a notice of appeal specifying the enforcement measures that will be applied if the taxpayer fails to fully fulfill their tax obligations.

In particular, among the measures proposed by the General Department of Taxation are coercive measures against businesses with tax arrears of 91 days or more.

Tax authorities will forcibly withdraw money from accounts and freeze accounts of all businesses with debts in this category.

For businesses that owe taxes for more than 121 days, the tax authority will also issue a decision to enforce the invoice to notify that it is no longer valid. After the expiration of the invoice enforcement decision (1 year), if the business has not paid or has not paid the full amount of tax debt, the tax authority will continue to issue a decision to enforce.

In addition, the measure of "naming and shaming" and publicizing information of tax debtors will continue to be applied to cases where monthly enforcement has been carried out.