I. Basic Legal

Official Letter 4216/TCT-QLN
Official Letter 191/TCT-QLN 

The General Department of Taxation recognizes that the tax debt situation of Tax Departments nationwide remains high as of August 31, 2024. To ensure the completion of debt recovery targets according to Official Letter 191/TCT-QLN and to enhance the responsibilities of the Tax Departments in recovering debts for the state budget, the General Department of Taxation requests the Tax Departments of provinces and cities to implement effective tax debt recovery measures. 

II. Urging the debt recovery. 

Conduct a review and classification of tax debts according to the nature of the debt.
Implement all urging measures and publicly disclose information in accordance with the Tax Management Law and the guiding documents for its implementation to recover tax debts into the state budget, specifically as follows: 

• For taxpayers with tax debts under 90 days: the inspection and examination department is responsible for monitoring data and urging taxpayers to pay their tax debts to the state budget. 
• For taxpayers with tax debts that have been overdue for more than 30 days: the tax authority will issue a Tax Debt Notification according to Form No. 01/TTN, sending it to the taxpayer electronically or via email and through the etaxmobile application. 
• For taxpayers with tax debts overdue by more than 60 days: regularly contact the taxpayer to remind them about the payment of overdue taxes and inform them that enforcement measures will be applied when the debt exceeds 90 days. 

III. Measures for enforcement and temporary suspension of exit for cases with tax debts.

The General Department of Taxation requests that the Tax Departments implement the following measures to effectively manage tax debts:

• The tax authority will take enforcement measures immediately against taxpayers who have tax debts over 90 days or tax debts that are being enforced. If there is a tax that has been extended but not paid after the extension period, enforcement measures will be applied immediately. When the decision to enforce is no longer valid but the debt has still not been paid or not paid in full, appropriate enforcement measures continue to be applied.
• In addition, the tax authority will use a tax management system (TMS) to automate the debt enforcement process and prevent the issuance of invoices in cases where enforcement decisions have been made. The temporary suspension of exit is also applied to taxpayers with overdue tax assessments, especially in cases where they are no longer operating at the registered address.
• It is necessary to regularly review to extend or cancel the temporary exit suspension as per regulations and to update the status of the suspension on the tax management system (TMS) to ensure easy access to information.

IV. Review and resolve tax debts that are pending processing and tax debts that are pending adjustment. 

The tax authority needs to focus on promptly and correctly resolving all tax-related files that are pending, including requests for extensions, debt forgiveness, waivers for late payment fees, and installment payments for outstanding taxes. The tax declaration and accounting department will coordinate with other tax authorities to process documents and account for them in a timely manner. 

It is necessary to review the tax classification records pending adjustment, collaborate with relevant departments and taxpayers to reconcile and standardize debt data, while also addressing any discrepancies. In addition, the tax authority will send a document to the relevant agencies to expedite the processing of compensation deductions and land clearance related to land use fees and land rental fees. 

V. Review and resolve tax debts that can no longer be paid to the state budget. 

The tax authority will review and finalize the documentation for debt rescheduling and debt cancellation for taxpayers who meet the conditions set forth by the Tax Administration Law, and will submit it to the competent authorities for consideration. 

For businesses and households that are not operating at their registered address and have not submitted taxes, the tax authorities will take the following steps: 

• Propagating and encouraging taxpayers to comply with the law and pay their taxes in full. 
• Report to the local authorities and coordinate with the police to recover the debt. 
• Complete the files and transfer them to the police for cases of tax law violations. All records showing signs of tax evasion will be transferred to the investigative agency before March 1, 2025.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

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For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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