By the end of 2022, there were 1,022,944 taxpayers who were rescheduled their tax debt and cancelled late payment fines. Photo: Internet

The total amount of debt rescheduling, fine and late tax payment cancellation is more than VND 37,500 billion

The Government has just sent a report to the National Assembly on the debt settlement situation according to Resolution No. 94/2019/QH14. According to the Government, on November 26, 2019, the National Assembly issued Resolution 94/2019/QH14 (Resolution 94) on rescheduling tax debt, cancelling late payment fines and late payment for taxpayers unable to pay the state budget. The Resolution has taken effect for 3 years from July 1, 2020.

According to the Resolution, taxpayers being rescheduled debt or cancelled debt are those who are dead, missing or dissolved, bankrupt, actually no longer doing business at the registered address with the tax authority, no longer able to pay tax.

In the report, the Government said that there were 1,022,944 taxpayers who were rescheduled their tax debt, and cancelled their late payment fines and late payment interest with a total amount of more than VND 37,500 billion by the end of 2022.

Specifically, by the end of 2022, the tax administration agency had rescheduled debt with 705,475 taxpayers, the total amount of tax debt rescheduled was VND 29,897 billion. Of these, there were 259,627 organizations and enterprises that rescheduled debts of VND 27,548 billion and 445,848 individuals, business individuals, households and business households with VND 2,349 billion of debt rescheduling.

At the same time, the tax administration agency has cancelled the late payment fine and interest for 317,469 taxpayers who are organizations, enterprises, individuals and business households with a total amount of VND 7,631 billion. In which, 123,224 taxpayers are organizations and businesses with a fine amount of VND 7,066 billion for late payment, and 194,245 taxpayers are individuals, business individuals, households and business households with a fine for late payment, the amount of late payment cancelled is VND 565 billion.

According to the Ministry of Finance, Resolution No. 94 requires debt settlement to ensure compliance with the provisions of the law, the right subjects, the right authority, ensure the conditions, documents, processes and procedures and responsibility of the individual concerned.

The Ministry of Finance has issued Circular No. 69/2020/TT-BTC stipulating dossiers, order and procedures for debt settlement. Accordingly, for most cases, there must be a written confirmation from the People's Committee of the commune, ward or township where the taxpayer registered the business address that the taxpayer no longer conducts production and business activities at the registered address. At the same time, the tax administration agency must publicize the list of taxpayers requesting debt cancellation at the office of the People's Committee of the commune, ward or township where the taxpayer has registered its business address and at the head office of the tax authority.

On the other hand, debt settlement according to Resolution No. 94 is a debt settlement for taxpayers with tax debts, late payment fines, and late payment interest arising before July 1, 2020, many cases of tax debt are over a long time, and files and documents are lost. Therefore, tax administration agencies take a long time to collect, search, supplement and complete dossiers according to regulations.

Debt settlement time is prolonged due to the impact of the pandemic

According to the Government, the debt settlement was carried out during the outbreak of the Covid-19 pandemic (2020 - 2022), and social distancing nationwide, so tax authorities had difficulty in collecting, verifying information and making a record certified by the People's Committee of the commune, ward or township where the taxpayer has registered the business address on the fact that the taxpayer no longer conducts production and business activities at the registered address. Therefore, it took a long time to settle the debts.

According to the Government, as of December 31, 2022, the tax administration agency had completed 100% of the settlement of debt rescheduling compared to the expected settlement. The handling of debt cancellation for late payment fines and late payment interest reached 61% of the expected amount of debt settlement by localities.

During the implementation of the Resolution, tax administration agencies at all levels received the synchronous and close coordination of the People's Committees at all levels as well as of local authorities such as the police, business registration agencies, courts, information and communication agencies.

To ensure the debt settlement according to the time specified in Resolution 94, the Government said that tax administration agencies at all levels would continue to focus on reviewing and identifying the right subjects to be handled according to the provisions of Resolution 94, collecting, supplementing, completing and compiling a complete dossier of debt settlement according to the guidance in Circular No. 69/2020/TT-BTC; handling tax arrears, debt cancellation of late payment fines and late payment interest, ensuring the right subjects and the right competence; documents, strict procedures according to regulations.

At the same time, strengthening the direction of the Party committees and local authorities in implementing debt settlement according to Resolution No. 94, and closely coordinating with People's Committees at all levels as well as functional agencies in the locality in making dossiers, certifying dossiers, handling debts, ensuring the completion of debt settlement within 3 years in accordance with the spirit of Resolution No. 94.