NA deputies vote electronically on a resolution to freeze tax arrears and the erasure of fines on late tax payments for taxpayers who cannot afford to pay their tax payments - PHOTO: QUOCHOI

The NA passed a resolution on the freezing of tax arrears and the erasure of fines on late tax payments for taxpayers who cannot afford their tax payments, with more than 91% of NA deputies voting in favor, the local media reported.

The Government had earlier proposed freezing tax arrears arising before July 1, 2020 and erasing nearly VND16.4 trillion in late tax payment fines.

Before the resolution was approved, many NA deputies had raised concern over the resolution, saying it might cause problems in tax management and could not help prevent State budget losses.

In response, Nguyen Duc Hai, head of the NA’s Finance and Budget Committee, said the resolution would allow the Government to erase the fines for late tax payments only, and would not take into account tax arrears. Tax agencies will be required to settle tax debts, in line with the law.

The prerequisite condition for the erasure of late tax payment fines is that taxpayers have died, gone missing or their lost civil act capacities, along with enterprises that have gone bankrupt, dissolved or had their business registration certificates revoked, Hai noted.

If individuals still have assets, those assets will be used to settle unpaid tax bills.

If taxpayers, whose debts have been erased, are found to conduct production and business activities in other localities or contribute capital to new enterprises, their debts will be collected.

As for jurisdiction, the prime minister has the right to erase debts of VND15 billion each, while the minister of finance can forgive debts of VND10-15 billion.

Meanwhile, the heads of the General Department of Taxation and the General Department of Vietnam Customs will have the authority to erase debts of VND5-10 billion each, and chairmen of provincial and municipal People’s Committees can waive debts of less than VND5 billion.

Further, the NA has asked the Government to report on the annual tax debt settlement results. In addition, the State Audit of Vietnam must audit the tax debt settlement and the NA’s subordinates and the Vietnam Fatherland Front Central Committee will supervise the erasure of tax debts and fines for late tax payments. SGT