What is corporate tax debt? Instructions on 2 ways to look up corporate tax debt (with illustrations). Cases and how to handle businesses that are forced to pay tax debts.
Due to business problems, your business has not been able to turn around the money to pay taxes incurred in previous months or quarters. You want to look up how much tax your business currently owes to arrange tax payment to the state. Let’s find out with fdiinvietnam.com right away!
I. What is corporate tax debt?
Tax arrears are taxes, fees, charges… and other revenues belonging to the state budget, collected by tax authorities, that taxpayers have not paid to the state budget by the deadline as prescribed.
II. Conditions for looking up corporate tax debt
To look up your business’s tax debt, simply visit the Electronic Tax website of the General Department of Taxation – Ministry of Finance.
Then select the “Business” section on the right side of the screen and select “Login” to fill in the account information that the business has previously registered.
III. Instructions on how to look up business tax debt (with illustrations)
Method 1: After successfully logging in, the screen will display the information as below:
You select search, then select “Tax liability information” and “Query” according to the displayed enterprise tax code, the tax debt up to the time of inquiry of the enterprise will be displayed. Including 2 items:
➧ Section I: Taxes payable, paid, remaining payable, overpaid, exempted, forgiven, refunded, refunded, and remaining refunded.
➧ Section II: Taxes that are still payable, overpaid, and refundable have been recorded in the tax management application system.
This section will show in detail each tax debt item of the company by quarter, by month according to the total shown in section I; the tax debt amount that the enterprise has paid during the period as recorded by the tax authority; the amount of tax overpaid by the enterprise (if any). It is very easy for the enterprise to check and compare.
Method 2: Currently, the General Department of Taxation has added the feature of paying taxes according to the declaration ID code, so you can also access the “Pay taxes” section, select the business’s bank information, select the type of tax obligation to look up, as shown below:
The results show the sub-items of corporate taxes that need to be paid. You can select the tax items that need to be paid and pay immediately.
IV. Notes when looking up corporate tax debt
Looking up on the Electronic Tax page is very convenient and easy for businesses to check and compare tax debts, but when businesses owe taxes, there will be late payments calculated by day at 0.03%/day and the amount of tax the business has paid in the period has not been closed and offset with the previous debt, leading to the tax number looked up on the tax page will not match the system of the tax debt management officer.
You should refer to the tax debt amount on the Electronic Tax page and call the tax debt management officer of the enterprise to check the most accurate tax debt amount to be paid.
V. Cases and how to handle businesses forced to pay tax debts
1. Cases where businesses are forced to pay tax debts
According to the provisions of Clause 1, Article 2 of Circular 215/2013/TT-BTC, enterprises and taxpayers may be subject to forced tax debt collection as follows:
- Taxpayers owe tax and late tax payment that is overdue for 90 days from the date of expiration or tax payment extension according to the provisions of the Law on Tax Administration and competent state agencies;
- Taxpayers who still owe taxes, fines, or late payments and have absconded or embezzled assets;
- Taxpayers who do not comply with the decision on administrative penalties for tax violations within 10 days from the date of receipt of the decision on administrative penalties for tax violations shall be subject to compulsory enforcement of the decision on administrative penalties for tax violations.
In case the decision on administrative penalty for tax violations has an enforcement period of more than 10 days and the taxpayer does not accept the penalty decision within the period stated in the penalty decision, the decision on administrative penalty for tax violations shall be enforced (except in cases where the enforcement of the decision on administrative penalty for tax violations is postponed or temporarily suspended).
>> Learn more: Administrative penalties for violations of invoices.
2. How to handle businesses that are forced to pay tax debts
Tax debt enforcement measures include:
- Withdraw money from the account of the subject of enforcement at the State Treasury, freeze the account;
- Notify the organization or business that is being enforced of the invoice being no longer valid;
- Enforce by means of property seizure and auction of seized property according to the provisions of law to recover outstanding tax and late tax payments;
- Revoke business registration certificates, enterprise registration certificates, establishment and operation licenses, practice licenses, etc.
The tax authority will send a written notice and email to the enterprise and bank to verify the information and request the tax debtor to pay the outstanding amount before the time specified in the notice. If after the specified date, the taxpayer still has not paid the outstanding tax, the tax authority will issue a decision to enforce the bank account, freeze the account and automatically deduct the outstanding tax to the State Treasury, or by other measures to enforce the invoice, lock the enterprise’s tax code, etc.
At that time, your business will not be able to issue invoices and will no longer be able to operate. In case the business has received a decision of enforcement, please immediately contact the company’s tax management officer for instructions on how to handle the enforcement procedure.
Finally, fdiinvietnam.com encourages businesses to arrange to pay taxes before the enforcement deadline, to avoid the above problems, which affect production and business operations.
VI. Frequently asked questions about corporate tax debt lookup
1. Our company currently owes 2,000,000 VND in business license tax for 2023 and has received a decision to enforce the company’s bank account, but due to the pandemic, our company has not had any transactions, the bank account is still 0 VND, so will we be forced to pay taxes? And how should we handle it?
If your business has received an enforcement decision, during the time the decision is in effect, you should pay the outstanding tax and report it to the company’s management staff.
If the enterprise fails to pay the outstanding tax within the prescribed time limit, it may be subject to other forms of enforcement such as invoice enforcement or locking of the company’s tax code, or forced to cease operations.
2. How long will it take for late tax payment and tax debt to be enforced?
Enterprises with tax arrears of 90 days or more will be subject to tax debt enforcement.
3. Where can I go to look up my corporate tax debt?
To look up tax debt, businesses access the Electronic Tax page, then log in with the username: MST-QL, the password created earlier to look up according to the instructions.
>> See details: Instructions for looking up corporate tax debt.