Vietnam's Finance Ministry said in documents for a draft National Assembly resolution on tax debt that, as of October 23, more than 2.5 million taxpayers were in statuses 03 and 06. Status 03 covers taxpayers that have stopped operating but have not completed the procedure to terminate their tax identification numbers. Status 06 covers taxpayers that are not operating at their registered addresses.
About 643,000 cases were in status 03, while nearly 1.88 million entities were in status 06. They include businesses, organizations, branches, household businesses and individual traders.
Since the beginning of the year, tax authorities have closed tax identification numbers in 777,835 cases. However, the number of businesses no longer operating at their registered addresses is still growing faster than cases are being processed.
Proposal to cut late tax filing penalties by up to 70%
The Finance Ministry said many taxpayers stopped operating a long time ago but have not completed the tax filing obligations needed to terminate their tax identification numbers.
To complete the procedure, taxpayers must also resolve several overdue filings. The total penalties can therefore be high when they return to complete the process, even though there may have been no business activity or tax obligations during that period.
The ministry proposed a special penalty mechanism under which the amount would decrease according to when the violation is corrected. The measure is intended to encourage taxpayers to return, submit missing filings and restore or terminate their tax identification numbers.
The policy would still impose strict measures on tax evasion, tax fraud and the use of illegal invoices or documents. It would not waive tax obligations or responsibility for those acts. It would only adjust penalties for procedural violations involving tax filings within the scope, categories and period set by the resolution.
The Finance Ministry proposed reducing penalties for late tax filings. Businesses and organizations that submit all missing filings would pay 30%, 50% or 70% of the statutory penalty, depending on when they complete the process.
If all missing filings are submitted from the date the draft resolution takes effect through June 30, 2027, the penalty would be reduced by 70%, leaving 30% of the statutory amount to be paid. The reduction would be 50% from July 1 through December 31, 2027, and 30% from January 1 through June 30, 2028.
The Finance Ministry said the 30%, 50% and 70% schedule is intended to encourage taxpayers to correct violations earlier while the resolution is in force and to prevent delays until the deadline. After the resolution expires, taxpayers will continue to be subject to penalties under the general law.
Reasons behind statuses 03 and 06
After reviewing records and the results of the campaign to clean up tax identification numbers, the Finance Ministry said statuses 03 and 06 have remained unresolved for a long time and stem from several causes.
Dissolution and tax ID termination procedures remain complicated and require taxpayers to complete several obligations. Some businesses stop operating without notice, leave their registered addresses, fail to file tax returns or do not cooperate with tax authorities. After a business stops operating, it may no longer have staff, accounting books or documents needed to complete the file.
In some areas, applications are processed slowly, data between agencies is not synchronized and coordination is delayed. Special cases, including businesses using falsified personal information, shell businesses and signs of invoice trading, also make processing more difficult.
The Finance Ministry said the problem is linked not only to taxpayer compliance but also to gaps in mechanisms, policy and administration. It said authorities need to address the backlog while preventing new cases.
Sources: Dân Trí
