According to the Law on Recovery and Bankruptcy 2025 and the Law on Tax Administration 2025, it can be determined that the tax management agency has the right to file a request to apply bankruptcy procedures to enterprises and cooperatives when they fall into one of the prescribed conditions.
Clause 3, Article 38 of the 2025 Law on Recovery and Bankruptcy stipulates as follows:
People with rights and obligations submit applications for application of bankruptcy procedures
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3. Tax management agencies must submit a request to apply bankruptcy procedures to enterprises and cooperatives according to the provisions of the Law on Tax Administration.
The Government stipulates the conditions for submitting applications for application of bankruptcy procedures.
At the same time, according to point g, clause 1, Article 49 of the 2025 Law on Tax Administration, the tax management agency stipulates the Measures to enforce administrative decisions on tax management as follows:
Measures to enforce administrative decisions on tax management
1. Measures to enforce administrative decisions on tax management include:
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g) Submitting a request to apply bankruptcy procedures;
In addition, Clause 1, Article 52 of the 2025 Law on Tax Administration stipulates that the effective date is from July 1, 2026, except for the provisions of Article 13 and the use of electronic invoices by business households and individual businesses specified in Article 26 of the 2025 Law on Tax Administration taking effect from January 1, 2026.
In addition, the Ministry of Justice has posted the dossier for appraisal of the draft Decree detailing a number of articles and measures to organize and guide the implementation of the 2025 Law on Tax Administration, drafted by the Ministry of Finance.
Accordingly, Clause 1, Article 72 of the Draft Decree detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration (abbreviated as the Draft Decree) stipulates the coercion of measures to file applications for application of bankruptcy procedures.
Enforcing measures to apply for bankruptcy procedures
1. The tax management agency submits a request to apply the bankruptcy procedure specified in point g, clause 1, Article 49 of the Law on Tax Administration to enterprises and cooperatives subject to one of the following conditions:
a) Enterprises and cooperatives that do not operate at the registered address for more than 03 years from the date the tax authority issues a notice that the taxpayer does not operate at the registered address and the taxpayer does not submit a dossier requesting to restore the tax identification number or terminate the validity of the tax identification number;
b) Enterprises and cooperatives subject to enforcement of administrative decisions on tax management, tax management agencies have applied enforcement measures on administrative decisions on tax management as prescribed for 03 years or more but have not collected tax debts.
Thus, from July 1, 2026, if the Draft Decree is approved, the Tax Administration Agency has the right to file a request to apply the bankruptcy procedure specified in point g, clause 1, Article 49 of the 2025 Law on Tax Administration for enterprises and cooperatives subject to one of the following conditions:
- Not operating at the registered address for more than 03 years from the date the tax authority issues a notice that the taxpayer is not operating at the registered address and does not submit a dossier requesting the restoration of the tax identification number or termination of the validity of the tax identification number;
- Belonging to cases of being subject to coercive enforcement of administrative decisions on tax management and having applied coercive measures for 03 years or more but failing to collect tax debt.
What are the principles when tax inspection is regulated?
Based on Clause 1, Article 22 of the 2025 Law on Tax Administration, it is stipulated that tax management agencies must ensure the following principles when inspecting taxes:
- Apply risk management and apply information technology in tax inspection; prioritize online and remote inspection on electronic data;
- Compliance with the provisions of law and not obstructing the normal activities of taxpayers;
- Tax inspection aims to assess the completeness, accuracy, and truthfulness of tax declaration and payment and compliance with tax laws of taxpayers;
- Tax inspection by tax authorities is not duplicated in terms of content, scope, and time between inspection, examination, and State Audit agencies, except in cases where there are evidence and grounds for violations that need to be re-examined;
- Inspect the determination of linked transaction prices of taxpayers according to the principle of independent transactions and the economic nature of arising activities and transactions that determine tax obligations corresponding to the value created from the economic nature of business activities and transactions arising from taxpayers; do not recognize linked transactions that do not follow the principle of independent transactions that reduce the tax obligations of enterprises.
