Overdue tax unpaid — authorities issue a compulsory asset seizure decision. Which assets go first, how are they sold, and what rights does the taxpayer keep?
Asset seizure procedure
Under Tax Administration Law 108/2025/QH15 (in force since 1 July 2026), enforcement of tax administrative decisions applies where taxpayers fail to comply voluntarily after collection measures. The seizure sequence:
1. Enforcement decision — served on the taxpayer and related parties (banks, asset registries).
2. Asset seizure — seizure minutes drawn up; assets frozen against transfer.
3. Valuation — by a valuation council or appraisal firm.
4. Auction sale per auction regulations.
5. Proceeds paid to the state budget against tax, fines and late interest; surplus returned to the taxpayer.
Which assets? Taxpayer rights
Seizable assets are taxpayer-owned: real estate, vehicles, machinery, goods… The law exempts certain non-seizable assets (essential household items, minimum work tools…). Taxpayers may: appeal the enforcement decision; request revaluation if the price seems too low; sell assets themselves (where permitted) or voluntarily pay in full at any time to terminate enforcement and recover unsold assets.
Best approach: never reach seizure
Seizure is the last resort in the enforcement ladder (after bank garnishment, income withholding, invoice measures…). On receiving a penalty/reassessment decision: request installment payment (if eligible), or appeal/sue promptly — while appealing, watch payment deadlines to avoid enforcement during the dispute.
Frequently Asked Questions
Can mortgaged assets be seized?
Yes. Mortgaged assets remain taxpayer-owned and seizable; auction proceeds prioritize the mortgagee per the statutory payment order.
Wrongful seizure of another's assets?
Wrongfully seized owners may appeal, sue to lift the seizure and claim damages per law.
Does partial payment stop seizure?
Not automatically. Only full payment of tax, fines and late interest (or a suspension/cancellation decision) terminates enforcement.
This article has been quality-reviewed by the FLAW AI Legal Council
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