How to determine the deferred tax amount in Vietnam?

How to determine the deferred tax amount in Vietnam?

Based on Clause 3, Article 24 of Circular 80/2021/TT-BTC, the deferred tax amount in each case is determined as follows:

- For taxpayers who experience natural disasters, catastrophes, epidemics, fires, or accidental incidents:

The amount of tax extended is the tax debt calculated up to the point when the taxpayer encounters natural disasters, catastrophes, epidemics, fires, or accidental incidents but does not exceed the material damage value after deducting compensation and insurance amounts as regulated (if any).

- For taxpayers encountering other force majeure circumstances:

The amount of tax extended is the tax debt calculated up to the point when the taxpayer faces other force majeure circumstances but does not exceed the material damage value after deducting compensation and insurance amounts as regulated (if any).

- In cases of relocating a production or business facility:

+ The amount of tax extended is the tax debt calculated up to the time the taxpayer begins to cease production and business operations to relocate but does not exceed the cost of relocation and damages caused by the relocation after deducting supported, compensated amounts according to regulations.

Relocation costs do not include costs for constructing a new production and business facility.

+ If the competent authority finds that the taxpayer did not proceed with the relocation, the taxpayer must pay the amount of tax extended and the late payment interest calculated on the extended tax amount.

How to determine the deferred tax amount in Vietnam? (Image from the Internet)

Vietnam: What does the application for tax deferral include according to Decision 2127?

Based on Section 2 of the Annex attached to Decision 2127/QD-BTC of 2024, the application for tax deferral includes:

- A proposal for tax payment extension from the taxpayer following form No. 01/GHAN issued with Appendix 1 of Circular 80/2021/TT-BTC.

- Depending on the case, the application for tax deferral must include additional documents as follows:

(*) In cases of natural disasters, catastrophes, epidemics, fires, or unexpected accidents as stipulated at point a, clause 27, Article 3 of the Tax Management Law 2019, the dossier must include:

- Documentation proving the time and place of the occurrence of the natural disaster, catastrophe, epidemic, fire, or unexpected accident (original or a certified copy by the taxpayer);

- Document determining the material damage value made by the taxpayer or their legal representative, who takes responsibility for the accuracy of the data;

- Documentation (original or a certified copy by the taxpayer) stipulating the responsibility of the organization or individual liable for compensation for the damage (if any);

- Proofs (original or certified copies by the taxpayer) related to damage compensation (if any).

(*) In other force majeure cases according to clause 1, Article 3 of Decree 126/2020/ND-CP of the Government of Vietnam, the dossier must include:

- Document determining the material damage value made by the taxpayer or their legal representative, who takes responsibility for the accuracy of the data;

- Documentation proving the time and place of the force majeure occurrence from a competent authority; proof that the taxpayer must cease production or business activities due to war, riots, or strikes which cause the cessation of production or business (original or a certified copy by the taxpayer);

- Documentation proving that the risk was not due to the taxpayer's subjective cause or responsibility, and that the taxpayer is unable to financially pay the state budget in case of damage from such risks (original or a certified copy by the taxpayer);

- Proofs (original or certified copies by the taxpayer) related to damage compensation from the insurance agency (if any).

(*) In cases of relocating production or business facilities as stipulated at point b, clause 1, Article 62 of the Tax Management Law 2019, the dossier must include:

- Decision from a competent state authority regarding the relocation of production or business facilities for the taxpayer (original or a certified copy by the taxpayer);

- A scheme or relocation plan, clearly showing the taxpayer's relocation schedule and plan (original or a certified copy by the taxpayer).

++ According to Decree 64/2024/ND-CP: Proposal for tax payment and land rent extension following the form in the Annex attached to Decree 64/2024/ND-CP.

++ According to Decree 65/2024/ND-CP: Proposal for special consumption tax payment extension following the form in the Annex attached to Decree 65/2024/ND-CP.

How to receive and process the application for tax deferral in Vietnam?

According to Article 65 of the Tax Management Law 2019, the reception and processing of the application for tax deferral are as follows:

- The tax management authority receives the taxpayer's application for tax deferral through the following methods:

+ Direct submission at the tax management authority;

+ Via postal services;

+ Electronic submission through the electronic transaction portal of the tax management authority.

- The tax management authority processes the application for tax deferral as follows:

+ If the dossier is legal, complete, and in the correct format, notify the taxpayer of the tax payment extension in writing within 10 working days from the date of receiving the complete dossier;

+ If the dossier is incomplete according to the regulations, notify the taxpayer in writing within 3 working days from the date of receiving the dossier.