Is late payment interest imposed on an enterprise delaying VAT payment due to natural disasters in Vietnam?

Is late payment interest imposed on an enterprise delaying VAT payment due to natural disasters in Vietnam?

Pursuant to Clause 8, Article 59 of the Law on Tax Administration 2019:

Handling of Late Tax Payment

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5. Late payment interest is not charged in the following cases:

a) Taxpayers who provide goods and services paid for by the state budget, including subcontractors as stipulated in contracts signed with investors and who are directly paid by investors but have not yet been paid, are not liable for late payment interest.

The amount of tax debt not subject to late payment interest is the total outstanding tax amount owed to the state budget by the taxpayer but shall not exceed the amount the state budget has not yet paid;

b) Cases prescribed in Point b, Clause 4, Article 55 of this Law shall not incur late payment interest during the time waiting for the results of analysis and inspection; during the time there is no official price; or during the time the actual payment amount and adjustments added to the customs value have not been determined.

6. Late payment interest shall not be charged in cases where debts are put on hold according to Article 83 of this Law.

7. Taxpayers supplement their tax declaration dossiers to reduce the tax amounts payable or tax authorities, competent state agencies upon inspection, investigation detect the tax amounts payable reduce, the late payment interest calculated shall be adjusted corresponding to the reduced amount.

8. Taxpayers liable for late payment interest as prescribed in Clause 1 of this Article are exempt from late payment interest in cases of force majeure as stipulated in Clause 27, Article 3 of this Law.

9. The Minister of Finance prescribes the procedures for handling late tax payment.

In conjunction with Clause 27, Article 3 of the Law on Tax Administration 2019:

Definitions

In this Law, the following terms are understood as follows:

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27. Cases of force majeure include:

a) Taxpayers suffer material losses due to natural disasters, calamities, epidemics, fires, unexpected accidents;

b) Other force majeure cases as prescribed by the Government of Vietnam.

Therefore, late payment interest is not charged for businesses delaying VAT payment due to the impact of natural disasters.

Is late payment interest imposed on an enterprise delaying VAT payment due to natural disasters in Vietnam?​ (Image from the Internet)

What is the deadline for submitting tax declarations and VAT in Vietnam?

According to Article 8 of Decree 126/2020/ND-CP on types of taxes declared monthly, quarterly, annually, per tax obligation occurrence, and for tax finalization:

Types of Taxes Declared Monthly, Quarterly, Annually, Per Tax Obligation Occurrence, and for Tax Finalization

1. Types of taxes, other state budget revenues managed and collected by tax authorities declared on a monthly basis include:

a) Value-added tax, personal income tax. If taxpayers meet the criteria stipulated in Article 9 of this Decree, they can choose to declare quarterly.

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According to Article 44 of the Law on Tax Administration 2019 on the deadlines for submitting tax declaration dossiers:

Deadlines for Submitting Tax Declaration Dossiers

1. The deadlines for submitting tax declaration dossiers for monthly and quarterly declared taxes are as follows:

a) No later than the 20th of the month following the month in which the tax obligation arises for monthly declarations;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly declarations.

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Pursuant to Clause 1, Article 55 of the Law on Tax Administration 2019:

Deadlines for Tax Payment

1. In cases where taxpayers calculate tax, the deadline for tax payment is the last day of the deadline for submitting tax declaration dossiers. In cases of supplementary tax declaration dossiers, the deadline for tax payment is the deadline for submitting tax declaration dossiers for the tax period with mistakes or omissions.

For corporate income tax, it is paid quarterly. The deadline for tax payment is the 30th of the first month of the next quarter.

For crude oil, the resource tax payment and corporate income tax payment deadlines are 35 days from the date of crude oil export for domestic sales or from the date of customs clearance for exported crude oil per customs laws.

For natural gas, the resource tax payment and corporate income tax payment deadlines are monthly.

The deadline for submitting VAT tax declaration dossiers for the monthly tax period is the 20th of the following month.

What are cases in which it is permissible for extension of VAT payment deadline due to natural disasters in Vietnam?

According to the provisions stipulated in Article 46 of the Law on Tax Administration 2019 on extensions for tax declaration dossier submission:

Extension for Submitting Tax Declaration Dossiers

1. Taxpayers unable to submit tax declaration dossiers on time due to natural disasters, calamities, epidemics, fires, unexpected accidents shall be granted an extension by the head of the directly managing tax authority.

2. The extension period is not more than 30 days for monthly, quarterly, annual tax declarations, tax declarations per each tax obligation occurrence; 60 days for tax finalization declaration dossiers from the deadline for submission.

3. Taxpayers must send a written request for an extension to the tax authority before the deadline for submission of tax declaration dossiers, specifying the reasons for the extension with confirmation from the commune-level People's Committee or Police where the extension case arises as stipulated in Clause 1 of this Article.

4. Within 03 working days from the date of receiving the request for an extension, the tax authority must respond in writing to the taxpayer about whether the extension is accepted or not.

Taxpayers unable to submit VAT declaration dossiers on time due to natural disasters shall be granted an extension by the head of the directly managing tax authority for tax payment as well as tax declaration dossiers.

Note: The extension period is not more than 30 days for submitting VAT tax declaration dossiers from the deadline for submission.