Vietnam: Shall enterprises affected by natural disasters apply for a tax defferral for up to 2 years?

What are regulations on tax payment deadlines in Vietnam?

Based on Article 55 of the Law on Tax Administration 2019, the tax payment deadlines are regulated as follows:

- In cases where taxpayers calculate their taxes, the deadline for tax payment is no later than the last day for filing tax declaration dossiers. In the case of supplementary tax declaration dossiers, the tax payment deadline is the deadline for filing the tax declaration of the tax period with errors.

+ For corporate income tax, prepayment is done quarterly, with the latest tax payment deadline being the 30th of the first month of the following quarter.

+ For crude oil, the deadline for resource tax and corporate income tax according to each crude oil sale is 35 days from the date of sale for domestic crude oil or from the date of customs clearance as per customs law for exported crude oil.

+ For natural gas, the deadline for resource tax and corporate income tax is monthly.

- In cases where the tax authority calculates taxes, the deadline for tax payment is the time specified in the notice from the tax authority.

- For export and import goods subject to tax under tax laws, the tax payment deadline is in accordance with the Law on Export and Import Duty. If a tax payable arises post-clearance or post-release of goods, the tax payment timeline is as follows:

+ The deadline for additional tax declaration, payment of assessed tax is according to the original customs declaration payment deadline;

+ The tax payment deadline for goods requiring analysis, inspection to determine the exact tax amount; goods without an official price at the time of customs declaration; goods with unresolved actual payment, goods with unresolved customs value adjustments at the customs declaration time is regulated by the Minister of Finance.

Vietnam: Shall enterprises affected by natural disasters apply for a tax defferral for up to 2 years? (Image from Internet)

Vietnam: Shall enterprises affected by natural disasters apply for a tax defferral for up to 2 years?

On January 16, 2025, the General Department of Taxation issued Official Dispatch 237/TCT-QLN 2025 to resolve tax defferral applications due to natural disasters. The General Department of Taxation has stated as follows:

In cases where taxpayers face natural disasters eligible for tax defferral under point a, clause 1, Article 62 of the Law on Tax Administration No. 38/2019/QH14 and have complete documentation for tax defferral as guided in point a, clause 2, Article 24 of Circular No. 80/2021/TT-BTC, the tax authority will issue a Decision on tax defferral for the taxpayer within 10 working days from the receipt of a complete dossier. The tax amount eligible for extension is the outstanding tax amount up to the time the taxpayer encounters the natural disaster but does not exceed the material damage value after deductive compensation, insurance as per the regulations (if any); the tax defferral period does not exceed 2 years from the tax deadline.

Regarding tax defferrals for enterprises affected by natural disasters, the General Department of Taxation has noted that if taxpayers face natural disasters and are eligible for tax defferral under point a, clause 1, Article 62 of the Law on Tax Administration 2019, with complete documentation for tax defferral as guided in point a, clause 2, Article 24 of Circular 80/2021/TT-BTC, the respective Tax Department will issue a Decision on tax defferral within 10 working days from the receipt of complete documentation.

The tax amount eligible for extension is the outstanding tax amount up to the time of encountering the natural disaster but does not exceed the material damage value after deductions for compensation, insurance as per regulations (if any); the tax defferral period does not exceed 2 years from the tax deadline.

Therefore, enterprises affected by natural disasters can apply for a tax defferral for up to 2 years from the tax deadline.

What documents are included in the tax defferral application for enterprises affected by natural disasters in Vietnam?

The tax defferral application for enterprises affected by natural disasters includes the documents guided in point a, clause 2, Article 24 of Circular 80/2021/TT-BTC as follows:

- A written request for tax defferral by the taxpayer using Form No. 01/GHAN issued with Appendix I Circular 80/2021/TT-BTC;

- Documentation confirming the time and place of the natural disaster by a competent authority (original or certified copy by the taxpayer);

- A document determining the material damage value prepared and verified by the taxpayer or their legal representative;

- A document (original or certified copy by the taxpayer) stipulating the liability of organizations or individuals responsible for compensation of damages (if any);

- Relevant documents (original or certified copy by the taxpayer) concerning compensation for damages (if any).