What are methods for tax authorities in Vietnam to receive Application for tax payment extension?

What are cases of tax payment extension in Vietnam?

Pursuant to Clause 1, Article 62 of the Law on Tax Administration 2019:

Tax Payment Extension

1. Tax payment extension shall be considered on the basis of the request of the taxpayer in one of the following cases:

a) Suffering material damage, directly affecting production and business due to force majeure situations as stipulated in Clause 27 of Article 3 of this Law;

b) Having to suspend operations due to relocation of production and business establishments at the request of competent authorities, affecting production and business results.

2. Taxpayers falling into the cases specified in Clause 1 of this Article are entitled to a tax payment extension for part or all of the payable tax amounts.

3. The tax payment extension timeframe is regulated as follows:

a) Not exceeding 2 years from the tax payment deadline for the case specified in Point a, Clause 1 of this Article;

b) Not exceeding 1 year from the tax payment deadline for the case specified in Point b, Clause 1 of this Article.

4. Taxpayers shall not be fined or charged late payment interest on the tax debt amounts during the extension period.

5. The head of the directly managing tax authority shall decide the tax payment extension amount and the extension period based on the taxpayer's extension application dossier.

The tax payment extension shall be considered on the basis of the taxpayer's request in the following cases:

- Suffering material damage, directly affecting production and business due to force majeure cases such as:

Taxpayers suffering material damage due to natural disasters, disasters, epidemics, fires, or unexpected accidents;

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

- Having to suspend operations due to relocation of production and business establishments at the request of competent authorities, affecting production and business results.

What are methods for tax authorities in Vietnam to receive Application for tax payment extension? (Picture from Internet)

What are methods for tax authorities in Vietnam to receive Application for tax payment extension?

Pursuant to Article 65 of the Law on Tax Administration 2019, the regulation on receiving and processing tax payment extension dossiers is as follows:

Receiving and processing tax payment extension dossiers

1. The tax authority receives the taxpayer’s tax payment extension dossier through the following forms:

a) Receiving dossiers directly at the tax authority;

b) Receiving dossiers sent via postal services;

c) Receiving electronic dossiers through the tax authority's electronic transaction portal.

2. The tax authority processes the tax payment extension dossiers as follows:

a) In case the dossier is lawful, complete, and in the correct format, it shall notify the taxpayer in writing of the tax payment extension within 10 working days from the date of receipt of the complete dossier;

b) In case the dossier is incomplete as prescribed, it shall notify the taxpayer in writing within 3 working days from the date of receipt of the dossier.

According to current regulations, the tax authority receives the taxpayer's application for tax payment extension through three forms as follows:

- Receiving dossiers directly at the tax authority;

- Receiving dossiers sent via postal services;

- Receiving electronic dossiers through the tax authority's electronic transaction portal.

Is it required to pay late payment interest for tax payment after the extension period in Vietnam?

Pursuant to Clause 1, Article 59 of the Law on Tax Administration 2019, the regulation on late payment interest is as follows:

Handling of late tax payment

1. Cases required to pay late payment interest include:

a) The taxpayer fails to pay the tax amount by the prescribed deadline, the extended deadline, the deadline stated in the tax authority’s notice, the deadline in the tax determination decision or the tax handling decision of the tax authority;

b) The taxpayer submits an additional tax declaration dossier that increases the payable tax amount or the tax authority, competent state authority inspects, audits the tax declaration and discovers underdeclared tax amounts, in which case late payment interest is imposed on the increased tax amount from the day following the deadline of the tax period with errors or omissions or from the deadline for submitting the original customs declaration;

c) The taxpayer submits an additional tax declaration dossier that reduces the refunded tax amount that was previously refunded or the tax authority, competent state authority inspects, audits and discovers that the refunded tax amount is smaller than the actual refunded amount, thereby imposing late payment interest on the refunded amount to be recovered from the date of receiving the refund from the state budget;

d) Cases entitled to gradual payment of tax debts as prescribed in Clause 5, Article 124 of this Law;

dd) Cases not subject to administrative penalties for tax management violations due to the expiry of the statute of limitations, but subject to tax recovery as prescribed in Clause 3, Article 137 of this Law;

e) Cases not subject to administrative penalties for tax management violations for the acts specified in Clauses 3 and 4, Article 142 of this Law;

g) Agencies, organizations authorized by the tax authority to collect taxes but delay in transferring tax amounts, late payment interest, fines from the taxpayer to the state budget shall pay late payment interest on the delayed amounts as prescribed.

Thus, it is required to pay late payment interest for tax payment after the extension period in Vietnam