What are procedures for settling the applications for tax payment in instalments in Vietnam?

What are procedures for settling the applications for tax payment in instalments in Vietnam?

Based on Clause 1, Article 66 of Circular 80/2021/TT-BTC, it is stipulated on

tax payment in instalments

1. Procedure for settling the applications for tax payment in instalments

a) The taxpayer shall prepare an applications for tax payment in instalments as stipulated in Clause 2 of this Article and submit it to the directly managing tax authority.

b) In case the applications for tax payment in instalments is incomplete according to regulations, within 03 working days from the date of receipt of the application, the tax authority must notify in writing using form No. 01/TB-BSTT-NNT issued together with Decree No. 126/2020/ND-CP requesting the taxpayer to explain or supplement the application.

In case the applications for tax payment in instalments is complete, within 10 working days from the date of receipt of the application, the tax authority issues:

b.1) A notice of non-approval for tax payment in instalments according to form No. 03/NDAN issued together with Appendix I of this Circular in cases where the guarantee letter is found to have signs of being illegal, simultaneously, the tax authority sends a document using form No. 05/NDAN issued together with Appendix I of this Circular to the guarantor for verification, and the guarantor sends the verification result to the tax authority within the time frame stipulated by law;

b.2) A decision to approve tax payment in instalments according to form No. 04/NDAN issued together with Appendix I of this Circular for cases eligible for tax payment in instalments.

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The procedure for settling the application is as follows:

- The taxpayer prepares an applications for tax payment in instalments according to the provisions in Clause 2, Article 66 of Circular 80/2021/TT-BTC and submits it to the directly managing tax authority.

- In case the applications for tax payment in instalments is not fully compliant with the regulations, within 03 working days from the date of receipt of the application, the tax authority must notify in writing using form No. 01/TB-BSTT-NNT issued together with Decree 126/2020/ND-CP requesting the taxpayer to clarify or add to the application.

If the applications for tax payment in instalments is fully compliant, within 10 working days from the date of receipt of the application, the tax authority issues:

+ A notice of non-approval for tax payment in instalments according to form No. 03/NDAN issued together with Appendix I of Circular 80/2021/TT-BTC for cases where a guarantee letter is found to have signs of being illegal, simultaneously, the tax authority sends a document using form No. 05/NDAN issued together with Appendix I of this Circular to the guarantor for verification, and the guarantor sends the verification result to the tax authority within the legal time frame;

+ A decision to approve tax payment in instalments according to form No. 04/NDAN issued together with Appendix I of Circular 80/2021/TT-BTC for cases eligible for tax payment in instalments.

What are procedures for settling the applications for tax payment in instalments in Vietnam? (Image from the Internet)

What is the latest application form for tax payment in instalments in Vietnam?

The application form for tax payment in instalments is according to form No. 01/NDAN issued together with Appendix I of Circular 80/2021/TT-BTC. Specifically:

Latest application form for tax payment in instalments: DOWNLOAD

What is the maximum number of months that a taxpayer is allowed to pay tax in instalments in Vietnam?

According to the provisions in Clause 5, Article 124 of the Tax Administration Law 2019 regarding situations where the tax payment in instalments is permitted as follows:

Cases of coercive enforcement of tax administrative management decisions

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5. Tax coercion measures are not applied to cases where the taxpayer is eligible for deferred tax debts within the duration of debt deferment; late payment interest is not calculated according to this Law; allowed to defer tax arrears within a period not exceeding 12 months from the start date of the tax coercion period.

The tax payment in instalments is considered by the head of the directly managing tax authority based on the taxpayer's request and must have a guarantee from a credit institution. The Minister of Finance stipulates the number of deferred payments and procedures and dossiers for tax payment in instalments.

Additionally, based on Clause 3, Article 66 of Circular 80/2021/TT-BTC, the number of times and amounts for tax payment in instalments are regulated as follows:

tax payment in instalments

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3. Number of times and amounts of tax payment in instalments

a) The deferred payment amount shall be the tax arrears amount calculated at the time the taxpayer requests a deferment but not exceeding the amount of tax arrears guaranteed by a credit institution.

b) The taxpayer is allowed to defer tax arrears payment for a period not exceeding 12 months and within the validity period of the guarantee letter.

c) The taxpayer is allowed to pay tax in instalments monthly, ensuring each deferred payment is not less than the average monthly deferred payment amount. The taxpayer must self-determine any additional late payment interest to pay alongside the deferred tax arrears amount.

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Thus, the taxpayer is allowed to pay tax in instalments for a period not exceeding 12 months and within the validity of the guarantee letter.

Furthermore, according to Clause 3, Article 66 of Circular 80/2021/TT-BTC, the deadline for tax payment in instalments is the last day of the month.

In the event the taxpayer does not make or fully makes the deferred tax payments according to the monthly commitment, or the guarantor fails in the obligation to pay on behalf, within 05 working days from the end date of the deferred tax payment as committed, the tax authority issues a document according to form No. 02/NDAN issued together with Appendix I of Circular 80/2021/TT-BTC requesting the guarantor to perform the guarantee obligation according to legal regulations and simultaneously notifies the taxpayer.