What are the cases where late tax payment interest is not charged in Vietnam?

What are the cases where late tax payment interest is not charged in Vietnam?

According to Clause 5, Article 59 of the Law on Tax Administration 2019, the cases where late tax payment interest is not charged in Vietnam include:

- The taxpayer provides goods/services which are covered by state budget, including sub-contractors in the contract with the investor, and are directly paid for by the investor. If such goods/services are not yet to be paid for, late payment interest will not be charged.

The outstanding tax exempt from late payment interest is the tax on the amount that is yet to be paid by state budget;

- In the cases specified in Point b, Clause 4, Article 55 of the Law on Tax Administration 2019, late payment interest shall not be charged pending the analysis result, official price, actual payment or additional customs value.

What are the cases where late tax payment interest is not charged in Vietnam?

What are the procedures and required documents for cancellation of late payment interest for late tax payment interest exemption for taxpayers providing goods/services that are covered by the state budget but have not been paid for?

According to Clause 2, Article 22 of Circular 80/2021/TT-BTC, the procedures and required documents for cancellation of late payment interest for late tax payment interest exemption for taxpayers providing goods/services that are covered by the state budget but have not been paid for are:

* Procedures

Step 1: The taxpayer prepares an application for exemption from late payment interest and submits it to the tax administration agency directly managing them or the tax agency managing state budget revenues.

Step 2: In case the submitted application for exemption from late payment interest is incomplete, within 03 working days from the date of receiving the dossier, the tax agency must notify in writing using Form No. 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP requesting the taxpayer to provide an explanation or supplement the documentation.

If the submitted application for exemption from late payment interest is complete, within 10 working days from the date of receiving the dossier, the tax agency issues a notice of disapproval for late payment interest exemption (Form No. 04/KTCN issued with Appendix 1 of Circular 80/2021/TT-BTC) if the case does not qualify for exemption or a notice of approval for late payment interest exemption (Form No. 05/KTCN issued with Appendix 1 of Circular 80/2021/TT-BTC) if the case qualifies for exemption.

* Application for exemption from late payment interest

- A written application for exemption from late payment interest using Form No. 01/KTCN issued with Appendix 1 of Circular 80/2021/TT-BTC;

- A written confirmation from the state budget using unit regarding the taxpayer's unpaid amount using Form No. 02/KTCN issued with Appendix 1 of Circular 80/2021/TT-BTC (original or certified copy);

- Contract for providing goods and services signed with the investor (original or taxpayer-certified copy).

What are the cases where late tax payment interest is charged in Vietnam?

Under Clause 1, Article 59 of the Law on Tax Administration 2019, cases where late tax payment interest is charged in Vietnam include:

- The taxpayer pays tax behind deadline, the extended deadline, the deadline written in the tax authority’s notice, tax liability imposition decision or handling decision;

- If the supplementation of the tax declaration dossier leads to an increase in the amount of tax payable, or the tax authority or inspecting authority finds that tax is understated, late payment interest shall be charged on the increase in tax over the period from the day succeeding the initial deadline or the deadline for tax payment of the initial customs declaration;

- If the supplementation of the tax declaration dossier leads to a decrease in the amount of refundable tax, or the tax authority or inspecting authority finds that refundable tax is smaller than the refunded tax, late payment interest shall be charged on the excessively refunded tax, which has to be paid back to state budget, over the period from the day on which tax is refunded;

- The cases in which outstanding debt may be paid by installments as prescribed in Clause 5, Article 124 of the Law on Tax Administration 2019;

- The cases in which administrative penalties are not imposed due to expiration of the time limit for penalty imposition but outstanding tax has to be collected as prescribed in Clause 3, Article 137 of the Law on Tax Administration 2019;

- The cases in which administrative penalties are not imposed specified in Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019;

- The organization that is authorized by the tax authority to collect tax but fails to transfer the tax, late payment interest and fines paid by taxpayers to state budget in a timely manner shall pay an interest on such amount.