What are the procedures for receiving and processing tax deferral applications in Vietnam?

What is the determination of tax payment date in Vietnam?

Under Article 58 of the Tax Administration Law 2019 stipulating the determination of tax payment date:

Determination of tax payment date

1. In case of non-cash payment of tax, the tax payment date is the date on which the State Treasury, commercial bank, credit institution or service provider extracts the tax from the taxpayer’s account or the authorized person’s account and written on the tax payment document.

2. In case of payment of tax in cash, the tax payment date is the date on which the State Treasury, tax authority or authorized collecting organization issues the tax payment document.

Thus, the tax payment date is determined through non-cash and cash tax payments as follows:

- In case of non-cash payment of tax, the tax payment date is the date on which the State Treasury, commercial bank, credit institution or service provider extracts the tax from the taxpayer’s account or the authorized person’s account and written on the tax payment document.

- In case of payment of tax in cash, the tax payment date is the date on which the State Treasury, tax authority or authorized collecting organization issues the tax payment document.

What are the procedures for receiving and processing tax deferral applications in Vietnam? (Image from the Internet)

What are the regulations on tax deferral in Vietnam?

According to Article 62 of the Tax Administration Law 2019, the tax deferral is stipulated as follows:

- A taxpayer may apply for tax deferral in one of the following cases:

+ The taxpayer’s business suffers damage due to a force majeure events specified in Clause 27 Article 3 of the Tax Administration Law 2019

+ The taxpayer has to relocate the business location as requested by a competent authority and such relocation affects the business performance.

- A taxpayer eligible for tax deferral mentioned in Clause 1 of Article 62 of the Tax Administration Law 2019 may have part or all of the tax deferred.

- Tax may be deferred:

+ For up to 02 years in the cases specified in Point a Clause 1 of Article 62 of the Tax Administration Law 2019;

+ For up to 01 year in the cases specified in Point b Clause 1 of Article 62 of the Tax Administration Law 2019.

- The taxpayer will not incur fines and late payment interest on the outstanding tax during the deferral period.

- In consideration of the application for tax deferral, the head of the tax authority shall decide the amount of tax deferred and the deferral period.

What are the procedures for receiving and processing tax deferral applications in Vietnam?

According to Article 65 of the Tax Administration Law 2019, receiving and processing tax deferral applications are stipulated as follows:

- Tax authorities shall receive applications for tax deferral:

+ in person at the tax authorities;

+ by post;

+ electronically through online portals or tax authorities.

- The tax authority shall process an application for tax deferral as follows:

+ If the application is valid, send a notice of eligibility for tax deferral to the taxpayer within 10 working days from the receipt of the application;

+ If the application is invalid, send a notice to the taxpayer within 03 working days from the receipt of the application.

What are the regulations on places and methods for paying taxes in Vietnam?

Under Article 56 of the Tax Administration Law 2019 on the receiving authorities:

Receiving authorities

1. Taxpayers shall pay tax:

a) at State Treasuries;

b) At the tax authorities that receive the tax declaration dossiers;

c) via a organization authorized by the tax authority to collect tax; or

d) via a commercial bank or credit institution or service provider as prescribed by law.

2. State Treasuries, commercial banks, credit institutions and service providers shall prepare their premises, equipment and personnel to collect tax.

3. Every organization that collects or deduct tax shall provide tax payment documents to taxpayers.

4. Within 08 working hours from the tax collection, the collecting organization shall transfer the collected tax to state budget. The Minister of Finance shall specify the time limit for transfer of tax collected in cash in remote and isolated areas, islands, areas where travel is difficult or collection time is limited.

Thus, taxpayers can directly pay taxes at the State Treasury; the tax authority where the tax declaration dossier is received; via an organization authorized by the tax authority to collect tax; or via a commercial bank or credit institution or service provider as prescribed by law.