What is the maximum tax deferral period in Vietnam?

When is the tax payment deadline in Vietnam?

According to Clause 1, Article 55 of the Law on Tax Administration 2019, if the taxpayer calculates the tax, the latest tax payment deadline is the last day of the tax return submission deadline.

In the case of amending tax returns, the tax payment deadline is the submission deadline of the tax return period that contains errors or omissions.

Article 44 of the Law on Tax Administration 2019 specifies the tax return submission deadlines as follows:

(1). The deadline for submitting tax returns for taxes declared on a monthly or quarterly basis is as follows:

- No later than the 20th day of the following month in which the tax obligation arises in the case of monthly declarations and payments;

- No later than the last day of the first month of the following quarter in which the tax obligation arises in the case of quarterly declarations and payments.

(2). The deadline for submitting tax returns for taxes calculated on an annual basis is as follows:

- No later than the last day of the third month following the end of the calendar year or fiscal year for annual tax finalization; no later than the last day of the first month of the calendar or fiscal year for annual tax returns;

- No later than the last day of the fourth month following the end of the calendar year for individual income tax finalization returns submitted directly by individuals;

- No later than December 15 of the preceding year for tax returns filed by household businesses or individual businesses paying tax by presumptive methods; in case of newly established household or individual businesses, the deadline for submitting tax returns is no later than 10 days from the start date of business.

(3). The deadline for submitting tax returns for taxes declared and paid on a transaction basis is no later than the 10th day from the date the tax obligation arises.

(4). The deadline for submitting tax returns in case of business termination, contract termination, or business reorganization is no later than the 45th day from the date of the event.

(5). the Government of Vietnam specifies the submission deadlines for agricultural land use tax; non-agricultural land use tax; land levy; land rent, water surface rent; mining rights fees; water resources extraction rights fees; registration fees; licensing fees; budgetary contributions according to the law on management and use of public property; and cross-border profit reports.

(6). The deadline for submitting tax returns for exported and imported goods is as per the regulations in the Customs Law 2014.

(7). In case a taxpayer submits tax returns via electronic transactions on the last day of the tax return submission deadline but the tax authority's electronic portal encounters errors, the taxpayer may submit tax returns and electronic tax payment documents on the following day after the tax authority's electronic portal resumes operation.

What is the maximum tax deferral period in Vietnam?

According to Article 62 of the Law on Tax Administration 2019, the regulations are as follows:

Tax deferral

1. tax deferral is considered upon request from the taxpayer in the following cases:

a) Experiencing physical damage that directly affects production or business operations due to force majeure events as specified in Clause 27, Article 3 of this Law;

b) Having to suspend operations due to relocation of production or business establishments as required by competent authorities, affecting production or business outcomes.

2. Taxpayers eligible for tax deferral as per Clause 1 of this Article can get an extension for part or all of the tax amount due.

3. The tax deferral period is specified as follows:

a) No more than 2 years from the tax payment deadline for cases stated in Point a, Clause 1 of this Article;

b) No more than 1 year from the tax payment deadline for cases stated in Point b, Clause 1 of this Article.

4. Taxpayers are not subject to penalties and are not required to pay late payment interest on the tax amounts deferred during the extension period.

5. The head of the tax authority directly managing the taxpayer will decide the amount of tax deferred and the extension period based on the tax deferral file.

The maximum tax deferral periods are as follows:

(1) No more than 2 years from the tax payment deadline for cases of physical damage that directly affect production or business operations due to force majeure events;

(2) No more than 1 year from the tax payment deadline for cases where operations must be suspended due to relocation of production or business establishments as required by competent authorities, affecting production or business outcomes.

What is the maximum tax deferral period in Vietnam? (Image from Internet)

Vietnam: When must late tax payment interest be paid?

According to Clause 1, Article 59 of the Law on Tax Administration 2019, the cases where late tax payment interest must be paid include:

(1) Taxpayers submit their tax payments later than the stipulated deadline, the extended tax payment deadline, the deadline stated in the tax authority's notification, or the deadline in the tax authority's tax assessment or treatment decision;

(2) Taxpayers amend tax returns resulting in an increase in the tax amount payable, or tax authorities, competent state agencies inspect, audit and discover additional tax liability; late payment interest shall be calculated on the additional tax amount payable from the day following the tax payment deadline of the period containing errors or from the original customs declaration's tax payment deadline;

(3) Taxpayers amend tax returns resulting in a decrease in the refunded tax amount or tax authorities, competent state agencies inspect, audit and discover that the refunded tax amount is less than the actual refunded amount; late payment interest shall be calculated on the refundable tax amount to be recovered from the date of refund receipt from the state budget;

(4) In cases where deferred tax debt payments are permitted:

Without tax enforcement measures, if the taxpayer is granted tax debt deferral by the tax authority, late payment interest is not charged on the deferred tax during the deferral period; it shall be paid in installments within a maximum period of 12 months from the start of tax enforcement.

The installment payment on tax debt shall be decided by the head of the tax authority directly managing the taxpayer based on the taxpayer's request and must be guaranteed by a credit institution. The Minister of Finance shall specify the number of installment payments and the procedures for paying tax debt in installments.

(5) In cases where administrative penalties for tax management violations are not imposed due to expired penalty periods but the tax shortfall is recovered:

Beyond the period for administrative penalties for tax management violations, taxpayers are not penalized but must still pay the tax shortfall, tax evasion amount, tax not paid or refunded incorrectly, late payment interest into the state budget within 10 years preceding the violation discovery date.

If taxpayers have no taxpayer registration, the full tax shortfall, tax evasion amount, and late payment interest for the entire outstanding period must be paid upon discovery of the violation.

(6) In cases where administrative penalties for tax management violations are not imposed for the following acts:

- Taxpayers declare incorrectly, resulting in a tax shortfall or an increase in the tax exemption, reduction, or refund amount but have amended tax returns and voluntarily rectified by paying the full tax amount before the tax authority's inspection or audit decision is announced at the taxpayer's site or before the tax authority detects without an inspection or audit at the taxpayer's site, or before detection by competent authorities.

- For exported and imported goods, taxpayers are not subject to administrative penalties for tax management violations but must still pay the outstanding tax and late payment interest into the state budget in the following cases:

+ Taxpayers have amended declarations before the customs authority's direct inspection notice of the customs dossier for goods undergoing customs procedures;+ Taxpayers amend declarations within 60 days from the date of customs clearance and before the customs authority's post-clearance inspection or audit decision for cleared goods.

(7) Agencies, organizations authorized by the tax authority to collect taxes delay the transfer of tax payments, late payment interest, fines of taxpayers into the state budget must pay late payment interest on the delayed transfer amount as stipulated.