What is the maximum time limit for taxpayers to pay tax debt in installments in Vietnam?

What does the application for tax payment in installments in Vietnam include?

Under the provisions of Clause 17, Article 3 of the Law on Tax Administration 2019, “tax debt” means the tax and other amounts payable to the state budget that the taxpayer has yet to pay to the state budget by the deadline prescribed by law.

Under the provisions of Clause 2, Article 66 of Circular 80/2021/TT-BTC, the application for tax payment in installments in Vietnam includes:

[1] An application form according to Form No. 01/NDAN issued with Appendix 1 of Circular 80/2021/TT-BTC;

[2] The guarantee letter according to regulations of law on guarantee, which shall contain the declaration the guarantor will pay the tax in case the taxpayer fails to pay tax on schedule;

[3] The decision on enforcing the implementation of the tax decision (if any).

What is the maximum time limit for taxpayers to pay tax debt in installments in Vietnam?

Under the provisions of Clause 5, Article 124 of the Law on Tax Administration 2019 regarding cases allowed for Tax payment in instalments as follows:

Cases of tax enforcement

..

5. A tax decision will not be enforced for up to 12 months if the tax authority charges off the tax debt; exempts late payment interest in accordance with this Law; allows payment of outstanding tax in instalments.

Payment of tax by instalments shall be considered by the supervisory tax authority of the taxpayer on the basis of the taxpayer’s request and guarantee of a credit institution. The Minister of Finance shall specify the number of instalments and procedures for tax payment by instalments.

..

Moreover, under provisions of Clause 3, Article 66 of Circular 80/2021/TT-BTC regarding the number of instalments and the amount of tax to be paid in instalments:

Tax payment in instalments

...

3. The number of instalments and the amount of tax to be paid in instalments

a) The amount of tax to be paid in instalments must not exceed the amount guaranteed by the credit institution.

b) The taxpayer may pay tax in instalments for up to 12 months and within the effective period of the guarantee letter.

c) The taxpayer may pay tax in monthly instalments; each instalment must be at least the average tax paid monthly. The taxpayer shall determine the late payment interest and pay as the same time as the instalment.

...

Thus, the taxpayer may pay tax in instalments for up to 12 months and within the effective period of the guarantee letter.

Additionally, under Clause 4, Article 66 of Circular 80/2021/TT-BTC, the deadline for tax payment in instalments is the last day of the month.

If the taxpayer fails to fully pay the instalments monthly or the guarantor fails to pay tax on behalf of the taxpayer, within 05 working days from the deadline, the tax authority shall issue a document according to Form No. 02/NDAN in Appendix I of Circular 80/2021/TT-BTC and send it to the guarantor to request fulfillment of the guarantor's obligations as prescribed by law.

What is the maximum time limit for taxpayers to pay tax debt in installments in Vietnam? (Image from the Internet)

What are the procedures for processing the application for tax payment in installments in Vietnam?

The procedures for processing the application for tax payment in installments in Vietnam are carried out according to the provisions of Clause 1, Article 66 of Circular 80/2021/TT-BTC as follows:

Step 1: The taxpayer shall prepare the application for tax payment in instalments and send it to the supervisory tax authority.

Step 2: In case the application is not satisfactory, within 03 working days from the receipt of the application, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and request the taxpayer to provide explanation or supplement the application.

In case the application is satisfactory, within 10 working days from the receipt of the application, the tax authority shall issue:

- A notice of rejection according to Form No. 03/NDAN in Appendix I of Circular 80/2021/TT-BTC if the guarantee letter is suspected to be illegal, and Form No. 05/NDAN in Appendix I of Circular 80/2021/TT-BTC to the guarantor requesting the guarantor to provide confirmation to the tax authority within a specific period time as prescribed by law;

- The permission for tax payment in instalment according to Form No. 04/NDAN in Appendix I of Circular 80/2021/TT-BTC if the taxpayer is eligible for tax payment in instalments.