What is the minimum amount required for a taxpayer to pay tax in monthly instalments in Vietnam?

What is the minimum amount required for a taxpayer to pay tax in monthly instalments in Vietnam?

Pursuant to Clause 3, Article 66 of Circular 80/2021/TT-BTC, the regulations on the number of times and the amount of tax installments payments are as follows:

Installment Payment of Outstanding Tax

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3. Number of Times and Amount of Installment Payments for Outstanding Tax

a) The outstanding tax amount eligible for installment payment is the outstanding tax calculated up to the time the taxpayer requests installment payments, but does not exceed the guaranteed outstanding tax amount by the credit institution.

b) The taxpayer is allowed to pay the outstanding tax in installments within a period not exceeding 12 months and within the effective period of the guarantee letter.

c) The taxpayer is allowed to pay the outstanding tax in installments on a monthly basis, ensuring that each installment payment is not less than the average monthly installment amount. The taxpayer must self-determine the arising late payment amount to be paid alongside the outstanding tax installments.

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Thus, the taxpayer is allowed to pay the outstanding tax in installments on a monthly basis ensuring each installment payment amount is not less than the average monthly installment amount.

What is the minimum amount required for a taxpayer to pay tax in monthly instalments in Vietnam? (Image from the Internet)

Vietnam: What does the application for tax payment in instalments include?

Based on Clause 2, Article 66 of Circular 80/2021/TT-BTC, the application for tax payment in instalments includes:

- A written request according to Form No. 01/NDAN issued with Appendix 1 of Circular 80/2021/TT-BTC;

- A guarantee letter according to the regulations of law on guarantees and it must contain a commitment clause where the guarantor will make the payment on behalf of the taxpayer if the taxpayer fails to comply with the deadline for installment payments of outstanding tax;

- A decision on enforcement of administrative decisions related to tax management (if any).

What is the procedure for resolving the application for tax payment in instalments in Vietnam?

According to Clause 1, Article 66 of Circular 80/2021/TT-BTC, the procedure for resolving the application for tax payment in instalments is regulated as follows:

(1) The taxpayer prepares the dossier requesting installment payment of outstanding tax as per regulations and submits it to the directly managing tax authority.

(2) The tax authority reviews the application for tax payment in instalments:

- In cases where the dossier requesting installment payment of outstanding taxes is incomplete according to regulations, within 3 working days from the date of receiving the dossier, the tax authority must issue a written notice according to Form No. 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP requesting the taxpayer to clarify or supplement the dossier.

- In cases where the dossier requesting installment payment of outstanding taxes is complete, within 10 working days from the date of receiving the dossier, the tax authority issues:

- A notice of non-acceptance for installment payment of outstanding taxes according to Form No. 03/NDAN issued with Appendix 1 of Circular 80/2021/TT-BTC in cases where the guarantee letter is found to have invalid indications, simultaneously the tax authority issues a document according to Form No. 05/NDAN issued with Appendix 1 of Circular 80/2021/TT-BTC to the guarantor for verification, and the guarantor sends the verification result to the tax authority within the legally prescribed timeline;

- A decision approving installment payment of outstanding taxes according to Form No. 04/NDAN issued with Appendix 1 of Circular 80/2021/TT-BTC for eligible cases for installment payment of outstanding taxes.

What are the regulations concerning the tax payment deadline in Vietnam?

Pursuant to Article 55 of the Law on Tax Administration 2019, the tax payment deadline is regulated as follows:

- In cases where the taxpayer calculates the tax, the tax payment deadline is no later than the last day of the deadline for submitting the tax declaration dossier. In cases of filing supplementary tax declaration dossiers, the tax payment deadline is the deadline for submitting the tax declaration dossier for the tax period with errors.

For corporate income tax, it is paid quarterly, and the latest tax payment deadline is the 30th day of the first month of the following quarter.

For crude oil, the deadline for payment of natural resources tax and corporate income tax per crude oil sale is 35 days from the sale date for domestically sold crude oil or from the date of customs clearance according to customs law for exported crude oil.

For natural gas, the deadline for payment of natural resources tax and corporate income tax is monthly.

- In cases where the tax authority calculates the tax, the payment deadline is the deadline specified in the tax authority's notice.

- For other state budget revenues from land, water resource exploitation rights, mineral resources, registration fees, and business license fees, the deadline is according to the regulations of the Government of Vietnam.

- For exported and imported goods subject to tax under tax law, the tax payment deadline follows the provisions of the Law on Export and Import Duties 2016; if any additional tax amount arises after customs clearance or goods release, the following tax payment deadlines apply:

- The deadline for tax payment for supplementary declarations and determined tax payment amounts applies as per the initial customs declaration's tax payment deadline;

- The deadline for tax payment for goods requiring analysis or assessment to accurately determine the payable tax amount; goods without an official price at the time of customs declaration registration; goods with undetermined actual payments or adjustments included in the customs value at the time of customs declaration registration is as regulated by the Minister of Finance.