What is the order of payment of taxes, late payment interest, and fines in Vietnam?

What is the order of payment of taxes, late payment interest, and fines in Vietnam?

According to Clause 2, Article 57 of the Law on Tax Administration 2019, the order of payment for taxes, late payment interest, and fines is stipulated as follows:

- Overdue tax debts, fines, and late payment interests subject to enforcement measures;

- Overdue tax debts, fines, and late payment interests not yet subject to enforcement measures;

- Arising tax amounts, fines, and late payment interests.

What is the order of payment of taxes, late payment interests, and fines in Vietnam (Image from the Internet)

What are regulations on handling of overpaid taxes, late payment interests, and fines in Vietnam?

According to Article 60 of the Law on Tax Administration 2019 regarding the handling of overpaid taxes, late payment interests, and fines:

- Taxpayers who have overpaid taxes, late payment interests, and fines are entitled to offset the excess amounts against outstanding taxes, late payment interests, and fines, or deduct from the taxes, late payment interests, and fines due in the next payment period, or get a refund of the excess amounts if there are no outstanding taxes, late payment interests, and fines.

In cases where taxpayers request to offset the overpaid taxes, late payment interests, and fines with outstanding taxes, late payment interests, and fines, late payment interest interest will not be calculated for the offset amount from the date the excess payment arises to the date the tax authority performs the offset.

- In cases where taxpayers request a refund of the overpaid amounts, the tax authority must issue a decision to refund or provide a written response stating the reasons for not refunding within 05 working days from the date of receiving the written request.

- Excess payments will not be refunded and the tax authorities will perform accounting cancellation of the excess amounts in the following cases:

+ The tax authority has notified the taxpayer of the overpaid amounts eligible for a refund, but the taxpayer refuses to accept the refund in writing;

+ The taxpayer is not operating at the registered address with the tax authority, and the tax authority has notified the excess payments through mass media, but after 01 year from the notification date, the taxpayer has not responded in writing to request a refund;

+ The excess payment is over 10 years from the date of payment to the state budget, and the taxpayer has not offset the tax obligations and has not requested a tax refund.

- In cases where taxpayers are not operating at the registered business address and have overpaid taxes, late payment interests, fines, and outstanding taxes, late payment interests, fines, the tax authority will offset the excess amounts against the outstanding taxes, late payment interests, and fines.

What is the extension of tax payment deadlines in Vietnam?

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

Extension of Tax Payment Deadlines

1. Extension of tax payment deadlines shall be considered based on the taxpayer's request in one of the following cases:

a) Suffering material damage, directly affecting production and business due to force majeure as stipulated in Clause 27, Article 3 of this Law;

b) Having to cease operations due to relocation of production and business establishments as requested by competent authorities, affecting production and business results.

2. Taxpayers eligible for extension of tax payment deadlines as stipulated in Clause 1 of this Article may be granted an extension for part or all of the tax payable.

3. The extension period is regulated as follows:

a) Not exceeding 02 years from the tax payment deadline for cases stipulated in point a, Clause 1 of this Article;

b) Not exceeding 01 year from the tax payment deadline for cases stipulated in point b, Clause 1 of this Article.

4. Taxpayers are not subject to fines and late payment interest interest on the tax debt during the extension period.

5. The head of the directly managing tax authority shall decide the amount of tax to be deferred and the deferment period based on the extension application.

Therefore, taxpayers can extend their tax payment deadlines as follows:

- Not exceeding 02 years from the tax payment deadline for cases suffering material damage, directly affecting production and business due to force majeure, including:

+ Material damage due to natural disasters, catastrophes, epidemics, fire, unexpected accidents;

+ Other force majeure cases as stipulated by the Government of Vietnam.

- Not exceeding 01 year from the tax payment deadline for cases of having to cease operations due to relocation of production and business establishments as requested by competent authorities, affecting production and business results.