What is the time limit for tax payment in instalments within the month in Vietnam?

What is the time limit for tax payment in instalments within the month in Vietnam?

Based on Clause 3, Article 66 of Circular 80/2021/TT-BTC, the regulations are as follows:

Tax payment in instalments

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3. Number of times and amount of tax to be paid in instalments

a) The tax debt amount to be paid in instalments is the tax debt calculated up to the time the taxpayer requests tax payment in instalments, but it does not exceed the guaranteed tax debt amount by the credit institution.

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

c) The taxpayer is allowed to pay tax in instalments monthly, ensuring each tax payment in instalments is not less than the average monthly paid in instalments amount. The taxpayer must determine the late payment interest arising to pay along with the paid in instalments tax debt amount.

4. time limit for tax payment in instalments

The time limit for tax payment in instalments is the last day of the month. If the tax to be paid in instalments time limit as committed monthly is overdue and the taxpayer does not pay or pays insufficiently, or the guarantor has not fulfilled the payment obligation, then within 05 working days from the overdue date of the tax to be paid in instalments as committed, the tax authority will issue a document according to Form No. 02/NDAN attached to Appendix I of this Circular and send it to the guarantor, requesting the guarantor to fulfill the guarantee obligation as prescribed by law, while also sending it to the taxpayer.

The time limit for tax payment in instalments is the last day of the month.

In the case that the tax to be paid in instalments time limit as committed monthly is overdue and the taxpayer does not pay or pays insufficiently, or the guarantor has not fulfilled the payment obligation, then within 05 working days from the overdue date of the tax to be paid in instalments as committed, the tax authority will issue a document according to Form No. 02/NDAN attached to Appendix 1 of Circular 80/2021/TT-BTC and send it to the guarantor, requesting the guarantor to fulfill the guarantee obligation as prescribed by law, while also sending it to the taxpayer.

What is the time limit for tax payment in instalments within the month in Vietnam? (Image from the Internet)

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

Based on Clause 1, Article 66 of Circular 80/2021/TT-BTC, the procedure for processing an application for tax payment in instalments is as follows:

Tax payment in instalments

1. Procedure for processing an application for tax payment in instalments

a) The taxpayer prepares a dossier requesting tax to be paid in instalments in accordance with Clause 2 of this Article and sends it to the directly managing tax authority.

b) In case the tax to be paid in instalments dossier is incomplete as prescribed, within 03 working days from the receipt of the dossier, the tax authority must notify the taxpayer in writing according to Form No. 01/TB-BSTT-NNT attached to Decree No. 126/2020/ND-CP, requesting the taxpayer to explain or supplement the dossier.

In case the tax to be paid in instalments dossier is complete, within 10 working days from the receipt of the dossier, the tax authority will issue:

b.1) Notification of non-acceptance of tax to be paid in instalments according to Form No. 03/NDAN attached to Appendix I of this Circular in case the guarantee letter shows signs of illegitimacy, and the tax authority shall issue a document according to Form No. 05/NDAN attached to Appendix I of this Circular to the guarantor for verification, and the guarantor shall send the verification result to the tax authority within the time limit prescribed by law;

b.2) Decision on acceptance of tax to be paid in instalments according to Form No. 04/NDAN attached to Appendix I of this Circular in case of eligible tax to be paid in instalments.

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Thus, the issue of tax to be paid in instalments is carried out in the following order:

Step 1: Submit the dossier

The taxpayer prepares a dossier requesting tax to be paid in instalments and sends it to the directly managing tax authority.

Step 2: Check the dossier

- In case the tax to be paid in instalments dossier is incomplete as prescribed, within 03 working days from the receipt of the dossier, the tax authority must notify the taxpayer in writing to explain or supplement the dossier.

- In case the tax to be paid in instalments dossier is complete, the tax authority will decide to accept or not accept the tax to be paid in instalments.

Step 3: Provide results

Within 10 working days from the receipt of the dossier, the tax authority issues:

+ Notification of non-acceptance of tax to be paid in instalments according to Form No. 03/NDAN attached to Appendix I of this Circular in case the guarantee letter shows signs of illegitimacy; at the same time, the tax authority will issue a document to the guarantor for verification, and the guarantor will send the verification result to the tax authority within the time limit prescribed by law;

+ Decision on acceptance of tax to be paid in instalments for cases eligible for tax to be paid in instalments.

Does a taxpayer paying tax by instalments have to pay late payment interest in Vietnam?

According to Point d, Clause 1, Article 59 of the Law on Tax Administration 2019, the handling of late tax payments is regulated as follows:

Handling of Late Tax Payments

1. Cases requiring the payment of late interest include:

a) The taxpayer is late in paying taxes compared to the prescribed time limit, the tax extension time limit, the time limit stated in the notification of the tax authority, the time limit in the tax decision, or the handling decision of the tax authority;

b) The taxpayer files additional tax returns, resulting in an increase in the amount of tax payable, or the tax authority or competent state authority discovers an under-declared amount payable, then the taxpayer must pay late interest on the increased amount from the day after the last due date of the tax period with errors or omissions or from the due date of the initial customs declaration;

c) The taxpayer files additional tax returns, resulting in a reduction of the amount of tax refunded, or the tax authority or competent state authority discovers that the refunded tax amount is less than the refunded amount, then the taxpayer must pay late interest on the refunded amount to be recovered from the date of receiving the refund from the state budget;

d) Cases allowed to pay tax in instalments as prescribed in Clause 5, Article 124 of this Law;

e) Cases not subject to administrative penalties for tax management due to the expiration of the statute of limitations for penalties but subject to tax collection for the shortfall as prescribed in Clause 3, Article 137 of this Law;

f) Cases not subject to administrative penalties for tax management for acts prescribed in Clauses 3 and 4, Article 142 of this Law;

g) Agencies and organizations entrusted by the tax administration agency to collect taxes are late in transferring tax, late payment interest, or fines from the taxpayer to the state budget, then they must pay late interest on the delayed amount as prescribed.

In cases allowed to pay tax in instalments as prescribed in Clause 5, Article 124 of the Law on Tax Administration 2019, late interest must be paid.