When is the time to pay tax in instalments in Vietnam?

When is the time to pay tax in instalments in Vietnam?

According to Clause 3, Article 66 of Circular 80/2021/TT-BTC regulated as follows:

Tax payment in instalments

1. application resolution process for tax payment in instalments

a) The taxpayer shall prepare a application proposing the tax payment in instalments as stipulated in Clause 2 of this Article and send it to the directly managing tax authority.

b) In cases where the application proposing the tax payment in instalments is incomplete as prescribed, within 03 working days from the date of receiving the application, the tax authority must notify in writing using Form No. 01/TB-BSTT-NNT issued along with Decree No. 126/2020/ND-CP requesting the taxpayer to explain or supplement the application.

In cases where the application proposing the tax payment in instalments is complete, within 10 working days from the date of receiving the application, the tax authority shall issue:

b.1) A notice of disapproval of the tax payment in instalments using Form No. 03/NDAN issued along with Appendix I of this Circular for cases where the guarantee letter shows signs of being illegal. Concurrently, the tax authority shall issue a document using Form No. 05/NDAN issued along with Appendix I of this Circular to the guarantor for verification and the guarantor shall send the verification result to the tax authority within the legally prescribed time;

b.2) A decision to approve the tax payment in instalments using Form No. 04/NDAN issued along with Appendix I of this Circular for eligible cases.

2. application for tax payment in instalments

a) The written request according to Form No. 01/NDAN issued along with Appendix I of this Circular;

b) A guarantee letter complying with the law on guarantees, with a mandatory commitment that the guarantor will make the payment on behalf of the taxpayer in case the taxpayer fails to meet the deadline for tax payment in instalments;

c) The decision to enforce the administrative decision on tax management (if any).

3. The number of installments and amount for the tax payment in instalments

a) The tax payment in instalments amount is the tax debt calculated up to the time the taxpayer proposes the deferred plan but not exceeding the tax debt guaranteed by the credit institution.

b) The taxpayer is allowed to pay the deferred tax debt within a period not exceeding 12 months and within the validity period of the guarantee letter.

c) The taxpayer is allowed to pay the deferred tax debt on a monthly basis, ensuring each installment of tax payment in instalments is not less than the average monthly tax payment in instalments. The taxpayer must self-determine the late payment interest to pay along with the deferred tax debt installment.

According to the above regulation, it can be seen that the tax payment in instalments amount is calculated up to the time when the taxpayer proposes the deferred plan but does not exceed the tax debt amount guaranteed by the credit institution.

When is the time to pay tax in instalments in Vietnam? (Image sourced from the Internet)

What are procedures for processing a application for tax payment in instalments in Vietnam?

The process of resolving a application for tax payment in instalments is carried out as stipulated in Clause 1, Article 66 of Circular 80/2021/TT-BTC as follows:

Step 01: The taxpayer shall prepare and submit a application proposing the tax payment in instalments as per regulation to the directly managing tax authority.

Step 02:

- In cases where the application proposing the tax payment in instalments is incomplete as prescribed, within 03 working days from the date of receiving the application, the tax authority must notify in writing using Form No. 01/TB-BSTT-NNT issued along with Decree 126/2020/ND-CP requesting the taxpayer to explain or supplement the application.

- In cases where the application proposing the tax payment in instalments is complete, within 10 working days from the date of receiving the application, the tax authority shall issue:

+ A notice of disapproval of the tax payment in instalments using Form No. 03/NDAN issued along with Appendix 1 of Circular 80/2021/TT-BTC for cases where the guarantee letter shows signs of being illegal. Concurrently, the tax authority shall issue a document using Form No. 05/NDAN issued along with Appendix 1 of Circular 80/2021/TT-BTC to the guarantor for verification, and the guarantor shall send the verification result to the tax authority within the legally prescribed time;

+ A decision to approve the tax payment in instalments using Form No. 04/NDAN issued along with Appendix 1 of Circular 80/2021/TT-BTC for eligible cases.

What documents are included in the application for tax payment in instalments in Vietnam?

Based on the provisions of Clause 17, Article 3 of the Law on Tax Administration 2019, tax debt is defined as the amount of tax and other state budget revenues managed by the tax authority that the taxpayer has not paid to the state budget by the prescribed deadline.

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

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

- A guarantee letter complying with the law on guarantees, with a mandatory commitment that the guarantor will make the payment on behalf of the taxpayer in case the taxpayer fails to meet the deadline for tax payment in instalments;

- The decision to enforce the administrative decision on tax management (if any).