What is the application for tax payment in instalments? What are the procedures for processing applications for tax payment in instalments in Vietnam?
What is the application for tax payment in instalments in Vietnam?
According to the provisions of Clause 2, Article 66 of Circular 80/2021/TT-BTC guiding the Law on Tax Administration 2019 and Decree 126/2020/ND-CP on elaboration of the Law on Tax administration issued by the Minister of Finance. Regarding the application for tax payment in instalments as follows:
Tax payment in instalments
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2. Application for tax payment in instalments
a) The application form No. 01/NDAN in Appendix I hereof;
b) 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;
c) The decision on enforcing the implementation of the tax decision (if any).
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, taxpayers submit the following documents:
- The application form No. 01/NDAN in Appendix I hereof;
- 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;
- The decision on enforcing the implementation of the tax decision (if any).
What is the application for tax payment in instalments? What are the procedures for processing applications for tax payment in instalments in Vietnam?
What is the time limit for tax payment in instalments in Vietnam?
Pursuant to Clause 4, Article 66, Circular 80/2021/TT-BTC stipulates the time limit for tax payment in instalments, specifically as follows:
The deadline for paying tax by instalments instalment 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.
Thus, the amount of tax to be paid in instalments must not exceed the amount guaranteed by the credit institution.
The taxpayer may pay tax in instalments for up to 12 months and within the effective period of the guarantee letter. 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.
What are the procedures for processing applications for tax payment in instalments in Vietnam?
According to the provisions of Clause 1, Article 66 of Circular 80/2021/TT-BTC on the order of processing applications for installment payment of tax debt as follows:
Tax payment in instalments
1. Procedures for processing applications for tax payment in instalments
a) The taxpayer shall prepare the application for tax payment in instalments in accordance with Clause 2 of this Article and send it to the supervisory tax authority.
b) 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:
b.1) A notice of rejection according to Form No. 03/NDAN in Appendix I hereof if the guarantee letter is suspected to be illegal, and Form No. 05/NDAN in Appendix I hereof to the guarantor requesting the guarantor to provide confirmation to the tax authority within a specific period time as prescribed by law;
b.2) The permission for tax payment in instalment according to Form No. 04/NDAN in Appendix I hereof if the taxpayer is eligible for tax payment in instalments.
Thus, the issue of paying tax debt in installments is carried out in the following order:
Step 1: Submit application
The taxpayer shall prepare the application for tax payment in instalments and send it to the supervisory tax authority.
Step 2: Check your profile
- 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 and request the taxpayer to provide explanation or supplement the application.
- In case the dossier requests full installment payment of tax debt, the tax authority will decide to approve or disapprove the installment payment of tax debt.
Step 3: Return results
In case the application is satisfactory, within 10 working days from the receipt of the application
- A notice of rejection according to Form No. 03/NDAN in Appendix I hereof if the guarantee letter is suspected to be illegal, and Form No. 05/NDAN in Appendix I hereof 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 if the taxpayer is eligible for tax payment in instalments.
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