Can a fire-affected business apply for tax deferral in Vietnam?

Can a fire-affected business apply for tax deferral in Vietnam?

Pursuant to Clause 1, Article 62 of the Law on Tax Administration 2019, a taxpayer may apply for tax deferral in one of the following cases:

a) The taxpayer’s business suffers damage due to a force majeure events specified in Clause 27 Article 3 of this Law;

b) The taxpayer has to relocate the business location as requested by a competent authority and such relocation affects the business performance.

According to Clause 27, Article 3 of the Law on Tax Administration 2019, “Force majeure events” include:

a) Taxpayers suffering from physical damage caused by natural disasters, catastrophes, epidemics, fire, sudden accidents;

b) Other force majeure situations as prescribed by the Government.

Thus, according to the above provisions in Vietnam, if your business has physical damage caused by fire, your business can apply for tax deferral.

What is application for tax deferral in Vietnam?

Pursuant to Article 64 of the Law on Tax Administration 2019, the application for tax deferral is as follows:

1. A taxpayer eligible for tax deferral as prescribed in this Law shall prepare and send an application for tax deferral to the supervisory tax authority.

2. An application for tax deferral consists of:

a) An application form specifying the reasons for deferral, the amount of tax and the deferral period;

b) Documents supporting the reasons for deferral.

3. The Minister of Finance shall specify the composition of the application for tax deferral.

Best Regards!