What are regulations on application for exemption of late payment interest in Vietnam?

What are regulations on application for exemption of late payment interest in Vietnam?

Pursuant to Clause 2, Article 23 of the Circular 80/2021/TT-BTC stipulating application for exemption of late payment interest in Vietnam as follows:

2. The application for exemption of late payment interest:

a) In case of a natural disaster, epidemic, conflagration or accident, the application shall contain:

b.1) The application form No. 01/MTCN in Appendix I hereof;

a.2) Documents issued by competent authorities confirming the time, location of the natural disaster, epidemic, conflagration or accident (original copies or copies certified by the taxpayer);

a.3) Documents determining physical damage issued by a financial authority or an independent assessing authority (original copies or certified true copies);

a.4) Documents (original copies or copies certified by the taxpayer) attributing responsibility of specific organizations and individuals for paying compensation (if any);

a.5) Documents (original copies or copies certified by the taxpayer) relevant to payment of compensation (if any).

b) In other force majeure events specified in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the application shall contain:

b.1) The application form No. 01/MTCN in Appendix I hereof;

b.2) Documents determining physical damage issued by a financial authority or an independent assessing authority (original copies or certified true copies) inflicted by the war, riot, strike that caused the taxpayer to suspend or terminate business operation;

b.3) Documents proving that the risk is not subjectively caused by the taxpayer and that the taxpayer is not financially capable of making payment to state budget if that is the case (original copies or certified true copies).

b.4) Documents (original copies or copies certified by the taxpayer) relevant to insurance payout provided by the insurer (if any).

3. Determination of exempted late payment interest

a) In case of a natural disaster, epidemic, conflagration or accident mentioned in Point a Clause 27 Article 3 of the Law on Tax Administration, the exempted late payment interest shall be the unpaid late payment interest upon the occurrence of such event and must not exceed the physical damage minus compensation and insurance payout (if any).

b) In case of other force majeure events mentioned in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the exempted late payment interest shall be the unpaid late payment interest upon the occurrence of such event and must not exceed the physical damage minus compensation and insurance payout (if any).

Which authorities have competence in issuance of decisions on exemption of late payment interest in Vietnam?

Pursuant to Clause 4, Article 23 of the Circular 80/2021/TT-BTC stipulating competence in issuance of decisions on exemption of late payment interest in Vietnam as follows:

Heads of supervisory tax authorities or state budget revenue-managing tax authority shall issue decisions on exemption of late payment interest according to Form No. 04/MTCN in Appendix I hereof.

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