Guidance on Procedures and dossiers for extension of tax debt payment deadlines in Vietnam

Guidance on Procedures and dossiers for extension of tax debt payment deadlines in Vietnam (Internet image)

Circular 77/2008/TT-BTC stipulates the procedures and documents when applying for tax payment extension in Vietnam as follows:

1.  A written request for extension of the deadline for paying tax debts and fine. This written request must clearly state the reason for requesting extension, the tax and fine amounts for which extension of the payment deadline is requested, the requested extension time, the plan for tax debt payment, and a commitment to pay tax and fine amounts according to this plan.

2. Documents proving the reason for requesting extension. Specifically in the following cases:

+ The financial statement of the nearest fiscal year ending before July 1, 2007 and a table of data on the tax debt as of July 1, 2007.

+ In case of meeting business risks: If business risks are caused by natural disaster, fire or accident, a written record of the extent or value of property damage made by a competent body such as the valuation council set up by the provincial-level Finance Service or a professional valuation company providing valuation services under contracts or the valuation center of the provincial-level Finance Service, is required. If business risks are caused by a bankrupt partner or a policy change in the importing country, the enterprise shall produce a proof or give explanations.

+ In case of relocation of business places at the request of a competent state agency, the decision of the competent state agency on the relocation of the enterprise's business place is required.

+ For business establishments with turnover from the implementation of projects paid from the state budget which have not yet received such payments, the evidence documents include the economic contract, a debt comparison statement and the certification of the completed work volume for which payment is accepted, made by the investor or principal contractor; documents and vouchers proving the realized turnover and the turnover amount already paid from the state budget, and documents showing the payable tax amount based on the realized turnover or completed work volume, and the tax debt.

+ For enterprises implementing investment projects to build infrastructure or houses for commercial purposes which faced difficulties: vouchers and documents showing the payable, paid and owed tax amounts; document permitting the extension of the land use deadline issued by an agency competent to allocate or lease land; and a declaration of the sale of houses and the transfer of land use rights (turnover and area), are required.

Note: The above documents must be notarized copies or copies appended with a true copy stamp and the signature of a competent person of the enterprise. Tax debtors shall send dossiers of request for extension of tax debt payment deadlines to tax administration agencies that directly manage them.

More details can be found in Circular 77/2008/TT-BTC, which comes into force from October 17, 2008.

Ngoc Tai

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