Newest procedures for tax deferral in Vietnam under Decision 2127

Newest procedures for tax deferral in Vietnam under Decision 2127 (Image from the internet)

On September 11, 2024, the Ministry of Finance promulgated Decision 2127/QD-BTC to announce the amended tax-related administrative procedures under the management of the Ministry of Finance of Vietnam.

Newest procedures for tax deferral in Vietnam under Decision 2127

- Implementation Steps:

+ Step 1: Taxpayers eligible for a tax deferral prepare and submit their dossiers to the tax authority directly managing the taxpayer.

++ According to Decree 64/2024/ND-CP: Taxpayers who directly declare and pay taxes to the tax authority eligible for an extension must submit a first-time or replacement tax deferral Request Form when an error is detected (via electronic method; directly paper submission to the tax authority or through postal service) according to the Form in the Appendix issued with Decree 64/2024/ND-CP to the tax authority managing directly for all taxes, land rents incurred in the extended tax periods along with the time of submitting monthly (or quarterly) tax declarations as per tax management laws. If the tax deferral Request Form is not submitted along with the monthly (or quarterly) tax declaration, the submission deadline is September 30, 2024. The tax authority will still grant tax and land rent extensions for the periods before submitting the tax deferral Request Form.

++ According to Decree 65/2024/ND-CP: Taxpayers eligible for an extension must submit a Special Consumption tax deferral Request Form (via electronic method; directly paper submission to the tax authority or through postal service) according to the Form in the Appendix issued with Decree 65/2024/ND-CP to the tax authority managing directly for all eligible extended periods along with the time of submitting special consumption tax declaration under tax management laws. If the Special Consumption tax deferral Request Form is not submitted along with the special consumption tax declaration, the submission deadline is November 20, 2024. The tax authority will still grant special consumption tax deferrals as per Article 3 of Decree 65/2024/ND-CP.

+ Step 2: The tax authority receives the taxpayer's dossier:

++ If the dossier is directly submitted at the tax authority or via postal service, the tax authority receives and processes the dossier and returns the result as regulated. In cases of tax deferral under Decree 64/2024/ND-CP and Decree 65/2024/ND-CP, the tax authority does not return a result.

++ If the dossier is submitted via electronic transactions, the tax authority receives, examines, and accepts the tax dossier through the electronic data processing system.

According to Decree 64/2024/ND-CP: In cases where taxpayers have extension cases managed by different tax authorities, the tax authority directly managing the taxpayer must transmit the tax deferral Request Form information to the related managing tax authority.

- Method of Execution:

+ Direct submission at the tax authority headquarters;

+ Or send through the postal system;

+ Or submit the electronic dossier to the tax authority via electronic transactions (the General Department of Taxation’s electronic portal/government’s competent electronic portal or T-VAN service providers).

- Documentation Components and Quantity:

+ Documentation components include:

++ tax deferral Request Form according to Form 01/GHAN issued together with Appendix I of Circular 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance.

++ Depending on the case, the tax extension request dossier must include additional documents:

(*) In case of natural disasters, epidemics, fires, unexpected accidents as prescribed in point a clause 27 Article 3 of the Law on Tax Administration, it must be:

- Document evidencing the time and place of the disaster, epidemic, fire, or accident (original or certified copy by the taxpayer);

- Written determination of material value damage by the taxpayer or the taxpayer’s legal representative responsible for the data's accuracy;

- Document (original or certified copy by the taxpayer) stipulating the responsibility of the organization or individual to compensate for the damage (if any);

- Documents (original or certified copy by the taxpayer) related to damage compensation (if any).

(*) For other force majeure cases per Clause 1 Article 3 of Decree 126/2020/ND-CP of the Government of Vietnam, it must be:

- Written determination of material value damage by the taxpayer or the taxpayer’s legal representative responsible for the data's accuracy;

- Document evidencing the time and place of the force majeure from a competent authority; document proving that the taxpayer had to stop production/business in case of war, riots, strikes resulting in business interruption (original or certified copy by the taxpayer);

- Document proving unforeseen risk not caused by the taxpayer's subjective responsibility and the taxpayer's inability to personally fund state budget payment in case of damage due to unforeseen risk not caused by the taxpayer’s subjective responsibility (original or certified copy by the taxpayer);

- Documents (original or certified copy by the taxpayer) related to damage compensation from the insurance agency (if any).

(*) In case of relocation of the production/business establishment per point b clause 1 Article 62 of the Law on Tax Administration, it must be:

- Decision of the competent State authority on the relocation of the production/business establishment for the taxpayer (original or certified copy by the taxpayer);

- Scheme or relocation plan showing the taxpayer’s specific relocation plans and progress (original or certified copy by the taxpayer).

++ According to Decree 64/2024/ND-CP: tax deferral Request Form per the Form in the Appendix issued with Decree 64/2024/ND-CP.

++ According to Decree 65/2024/ND-CP: Special Consumption tax deferral Request Form per the Form in the Appendix issued with Decree 65/2024/ND-CP.

+ Number of dossiers: 01 (set)

- Processing Time:

+ If the tax extension request dossier is incomplete or errors are found, within 3 (three) working days from the date of receipt, the tax authority must notify in writing per Form 01/TB-BSTT-NNT issued with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam requesting the taxpayer to explain or supplement the dossier.

+ If the dossier is complete, within 10 (ten) working days from the date of receipt, the tax authority must issue a Notice of Disapproval for tax extension (Form 03/GHAN issued with Appendix I Circular 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance) for cases not eligible for tax extension or a Tax Extension Decision (Form 02/GHAN issued with Appendix I Circular 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance) for cases eligible for tax extension.

According to Decree 64/2024/ND-CP:

+ No need to return results (notice) to the taxpayer if the request for extension is accepted.

+ No processing time regulation if during the extension period, the tax authority determines the taxpayer is ineligible for the extension, the tax authority notifies the taxpayer in writing that the extension is revoked, and the taxpayer must fully pay the taxes, land rent, and late payment interest into the state budget for the extension period.

According to Decree 65/2024/ND-CP:

+ No need to return results (notice) to the taxpayer if the request for extension is accepted.

+ No processing time regulation if during the extension period, the tax authority determines the taxpayer is ineligible for the extension, the tax authority notifies the taxpayer in writing that the extension is revoked, and the taxpayer must fully pay the taxes and late payment interest into the state budget for the extension period.

More details can be found in Decision 2127/QD-BTC which comes into force in Vietnam from September 11, 2024.

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