Procedures for Extending the Deadline for Payment of excise tax for Automobiles Manufactured or Assembled Domestically from June 17, 2024 - December 31, 2024 in Vietnam

Procedures for Extending the Deadline for Payment of excise tax for Automobiles Manufactured or Assembled Domestically from June 17, 2024 - December 31, 2024 in Vietnam (Image from Internet)

On June 17, 2024, Hanoi promulgated Decree 65/2024/ND-CP regarding the extension of the deadline for payment of excise tax for automobiles manufactured or assembled domestically.

Procedures for Extending the Deadline for Payment of excise tax for Automobiles Manufactured or Assembled Domestically from June 17, 2024 - December 31, 2024 in Vietnam

Article 4 of Decree 65/2024/ND-CP stipulates the procedures for extending the deadline for payment of excise tax for automobiles manufactured or assembled domestically in Vietnam as follows:

- Taxpayers eligible for the extension must submit an Application for Extension of the Deadline for Payment of excise tax (electronically or in person at the tax office or via postal service) using the Template in the Appendix issued together with Decree 65/2024/ND-CP to the directly managing tax authority once for all the periods extended at the same time they file their excise tax returns in accordance with tax management laws. If the Application for Extension of the Deadline for Payment of excise tax is not submitted with the excise tax return, the latest submission deadline is November 20, 2024. The tax authority will still grant the extension according to Article 3 of Decree 65/2024/ND-CP.

- Taxpayers are responsible for accurately determining and ensuring they are eligible for the extension in accordance with Decree 65/2024/ND-CP.

- The tax authority is not required to notify taxpayers about the acceptance of the extension for the deadline for payment of excise tax. If during the extension period, the tax authority identifies that the taxpayer is not eligible, they will notify the taxpayer in writing to stop the extension, and the taxpayer must pay the total tax amount and any late fees for the extended period back to the state budget. If the tax authority finds during post-extension audits that the taxpayer was ineligible for the extension, the taxpayer must pay the outstanding tax, penalties, and late fees as reassessed by the tax authority back to the state budget.

- During the extension period, the tax authority will not charge late fees for the extended excise tax. If the tax authority has already calculated late fees for tax returns eligible for the extension under Decree 65/2024/ND-CP, they will adjust to exclude the late fees of the excise tax.

Regulations on Extending the Deadline for Payment of excise tax for Domestically Manufactured or Assembled Automobiles in Certain Cases in Vietnam

Clause 2, Article 3 of Decree 65/2024/ND-CP regulates the extension of the deadline for excise tax payment for domestically manufactured or assembled automobiles in certain cases in Vietnam as follows:

- If the taxpayer submits an additional tax return for the extended period that results in an increase in excise tax liability, and sends it to the tax authority before the extended deadline, the extended tax also includes the additional tax owed due to the supplemental return.

- Taxpayers eligible for the extension must file a excise tax declaration according to current laws but are not required to pay the excise tax declared for the period covered by the extension.

- If the enterprise’s branches or dependent units file separate excise tax declarations with their directly managing tax authorities, these branches or dependent units are also eligible for the extension. If branches or dependent units do not manufacture or assemble automobiles, they are not eligible for the extended excise tax payment.

More details can be found in Decree 65/2024/ND-CP effective in Vietnam from June 17, 2024, to December 31, 2024.

To Quoc Trinh

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