Guidance on tax and land rent deferral applied from April 08, 2020 in Vietnam

DOWNLOAD APPLICATION FOR TAX AND LAND RENT DEFERRAL

Entities mentioned in Article 2 of Decree No. 41/2020/NĐ-CP of Vietnam’s Government shall be entitled to deferral of added value tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent.

According to Decree No. 41/2020/NĐ-CP of Vietnam’s Government, deferral procedures are specified as follows:

- A taxpayer eligible for tax deferral shall submit an application for tax and land rent deferral (electronically or another method) using the form enclosed with Decree No. 41/2020/NĐ-CP to the supervisory tax authority. The application shall include all payments of tax and land rent deferred and be submitted together with the monthly or quarterly tax declaration. 

In case the application for tax and land rent deferral is not submitted together with the monthly or quarterly tax declaration, it shall be submitted by July 30, 2020.

- Taxpayers shall be responsible for their eligibility for deferral. Tax and land rent shall not be deferred if the application for tax and land rent deferral is submitted after July 30, 2020.

- The tax authority is not required to inform the taxpayer whether the application is granted or rejected.

- Over the deferral period, the tax authority shall not charge interest on the deferred tax and land rent (even if the application for deferral is submitted after submission of the monthly or quarterly tax declaration but not later than July 30, 2020).

Note: In case the tax authority discovers that the taxpayer is not eligible for deferral, the tax authority shall send a written notice of ineligibility for deferral to the taxpayer and the taxpayer shall fully pay the tax and/or land rent plus late payment interest that accrues over the period from the deadline to the payment date. In case the tax authority discovers that the taxpayer is not eligible for deferral after the end of the deferral period, the taxpayer shall fully pay the outstanding tax, fine and late payment interest determined by the tax authority.

Therefore, taxpayers should carefully find out if they are eligible for tax and land rent deferral under this Decree, to avoid incurring late payment of tax and land rent as prescribed.

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE