Recently, the General Department of Taxation issued Official Dispatch 897/TCT-QLN regarding the extension of the tax payment deadline and exemption of late payment interest due to the impact of the Covid-19 pandemic, sent to the Tax Departments of provinces and centrally-governed cities.
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To promptly address difficulties for taxpayers affected by the Covid-19 pandemic, the General Department of Taxation requests Directors of provincial and municipal Tax Departments under the central government to direct the implementation of tax payment extensions, and tax payment exemptions for taxpayers in accordance with current Tax Administration Law and its guiding documents. To be specific:
1. Cases eligible for tax payment extension
According to Clause 1, Article 31 of Circular 156/2013/TT-BTC (Consolidated Document 14/VBHN-BTC), cases eligible for tax payment extension are defined as follows:
Materially damaged directly affecting production and business due to natural disasters, fires, unexpected accidents.
Material damage includes loss of taxpayer's assets calculated in monetary terms such as machinery, equipment, vehicles, materials, goods, workshops, headquarters, money, valuable documents like cash.
Unexpected accidents are sudden events beyond the taxpayer's will caused by external factors, directly affecting their production and business activities and not due to legal violations. Such cases include traffic accidents, occupational accidents, serious illnesses, infectious diseases at times and in regions announced to have epidemic outbreaks by competent authorities, and other force majeure events.
2. Dossiers and procedures for requesting tax payment extension
According to Clause 3, Article 31 of Circular 156/2013/TT-BTC, to be eligible for a tax payment extension, taxpayers must prepare and submit a dossier requesting a tax payment extension to the tax authority directly managing the taxpayer. The dossier includes:
- Written request for tax payment extension by the taxpayer in form No. 01/GHAN attached to this Circular;
- Minutes of inventory, evaluation of material damage value prepared by the taxpayer or the lawful representative of the taxpayer;
- Verification document on taxpayer's damage at the place of natural disaster, fire, unexpected accident occurrence and the time of such events by one of the following agencies or organizations: police authority; People's Committee of commune, ward; Management Board of Industrial Zone, Export Processing Zone, Economic Zone where the natural disaster, fire, unexpected accident occurred or a rescue entity;
- Compensation dossier accepted by the insurance agency (certified copy if available); dossier defining the responsibility of the organization or individual to compensate (certified copy if available). For taxpayers as legal entities, the above documents must be originals or copies signed by the legal representative and stamped by the unit.
3. Authority for tax payment extension
According to point a, clause 5, Article 31 of Circular 156/2013/TT-BTC, for the above cases, the Head of the tax authority directly managing the taxpayer decides the amount and time for the tax payment extension.
See more instructions on exemption from late tax payment due to Covid-19 effects HERE.
Nguyen Trinh
