The current tax administration law of Vietnam allows taxpayers to pay tax arrears in installments. According to that, the documents and procedures to gradually pay the outstanding tax are detailed at Circular 80/2021/TT-BTC as after:
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Procedures for taxpayers to gradually pay the tax arrears (Illustration image)
Step 1: Taxpayers compile a dossier of request for installment payment of tax arrears and send it to the tax authority directly managing them.
Dossiers for installment payment of tax debt include:
- A written request made according to form No. 01/NDAN issued together with Appendix I of Circular 80/2021/TT-BTC of Vietnam;
- The letter of guarantee must comply with the provisions of the law on guarantee and must contain a commitment that the guarantor will pay on behalf of the taxpayer in case the taxpayer fails to comply with the deadline for installment payment of tax arrears;
- Decision on enforcement of administrative decisions on tax administration (if any).
Step 2: In case the application for the gradual payment of tax debt is fully paid, within 10 working days from the date of receipt of the dossier, the tax authority shall issue:
- A notice of disapproval of the installment payment of tax arrears in case the guarantee letter is found to be illegal, and the tax authority shall issue a document using form No. 05/NDAN attached to Appendix I of Circular 80/2021 of Vietnam sent to the guarantor for verification and the guarantor shall send the verification results to the tax authority within the time limit prescribed by law;
- Decision on approval of installment payment of tax arrears, made according to form No. 04/NDAN issued together with Appendix I of Circular 80/2021 for cases subject to gradual payment of tax debts.
In case the application for installment payment of tax debt is incomplete as prescribed, within 03 working days from the date of receipt of the dossier, the tax authority must notify in writing requesting the taxpayer to explain or additional profile.
Number of installments and amount of tax arrears in Vietnam
- The tax arrears to be paid in installments is the tax arrears up to the time the taxpayer requests for installment payment but does not exceed the tax arrears guaranteed by a credit institution.
- Taxpayers are entitled to gradually pay tax arrears within a period not exceeding 12 months and within the effective period of the guarantee letter.
- Taxpayers are entitled to gradually pay the tax arrears each month, ensuring that the tax arrears each time is not lower than the average tax arrears each month.
Taxpayers must determine by themselves the amount of late payment arising to pay together with the tax arrears to be paid in installments.
Deadline for installment payment of tax debt in Vietnam
- The deadline for installment payment of tax debt is the last day of the month.
- Past the time limit for installment payment of the tax arrears committed to pay by month, but the taxpayer fails to pay or fails to pay enough or the guarantor has not yet fulfilled the obligation to pay instead, within 5 working days from the expiration of the time limit to pay tax debt in installments as committed, the tax authority shall make a document according to form No. 02/NDAN issued together with Appendix I of Circular 80/2021 and send the request to the guarantor to fulfill the guarantee obligation in accordance with the law and at the same time send it to the taxpayer.
Circular 80/2021/TT-BTC of Vietnam takes effect from January 1, 2022.
Bao Ngoc
