Regulations on receipt and processing of application for tax deferral in Vietnam

Regulations on receipt and processing of application for tax deferral in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

1. Regulations on receipt and processing of application for tax deferral in Vietnam

According to Article 65 of the Law on Tax Administration 2019, regulations on receipt and processing of application for tax deferral in Vietnam are as follows:

- Tax authorities shall receive applications for tax deferral:

+ in person at the tax authorities;

+ by post;

+ electronically through online portals or tax authorities.

- The tax authority shall process an application for tax deferral as follows:

+ If the application is valid, send a notice of eligibility for tax deferral to the taxpayer within 10 working days from the receipt of the application;

+ If the application is invalid, send a notice to the taxpayer within 03 working days from the receipt of the application.

2. Regulations on tax deferral in Vietnam

Pursuant to Article 62 of the Law on Tax Administration 2019, tax deferral is stipulated as follows:

- A taxpayer may apply for tax deferral in one of the following cases:

+ The taxpayer’s business suffers damage due to a force majeure events specified in Clause 27 Article 3 of the Law on Tax Administration 2019;

+ The taxpayer has to relocate the business location as requested by a competent authority and such relocation affects the business performance.

- A taxpayer eligible for tax deferral mentioned in Clause 1 of Article 62 of the Law on Tax Administration 2019 may have part or all of the tax deferred.

- Tax may be deferred:

+ For up to 02 years in the cases specified in Point a Clause 1 of Article 62 of the Law on Tax Administration 2019;

+ For up to 01 year in the cases specified in Point b Clause 1 of Article 62 of the Law on Tax Administration 2019.

- The taxpayer will not incur fines and late payment interest on the outstanding tax during the deferral period.

- In consideration of the application for tax deferral, the head of the tax authority shall decide the amount of tax deferred and the deferral period.

3. Regulations on tax deferral in special cases in Vietnam

According to the provisions of Article 63 of the Law on Tax Administration 2019, the Government shall decide tax deferral for entities or business lines facing special difficulties in specific periods of time. Tax deferral must not lead to changes to the estimated state budget revenues decided by the National Assembly.

4. What does the application for tax deferral in Vietnam include?

Pursuant to Article 64 of the Law on Tax Administration 2019, regulations on application for tax deferral are as follows:

- A taxpayer eligible for tax deferral as prescribed in this Law shall prepare and send an application for tax deferral to the supervisory tax authority.

- An application for tax deferral consists of:

+ An application form specifying the reasons for deferral, the amount of tax and the deferral period;

+ Documents supporting the reasons for deferral.

To Quoc Trinh

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