TAX DEFERMENT, EXEMPTION OF LATE PAYMENT INTEREST DUE TO EFFECTS OF COVID-19

According to Official Dispatch No. 897/TCT-QLN issued by the General Department of Taxation and coming into effect from March 3, 2020:

– Accordingly, taxpayers in the case specified by Point a Clause 1 Article 31 of Circular No. 156/2013/TT-BTC (Consolidated Text No. 14/VBHN-BTC dated May 15, 2017) are extended tax payment.

– In order to be granted tax deferment, taxpayers must prepare and submit an application to the supervisory tax authority (documents for application are specified by Clause 3 Article 31 of Circular No. 156/2013/TT-BTC).

– Furthermore, the General Department of Taxation instructs the exemption of late payment interests due to effects of Covid-19 as follows:

(i) Taxpayers who have to pay late payment interests have the right to request for exemption of such due to natural disasters, conflagrations, accidents, epidemics, fatal diseases or other force majeure events.

(ii) In order to be exempted from late payment interests, taxpayers must prepare and submit an application to the supervisory tax authority (documents for application are specified by Clause 3 Article 35 of Circular No. 156/2013/TT-BTC).

– The head of the tax authority who issued the notice of late payment interest has the authority to issue the decision to exempt the taxpayer from late payment interest.

Best regards,