[The Coronavirus in Vietnam Live Legal Updates] Extending & Exempting from tax duties for enterprises under COVID-19

March 23, 2020

The COVID-19 disease has caused great damages to enterprises in Vietnam in manufacturing and consuming products, leading to the possibility of implementing tax duties is delayed. 

On 3 March 2020, the Ministry of Finance announced a letter no. 897/TCT-QLN regulated that taxpayers are permitted to extend the period of tax payment and exempt from the penalty of tax late payment due to the impact of the epidemic.

In order to get an approval of tax duties’ support, taxpayers are asked to submit an application to the General Department of Taxation as instructions of Article 31 & 35 of the Circular no. 156/2013/TT-BTC.

In particular, the application for:

I.  Extending the tax payment period, including:

- A written request for the extension (form 01/GHAN of the Circular)

- An assessment of property damage made by the taxpayer or their legal representative.

- A written certification that the taxpayer suffered from damage where the natural disaster, conflagration, or accident occurs and of the occurrence time. The certification must be made by either a police station, the People’s Committee of the commune, the management board of the industrial zone, export-processing zone, or economic zone where the incident occurs, or a rescue organization.

- A compensation claim approved by the insurer; documents specifying the responsibilities of the compensation provider.

II. Exempting from the penalty of tax late payment, including:

- A written request for exemption specifying the name, TIN, address of the taxpayer, basis for exemption, and amount of late payment interest is exempt.

- An assessment of property damage made by the taxpayer or the legal representative.

- A written certification that the taxpayer suffers from damage caused by an epidemic and the occurrence time made by the police station of the commune, the People’s Committee of the commune, the management board of the industrial zone, export-processing zone, or economic zone where the natural disaster, accident, or epidemic occurs, or a rescue service agency;

- A claim for compensation approved by the insurer (if any);

- The documents specifying the responsibilities of the entities responsible for paying compensation (if any).

Citation: No. 897/TCT-QLN & No. 156/2013/TT-BTC

This is not a legal document. The information here is for reference and general guidance purposes only.

Kindly contact NVM to obtain qualified legal consultation for specific situations

Mr. Huynh Minh Quan | (84) 903 969 118 | quan.huynh@nvmgroup.com

Tags:  COVID-19