Chapter IV
SETTLEMENT OF TAX, LATE PAYMENT INTEREST, FINES
Article 21. Settlement of late tax payment
1. Determination of late payment interest
Late payment interest shall be determined according to the tax arrears, the number of days of late payment, and the interest rate specified in Article 59 of the Law on Tax Administration. Late payment period begins on the day succeeding the day on which late payment interest is charged and ends on the day preceding the day on which tax arrears are paid to state budget.
2. Notification of late payment interest
The tax authority shall notify the late payment interest and tax debt (according to Form No. 01/TTN in Appendix I hereof) to the taxpayer whose tax debt is overdue for at least 30 days. For non-agricultural land use tax, the tax authority shall inform the tax debt and late payment interest of taxpayers that are individuals and households via the authorized collectors.
In order to complete administrative procedures for taxpayers or at the request of competent authorities, the tax authority shall determine and notify tax debt that accumulates by the time the tax authority issues the notification (according to Form No. 02/TTN in Appendix I hereof).
3. Decreasing late payment interest
a) In case the taxpayer makes a supplementary declaration that decreases tax obligations, the taxpayer shall determine the decreased late payment interest on the supplementary declaration. The tax authority shall determine the decreased late payment interest on the basis of information about the taxpayer's obligations and send a notification to the taxpayer according to Form No. 03/TTN in Appendix I hereof.
b) In case the tax authority or a competent authority, upon inspection, discovers that the tax payable is decreased or issues a decision on or notification of decrease in tax payable, the tax authority shall decrease the late payment interest in proportion to the decrease in tax payable and send a notification to the taxpayer according to Form No. 03/TTN in Appendix I hereof.
Article 22. Procedures and application for cancellation of late payment interest
1. The period over which late payment interest is not charged in the cases specified in Point a Clause 5 Article 59 of the Law on Tax Administration begins on the day on which payment to the taxpayer by the state budget is due to the day on which the taxpayer is paid by the state budget user.
2. Procedures for cancellation of late payment interest in the cases specified in Point a Clause 5 Article 59 of the Law on Tax Administration:
a) Procedures
a.1) The taxpayer shall prepare the application for cancellation of late payment interest and send it to the supervisory tax authority or the state budget revenue-managing tax authority.
a.2) In case the application for cancellation of late payment interest is not satisfactory, within 03 working days from the receipt of the application, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and request the taxpayer to provide explanation or supplement the application.
In case the application for cancellation of late payment interest is satisfactory, within 10 working days from the receipt of the application, the tax authority shall decide whether to send a notification of cancelled late payment interest (Form No. 04/KTCN in Appendix I hereof) if the taxpayer is eligible, or send a notification of rejected application (Form No. 05/KTCN in Appendix I hereof) if the taxpayer is not eligible.
b) The application for cancellation of late payment interest shall contain:
b.1) The application form No. 01/KTCN in Appendix I hereof.
b.2) Written state budget user's confirmation that the taxpayer has not received the payment according to Form No. 02/KTCN in Appendix I hereof (original copy or certified true copy);
b.3) The contract for provision of goods and/or services with the investor (original copy or copy certified by the taxpayer).
3. Responsibilities of the taxpayer and relevant authorities
a) The taxpayer shall pay tax debt to state budget by the working day succeeding the day on which the state budget user pays the taxpayer and sends a notification to the tax authority according to Form No. 03/KTCN in Appendix I hereof.
b) The state budget user shall confirm the status of payment to the taxpayer and take legal responsibility for such confirmation.
c) The tax authority shall supervise the taxpayer's fulfillment of their tax obligations.
d) State Treasury shall cooperate with tax authorities in providing information about payment by state budget.
Article 23. Procedures and application for exemption of late payment interest
1. Procedures for processing an application for exemption of late payment interest in the cases specified in Clause 8 Article 59 of the Law on Tax Administration:
a) The taxpayer shall prepare the application for exemption of late payment interest and send it to the state budget revenue-managing tax authority.
b) In case the application for exemption of late payment interest is not satisfactory, within 03 working days from the receipt of the application, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and request the taxpayer to provide explanation or supplement the application.
In case the application for exemption of late payment interest is satisfactory, within 10 working days from the receipt of the application, the tax authority shall decide whether to send a notification of exempted late payment interest (Form No. 03/MTCN in Appendix I hereof) if the taxpayer is eligible, or send a notification of rejected application (Form No. 02/MTCN in Appendix I hereof) if the taxpayer is not eligible.
2. The application for exemption of late payment interest:
a) In case of a natural disaster, epidemic, conflagration or accident, the application shall contain:
b.1) The application form No. 01/MTCN in Appendix I hereof;
a.2) Documents issued by competent authorities confirming the time, location of the natural disaster, epidemic, conflagration or accident (original copies or copies certified by the taxpayer);
a.3) Documents determining physical damage issued by a financial authority or an independent assessing authority (original copies or certified true copies);
a.4) Documents (original copies or copies certified by the taxpayer) attributing responsibility of specific organizations and individuals for paying compensation (if any);
a.5) Documents (original copies or copies certified by the taxpayer) relevant to payment of compensation (if any).
b) In other force majeure events specified in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the application shall contain:
b.1) The application form No. 01/MTCN in Appendix I hereof;
b.2) Documents determining physical damage issued by a financial authority or an independent assessing authority (original copies or certified true copies) inflicted by the war, riot, strike that caused the taxpayer to suspend or terminate business operation;
b.3) Documents proving that the risk is not subjectively caused by the taxpayer and that the taxpayer is not financially capable of making payment to state budget if that is the case (original copies or certified true copies).
b.4) Documents (original copies or copies certified by the taxpayer) relevant to insurance payout provided by the insurer (if any).
3. Determination of exempted late payment interest
a) In case of a natural disaster, epidemic, conflagration or accident mentioned in Point a Clause 27 Article 3 of the Law on Tax Administration, the exempted late payment interest shall be the unpaid late payment interest upon the occurrence of such event and must not exceed the physical damage minus compensation and insurance payout (if any).
b) In case of other force majeure events mentioned in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the exempted late payment interest shall be the unpaid late payment interest upon the occurrence of such event and must not exceed the physical damage minus compensation and insurance payout (if any).
4. Authority to issue decisions on exemption of late payment interest
Heads of supervisory tax authorities or state budget revenue-managing tax authority shall issue decisions on exemption of late payment interest according to Form No. 04/MTCN in Appendix I hereof.
Article 24. Procedures and application for tax deferral
1. Procedures for processing an application for tax deferral in the cases specified in Article 62 of the Law on Tax Administration:
a) The taxpayer shall prepare the application for tax deferral and send it to the supervisory tax authority or the state budget revenue-managing tax authority.
b) In case the application for tax deferral is not satisfactory, the value of physical damage determined by the taxpayer and specified in the application is suspicious, or there are other errors, within 03 working days from the receipt of the application, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and request the taxpayer to provide explanation or supplement the application.
In case the application for tax deferral is satisfactory, within 10 working days from the receipt of the application, the tax authority shall decide whether to send the decision on tax deferral (Form No. 02/GHAN in Appendix I hereof) if the taxpayer is eligible, or send a notification of rejected application (Form No. 03/GHAN in Appendix I hereof) if the taxpayer is not eligible.
2. Composition of an application for tax deferral
a) In case of a natural disaster, epidemic, conflagration or accident specified in Point a Clause 27 Article 3 of the Law on Tax Administration, the application shall contain:
a.1) The application form No. 01/GHAN in Appendix I hereof;
a.2) Documents issued by competent authorities confirming the time, location of the natural disaster, epidemic, conflagration or accident (original copies or copies certified by the taxpayer);
a.3) Documents about physical damage determined by the taxpayer or the taxpayer's legal representative, who is responsible for the accuracy of the physical damage determined;
a.4) Documents (original copies or copies certified by the taxpayer) attributing responsibility of specific organizations and individuals for paying compensation (if any);
a.5) Documents (original copies or copies certified by the taxpayer) relevant to payment of compensation (if any).
b) In other force majeure events specified in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the application shall contain:
a.1) The application form No. 01/GHAN in Appendix I hereof;
a.2) Documents about physical damage determined by the taxpayer or the taxpayer's legal representative, who is responsible for the accuracy of the physical damage determined;
b.3) Documents confirming the time and location of the force majeure event issued by competent authorities; documents proving that business suspension or shutdown is caused by the war, riot, strike (original copies or copies certified by the taxpayer);
b.4) Documents proving that the risk is not subjectively caused by the taxpayer and that the taxpayer is not financially capable of making payment to state budget if that is the case (original copies or certified true copies).
b.5) Documents (original copies or copies certified by the taxpayer) relevant to insurance payout provided by the insurer (if any).
c) In case of relocation of the business establishment specified in Point b Clause 1 Article 62 of the Law on Tax Administration, the application shall contain:
a.1) The application form No. 01/GHAN in Appendix I hereof;
c.2) The decision on relocation of the business establishment issued by a competent authority (original copy or copy certified by the taxpayer);
c.3) The relocation scheme or plan which specifies the taxpayer's plan and schedule for relocation (original copy or copy certified by the taxpayer);
3. Determination of deferred amount
a) In case of a natural disaster, epidemic, conflagration or accident mentioned in Point a Clause 27 Article 3 of the Law on Tax Administration, the deferred amount is the tax debt that has accumulated by the date of occurrence of the natural disaster, epidemic, conflagration or and must not exceed the physical damage minus compensation and insurance payout (if any).
b) In case of other force majeure events mentioned in Clause 1 Article 3 of Decree No. 126/2020/ND-CP, the deferred amount shall be the tax debt that has accumulated by the date of the occurrence of such event and must not exceed the physical damage minus compensation and insurance payout (if any).
c) In case of relocation specified in Point b Clause 1 Article 62 of the Law on Tax Administration, the deferred amount shall be the tax debt that has accumulated by the day on which business operation is suspended for relocation but must not exceed the relocation costs and damage caused by the relocation minus compensation and insurance payout as per regulations. Relocation costs do not include the costs of construction of the new business establishment. In case a competent authority discovers that the relocation does not happen, the taxpayer shall pay the deferred amount and late payment interest on the deferred amount.
Article 25. Settlement of overpaid tax, late payment interest and fines
1. Overpaid tax, late payment interest or fine (hereinafter referred to as "overpaid amount") specified in Clause 1 Article 60 of the Law on Tax Administration shall be handled as follows:
a) Offsetting against the outstanding tax, late payment interest, fines (hereinafter referred to as "debts") or offset against tax, late payment interest, fines payable next time (hereinafter referred to as "new amounts payable") in the following cases:
a.1) Offset against the taxpayer's debts that belong to the same category and area as those of the overpaid amount.
a.2) Offset against the taxpayer's new amount payables that belong to the same category and area as those of the overpaid amount.
a.3) The income payer that has the overpaid PIT shall offset it in accordance with Point a.1 and Point a.2 of this Clause. Overpaid PIT equals (=) overpaid PIT of the authorizing individual minus (-) PIT payable of the authorizing individual; the income payer shall return the overpaid PIT to the authorizing individual when it finalizes PIT.
a.4) Offset against another taxpayer's debts or new amount payables that belong to the same category and area as those of the overpaid amount if the current taxpayer has no more debt.
a.5) In case the taxpayer's overpaid amount is in a foreign currency as prescribed in Article 4 of this Circular, it shall be converted into VND at the selling rate at the beginning of the day quoted by Vietcombank on the day on which overpaid tax is determined.
b) Refund, refund combined with budget offsetting
In case the overpaid amount cannot be completely offset according to Point a of this Clause or the taxpayer does not have any debt, the taxpayer may submit an application for refund or refund combined with state budget offsetting in accordance with Article 42 of this Circular. The overpaid amount will be refunded when the taxpayer has no debt.
c) Date of determination of overpaid amount for offsetting or refund:
c.1) If the taxpayer calculate, declare and pay the declared tax themselves, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before submitting the tax declaration dossier, it shall be the day on which the tax declaration dossier is submitted. In case of supplementary declaration, it shall be the date the supplementary tax declaration dossier is submitted.
c.2) If the taxpayer calculate, declare and pay the declared tax themselves, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before submitting the tax declaration dossier, it shall be the day on which the tax declaration dossier is submitted. In case of supplementation of the tax declaration dossier, it shall be the date the supplementary documents are submitted.
c.3) If the taxpayer pays tax according to a decision issued by the tax authority, a decision or document issued by a competent authority, the date of determination of overpaid amount shall be the day on which tax is paid to state budget; In case the taxpayer pays tax before the decision or document is issued, it shall be the issuance date of the decision or document. In case of multiple decisions or documents, it shall be the issuance date of the last decision or document.
c.4) In case the taxpayer has paid tax before having to implement a court's judgment or decision, the date of determination of overpaid amount shall be the effective date of the court's judgment or decision.
2. Procedures for offsetting overpaid tax, late payment interest and fines
a) The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to Point a.1, Point a.2, Point a.3 Clause 1 of this Article is not required to submit the application for offsetting to the tax authority. The tax authority shall automatically offset the overpaid amount on the tax administration system in the cases specified in Point a.1, Point a.2 Clause 1 of this Article and provide information for the taxpayer in accordance with Article 69 of this Circular.
b) The taxpayer who has an overpaid amount to be offset against debts or new amounts payable according to Point a.4 Clause 1 of this Article shall submit an application which shall contain: the application form No. 01/DNXLNT in Appendix I hereof and relevant documents to the tax authority specified in Clause 3 of this Article.
c) The tax authority shall receive and process the taxpayer's application for offsetting in accordance with Clause 3 of this Article. Within 05 working days from the receipt of the satisfactory application, the tax authority shall compare the overpaid amount, debts and new amounts payable specified in the taxpayer's application with those on the tax administration system:
c.1) If the information matches, the tax authority shall offset the overpaid amount against the debts and new amounts payable as requested by the taxpayer and send a notification to the taxpayer according to Form No. 01/TB-XLBT in Appendix I hereof.
c.2) If the taxpayer is not eligible for offsetting as prescribed in Clause 1 of this Article, the tax authority shall send a notification to the taxpayer according to Form No. 01/TB-XLBT in Appendix I hereof and provide explanation.
If information in the taxpayer's application does match that on the tax administration system, the tax authority shall request the taxpayer to provide explanation and supplementary documents according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP and send it to the taxpayer. The explanation and supplementation time shall be excluded from the application processing time. If the taxpayer's explanation and supplementary documents match information on the tax administration system, carry out the offsetting according to Point c.1 of this Clause.
If the taxpayer fails to provide explanation or supplementary documents by the deadline imposed by the tax authority or information in the taxpayer's application does not match information on the tax administration system, the tax authority shall send the taxpayer a notification according to Form No. 01/TB-XLBT in Appendix I hereof and provide explanation for not offsetting the overpaid amount.
3. Authority of to offset overpaid amounts
a) Supervisory tax authorities shall:
a.1) Offset the overpaid amount against the debts and new amounts payable of taxpayers under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.
a.2) Receive, process applications for settlement of taxpayers' overpaid amounts in the cases specified in Point a.4 Clause 1 of this Article that are collected by supervisory tax authorities or managed by tax authorities of the receiving provinces according to Point b Clause 6 Article 3 of this Circular.
b) State budget revenue-managing tax authorities shall:
b.1) Offset on the tax administration system the overpaid amounts of the taxpayers under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.
b.2) Receive, process applications for settlement of taxpayers' overpaid amounts in the cases specified in Point a.4 Clause 1 of this Article that are under their management.
c) The tax authority of the receiving province prescribed in Point b Clause 6 Article 3 of this Circular shall:
c.1) Offset the overpaid amount against the debts and new amounts payable under their management in the cases specified in Point a.1 and Point a.2 Clause 1 of this Article.
c.2) Cooperate with supervisory tax authorities in offsetting overpaid amounts against the debts and new amounts under their management according to Point a.4 Clause 1 of this Article.
Article 26. Cancellation of refund of overpaid tax, late payment interest and fines
In case the taxpayer has an overpaid amount which is not eligible for refund and the tax authority finalizes the overpaid amount on the accounting books or tax administration system according to Clause 3 Article 60 of the Law on Tax Administration:
1. In the case specified in Point a Clause 3 Article 60 of the Law on Tax Administration:
a) The taxpayer shall send a document rejecting the refund according to Form No. 01/DNKHT in Appendix I hereof.
b) The tax authority specified in Clause 4 of this Article shall receive and process the taxpayer's document within 05 working days from its receipt as follows:
b.1) If information matches, the tax authority shall issue the decision on refund cancellation according to Form No. 01/QD-KHTNT in Appendix I hereof and send it to the taxpayer.
b.2) If information does not match, the tax authority shall send the taxpayer a request for explanation and supplementary documents according to Form No. 01/TB-BSTT-NNT enclosed with Decree No. 126/2020/ND-CP.
The explanation and supplementation time shall be excluded from the processing time. If the taxpayer's explanation and supplementary documents match the information on the tax administration system, the tax authority shall issue the decision on refund cancellation. If the taxpayer fails to provide explanation and supplementary information by the deadline imposed by the tax authority, the tax authority shall send the taxpayer a notification that the taxpayer's overpaid amount cannot be finalized according to Form No. 02/TB-KHTNT and provide explanation.
2. In case the taxpayer is not operating at the registered address where the overpaid amount occurs as prescribed in Point b Clause 3 and Clause 4 Article 60 of the Law on Tax Administration:
a) After 180 days from the day on which the tax authority issues the notification that the taxpayer no longer operates at the registered address, the supervisory tax authority shall publish the notification of the taxpayer's overpaid amount (Form No. 01/DSKNT) on its website and mass media after the tax authority offsets the overpaid amount and debts of the taxpayer nationwide.
b) before issuing the notification of the taxpayer's overpaid amount mentioned in Point a of this Clause, the supervisory tax authority shall cooperate with the state budget revenue-managing tax authority or the tax authority of the receiving province in determining the taxpayer's overpaid amounts and debts nationwide after offsetting is carried out by the tax administration system according to Point a.1 Clause 1 Article 25 of this Circular; issue a decision on refund cum state budget offsetting according to Form No. 02/QDHT in Appendix I hereof (the refunded amount is equal to the offset debt, no amount is refunded after offsetting). The tax authority shall send an order for return and offsetting of state budget revenues to State Treasury in accordance with Article 47 of this Circular.
c) After 01 years from the issuance date of the notification mentioned in Point a of this Clause, if the tax authority does not receive any written request for refund of the overpaid amount form the taxpayer, the supervisory tax authority shall issue the decision on refund cancellation according to Form No. 01/QD-KHTNT in Appendix I hereof and finalized the taxpayer's overpaid amount which is not refunded on the accounting book.
d) Within 03 working days from the day on which the taxpayer's overpaid amount is finalized on the accounting books, the supervisory tax authority shall publish the decision on refund cancellation on its website.
3. In case the taxpayer fails to offset the overpaid amount against tax obligations and does not claim tax refund according to Point c Clause 3 Article 60 of the Law on Tax Administration:
a) After March 31 every year, pursuant to Clause 4 of this Article, the tax authority shall compile a list of overpaid amounts that have been overdue for 10 years according to Form No. 01/DSKNT in Appendix I hereof.
b) The tax authority shall send the taxpayer the notification of the overpaid amount that has been overdue for 10 years according to Form No. 02/TB-KHTNT in Appendix I hereof. The tax authority shall publish overpaid amounts of taxpayers that no longer operate at their registered addresses or whose TINs have been invalidated.
c) If the tax authority does not receive the taxpayer's response within 15 working days from the day on which the notification is sent to the taxpayer or published on the tax authority's website, the tax authority shall issue the decision on refund cancellation according to Form No. 01/QD-KHTNT in Appendix I hereof and finalized the taxpayer's overpaid amount on the accounting book.
d) Within 03 working days from the day on which the taxpayer's overpaid amount is finalized on the accounting books, the supervisory tax authority shall publish the decision on refund cancellation on its website.
4. Authority to issue decisions on refund cancellation
a) Supervisory tax authorities shall:
a.1) Receive, process applications for refund cancellation of taxpayers and issue decisions on refund cancellation regarding the overpaid amounts under their management or under management of the tax authority of the receiving province according to Point b Clause 6 Article 3 of this Circular.
a.2) Issue decisions on refund cancellation in cases where taxpayers under their management no longer operate at their registered addresses.
a.3) Issue decisions on refund cancellation in cases where overpaid amounts have been overdue for 10 years under their management or under management of the tax authority of the receiving province according to Point b Clause 6 Article 3 of this Circular.
b) State budget revenue-managing tax authorities shall:
b.1) Receive, process applications for refund cancellation of taxpayers and issue decisions on refund cancellation regarding the overpaid amounts under their management.
b.2) Cooperate in reviewing overpaid amounts and debts before the supervisory tax authorities issue decisions on refund cancellation in cases where taxpayers no longer operate at their registered addresses; finalize overpaid amounts under their management according to issued decisions.
b.3) Issue decisions on refund cancellation in cases where overpaid amounts have been overdue for 10 years under their management.
c) The tax authority of the receiving province prescribed in Point b Clause 6 Article 3 of this Circular shall:
Cooperate in reviewing overpaid amounts and debts before the supervisory tax authorities issue decisions on refund cancellation in the cases specified in Clause 1, Clause 2 and Clause 3 of this Article; offset and finalize overpaid amounts under their management according to issued decisions.
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