Dossier for Late Tax Payment Interest of Enterprises Cancellation in Vietnam

In the case of enterprises being able to write off late tax payment interest, fines are quite common, especially in the context that the country has just escaped from the epidemic and fluctuations related to conflicts in countries around the world. So what does the dossier of late payment interest cancellation of an enterprise include? In the article below, Viet An Law – Tax Agent will introduce clients about this issue as Vietnamese applicable law.

Cases eligible for late payment interest debt cancellation

Before learning about what the tax late payment interest debt cancellation dossier of the enterprise needs, let’s learn about the cases in which the enterprise is entitled to tax late payment interest debt cancellation according to regulations:

Enterprises and cooperatives declared bankrupt

An enterprise or cooperative after making compulsory payments under the provisions of the bankruptcy law but does not have enough assets to pay for late tax payments or fines.

In this case, the enterprise needs to have a certificate of completion of bankruptcy procedures issued by the Court.

An individual who dies or is declared dead by the Court, a person who has lost his/her civil act capacity

The deceased individual has no property (including inheritance rights) to pay for late payment of taxes and fines. The papers used as a basis for this case include the death certificate, the decision to declare that the person has died or lost civil act capacity issued by the Court.

In case of arrears of tax, late payment interest, fines beyond the time limit for recovery

• Debts worth less than 5 billion: The Chairman of the Provincial People’s Committee will have the authority to decide.
• Debts valued at between VND 5 and 10 billion: The General Director of Taxation and the General Director of Customs are competent to settle them.
• Debts from 10 to 15 billion: The Minister of Finance has the authority to settle.
• Debts worth VND 15 billion or more: The Prime Minister will decide.

Some special cases

• Enterprises, cooperatives and business households shall fully pay the remaining tax amount and late payment interest after being notified by the tax authority of being eligible for late payment interest and fine debt cancellation.
• Tax arrears and late tax payment interest arising from the impact of natural disasters (force majeure causes or objective obstacles as prescribed).
• Tax debts and late payment interest that are eligible for debt cancellation in accordance with the tax law.

What does an enterprise’s dossier of late tax payment debt cancellation include?

An enterprise’s dossier for cancellation of late tax payment interest includes the following papers:

Proposal for debt cancellation

The written request for debt cancellation shall be made by the tax authority, presenting the reasons and grounds for requesting debt cancellation for the enterprise or cooperative.

Written request for debt cancellation

It is made by the person who is obliged to pay taxes or the legal entity of the enterprise or organization.

Documents proving eligibility for debt cancellation

• Papers proving that they are eligible for debt cancellation in accordance with the provisions of tax law.
• Papers proving that the taxpayer has fulfilled the tax obligations as previously prescribed (if any).

Proof of ownership of the property

It is necessary to have papers proving the ownership of the property with the appraised and assessed value of such property.

Other documents

Other papers enclosed if requested by the tax authority.

Procedures for settlement of dossiers of late tax payment interest debt cancellation of enterprises

The order of settling the dossier of late payment interest debt cancellation of an enterprise shall be carried out according to the following steps:

Submit your application

The person who is obliged to pay tax or the legal representative of the enterprise or cooperative shall submit a dossier of request for debt cancellation to the managing tax authority.

The tax authority conducts the verification of the dossier

Within 15 working days from the date of receipt of the debt cancellation dossier, the tax authority will conduct verification of the dossier.

Conduct information verification

The competent tax authority will verify the information at the head office (where the enterprise registers its business location), the residence of the legal entity and other relevant agencies.

Preparation of verification report

After having valid grounds, the tax authority will make a verification report and submit it to the superior for guidance.

Decision-making

Based on the verification report, the competent authority will decide whether this enterprise or cooperative is eligible for tax debt cancellation and late payment interest.

Notification of Results

Within 30 working days from the date of receipt of the complete dossier, the tax authority will issue a decision to cancel the debt or not to cancel the late payment interest and fines for the enterprise.

Above is all information related to the dossier of late payment interest debt cancellation of the enterprise as well as the cases eligible for late payment interest debt cancellation and fines according to current regulations. Please contact Viet An Tax Agent if you have any problems related to the above issue!