To: Provincial Departments of Taxation

Covid-19 pandemic is developing in an unpredictable manner. Enterprises affected by this disease are facing loss and difficulties in production and sale of their goods and services, thus unable to pay tax on schedule.

In order to assist taxpayers affected by Covid-19 in stabilizing their business operation and overcoming this difficult time, General Department of Taxation hereby request Directors of Provincial Departments of Taxation to consider granting tax deferral and exemption late payment interest for taxpayers in accordance with the Law on Tax administration and its instructional documents. To be specific:

1. Tax deferral

1.1. Cases of tax deferral

Clause 1 Article 31 of Circular no. 156/2013/TT-BTC dated 06/11/2013 of the Ministry of Finance (consolidated by document No. 14/VBHN-BTC dated 15/5/2017) specifies the cases of tax deferral as follows:

“a) Property damage caused by natural disasters, conflagrations, or accidents that affects the business operation.

Property damage means damage to the taxpayer’s property that can be measured by money, such as: machinery, equipment, supplies, goods, buildings, cash, and valuable papers.

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1.2. Application and procedures for tax deferral

Clause 3 Article 31 of Circular 156/2013/TT-BTC:

In order to be granted tax deferral as prescribed in Point a Clause 1 of the Circular, the taxpayer shall submit an application to the supervisory tax authority. The application shall consist of:

“- Application form no. 01/GHAN enclosed with this Circular;

- A property damage assessment record prepared by the taxpayer or the taxpayer’s legal representative;

- A document confirming that the taxpayer incurs damage caused by the natural disaster, conflagration or accident and duration thereof issued by one of the following agencies: police authority; the People’s Committee of the commune; management board of the industrial zone, export processing zone or economic zone in which the natural disaster, conflagration or accident occurs, or a rescue organization;

- An authenticated copy of the indemnity claim approved by the insurer; an authenticated copy the documents specifying the responsibility to provide indemnity. If the taxpayer is a juridical person, the aforementioned documents shall be original copies or copies bearing the signature of the taxpayer’s legal representative."

1.3. Authority to decide tax deferral

Point a Clause 5 Article 31 of Circular 156/2013/TT-BTC:

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2. Exemption of late payment interest

2.1. Cases of exemption of late payment interest

Clause 1 Article 35 of Circular 156/2013/TT-BTC:

“1. In case of a natural disaster, conflagration, accident, epidemic, fatal disease or force majeure event, a taxpayer that has to pay late payment interest as prescribed in Article 34 of this Circular may apply for exemption of late payment interest."

2.2. Application for exemption of late payment interest

Clause 3 Article 35 of Circular 156/2013/TT-BTC:

“a) A written request for exemption made by the taxpayer, specifying the name, TIN, address of the taxpayer, basis for exemption, and amount of late payment interest being exempt;