Allow to gradually pay late payment within time limited of 12 months

Facing the problem of Puratos Grand-Place Vietnam Co., Ltd. on gradual payment of tax debt, the General Department of Vietnam Customs said Article 92 of the Law on Management No. 78/2006/QH11 amended and supplemented in Clause 25, Article 1 of the Law No. 21/2012/QH13 and Clause 2, Article 3 of Law No. 106/2016/QH13 stipulating: “4. Tax enforcement has not been applied to cases where taxpayers are allowed to pay tax debts gradually by the tax authority within the time limit of 12 months since the starting day of tax coercive duration. The gradual payment of tax debt shall be considered at the request of taxpayers and must be guaranteed by credit institutions. Taxpayers must pay interest of late payment at the rate of 0.03%/day calculated on the amount of late tax payment.”

Also in Clause 5, Article 124 of the Law on Tax Management No. 38/2019/QH14 dated June 13, 2019 that took effect from July 1, 2020: “5. Tax enforcement has not been applied to cases where taxpayers are subject to tax debts relief by tax authorities within time limit; do not charge late payment interest in accordance with this law; allowing to pay tax debt gradually within the time limit of 12 months since the starting day of tax coercive duration. Tax payment gradually should be considered by the head of the taxpayer's direct management agency at the proposal of the taxpayer and must be guaranteed by credit institution. The Minister of Finance should stipulate the number of gradual tax payment, dossiers and procedures for gradual tax payment of debts."

Therefore, according to the General Department of Vietnam Customs, in the case of Puratos Grand-Place Vietnam Co., Ltd. owed late payment interest but could not afford to pay it once and requested to pay gradually. They could pay late tax payment gradually within the time limit of 12 months since the starting day of coercive duration for enforcing the tax administrative decision and must have the guarantee of credit institution for the late payment.

In particular, conditions for handling dossiers, competence, and time limit should comply with Article 134 of Circular No. 38/2015-TT-BTC dated March 25, 2001 of the Ministry of Finance.