Under significant lockdown measures implemented by the authorities in Ho Chi Minh City, many businesses and individuals are experiencing substantial delays in being able to summit and lodge tax declarations with the relevant institutions. With the release of this official letter, the Tax Department seeks to mitigate these issues and offer support to taxpayers with regulatory and reporting procedures.
On 19 July 2021, Ho Chi Minh City Tax Department released an official letter regarding the submission of tax returns during the implementation of Directive 16 covering social distancing measures in the city.
The letter applies to taxpayers who are organizations and individuals located in isolated areas in Ho Chi Minh City.
Where a taxpayer needs to submit a tax return and is subject to quarantine according to the decision or notice of the local authority due to the Covid-19 pandemic (including the period of social isolation according to the decisions of the Prime Minister, Government Office, isolation by region or area according to the decision of the local authority), leading to the late submission of the tax return, the taxpayer will not be sanctioned for administrative violations.
The letter was released according to regulations at Clause 1, Article 9, Decree no. 125/2020/ND-CP regulating administrative penalties for tax or invoice-related violations and Clause 4 Article 11, and Clause 14 Article 2, Law on handling administrative violations.
Article 9. Exceptions to tax or invoice-related administrative penalties
1. Exceptions to administrative penalties prescribed in laws on handling of administrative violations will be treated as the exceptions to tax or invoice-related administrative penalties.
Article 11. Cases not being administratively sanctioned
The following cases will not be administratively sanctioned:
4. Commit acts of administrative violations due to force majeure.
Article 2. Explanation of terms
14. Force majeure is an event that happens objectively without being foreseen and cannot be overcome although all necessary measures in permissible ability have been applied.
Please contact Acclime Vietnam if you would like to discuss how this letter may apply to you, and planning techniques to manage tax exposures.