The Notice of Approval of Deferred Tax Payment is a tax administrative document issued by the tax authorities to approve the taxpayer’s deferred payment of taxes. It is due to the impact of special difficulties, such as the taxpayer’s heavy losses due to force majeure factors and normal production and operation. If the activities are greatly affected and taxpayers are unable to pay taxes on time, the tax authorities shall, in accordance with the relevant provisions of the "Tax Collection and Administration Law of the People's Republic of China" and with the approval of the tax bureau (branch) above the county level, agree to defer tax payment. and issued written notice.

Time limit for deferring tax payment

The time limit for deferring tax payment shall not exceed 3 months. Taxpayers who are unable to pay taxes on time due to special difficulties may, with the approval of the tax bureau (branch) at or above the county level, defer tax payment, but the maximum period shall not exceed 3 months.

Is it necessary to pay late payment fees for deferred tax payments?

If a taxpayer fails to pay taxes within the prescribed time limit, the tax authorities, in addition to ordering payment within a time limit, will also impose additional fines on a daily basis starting from the date of late payment of taxes. A late payment fee of 2‰ will be charged for late payment of tax.

However, no late payment fees will be charged within the period of deferred tax payment approved by the tax authorities after receiving the approved tax extension notice.

Required conditions and materials for applying for tax deferral

Conditions: taxpayers have difficulties in short-term fund allocation due to the following reasons: force majeure factors; accidents; national adjustments to economic policies and administrative instructions Direct impact on certain taxpayers; short-term payment arrears caused by triangular debt or debt chains; current monetary funds are insufficient to pay taxes after deducting employee wages and social insurance premiums payable.

Materials: Original copy of tax registration certificate; when applying due to force majeure factors, relevant certificates of force majeure issued by the authority or department with the authority to identify the force majeure and disaster reports should be provided; when the current monetary funds are deducted from employee wages payable , social insurance premiums, and is insufficient to pay taxes when applying for processing, the current monetary fund balance and all bank deposit account statements, employee wages payable, social insurance premiums and other expenditure budgets should be provided; when short-term debt caused by triangular debt or debt chain When applying for payment arrears, a balance sheet should be provided.