On April 08, 04 the Government issued Decree 41_2020_ND-CP regulates the extension of the deadline for payment of value added tax, corporate income tax, personal income tax and land rent.
Accordingly, extend the payment of VAT for 5 months for the payable tax amount of the month 3-4-5-6, or Quarter 1, 2 of 2020, extend the 5 months for the enterprise income tax amount finalized in 2019, and the payable CIT amount temporarily for the first and second quarters of 1.
Apply to 5 target groups
Decree 41/2020/ND-CP has regulated to apply to 5 groups of subjects including:
Enterprises, organizations, households and individuals engaged in production activities in the following economic sectors:
- Agriculture, forestry and fisheries.
- Food production and processing; weaving; production of costumes; manufacture of leather and related products; wood processing and production of products from wood, bamboo and cork (except for beds, cabinets, tables and chairs); produce products from straw, straw and plaiting materials; production of paper and paper products; manufacture products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical; metal treatment and coating; manufacturing electronic products, computers and optical products; manufacture of automobiles and other motor vehicles; manufactures beds, cabinets, tables and chairs.
- Groups of enterprises, organizations, households and individuals engaged in construction production activities.
Enterprises, organizations, households and individuals doing business in the following economic sectors:
- Warehouse transportation; accommodation and catering services;
- Education and training;
- Health and social assistance activities;
- Real estate business.
- Labor and employment service activities;
- activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours.
- Creative, artistic and recreational activities;
- Activities of libraries, archives, museums and other cultural activities;
- Sports and entertainment activities; cinema activities.
The economic industry list mentioned in Clauses 1 and 2 of this Article is determined by Decision 27_2018_QĐ_TTg Promulgating Vietnam's economic system
Enterprises, organizations, households and individuals engaged in production of industrial products supporting development priority; key mechanical products.
Small and micro enterprises are defined in accordance with the Law on Small and Medium Enterprises Support No. 04/2017 / QH14 and the Government's Decree No. 39/2018 / ND-CP detailing a number of articles of the Law Support for small and medium enterprises.
Credit institutions, foreign banks' branches implement solutions to support customers being enterprises, organizations, and individuals affected by Covid-19 epidemic in accordance with the regulations of the State Bank of Vietnam. The State Bank of Vietnam is responsible for publishing the list of credit institutions and branches of foreign banks participating in customer support for tax authorities to extend the deadline for paying tax and land rents according to the recommendations. this.
According to Decree No. 39_2018_NĐ_CP of the Government detailing a number of articles of the Law on Supporting Small and Medium Enterprises, as defined in Article 6, Criteria for identifying small and medium-sized enterprises whereby small and medium-sized enterprises are classified according to their sizes, including: micro businesses, small businesses, medium businesses.
The detailed classification is as follows:
Value added tax extension (except for value added tax at the import stage)
Extension of the time limit for paying tax on the arising value-added tax amounts payable in the tax period of March, April, May and June 3 (for cases of monthly value-added tax declaration) and calculation period first and second quarter taxes of 4 (for cases of quarterly value-added tax declaration) of the above enterprises and organizations. The extension is 5 months from the end of the deadline for paying VAT, in accordance with the law on tax administration.
If the taxpayer makes additional declarations of the tax declaration of the extended tax period, resulting in an increase in the amount of value added tax payable and sent to the tax authority before the deadline for tax payment is extended, the tax amount The extension includes the additional tax payable due to additional declaration.
Enterprises and organizations eligible for extension may make and submit monthly and quarterly value-added tax returns according to current law provisions, but must not pay payable value-added tax amounts. born on the declared value-added tax return.
Specifically, the deadline for payment of value-added tax of the month or quarter is extended as follows:
- The deadline for paying value-added tax in the March 3 tax period is September 2020, 20.
- The deadline for paying value-added tax in the March 4 tax period is September 2020, 20.
- The deadline for paying value-added tax in the March 5 tax period is September 2020, 20.
- The deadline for paying value-added tax in the March 6 tax period is September 2020, 20.
- The deadline for paying value-added tax of the first quarter 2020 tax period is September 30, 9.
- The deadline for paying value-added tax of the second quarter 2020 tax period is December 30, 12.
Extension of the time limit for payment of corporate income tax
For enterprise income tax amounts still to be paid according to the final settlement of the tax period 2019 and the provisional enterprise income tax amount to be paid in the first and second quarter of the tax period 2020 by enterprises prescribed on. The extension is 5 months from the end of the deadline for paying corporate income tax in accordance with the law on tax administration.
In case an enterprise or organization remits the payable enterprise income tax amount according to the final settlement of 2019 into the state budget, the enterprise or organization may adjust the enterprise income tax amount already paid for payment. for other taxes payable.
For personal income tax
Only extend personal income tax of business households and individuals. The extension of personal income tax of an enterprise that must be paid on behalf of the employee is not applicable.
For land rent
Extension of land rental payment term for the amount of land rent to be paid in the first period of 2020 of enterprises, organizations, households and individuals subject to the above-mentioned regulations being directly leased by the State decisions and contracts of competent state agencies in the form of annual land rent. The grace period is 5 months from 31/5/2020.
Taxpayers who are subject to the extension must only submit the written request for extension of tax payment and land rent (electronically or otherwise) according to the form to the supervisory tax authority once for all The duration of taxes and land rents is extended along with the time of filing monthly (or quarterly) tax returns according to the tax administration law.
If the written request for extension of tax payment and land rent is not filed together with the time of submission of monthly (or quarterly) tax declaration dossiers, the deadline for submission is July 30, 7, the tax administration agency still extend the tax payment, land rent of the arising period is extended before the time of submitting the request for extension.
In case taxpayers are leased land by the State in many different localities, tax agencies directly managing taxpayers shall make copies of applications for extension of land tax payment and land rent to tax offices where exist. rented land.
Taxpayers themselves determine and are responsible for the extension to ensure the right subjects are extended under this Decree. If the taxpayer sends a written request for tax payment and land rent extension to the tax authority After July 30, 7, tax payment is not extended, land rents in accordance with this Decree.
During the tax payment time limit extension, based on the written request for extension of tax payment and land rent, tax agencies shall not charge late payment interest for the extended tax amount or land rent (including cases where the paper Proposal for extension to send to the tax agency after submitting a monthly (or quarterly) tax return by July 30, 7.