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Extension of time limit for payment of VAT and CIT according to Decree 41/ND-CP

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:

First group

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.
Second group

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

The third group

Enterprises, organizations, households and individuals engaged in production of industrial products supporting development priority; key mechanical products.

The fourth group

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.

The fifth group

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:

Micro enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance on an annual average of no more than 10 people. , and total revenue of the year is not more than 3 billion or total capital must not exceed 3 billion VND. Micro enterprises in the field of commerce and services with an average number of employees participating in social insurance not exceeding 10 people per year , and total revenue of the year is not more than 10 billion or Total capital is not more than 3 billion dong.
Small enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance of no more than 100 people per year. , and total revenue of the year is not more than 50 billion or the total capital must not exceed 20 billion dong, but it is not a micro-enterprise as prescribed in Clause 1 of this Article. Small enterprises in the field of commerce and services with an average number of employees participating in social insurance not exceeding 50 people per year. , and total revenue of the year is not more than 100 billion or The total capital is not more than VND 50 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.
Medium-sized enterprises in the fields of agriculture, forestry, fishery and industry and construction with an average number of employees participating in social insurance not exceeding 200 people per year and total annual revenue not exceeding 200 billion VND or the total capital is not more than 100 billion dong, but it is not a small enterprise or micro-enterprise as prescribed in Clauses 1 and 2 of this Article. A medium-sized enterprise in the field of commerce and service has an average number of employees participating in social insurance of not more than 100 people per year and a total annual turnover of not more than VND 300 billion or a total capital of not more than VND 100 billion, but is not a micro-enterprise or a small enterprise as prescribed in Clauses 1 and 2 of this Article.
The field of operation of small and medium-sized enterprises is determined based on the provisions of the law on the system of economic sectors and the provisions of specialized laws. In case of operating in many fields, small and medium enterprises are determined based on the field with the highest revenue. If it is not possible to identify the field with the highest turnover, small and medium-sized enterprises shall be determined based on the field that employs the most workers.
1. The number of employees participating in social insurance is the total number of employees managed, employed, and paid by the enterprise to participate in social insurance in accordance with the law on social insurance. 2. The average annual number of employees participating in social insurance is calculated as the total number of employees participating in social insurance in the year divided by the number of months in the year and determined on the previous year's social insurance payment receipt adjacent to which the enterprise submits to the social insurance agency. In case an enterprise has been operating for less than 01 year, the average number of employees participating in social insurance shall be calculated as the total number of employees participating in social insurance of the months of operation divided by the number of months of operation.
Total capital is determined in the balance sheet shown in the financial statement of the preceding year that the enterprise submits to the tax authority. In case an enterprise has been operating for less than 01 year, the total capital source shall be determined in the balance sheet of the enterprise at the end of the quarter immediately preceding the time the enterprise registers for the support content.
Total revenue of the year is the total revenue from selling goods and providing services of an enterprise and is determined on the financial statement of the preceding year that the enterprise submits to the tax authority. In case an enterprise has been operating for less than 01 year or over 01 year but has not generated any revenue, the enterprise shall base itself on the criteria for total capital sources specified in Article 9 of this Decree to determine a small and medium-sized enterprise.
1. Small and medium-sized enterprises shall base themselves on the form specified in the Appendix issued with this Decree to self-determine and declare the size as a micro-enterprise or a small- or medium-sized enterprise and submit it to the competent authority. organization supporting small and medium enterprises. Small and medium enterprises must take responsibility before the law for the declaration. 2. In case the enterprise self-discovers that the scale declaration is incorrect, the small and medium-sized enterprise shall adjust and re-declare it. The re-declaration must be done before the time the small and medium enterprises enjoy the support content. 3. In case an enterprise intentionally makes dishonest declarations about its size in order to receive support, it must take responsibility before law and refund all related funds and expenses that the enterprise has received support.

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.

The deferred CIT payable according to the finalization of the tax period 2019 does not include the quarterly provisional corporate income tax specified in Clause 6, Article 4 of Decree No. 91/2014 / ND-CP dated October 01 /. 10 of the Government and Article 2014 of Circular No. 17/151 / TT-BTC dated 2014/10/10 of the Ministry of Finance. Accordingly, the payable CIT amount according to the settlement of the tax period in 2014 is up to 2019% of the total tax payable for the whole year according to the settlement.
In case an enterprise has a tax period for CIT calculation that does not coincide with the calendar year: the extended tax payment time limit shall be determined in accordance with the enterprise's tax period.
In case the taxpayer additionally declares the 2019 CIT finalization dossier in accordance with the Law on Tax Administration, increasing the payable CIT amount and sending it to the tax authority before the extended tax payment deadline expires: The extension is determined according to the principle in note (1) above, in which the tax payable for the whole year according to the final settlement is based on the additional declaration.
In case there is an examination and inspection of the 2019 CIT finalization and a conclusion is issued before the expiration of the extended tax payment time limit, then: The total amount of tax to be extended is determined according to the principles at note (1. ) above, in which the tax payable for the whole year according to the final settlement is based on the inspection and examination results. The extension period is 05 months from the end of the deadline for submitting the CIT finalization dossier of the 2019 tax period.
Subjects eligible for tax payment extension, land rent eligible for extension of payable VAT amounts include VAT at the head office and payable VAT amounts in localities where out-of-province current construction business is carried out, constructing inter-provincial works.
The State Treasury has not deducted VAT (within the extended period) from the payment for the volume of construction works and work items funded by the state budget and payments from State budget sources for capital construction works of ODA-funded projects subject to VAT in cases where contractors are subject to VAT payment extension.