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Summary of tax support for businesses facing difficulties due to Covid-19

Below is a summary of policies to support employers (businesses) and employees working at businesses that are facing difficulties due to the impact of the Covid-19 pandemic. The support was issued during the outbreak of the Covid-19 epidemic in Vietnam.

This is a summary of policies to support tax payment extension, tax exemption and reduction for businesses affected by the Covid-19 pandemic.

The support and application guidelines of the competent authority were issued during the period of the Covid-19 epidemic in Vietnam.

What should businesses do when applying the following regulations?

1. Read carefully the regulations applying tax payment extension, tax exemption and reduction for businesses affected by the Covid-19 pandemic to register for implementation.

2. If you need Expertis support, please contact us.

Extension of time for tax payment

1. Regulations on tax payment extension

The case of extension of tax payment is as follows:

“A) Suffering material damage directly affecting production and business due to natural disasters, fires or unexpected accidents.

Physical damage is the loss of the taxpayer's property, calculated in money such as: machinery, equipment, vehicles, supplies, goods, factories, workplaces, money, papers. valuable as money.

Unexpected accident is an unfortunate accident happened unexpectedly by the taxpayer, caused by an outside agent that directly affects the business and production activities of the taxpayer, not due to a cause from law violations. Cases considered as unexpected accidents include: traffic accidents; labor accident; suffering from dangerous diseases; epidemic diseases at the time and in areas where competent authorities have declared contagious epidemics; other force majeure circumstances. "

2. Dossiers and procedures for requesting tax payment extension

To be extended tax payment under the provisions of Point a, Clause 1 of this Article, the taxpayer must make and send a tax request extension to the tax authorities directly manage the taxpayer. Records include:

“- The taxpayer's written request for extension of tax payment, made according to form No. 01/GHAN attached to this Circular;

- Record of inventory and assessment of material damage, made by the taxpayer or the taxpayer's legal representative;

- Document certifying that the taxpayer has damage at the place of natural disaster, fire, sudden accident and the time of the natural disaster, fire or sudden accident of one of the agencies or groups. following functions: police agency; People's Committees of communes and wards; Management boards of industrial parks, export processing zones, economic zones where natural disasters, fires or unexpected accidents occur, or organize rescue and rescue operations;

– Damage claim file accepted by the insurance agency (notarized or certified copy if any); documents specifying the responsibility of the organization or individual to be compensated (notarized or authenticated copy, if any). For taxpayers being a legal entity, the above documents must be the original or a copy signed by the legal representative and stamped by the unit.”

See the letter here:

Official Letter 897/TCT-QLN on extension of tax payment, exemption of late payment interest due to the impact of the Covid-19 epidemic

Accordingly, the tax payment time limit is extended as follows:

1. Extension of value-added tax (except value-added tax at 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.

2. Extension of time limit for paying 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.

3. 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.

4. Order and procedures for extension
 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, 07.
 

See detailed instructions here:

Decree 41/2020/ND-CP Extension of deadlines for payment of VAT, CIT, PIT and land rent (Due to Covid-19)

See additional guidance documents:

Official Dispatch 2058/TCT-CS in 2020 on economic sectors subject to extension of tax payment and land levy promulgated by the General Department of Taxation
Official Letter 5977/BTC-TCT guiding 06 additional notes on the extension of payment of CIT and VAT

Accordingly, the tax payment extension is as follows:

1. Extension for value-added tax 2021 (except value-added tax at the import stage):

Enterprises and organizations eligible for the extension shall declare and submit monthly and quarterly value-added tax declarations in accordance with current law, but have not yet paid the payable value-added tax amount. born on the declared value-added tax return. The time limit for payment of value added tax of the month and quarter is extended as follows:

  • The deadline for paying value-added tax in the March 3 tax period is September 2021, 20.
  • The deadline for paying value-added tax in the March 4 tax period is September 2021, 20.
  • The deadline for paying value-added tax in the March 5 tax period is September 2021, 20.
  • The deadline for paying value-added tax in the March 6 tax period is September 2021, 20.
  • The deadline for paying value-added tax in the March 7 tax period is September 2021, 20.
  • The deadline for paying value-added tax in the March 8 tax period is September 2021, 20.
  • The deadline for paying value added tax of the tax period of the first quarter of 1 is September 2021, 30.
  • The deadline for paying value added tax of the tax period of the first quarter of 2 is September 2021, 31.

2. Extension for corporate income tax 2021

Enterprises and organizations eligible for the extension shall extend the temporarily paid CIT amount in the first and second quarters of 1 as follows:

  • The deadline for payment of temporarily paid corporate income tax for the first quarter of 1 is July 2021, 30
  • The deadline for payment of temporarily paid corporate income tax for the second quarter of 2 is October 2021, 30.

3. Order and procedures for extension

For enterprises subject to extension, send a request for a one-time extension for all tax periods which are extended together with the time of filing tax returns. The deadline for submitting the application for extension is July 30, 7.

Note: In order to be extended tax and land rent according to the provisions of this Decree, the taxpayer must fully pay the tax and land rent which has been extended according to the provisions of Decree No. 41/ 2020/ND-CP and corresponding late payment interest (if any) to the state budget before July 30, 7.

See full instructions here:

Decree 52/2021/ND-CP extending the deadline for payment of VAT, CIT, PIT and land rent in 2021 (Due to Covid-19)

Instructions are available here:

Official Letter 1495/TCT-KK dated May 14, 05 of the General Department of Taxation on organizing the implementation of Decree 2021/52/ND-CP extending tax payment and land rent in 2021

Corporate income tax reduction