TNC Business Strategy Research

Vietnam Time Limit for Paying Tax and Land Lease Extended and Additional on Corporate Income Tax Issue

2021-01-19 11:40
Decree 41/2020/ND-CP (Decree 41), dated April 8, 2020 extends the deadline for paying tax and land lease.

Five groups of subjects of application for extension of time limit for paying tax and land lease
1. Enterprises, organizations, households and individuals engaged in production activities in
the sectors of agriculture, forestry and fishery, construction, production and processing of food, weaving, producing leather and related products, processing wood and producing products from wood, bamboo of various kinds (except for beds, wardrobes, tables, chairs), producing products from straw and plaiting materials, producing paper and paper products, producing products from rubber and plastic, producing products from other non-metallic minerals, metal production, mechanical processing, treating and over- laying metal, manufacturing electronic products, computers and optical products, manufacturing automobiles and other motor vehicles, producing beds, wardrobes, tables, chairs.

2. Enterprises, organizations, households and individuals doing business in such industries as warehousing and transport, accommodation and catering services, education and training, health and social assistance activities, real estate business, labor service activities and employment, activities of travel agents, tour operators and support services related to tourism promotion and organization, Creative, artistic and recreational activities, library activities, archives, museums and other cultural activities, sports activities, entertainment, film screening activities.

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

4. Small and micro enterprises defined in accordance with the Law on Supporting Small
and Medium Enterprises No. 04/2017/QH14 and Decree No. 39/2018/ ND-CP dated March 11, 2018 of the Government detailing a number of articles of the Law on Supporting Small and Medium Enterprises.

5. Credit institutions, foreign bank 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 and propose the State Bank of Vietnam to publish the list of credit institutions and foreign bank branch- es participating in customer support.

Extension of the deadline for paying taxes and land lease
For VAT(Value Added Tax)
The extended time is five months from the expiry of the deadline for paying VAT in accordance with the law on tax administration.

For CIT(Corporate Income Tax)
The payment deadline of unpaid CIT(Corporate Income Tax), which were not made in the first and second quarters of 2020, would be extended for additional 5 months temporarily. The Government proposes to reduce 30% of the corporate income tax CIT payable in 2020 for enterprises with total revenue in 2020 not exceeding VND 50 billion and the number of employees. Average social insurance by 2020 shall not exceed 100 people. Regarding the temporary payment and finalization of tax, in accordance with the Law on Tax Administration, enterprises shall calculate, self- declare and self-pay taxes. Therefore, enterprises will base on their actual situation to determine whether they are eligible for tax reduction or not to reduce 30% of the CIT amount when temporarily paying quarterly tax and finalizing the enterprise income tax of 2020.

For VAT(Value Added Tax) and PIT(Personal Income Tax)
Extending the time limit for paying VAT(Value Added Tax) and PIT(Personal Income Tax) for the rising tax payable in 2020 latest by December 31, 2020.

For land lease
Extending the land lease payable in the first period of 2020 by enterprises, organizations, households and individuals subject to Article 2 of this Decree, which are being directed leased by the State under the Decisions and Contracts of competent state agencies, for a period of five months from May 31, 2010.

*Source: General Department of Taxation - Ministry of Finance