The Government of Vietnam has extended the deadline for payment of value-added tax, corporate income tax, personal income tax, and land rent in 2023 for 4 subjects pursuant to Decree 12/2023/ND-CP dated April 14, 2023.
Specifically, the 4 subjects eligible for tax payment deadline extension include:
Enterprises, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:
- Agriculture, forestry, and fishery;
- 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, 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; manufacture beds, cabinets, tables, and chairs;
- Publishing activities; cinematographic activities, television program production, sound recording, and music publishing;
- Exploiting crude oil and natural gas (without extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);
- Manufacture of beverages; print, and copy records of all kinds; production of coke, and refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance, and installation of machinery and equipment;
- Drainage and wastewater treatment.
Enterprises, organizations, households, business households, and individuals conducting 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 entertainment activities; activities of libraries, archives, museums, and other cultural activities; sports and entertainment activities; movie screening activities;
- Radio and television activities; computer programming, consulting services, and other computer-related activities; information service activities;
- Mining support service activities.
Enterprises, organizations, households, business households, and individuals engaged in producing supporting industry products are prioritized for development; essential mechanical products
Small and micro enterprises are defined according to the Law on Supporting Small and Medium Enterprises provisions in 2017 and the Government’s Decree No. 80/2021/ND-CP dated August 26, 2021, detailing Articles of the Law on Supporting Small and Medium Enterprises.
The industries and fields listed under the economic sectors and fields of enterprises, organizations, households, business households, and individuals are those where enterprises, business organizations, households, business households, and individuals have production and business activities and generate revenue in 2022 or 2023.
How to calculate the extension of tax payments and land rent deadlines
The Decree stipulates the extension of the time limit for paying tax and land rent.
Specifically, for value-added tax (except value-added tax at the import stage):
Extension of the deadline for making tax payments for the arising value-added tax payable for the tax periods from March to August 2023 (for the case of monthly VAT declaration) and the first and second quarters of 2023 (for the case of quarterly increase in VAT declaration) for businesses and organizations. This extension includes the tax amount allocated to other provincial-level localities where the taxpayer is headquartered.
For the value-added tax amount from March 2023 to May 2023 and the first quarter of 2023, the extension period is six months; for the amount from June 2023 to the second quarter of 2023, it is five months; for the amount from July 2023, it is four months; and for the amount from August 2023, it is three months. According to the regulations on tax administration, the deadline at this point is determined from the conclusion of the period for paying value-added tax.
Businesses and organizations that are eligible for an extension must file monthly and quarterly value-added tax statements in line with the legislation even though they haven’t yet paid the required amount. born on the formally stated VAT return. These are the new deadlines for paying value-added tax for the month and quarter:
- The deadline for paying value-added tax for the tax period of March 2023 is October 20, 2023, at the latest.
- The deadline for paying value-added tax for the April 2023 tax period is November 20, 2023, at the latest.
- The deadline for paying value-added tax for the May 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for the June 2023 tax period is December 20, 2023.
- The deadline for paying value-added tax for July 2023 is December 20, 2023.
- The deadline for paying value-added tax for the tax period of August 2023 is December 20, 2023.
- The deadline for paying value-added tax for the first quarter of 2023 is October 31, 2023.
- The deadline for paying value-added tax for the tax period of the second quarter of 2023 is December 31, 2023.
The branches and affiliated units must additionally pay an extension of value-added tax if a company or other entity with branches or affiliated units files a separate value-added tax declaration with the tax agency that is responsible for administering the branch or affiliated unit. A branch or affiliated unit of a company or organization stated above will be charged an extension fee if it lacks production and business operations in the relevant economic sector or area. Affiliated units are not subject to the extension of payment of value-added tax.
Extension of time limit for payment of temporarily paid corporate income tax of the first quarter and second quarter of 2023
the extension of the corporate income tax payment deadline for payments temporarily paid for the first and second quarters of the 2023 corporate income tax period of companies and organizations. According to the legislation on tax administration, an extension is granted for a period of three months following the expiration of the deadline for paying corporate income tax.
The extension of corporate income tax payment is required in the scenario that a business or organization with branches or affiliated units files a separate corporate income tax return with the tax authority that is directly responsible for the branch or affiliated unit. Branch and related units of the aforementioned companies or organizations are not qualified to request a corporate income tax payment extension if they do not engage in production and commercial operations in the relevant economic sector or area.
Value-added tax, personal income tax, and an extension of the deadline for payment of value-added tax and personal income tax of business households and individuals participating in the aforementioned economic sectors and fields are all taxes that will become due in 2023. By December 30, 2023, business households and individuals must pay the extended tax amount specified in this clause.
Extension of the time limit for paying land rent for 50% of the arising land rent payable in 2023
Extension of the time limit for payment of land rent for 50% of the arising land rent payable in 2023 of enterprises, organizations, households, and individuals that are directly leased land by the State under Decision No. or Contract of a competent state agency in the form of annual land rental payment. The extension period is 06 months from May 31, 2023, to November 30, 2023.
This regulation applies to scenarios when businesses, organizations, households, and individuals are involved in a wide range of decisions, direct land leasing contracts with the State, and a variety of production and commercial operations, including those in the above-mentioned economic sectors and fields.
If an enterprise, organization, business household, or individual engages in manufacturing or business operations in a variety of economic sectors, including the economic sectors and fields listed above, enterprises and organizations are entitled to an extension of the entire payable value-added tax and corporate income tax amounts; business households and individuals are entitled to a full extension of the payable value-added tax and personal income tax amounts under the Act.
The Decree takes effect from April 14 to December 31, 2023.