Extending deadline for VAT payment, corporate income tax and personal income tax 2022

People carry out procedures for tax obligations at Thu Duc City Tax Branch. Photo: T.D

According to the Decree, subjects eligible for the extension include enterprises, organizations, households, business 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); products from straw and plaiting materials; production of paper and paper products; manufacturing products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical processing; metal treatment and coating; manufacturing electronic products, computers and optical products; manufacture of automobiles and other motor vehicles; manufactures beds, cabinets and tables and chairs.

In addition, it also includes construction; publishing activities; cinematographic activities, television program production, sound recording and music publishing; exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts); beverage production; print, copy records of all kinds; production of coke, 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.

Besides that, enterprises, organizations, households, business households and individuals in the following economic sectors: transportation and warehousing; accommodation and food services; education and training; health and social assistance activities; real estate business; labor and employment service activities; travel agencies, tour businesses and support services activities, 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; 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 the production of supporting industry products are prioritized for development.

Small and micro enterprises are defined by following to the provisions of the Law on Support for Small and Medium Enterprises in 2017 and the Decree No. 80/2021/ND-CP of Government dated August 26, 2021 detailing a number of articles of the Law on Supporting Small and Medium Enterprises.

Credit institutions, and foreign bank branches shall implement solutions to support customers in businesses, organizations and individuals affected by the Covid-19 pandemic, in accordance with regulations of the State Bank of Vietnam.

The economic sector or field of an enterprise, organization, household, business household or individual specified in (1), (2), (3) above is the industry or field in which the enterprise, organizations, households, business households, and business individuals that have production and business activities and generate revenue in 2021 or 2022.

Extension of tax payment deadline for the payable amount of value added tax

The Decree stipulates the extension of the time limit for paying tax and land rent.

For value-added tax (except for value-added tax at the stage of importation), extending the tax payment deadline for the arising payable amount of value-added tax (including the tax allocated to the other provincial-level localities where the taxpayer is headquartered, the tax amount to be paid each time it is incurred) of the tax period from March to August 2022 (for the case of monthly VAT declaration) and the tax period of the first quarter, the second quarter of 2022 (for the case of quarterly value-added tax declaration) of businesses and organizations.

The extension period is six months for the amount of value-added tax arising from March to May 2022 and the first quarter of 2022, the extension period is five months for the amount of value-added tax arising in June 2022 and the second quarter of 2022, the extension period is four months for the amount of value added tax of July 2022, and the extension time is three months for the amount of value added tax of August 2022. The deadline is counted from the end of the time limit for paying value added tax in accordance with the law on tax administration.

In case the taxpayer makes additional declarations in the tax declaration dossier of the extended tax period, leading to an increase in the payable amount of value-added tax and sending it to the tax authority before the extended tax payment time limit expires, the extended tax amount will include the additional tax payable due to the additional declaration.

Enterprises and organizations eligible for the extension shall declare and submit monthly and quarterly value-added tax declarations in accordance with current law, but they have not yet paid the payable value-added tax amount arising on the declared value-added tax declaration.

In case an enterprise or organization has branches or affiliated units that make a separate declaration of value added tax with the tax authority directly managing the branch or affiliated unit, the branches and affiliated units are also subject to deadline extension of value added tax payment. If the branch or affiliated unit of the enterprise or organization mentioned in (1), (2), (3) above does not have production and business activities in the economic sector or field to which the extension is granted, the branch or affiliated units are not subject to the extension.

Extension of the deadline for temporarily paying corporate income tax for the first and second quarters of 2022

For corporate income tax, extending the tax payment deadline for the temporarily paid corporate income tax amount of the first quarter and the second quarter of the corporate income tax period in 2022 of enterprises and organizations are subjected to regulation as mentioned above. The extension is three months from the end of the time limit for paying corporate income tax in accordance with the law on tax administration.

In case an enterprise or organization has branches or affiliated units that make a separate corporate income tax declaration with the tax authority directly managing the branch or affiliated unit, the branches and affiliated units are also subject to the extension of corporate income tax payment. If the branch or affiliated unit of the enterprise or organization mentioned in (1), (2), (3) above does not have production and business activities in the economic sector or field to which the extension is granted, they are not subject to the extension of corporate income tax payment.

Extension of time limit for paying land rent for 50% of arising land rent payable in 2022

For value-added tax, personal income tax of business households and individuals, the extension of time limit for value-added tax payment, and personal income tax for payable tax amounts arising in 2022 of business households and individuals operating in the economic sectors and fields are specified in (1), (2), (3) above. Business households and individuals shall pay the extended tax amount no later than December 30, 2022.

The extension of the time limit for land rental payment for 50% of the land rent payable in 2022 of enterprises, organizations, households, business households and individuals that are subjected and being leased land by the State directly, under a decision or contract of a competent state agency in the form of annual land rental payment. The extension period is six months from May 31, 2022 to November 30, 2022.

This provision applies to enterprises, organizations, households, business households and individuals that have many decisions, direct land lease contracts of the State and engage in many other business and production activities including economic sectors and fields as specified in (1), (2), (3) and (5) above.

In case an enterprise, organization, business household or individual has production and business activities in many different economic sectors, including regulated economic sectors and fields, the enterprise or organization may be entitled to extending the entire amount of value added tax and corporate income tax payable; business households and individuals are entitled to a full extension of the value added tax and personal income tax payable under the guidance in this Decree.

In case the last day of the extended tax payment deadline coincides with a prescribed holiday, the last day of the time limit is counted as the next working day of that holiday.

This Decree takes effect on May 28, 2022 until the end of December 31, 2022.