On April 8th, 2020, The Government issued Decree No. 41/2020/ND-CP on Extensiom of Tax and Land rental payment. This Decree provides regulations on extension of Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT) and Land rental payment for following cases:
– Enterprises, organizations, households and individuals who are doing business in
agriculture, forestry, fishery; manufacturing food products; textile; clothing; leather and related products; wood and products from wood and bamboo (excluding furniture); manufacturing straw and plaiting materials; paper and paper products; rubber and plastic products; other non-metallic mineral products; manufacturing metals; machinery; processing and coating metals; manufacturing computers, electronic products, optical products; manufacturing automobiles and other motor vehicles; manufacturing furniture and construction.
– Enterprises, organizations, households and individuals who are doing business in logistics; accommodation, food and beverage; education; medical and social support activities; real estate activities; employment activities; travel agency, tour operator and related and supporting services; creative, arts and entertainment activities; libraries, archives, museums and other cultural activities; sport, amusements and motion picture projection activities.
– Enterprises, organizations, households and individuals who are manufacturers of prioritized ancillary industry products or key mechanical products. (Prioritized ancillary industry products shall be determined in accordance with the Government’s Decree No. 111/2015/ND-CP dated November 03, 2018).
– Small and micro-enterprises which are regulated in the Law on Assistance for Small and Medium-sized Enterprises.
– Credit institutions and foreign bank branches (FBB) shall provide assistance for enterprises, organizations and individuals affected by Covid-19 pandemic as prescribed by the State bank of Vietnam (SBV).
The tax payment extension for above cases are regulated as follows:
– VAT: extension would be given to VAT arose on tax assessment period of March, April, May, June of 2020 (for monthly payment basis) and of the first and second quarter of 2020 (for quarterly payment basis). The extension term is 5 months from the initial deadline for paying VAT according to regulations on tax administration.
– CIT: extension would be given to the payable remaining CIT of 2019 and provisional tax in the first and second quarter in 2020. The extension term is 5 months from the initial deadline for paying CIT according to regulations on tax administration. In case the remaining sums of 2019 have been fully paid, it might be offset against other tax payable.
– For business households and individuals: VAT, PIT in 2020 would be extended for households and individuals who are doing businesses in above-mentioned fields. Households and individuals must pay for these extended tax payments in this section before December 31, 2020.
– Land Rental Payment: The payment in the first period of 2020 would be extended for land lease directly from the State for above-mentioned businesses under decisions or contracts of competent authorities will be deferred for 05 months from May 31, 2020.
– In case enterprises, organizations, households and individuals (excluding small and micro-enterprises) that operates in multiple business lines including those specified cases in this Decree will have all the VAT and CIT (for organizations) or PIT (for households and individuals) deferred in accordance with this Decree.
This Decree took effect from the signing date.
