On May 20th ,2020 The Ministry of Finance issued Official Letter No. 5977/BTC-TCT, provide note for deferral of Corporate Income Tax (CIT) and Value Added Tax (VAT) as prescribed in Article 3 Decree No. 41/2020/ND-CP. Details are as follows:
- CIT deferral:
The remaining payable CIT amount according to the tax finalization procedures of the extended fiscal year 2019 does not include the prepaid quarterly CIT amount specified in Clause 6 Article 4 of the Decree No. 91/2014/ND-CP on October 1st ,2014 issued by The Government and Article 17 of the Circular No. 151/2014/TT-BTC on October 10th ,2014 issued by The Ministry of Finance. Accordingly, the remaining payable CIT amount according to the finalization procedures of the fiscal year 2019 is at most equal to 20% of the total payable tax amount for the whole year calculated during the tax finalization process.
If the Enterprise’s CIT assessment period does not coincide with the calendar year, the tax deferral deadline shall be set to be aligned with the Enterprise’s CIT calculation period.
In case that taxpayers make additional tax declarations dossiers for the 2019 CIT finalization as regulated in Law on Tax Administration. This addition increases the taxable CIT and such additional declaration has to be sent to tax agency before the extended deadline the tax amount paid by the extension will be determined according to the principle specified in the first point of this CIT deferral section, in which the entire-year tax amount payable according to the tax finalization procedures is calculated on the basis of the amount that specified in the additional tax declaration.
If the competent authority examines and inspects the 2019 CIT finalization and issues a conclusion before the expiration of the extended deadline for tax payment, the total deferred tax amount (according to the enterprise’s self-declared finalization file and the additional amount portion determined after the inspection) shall be determined according to the principle specified at the first point of this CIT deferral section, in which the entire-year payable tax amount calculated according to the tax finalization procedures which is based on the inspection and examination results. The extension period is 5 months from the deadline for submission of CIT finalization file for the fiscal year 2019.
- VAT deferral:
Enterprises and organizations that are subjected to the extension of the deadline for payment of taxes and land rental as prescribed in Article 2 of Decree No. 41/2020/ND-CP shall be allowed to defer the payable VAT amounts specified in clause 1 of Article 3 in the Decree No. 41/2020/ND-CP, inclusive of the VAT amount at the head office and the payable VAT amount at the localities where they have out-of-province irregular construction business or inter-provincial construction works.
The State Treasury has not yet deducted VAT (within the extended period) from the payment for the volume of construction works and capital construction work items funded by the state budget capital and payments made by the State budget funding for capital construction works of ODA-funded projects subject to VAT if contractors thereof are eligible for deferment of VAT payment.
