Recently, Government issued Decree 41/2020 / ND-CP on extension of tax payment and land rent. Accordingly some subjects are extended on tax payment; Order, procedures, kinds of tax and extension duration are summarized by RoyalVietnam as follows:
- Subjects eligible for tax extension specified in Article 2 of Decree No. 41/2020 / ND-CP basically include:
- Producing leather and relating products; wood processing and producing products from wood and bamboo (except for beds, wardrobes, tables, chairs), automobiles and other motor vehicles…
- Travel agencies, tourism business and support services, relating to advertising and tour organization…
- Warehouse transport business; accommodation and catering services; education and training; health and social support activities; real estate business …
- Production of industrial products supporting development priority; key mechanical products.
- Small and super small enterprises.
In which, Criteria for identifying small and super small enterprises are applied according to Decree 39/2018 / ND-CP as follows:
|Criteria||Super small enterprise||Small enterprise|
|Agriculture, forestry, fisheries and industry, construction||Trade, services||Agriculture, forestry, fisheries and industry, construction||Trade, services|
|Number of employees participating in social insurance||On annual average, not exceed than 10 people||On annual average, not exceed 10 people||On annual average, not exceed 100 people
|On annual average, not exceed 50 people|
|Total annual revenue||≤ 3 billion VND||≤ 10 billion VND||≤ 50 billion VND||≤ 100 billion VND|
|Total capital source||≤ 3 billion VND||≤ 3 billion VND||≤ 20 billion VND||≤ 50 billion VND|
2 / The extended taxes and extension duration
- For value-added tax (except value-added tax for importing /exporting activities);
Extension of the time limit for tax payment of arising value-added tax amounts payable in the tax period of March, April, May and June 2020 (in cases of monthly value-added tax declaration) and the first and second quarter tax periods of 2020 (in cases of quarterly value-added tax declaration) of enterprises and organizations stated in Article 2 of this Decree. The extension duration is within 05 months from the end of the deadline for paying value-added tax according to the law on tax administration.
- For corporate income tax;
Extension of the time limit for the unpaid enterprise income tax amounts according to the finalization of the 2019 tax period and the provisional corporate income tax amount in the first and second quarters of the 2020 tax period of enterprise, organization which is an enterprise income tax payer that falls into the subject defined in Article 2 of this Decree. The extension duration is within 05 months from the end of the deadline for paying corporate income tax in accordance with the law on tax administration.
- For value added tax, personal income tax of business households and individuals;
Extension of the time limit for payment of value-added tax and personal income tax on the payable tax amount in 2020 of the households and individuals doing business in the economic sectors and fields mentioned in Clause 1, Clauses 2 and 3, Article 2 of this Decree. Business households and individuals shall pay the extended tax amount in this Clause no later than December 31, 2020.
- For land rent;
Extension of land rental payment term for the amount of land rent to be paid in the first period of 2020 by enterprises, organizations, households and individuals which are mentioned in Article 2 of this Decree, being leased land directly under decisions and contracts of competent state agencies in the form of annual land rent payment by the State. The extension duration is within 05 months from May 31, 2010.
This provision also applies to enterprises, organizations, households and individuals that have many decisions, direct land lease contracts of the State and various production and business activities, including: economic sectors and domains specified in Clauses 1, 2, 3 and 5, Article 2 of this Decree.
See details in Article 3, Decree 41/2020 / ND-CP as attached below.
3 / Order and procedures for extending the payment of tax and land rent
- Submit application for extension of land tax and land tax payment (Form in the Appendix enclosed with Decree 41/2020 / ND-CP)
- Method: Online, Directly or via Post Office;
- Deadline: No later than July 30, 2020;
See details in Article 4, Decree 41/2020 / ND-CP.