Government of Vietnam extending the payment deadline for VAT, CIT, PIT and land rents in 2023?
Government of Vietnam extending the payment deadline for VAT, CIT, PIT and land rents in 2023?
On April 14, 2023, the Government issued Decree No. 12/2023/ND-CP extending payment deadline for VAT, corporate income tax, personal income tax, and land rents for 2023.
According to that, the entities eligible for extension are specified in Article 3 of Decree No. 12/2023/ND-CP as follows:
(1) Enterprises, organizations, households, household businesses, and individuals engaging in manufacturing activities in economic sectors below:
- Agriculture, forestry, and fishery;
- Food processing and production: textile; apparel production; leather and related product manufacturing; wood processing and wood, bamboo product manufacturing (except for beds, cabinets, seats, chairs, tables); hay, straw, and plaiting material product manufacturing; paper and paper product manufacturing; rubber and plastic product manufacturing; product manufacturing from other non-metallic alloys; metal manufacturing; mechanical engineering; metal treating and cladding; electronic appliance, computer, and optical product manufacturing; automobile and other motorized vehicle manufacturing; bed, cabinet, seat, chair, table manufacturing;
- Construction;
- Publishing; cinematography; television program, audio recording, music production;
- Crude oil and natural gas mining (deadline extension does not apply to corporate income tax of crude oil condensate, and natural gas obtained under agreements and contracts);
- Drink production; printing, copying records of all kinds; coke and refined petroleum product manufacturing; chemical and chemical product manufacturing; product manufacturing using precast metal (except for machinery and equipment); automobile and motorbike manufacturing; machinery and equipment repair, maintenance, and installation;
- Water drainage and wastewater treatment.
(2) Enterprises, organizations, households, household businesses, and individuals operating in business activities in economic sectors below:
- Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading;
- Labor and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organization of travel tours;
- Composing, artistic, recreational activities; operation of libraries, archives, museums, and other cultural activities; sports and recreational activities; movie screening;
- Radio and television broadcasting; computer coding, consulting services, and other activities relating to computer; communication operations;
- Services assisting mining operation.
(3) Enterprises, organizations, households, household businesses, and individuals manufacturing supporting industry products prioritized for development; key mechanical engineering products.
(4) Small and micro enterprises determined in accordance with the Law on Assistance for Small and Medium Enterprises dated 2017 and Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government.
Economic sectors and fields of operation of enterprises, organizations, households, household businesses, and individuals under Clause 1, Clause 2, and Clause 3 of this Article are sectors and fields in which the enterprises, organizations, households, household businesses, and individuals generate revenues in 2022 or 2023.
Government of Vietnam extending the payment deadline for VAT, CIT, PIT and land rents in 2023?
How to extend the payment deadline for VAT in 2023 according to Decree No. 12/2023/ND-CP?
The payment deadline for VAT is extended according to the provisions of Clause 1, Article 4 of Decree No. 12/2023/ND-CP as follows:
- Extend payment deadline for VAT payables (including taxes distributed to other provinces where taxpayers are headquartered, taxes paid every they are incurred) of tax period ranging from March to August of 2023 (if VAT is declared on a monthly basis) and tax period of the first Quarter and the second Quarter of 2023 (if VAT is declared on a quarterly basis) of enterprises and organizations.
- The extended period of 6 months shall apply to VAT that is incurred during the period from March to May of 2023 and in the first Quarter of 2023; 5 months for VAT that is incurred in June of 2023 and the second Quarter of 2023; 4 months for VAT that is incurred in July of 2023; 3 months for VAT that is incurred in August of 2023. Extended periods under this Point starts from the deadline for VAT payment in accordance with tax administration laws.
- Enterprises and organizations eligible for extension shall declare and submit monthly, quarterly tax return in accordance with applicable laws and are not yet required to pay VAT payables on the filed tax return. Extended payment deadline of monthly, quarterly VAT shall be as follows:
+ Extended payment deadline of VAT period of March of 2023 shall be October 20 of 2023.
+ Extended payment deadline of VAT period of April of 2023 shall be November 20 of 2023.
+ Extended payment deadline of VAT period of May of 2023 shall be December 20 of 2023.
+ Extended payment deadline of VAT period of the first Quarter of 2023 shall be October 31 of 2023.
+ Extended payment deadline of VAT period of the second Quarter of 2023 shall be October 31 of 2023.
If enterprises and organizations have branches and affiliated entities which declare VAT separately to their supervisory tax authorities, these branches and affiliated entities are also eligible for extension of payment deadline for VAT.
In case branches and affiliated entities of enterprises and organizations do not conduct business or manufacturing activities within economic sectors and fields eligible for extension of payment deadline, these branches and affiliated entities are not eligible for extension of payment deadline for VAT.
- For household and individual businesses operating in economic sectors and fields eligible for tax extension, they shall pay the extended value-added tax amount arising in 2023 by December 30, 2023 at the latest.
Note: The above provisions do not apply to value added tax at the import stage.
How to extend CIT, PIT and land rent in 2023 according to new regulations?
(1) In case of corporate income tax of the first quarter and second quarter of 2023:
Regulations on extension of corporate income tax payment deadline of the first quarter and second quarter of 2023 in Clause 2, Article 4 of Decree No. 12/2023/ND-CP:
- Extend corporate income tax payment deadline of the first Quarter and second Quarter of tax period of 2023 of enterprises and organizations.
The extended period shall be 3 months from the payment deadline of corporate income tax in accordance with tax administration laws.
- If enterprises and organizations have branches and affiliated entities which separately declare corporate income tax to their direct superior tax authorities, the branches and affiliated entities shall be eligible for extension of payment deadline of corporate income tax.
In case branches and affiliated entities of enterprises and organizations do not conduct business or manufacturing activities within economic sectors and fields eligible for extension of payment deadline, these branches and affiliated entities are not eligible for extension of payment deadline of corporate income tax.
(2) For personal income tax, the provisions on tax payment extension according to Clause 3, Article 4 of Decree No. 12/2023/ND-CP:
- Extend payment deadline of VAT and personal income tax for tax in 2023 of household businesses and individual businesses operating in economic sectors and fields under Clause 1, Clause 2, and Clause 3 Article 3 hereof. Household businesses and individual businesses shall pay taxes eligible for extension under this Clause by the end of December 30, 2023.
(3) Land rents in 2023:
Regulations on extension of the payment deadline of 50% of land rents payable in 2023 according to Clause 4, Article 4 of Decree No. 12/2023/ND-CP:
- Extend payment deadline of 50% of land rents payable in 2023 of enterprises, organizations, households, and individuals under Article 3 hereof leased land by the Government directly under Decision or Contract of competent authority for annual land rent.
The extended period shall be 6 months from May 31 of 2023 to November 30, 2023.
This provision also applies to the case where enterprises, organizations, households, or individuals rent land directly from the Government under multiple Decisions and Contracts and conduct various manufacturing, business activities, among which are those mentioned under Clause 1, Clause 2, Clause 3 Article 3 of Decree No. 12/2023/ND-CP.
If enterprises, organizations, household businesses, and individual businesses conducting manufacturing, business activities in various economic sectors, among which are those under Clause 1, Clause 2, and Clause 3 Article 3 of Decree No. 12/2023/ND-CP: these enterprises and organizations shall be eligible for extension of payment deadline of all VAT and corporate income tax payable; these household businesses and individual businesses shall be eligible for extension of payment deadline of VAT and personal income tax payable in accordance with Decree No. 12/2023/ND-CP.
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