Who is eligible for extension of payment deadline of corporate income tax in Vietnam of the first Quarter and second Quarter of tax period of 2023? How long is the payment deadline of corporate income tax extended?
- Who is eligible for extension of payment deadline of corporate income tax of the first Quarter and second Quarter of tax period of 2023?
- Who is ineligible for extension of payment deadline of corporate income tax in Vietnam of the first Quarter and second Quarter of tax period of 2023?
- Extending the payment deadline of corporate income tax in Vietnam of the first quarter, the second quarter of 2023 until June 2023?
Who is eligible for extension of payment deadline of corporate income tax of the first Quarter and second Quarter of tax period of 2023?
Pursuant to Clause 2, Article 4 of Decree No. 12/2023/ND-CP, it is mentioned that the entities eligible for extension of temporary corporate income tax payment deadline of the first Quarter and second Quarter of tax period of 2023 are enterprises and organizations under Article 3 of Decree No. 12/2023/ND-CP, specifically as follows:
Eligibility for extension
1. Enterprises, organizations, households, household businesses, and individuals engaging in manufacturing activities in economic sectors below:
a) Agriculture, forestry, and fishery;
b) 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;
c) Construction;
d) Publishing; cinematography; television program, audio recording, music production;
dd) 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);
e) 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;
g) Water drainage and wastewater treatment.
2. Enterprises, organizations, households, household businesses, and individuals operating in business activities in economic sectors below:
a) Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading;
b) Labor and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organization of travel tours;
c) Composing, artistic, recreational activities; operation of libraries, archives, museums, and other cultural activities; sports and recreational activities; movie screening;
d) Radio and television broadcasting; computer coding, consulting services, and other activities relating to computer; communication operations;
dd) Services assisting mining operation.
Lists of economic sectors under Clause 1 and Clause 2 of this Article are defined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister.
Economic sector classification under Appendix I of Decision No. 27/2018/QD-TTg consists of 5 levels and is implemented on the basis that: If economic sectors under Clause 1 and Clause 2 of this Article are placed in level 1, all economic sectors under level 2 through 5 corresponding to the economic sectors in level 1 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 2, all economic sectors under level 3 through 5 corresponding to the economic sectors in level 2 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 3, all economic sectors under level 4 through 5 corresponding to the economic sectors in level 3 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 4, all economic sectors under level 5 are eligible for extension.
3. Enterprises, organizations, households, household businesses, and individuals manufacturing supporting industry products prioritized for development; key mechanical engineering products.
Supporting Industry products prioritized for development shall be determined in accordance with Decree No. 111/2015/ND-CP dated November 3, 2015 of the Government; key mechanical engineering products shall be determined in accordance with Decision No. 319/QD-TTg dated March 15, 2018 of the Prime Minister.
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.
Thus, the above 04 groups of entities are eligible for the Government's extension of temporary corporate income tax payment deadline from April 14, 2023 to December 31, 2023.
Who is eligible for extension of payment deadline of corporate income tax in Vietnam of the first Quarter and second Quarter of tax period of 2023? How long is the payment deadline of corporate income tax extended?
Who is ineligible for extension of payment deadline of corporate income tax in Vietnam of the first Quarter and second Quarter of tax period of 2023?
According to the provisions at Point b, Clause 2, Article 4 of Decree No. 12/2023/ND-CP stipulating as follows:
2. In case of corporate income tax
…
b) If enterprises and organizations under Article 3 hereof 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 under Clause 1, Clause 2, and Clause 3 of this Decree 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.
Thus, in case branches, affiliated entities of enterprises and organizations mentioned in Clauses 1, 2 and 3, Article 3 of Decree No. 12/2023/ND-CP 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.
Extending the payment deadline of corporate income tax in Vietnam of the first quarter, the second quarter of 2023 until June 2023?
According to the provisions at point a, clause 2, Article 4 of Decree No. 12/2023/ND-CP on the extension of payment deadline of corporate income tax as follows:
Extension of tax and land rent payment deadline
…
2. In case of corporate income tax
a) Extend corporate income tax payment deadline of the first Quarter and second Quarter of tax period of 2023 of enterprises and organizations under Article 3 hereof. The extended period shall be 3 months from the payment deadline of corporate income tax in accordance with tax administration laws.
Thus, in case of corporate income tax, the extension of corporate income tax payment deadline of the first Quarter and second Quarter of tax period of 2023 of enterprises and organizations is 03 months from the payment deadline of corporate income tax in accordance with tax administration laws.
According to Clause 1, Article 55 of the 2019 Law on Tax Administration in Vietnam, the deadline for paying corporate income tax, which is paid quarterly, is the 30th of the first month of the next quarter.
That is, the deadline for temporary payment of corporate income tax of the first quarter of 2023 falls on April 30, 2023.
However, the holiday of Hung Kings commemoration, April 30 Victory Day and International Labor Day will last from April 29, 2023 to the end of May 3, 2023, so the deadline for paying corporate income tax of the first quarter of 2023 is by May 4, 2023 at the latest.
The deadline for paying temporary corporate income tax for the second quarter of 2023: is July 30, 2023, which is a Sunday, so the deadline for temporarily paying corporate income tax for the second quarter of 2023 is July 31, 2023.
However, according to the provisions of Point a, Clause 2, Article 4 of Decree No. 12/2023/ND-CP, the deadline for temporary payment for the first and second quarters of 2023 is extended for 3 months. That is, the deadline for temporary payment of CIT for the first quarter of 2023 falls on July 31, 2023 and the second quarter of 2023 is October 30, 2023.
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