What are some new points in the tax payment extension policy in Vietnam between Decree 34/2022/ND-CP and Decree 52/2021/ND-CP that taxpayers need to know?
On May 31, 2022, the Hanoi Tax Department has just issued an Open Letter to taxpayers on the policy of extending the deadline for payment of increased accommodation tax, corporate income tax, personal income tax and land rent. in 2022 (see details here) with the following notable contents:
Who is the subject of the extension to pay value-added tax, corporate income tax, personal income tax and land rent in 2022?
According to Article 3 Decree 34/2022/ND-CP is similar to Decree 52/2021/ND-CP stipulates who is entitled to an extension to pay VAT in Vietnam, corporate income tax, personal income tax and land rent in 2022 as follows:
"Article 3 Subjects eligible for extension
1. Enterprises, organizations, households, business households and individuals engaged in production activities in the following economic sectors:
a) Agriculture, forestry and fishery;
b) Production , food processing; textile; manufacture of clothing; manufacture of leather and related products; wood processing and manufacture of products from wood, bamboo and cork (except for beds, cabinets, tables and chairs); Manufacture of products from straw, straw and plaiting materials; manufacture of paper and paper products; manufacture of products from rubber and plastics; manufacture of other non-metallic mineral products; manufacture of metals; processing mechanical engineering; metal processing and coating; manufacture of electronic, computer and optical products; manufacture of automobiles and other motor vehicles; manufacture of beds, cabinets, tables and chairs;
c) Construction;
d) Publishing activities; cinematographic activities, television program production, recording and publishing music;
dd) Exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);
e) Manufacture of beverages; print, copy records of all kinds; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;
g) Drainage and wastewater treatment.
2. Enterprises, organizations, households, business households and individuals doing business in the following economic sectors:
a) Transport and warehousing; accommodation and catering services; education and training; health and social assistance activities; real estate business;
b) Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;
c) Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie screening activities;
d) Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;
d) Mining support service activities.
The list of economic sectors mentioned in Clauses 1 and 2 of this Article is determined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister on promulgating the system of economic sectors in Vietnam.
Economic sub-sectors according to Appendix I promulgated together with Decision No. 27/2018/QD-TTg include 5 levels and the identification of economic sectors is applied according to the following principles: In case the name of the economic sector is mentioned in Clauses 1 and 2 Clause 2 of this Article belongs to a level 1 industry, the economic sector to which the extension is applied includes all economic sectors of the 2nd, 3rd, 4th, and 5th levels of the level 1 branches; in the case of a level 2 industry, the economic sector to which the extension is applied includes all economic sectors of the 3rd, 4th and 5th levels of the 2nd grade; in the case of a level 3 industry, the economic sector to which the extension is applied includes all economic sectors of the 4th, 5th and 5th levels of the 3rd grade; in the case of a level 4 industry, the economic sector to which the extension is applied includes all economic sectors under the classification 5 of the level 4 industry.
3. Enterprises, organizations, households, business households, individuals engaged in the production of industrial support products give priority to development; key mechanical products.
Supporting industry products prioritized for development are determined according to Decree No. 111/2015/ND-CP dated November 3, 2015 of the Government on the development of supporting industries; Key mechanical products are identified according to Decision No. 319/QD-TTg dated March 15, 2018 of the Prime Minister approving the Strategy for development of Vietnam's mechanical industry to 2025, with a vision to 2035.
4. Small and micro enterprises are defined according to the provisions of the Law on Supporting Small and Medium Enterprises in 2017 and the Government's Decree No. 80/2021/ND-CP dated August 26, 2021 detailing a Articles of the Law on Supporting Small and Medium Enterprises.
5. Credit institutions, foreign bank branches implement solutions to support customers being businesses, organizations and individuals affected by the Covid-19 epidemic in accordance with regulations of the State Bank of Vietnam.
The economic sector and field of an enterprise, organization, household, business household or business individual specified in Clauses 1, 2 and 3 of this Article is the industry or field in which the enterprise, organization, households, business households, and business individuals that have production and business activities and generate revenue in 2021 or 2022."
What are some new points in the tax payment extension policy in Vietnam between Decree 34/2022/ND-CP and Decree 52/2021/ND-CP that taxpayers need to know?
How tax payment extension time in Vietnam in 2022 change?
the Decree 34/2022/ND-CP vs Decree 52/2021/ND-CP , the extension of time for payment of value-added tax, corporate income tax, personal income tax and land rent in 2022 is changed as follows:
+ Value-added tax (except VAT at the stage of import): Value-added tax incurred must be paid (including the tax amount allocated to other provincial-level localities where the taxpayer is headquartered, the tax payable each time it is incurred. ) of the tax periods from March 2022 to May 2022 and the first quarter of 2022 is extended for 6 months.
Thus: This Decree increases the extension by one month compared to the provisions of Decree No. 52/2021/ND-CP.
+ The tax period of June 2022 and the second quarter of 2022 is extended for 5 months; July 2022 is extended for 04 months; August 2022 is extended for 3 months.
This is similar to Decree No. 52/2021/ND-CP.
+ Corporate income tax: The temporarily paid corporate income tax of the first quarter and the second quarter of the corporate income tax period of 2022 is extended for 3 months.
This is similar to Decree No. 52/2021/ND-CP.
+ Value added tax and personal income tax payable by business households and individuals arising in 2022 may be extended by December 30, 2022.
+ Land rent: For 50% of the arising land rent payable in 2022 of enterprises, organizations, households, business households and individuals as prescribed in Clause 4, Article 4 of Decree No. 34/2022 /ND-CP, the extension period is 06 months from May 31, 2022 to November 30, 2022.
What are the conditions for extending tax payment in Vietnam in 2022?
To be extended the time limit for paying taxes and land rents as prescribed in Decree 34/2022/ND-CP, taxpayers need to ensure the following conditions:
+ Taxpayers must be eligible for the extension specified in Article 3 of Decree No. 34/2022/ND-CP.
+ Taxpayers must send an application for extension of tax and land rent payment for the first time or for replacement when detecting errors to the tax agency directly managing them by September 30, 2022.
- Order and procedures for extension are detailed in Article 5 of Decree No. 34/2022/ND-CP: During the implementation process, if there are any problems, taxpayers should contact the Hanoi Tax Department/Chief Direct Tax Department for guidance. Taxpayers can visit the website of the Hanoi Tax Department (http://hanoi.gdt.gov.vn) to learn and update supporting information from the Hanoi Tax Department.
Above are some notes to taxpayers on some new points about the extension policy in Decree No. 34/2022/ND-CP compared to the extension policy in Decree No. 52/2021/ND-CP so that taxpayers Convenient tax payment tracking and implementation listed in the Open Letter to taxpayers about the policy of extending the deadline for paying value added tax, corporate income tax, personal income tax and land rent in 2022 .
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