Official Telegram 03/CD-TCT 2024 on the implementation of the extension of the excise tax payment deadline for domestically produced and assembled automobiles in accordance with Decree 65/2024/ND-CP.
Official Telegram 03/CD-TCT 2024 on the Implementation of the Extension of the Special Consumption Tax Payment Deadline for Locally Produced or Assembled Cars According to Decree 65/2024/ND-CP
On June 18, 2024, the General Department of Taxation issued a directive to Tax Departments, Departments, and Subordinate Units under the General Department of Taxation to implement the extension of the special consumption tax payment deadline for cars produced or assembled locally as stipulated in Decree 65/2024/ND-CP issued on June 17, 2024.
The content of Official Telegram 03/CD-TCT 2024 instructs as follows:
On June 17, 2024, the Government of Vietnam issued Decree 65/2024/ND-CP regulating the extension of the tax payment deadline for the special consumption tax payable arising from the tax periods of May, June, July, August, and September 2024 for cars produced or assembled locally; the extension period lasts from the end of the legal special consumption tax payment deadline until the end of November 20, 2024; the deadline for submitting the Special Consumption Tax Payment Extension Request is no later than November 20, 2024. The Decree is effective from the date of signing until December 31, 2024.
The General Department of Taxation requests the Tax Departments promptly implement and publicize the extension of the special consumption tax payment deadline for locally produced or assembled cars as stipulated in Decree 65/2024/ND-CP mentioned above to continue solving difficulties, supporting the recovery of production and business activities for entities facing special difficulties as directed by the Government of Vietnam.
Official Telegram 03/CD-TCT 2024 on the Implementation of the Extension of the Special Consumption Tax Payment Deadline for Locally Produced or Assembled Cars According to Decree 65/2024/ND-CP
How is the Extension of the Payment Deadline for Special Consumption Tax for Locally Produced or Assembled Cars?
Pursuant to Clause 1, Article 3 of Decree 65/2024/ND-CP, the extension of the tax payment deadline for the special consumption tax payable arising from the tax periods of May, June, July, August, and September 2024 for locally produced or assembled cars is stipulated as follows:
The extension period is from the end of the legal special consumption tax payment deadline until the end of November 20, 2024. Specifically:
- The deadline for special consumption tax payable arising from the tax period of May 2024 is no later than November 20, 2024.- The deadline for special consumption tax payable arising from the tax period of June 2024 is no later than November 20, 2024.- The deadline for special consumption tax payable arising from the tax period of July 2024 is no later than November 20, 2024.- The deadline for special consumption tax payable arising from the tax period of August 2024 is no later than November 20, 2024.- The deadline for special consumption tax payable arising from the tax period of September 2024 is no later than November 20, 2024.
Hence, the extension period for special consumption tax payment for locally produced or assembled cars lasts until the end of November 20, 2024.
How is the Special Consumption Tax Rate for Locally Produced or Assembled Cars in 2024 Calculated?
Pursuant to Article 5 of the Law on Special Consumption Tax 2008, the basis for calculating special consumption tax is as follows:
Tax Calculation Basis
The basis for calculating special consumption tax is the taxable price of goods and services subject to tax and the tax rate. The payable special consumption tax amount is equal to the taxable price times the special consumption tax rate.
Thus, to determine the special consumption tax rate for locally produced or assembled cars, it will be equal to: taxable price x tax rate.
Taxable Price of Locally Produced or Assembled Cars:
Pursuant to Clause 1 and 3, Article 6 of the Law on Special Consumption Tax 2008, as amended and supplemented by Clause 1, Article 2 of the Law on Amendments to the Laws on Value-Added Tax, Special Consumption Tax, and Tax Administration 2016:
Taxable Price
1. For domestically produced goods and imported goods, it is the price at which the manufacturing or importing establishment sells the goods.
In cases where the goods subject to special consumption tax are sold to a trading establishment which is a parent company or subsidiary or subsidiaries within the same parent company as the manufacturing or importing establishment or the trading establishment has a related relationship, the taxable price shall not be lower than the percentage (%) compared to the average price at which the trading establishments buy directly from the manufacturing or importing establishment, as stipulated by the Government of Vietnam;
...
3. For processed goods, it is the selling price of the goods processed by the processing entity or the selling price of similar or equivalent products at the same time of sale;
...
Thus, the taxable price for locally produced or assembled cars in 2024 is:
- For domestically produced cars, it is the price at which the manufacturing or importing establishment sells the goods.
In cases where the goods subject to special consumption tax are sold to a trading establishment which is a parent company, subsidiary, or subsidiaries within the same parent company as the manufacturing or importing establishment or the trading establishment has a related relationship, the taxable price shall not be lower than the percentage (%) compared to the average price at which the trading establishments buy directly from the manufacturing or importing establishment, as stipulated by the Government of Vietnam.
- For locally assembled cars, it is the selling price of the goods processed by the processing entity or the selling price of similar or equivalent products at the same time of sale.
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