Vietnam: To extend the deadline for VAT payment for the first quarter of 2023 to October 2023?
- Who is proposing to extend the deadline for tax payment in Vietnam?
- Is there a proposal to extend the deadline for VAT payment for the first quarter of 2023 in Vietnam?
- Vietnam: If the application for extension is not submitted at the same time as the quarterly tax return submission, when is the deadline for submission?
Who is proposing to extend the deadline for tax payment in Vietnam?
The Ministry of Finance is collecting comments on the Government's draft Decree on extending the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent in 2023 (hereinafter referred to as: Draft Decree).
Accordingly, the subjects proposed to extend the tax payment deadline are specified in Article 3 of the Draft Decree, specifically as follows:
(1) Enterprises, organizations, households, household businesses and individuals engaged in production activities in the following economic sectors:
- Agriculture, forestry and fishery;
- Food production and processing; weaving; production of costumes; manufacture of leather and related products; wood processing and production of products from wood, bamboo and cork (except for beds, cabinets, tables and chairs);
- Producing products from straw, straw and plaiting materials; production of paper and paper products;
- Producing products from rubber and plastic; manufacture of other non-metallic mineral products;
- Metal production; mechanical;
- Metal processing and coating;
- Manufacture of electronic products, computers and optical products;
- Manufacture of automobiles and other motor vehicles;
- Manufacture of beds, cabinets, tables and chairs;
- Construction;
- Publishing activities; cinematographic activities, television program production, sound recording and music publishing;
- Crude oil and natural gas exploitation (no extension for corporate income tax on crude oil, condensate, natural gas collected under agreements or contracts);
- 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);
- Producing motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;
- Drainage and wastewater treatment.
(2) Enterprises, organizations, households, household businesses and individuals doing business in the following economic sectors:
- Transport and warehouse; accommodation and catering services; education and training; health and social assistance activities; real estate business;
- Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;
- Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie screening activities;
- Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;
- Activities of supporting services for mining.
The list of economic sectors mentioned in Clauses 1 and 2 of this Article is determined according to the Prime Minister's Decision 27/2018/QD-TTg dated July 6, 2018 on promulgating the system of Vietnam's economic sectors.
(3) Enterprises, organizations, households, household businesses and individuals engaged in production of supporting industry products prioritized for development; key mechanical products.
Supporting industry products prioritized for development are determined according to Decree 111/2015/ND-CP dated November 3, 2015 of the Government on supporting industry development; Key mechanical products are identified according to Decision 319/QD-TTg in 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 medium-sized enterprises are defined according to the provisions of the Law on assistance for small and medium-sized enterprises 2017 and Decree 80/2021/ND-CP dated August 26, 2021 on elaboration of some articles of the Law on Provision of Assistance for 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 or field of an enterprise, organization, household, business household or individual specified in Clauses 1, 2 and 3 of this Article is the industry or field in which the enterprise, organization, business households, business households and individuals that have production and business activities and generate revenue in 2022 or 2023.
Previously, in Clause 5, Article 3 of Decree 34/2022/ND-CP stipulating that credit institutions and foreign bank branches implement solutions to support customers who are businesses, organizations and individuals affected by the impact. Affected by the Covid-19 epidemic according to the regulations of the State Bank of Vietnam, is one of the subjects to be extended the tax payment time, but in the latest Draft Decree the above subjects are not subject to the extension. tax time.
Vietnam: To extend the deadline for VAT payment for the first quarter of 2023 to October 2023?
Is there a proposal to extend the deadline for VAT payment for the first quarter of 2023 in Vietnam?
For value-added tax (VAT), the Ministry of Finance proposes to extend the deadline for paying arising VAT (including the tax amount allocated to other provincial-level localities where the taxpayer is headquartered). main, tax amount to be paid each time it is incurred) the tax period of the first quarter, the second quarter of 2023 (for the case of quarterly declaration of value-added tax) in Clause 1, Article 4 of the Draft Decree on extending the deadline to pay value-added tax, corporate income tax, personal income tax, and land rent in 2023.
The extension period is 06 months for the value-added tax amount of the first quarter of 2023.
For the second quarter of 2023, the expected extension is 05 months.
The time limit for VAT payment extension at this point is counted from the end of the time limit for value-added tax payment in accordance with the law on tax administration.
Thus, the time limit for paying value-added tax for enterprises and organizations subject to an extension of time limit for declaration and submission of monthly and quarterly value-added tax declarations according to the provisions of current law, but the payable value-added tax amount incurred on the declared value-added tax declaration has not yet been paid, specifically as follows:
- The deadline for paying value-added tax for the first quarter of 2023 tax period is October 30, 2023.
- The deadline for paying value-added tax for the second quarter of 2023 is December 31, 2023.
Note: In case an enterprise or organization that is eligible for an extension of the time to pay VAT has its branches or affiliated units, they make separate declarations of value-added tax with the tax authority directly managing the branch and affiliated units, branches and affiliated units are also subject to the extension of payment of value added tax.
If a branch or affiliated unit of an enterprise or organization mentioned in Clauses 1, 2 and 3, Article 3 of this Decree does not have production and business activities in the economic sector, the branches, and affiliated units are not subject to the extension of payment of value-added tax.
Vietnam: If the application for extension is not submitted at the same time as the quarterly tax return submission, when is the deadline for submission?
According to the proposal in Article 5 of the Government's Draft Decree on extending the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent in 2023, this content is as follows: :
- Taxpayers who directly declare and pay tax with tax authorities eligible for extension shall send an application for extension of tax payment (hereinafter referred to as an application for extension) for the first time or replace it when detecting errors. omission (by electronic means;
- Send a paper copy directly to the tax office or send it via postal service) according to the form in the Appendix issued with this Decree to the tax authority for direct management once for the entire amount of tax and land rent in the extended tax periods together with the time of submitting monthly (or quarterly) tax declarations in accordance with the law on tax administration.
If the application for extension is not submitted at the same time as the quarterly tax return filing, the deadline for submission is September 30, 2023, the tax authority will still extend the tax payment period before the time of submitting the extension request.
In case the taxpayer has extended amounts under different management tax authorities, the tax agency directly managing the taxpayer is responsible for transmitting information and sending the request for an extension to the tax authority.
- Taxpayers themselves determine and take responsibility for the extension request to ensure the right beneficiaries under this Decree. If the taxpayer sends a written request for an extension to the tax authority after September 30, 2023, the tax payment extension shall not be extended according to the provisions of this Decree.
In case the taxpayer makes an additional declaration of the tax declaration dossier of the extended tax period, leading to an increase in the payable amount and sending it to the tax office before the extended tax payment time limit expires, the extended tax amount includes: the total payable amount increased due to additional declaration.
If the taxpayer makes additional declarations to the tax return of the extended tax period after the extended tax payment time limit expires, the payable amount will not be extended due to the additional declaration.
See the full text of the Draft Decree here.
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