Extension of enterprise income tax payment by 2022 in Vietnam

Extension of enterprise income tax payment by 2022 in Vietnam
Diễm My

On May 28, 2022, the Government issued the Decree No. 34/2022/ND-CP on extension of time limits for payment of value added tax, corporate income tax, personal income tax and land rent in 2022 in Vietnam.

Extension of enterprise income tax payment by 2022 in Vietnam

In which, the guidelines for deferment of payment of corporate income tax in the year 2022 in Vietnam shall be as follows:

- Extension of time limit for payment of corporate income tax for the amount of corporate income tax temporarily paid for the first quarter and the second quarter of the tax period of 2022 by the enterprises and organizations subject to the provisions in Article 3 of this Decree.

The extended period is 03 months from the deadline for paying enterprise income tax prescribed by Vietnam's law on tax administration.

- In case an enterprise or an organization specified in Article 3 of this Decree has its branches and affiliated units that make separate CIT declarations with the supervisory tax authority of such branches and affiliated units, such branches and affiliated units are also eligible for CIT payment deadline prolongation.

In case branches and affiliated units of enterprises and organizations specified in clause 1, clause 2 and clause 3 Article 3 of this Decree have no production and business operations in economic sectors and fields entitled to prolong time limit, such branches and affiliated units are not subjects to be entitled to prolong EIT payment time limit.

According to Article 3 of Decree No. 34/2022/ND-CP, the subjects eligible for tax payment extension in Vietnam include:

(1) Enterprises, organizations, households, business households and individuals engaging in business:

- Agriculture, forestry and fishery;

- Production and processing of food; textile; production of costume; production of leather and related products; wood processing and production of products of wood, bamboo and cork (except beds, cabinets, tables and chairs); production of products of straw and plaiting materials; production of paper and paper products; production of products of rubber and plastics; production of products of other non-metallic minerals; production of metallic materials; mechanical processing and coating of metals; production of electronic products, computers and optical products; production of umbrellas and motorized vehicles; production of furniture and cabinets;

- Construction;

- Publishing activities; cinematographic activities, production of television programs, sound recording and music publishing;

- Extraction of crude oil and natural gas (without extension of enterprise income tax of crude oil, condensate and natural gas collected under agreements or contracts);

- manufacture of drinks; printing and copying of recorded media; manufacture of coke coal and petroleum products; manufacture of chemicals and chemical products; manufacture of fabricated metal products (except machinery and equipment); manufacture of motorcycles; repair, maintenance and installation of machinery and equipment;

- Water drainage and wastewater treatment.

(2) Enterprises, organizations, households, business households and individuals engaging in business in the following sectors:

- transport of passengers and freight via rivers, lakes and canals;

- activities of travel agencies, tour operators, etc.

- Film duplicating (except reproduction of motion picture film for theatrical distribution) as well as reproduction of audio and video tapes, CDs or DVDs from master copies, under class 18200 (Reproduction of recorded media);

- Film duplicating (except reproduction of motion picture film for theatrical distribution) as well as reproduction of audio and video tapes, CDs or DVDs from master copies, under class 18200 (Reproduction of recorded media);

- Support activities for mineral extraction.

The list of economic sectors referred to in clause 1 and clause 2 of this Article shall be determined according to the Decision No. 27/2018/QD-TTg on promulgation of the Vietnam Standard Industrial Classification.

In case the economic sector mentioned in Clause 1 and Clause 2 of this Article is classified into a level-1 sector, the economic sector shall be entitled to apply the decision on extension of the economic sector that belongs to both level-2, level-3, level-4 and level-5 economic sectors of the level-1 sector.

(3) Enterprises, organizations, households, household businesses, and individuals manufacturing ancillary products given priority and key mechanical products.

The development of ancillary products given priority is defined according to the Decree No. 111/2015/ND-CP regarding the development of ancillary industries; key mechanical products determined according to the Decision No. 319/QD-TTg dated March 15, 2018 on approval of the Strategy for development of Vietnam's mechanical engineering industry by 2025 with vision towards 2035.

(4) Small- and medium-sized enterprises defined in the Law on support for small- and medium-sized enterprises in 2017 and the Government's Decree No. 80/2021/ND-CP dated August 26, 2021 on guidelines for the Law on support for small- and medium-sized enterprises.

Business lines and sectors of enterprises, organizations, households, business households and business individuals specified in Clauses 1, 2 and 3 above are those in which enterprises, organizations, households, business households and business individuals have their production and business activities and earn revenues in 2021 or 2022.

Diem My



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