In Vietnam, which entities are value-added tax, corporate income tax, personal income tax and land rents deferred in 2022?

In Vietnam, which entities are value-added tax, corporate income tax, personal income tax and land rents deferred in 2022?

Pursuant to Article 3 of Decree 34/2022/ND-CP stipulating entities eligible for deferral:

1. Enterprises, organizations, households, household businesses carrying out manufacture in the following lines of business:

a) Agriculture, forestry and aquaculture;

b) Food production, processing; textile; garments; manufacture of leather and related products; timber treatment and manufacture of products from wood, bamboo and rattan (except furniture); manufacture of products from straw, and plaiting materials; manufacture of paper and paper products; manufacture of products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical processing; metal processing and coating; manufacture of electronic products, computers and optical products; manufacture of motor vehicles and other motorized vehicles; manufacture of furniture;

c) Construction;

d) Publishing activities; cinematography activities; TV show production, audio recording and music publishing;

dd) Extraction of crude oil and natural gas (except corporate income tax on crude oil, condensate and natural gas collected under international agreements, contracts);

e) Manufacture of beverage; printing, copying recordings; manufacture of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of precast metal product (except machinery and equipment); manufacture of motorcycles; repair, maintenance and installation of machinery and equipment;

g) Drainage and wastewater treatment.

2. Enterprises, organizations, households, household businesses having business operation in the following lines of business:

a) Transport, warehousing; accommodation, food and beverage services; education and training; healthcare and social assistance; real estate business;

b) Employment-related services; operation of travel agencies, tourism business, auxiliary services relevant to tour organization and advertising;

c) Composition, art and entertainment; operation of libraries, archives, museums and other cultural activities; sports, entertainment, cinema operation;

d) Audio and video broadcasting; computer programming, consulting services and other computer-related activities; information service activities;

dd) Mining ancillary services.

The list of business lines in Clause 1 and Clause 2 are determined according to the Prime Minister’s Decision No. 27/2018/QD-TTg dated July 06, 2018 on promulgation of Vietnam Standard Industrial Classification.

There are 5 levels of hierarchy in Appendix I of Decision No. 27/2018/QD-TTg , and economic sectors shall be determined as follows: If a business line mentioned in Clause 1 and Clause 2 of this Article belongs to Level 1, deferral will apply to all business lines in Levels 2, 3, 4, 5 under it; If a business line belongs to Level 2, deferral will apply to all business lines in Levels 3, 4, 5 under it; If a business line belongs to Level 3, deferral will apply to all business lines in Levels 4, 5 under it; If a business line belongs to Level 4, deferral will apply to all business lines in Level 5 under it.

3. Enterprises, organizations, households, household businesses manufacturing prioritized ancillary products or key mechanical products.

Prioritized ancillary products shall be determined according to the Government’s Decree No. 111/2015/ND-CP dated November 03, 2015 on development of ancillary industry; key mechanical products shall be determined according to the Prime Minister’s Decision No. 319/QD-TTg dated March 15, 2018 approving Vietnam's Strategy for Mechanical Engineering Development by 2025 and the vision for 2035.

4. Small enterprises and micro-enterprises according to the 2017's Law on Assistance for Small and Medium-Sized Enterprises and the Government’s Decree No. 80/2021/ND-CP dated August 26, 2021 elaborating some Articles of the Law on Assistance for Small and Medium-Sized Enterprises.

5. Credit institutions and foreign bank branches (FBB) providing assistance for customers that are enterprises, organizations, individuals affected by Covid-19 according to regulations of State Bank of Vietnam.

The business lines of enterprises, organizations, households, household businesses and individual businesses specified in Clause 1, Clause 2 and Clause 3 of this Article are business lines in which they operate and from which revenues are generated in 2021 or 2022.

In Vietnam, what are regulations on deferral of tax and land rents for value-added tax in 2022? 

Pursuant to Clause 1, Article 4 of Decree 34/2022/ND-CP:

1. VAT (except VAT during importation)

a) Deferral is granted to VAT (including VAT distributed to provinces other than the province in which the taxpayer is headquartered, separately incurred VAT) incurred during the period from March to August 2022 (for monthly declared VAT) and tax periods of the first quarter (Q1) and second quarter (Q2) of 2022 (for quarterly declared VAT) payable by the enterprises and organizations mentioned in Article 3 of this Decree. Deferral period shall be 06 months for VAT incurred during the period from March to May, 2022 and Q1 2022; 05 months for VAT incurred during June 2022 and Q2 2022; 04 months for VAT incurred during July 2022; 03 months for VAT incurred during August 2022. These deferral periods begin from the deadline for payment of VAT prescribed by regulations of law on tax administration.

In case the taxpayer's supplementation of the tax declaration dossier of the period in which tax is deferred leads to increase in the amount of VAT payable and the dossier is sent to the tax authority before expiration of the deferral period, the deferred tax shall also include the increase in tax payable.

Enterprises and organizations that are eligible for deferral shall complete and submit the monthly/quarterly VAT return in accordance with applicable laws but are not required to pay the VAT specified in the VAT return. Deadlines for payment of monthly/quarterly VAT:

- The deadline for payment of VAT of March 2022 is October 20, 2022.

- The deadline for payment of VAT of April 2022 is November 20, 2022.

- The deadline for payment of VAT of May 2022 is December 20, 2022.

- The deadline for payment of VAT of June 2022 is December 20, 2022.

- The deadline for payment of VAT of July 2022 is December 20, 2022.

- The deadline for payment of VAT of August 2022 is December 20, 2022.

- The deadline for payment of VAT of Q1 2022 is October 30, 2022.

- The deadline for payment of VAT of Q2 2022 is December 31, 2022.

b) In case an enterprise or organization mentioned in Article 3 of this Decree has branches or affiliated units that separately declare VAT to their supervisory tax authorities, these branches or affiliated units are also eligible for VAT deferral. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 or Clause 3 Article 3 of this Decree does not operate in the business line eligible for tax deferral, it is not eligible for VAT deferral.

Best regards!