Who are eligible for extension of payment deadline of tax in 2023 in Vietnam?

Who are eligible for extension of payment deadline of tax in 2023 in Vietnam?

Pursuant to Article 3 of the Decree 12/2023/NĐ-CP stipulating eligibility for extension as follows:

Eligibility for extension

1. Enterprises, organizations, households, household businesses, and individuals engaging in manufacturing activities in economic sectors below:

a) Agriculture, forestry, and fishery;

b) Food processing and production: textile; apparel production; leather and related product manufacturing; wood processing and wood, bamboo product manufacturing (except for beds, cabinets, seats, chairs, tables); hay, straw, and plaiting material product manufacturing; paper and paper product manufacturing; rubber and plastic product manufacturing; product manufacturing from other non-metallic alloys; metal manufacturing; mechanical engineering; metal treating and cladding; electronic appliance, computer, and optical product manufacturing; automobile and other motorized vehicle manufacturing; bed, cabinet, seat, chair, table manufacturing;

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2. Enterprises, organizations, households, household businesses, and individuals operating in business activities in economic sectors below:

a) Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading;

b) Labor and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organization of travel tours;

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3. Enterprises, organizations, households, household businesses, and individuals manufacturing supporting industry products prioritized for development; key mechanical engineering products.

Supporting Industry products prioritized for development shall be determined in accordance with Decree No. 111/2015/ND-CP dated November 3, 2015 of the Government; key mechanical engineering products shall be determined in accordance with Decision No. 319/QD-TTg dated March 15, 2018 of the Prime Minister.

4. Small and micro enterprises determined in accordance with the Law on Assistance for Small and Medium Enterprises dated 2017 and Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government.

Pursuant to the Official Dispatch 30382/CTHN-TTHT in 2023 issued by Hanoi Tax Department stipulating guidance on subjects not eligible for tax payment extension as follows:

As above regulations, the company in 2022 and 2023 does not generate revenue from industries and fields that are eligible for the extension as prescribed in Clauses 1, 2 and 3, Article 3 of Decree No. 12/2023/ND-CP or small and micro enterprises specified in Clause 4 of the Decree No. 12/2023/ND-CP are not eligible for tax payment extension as prescribed.

Thus, the subjects that are not eligible for tax payment extension in 2023 are enterprises, organizations, households, household businesses, and individuals that conduct production and business activities in 2022 and 2023 but do not generate revenue from industries and fields that are eligible for the extension include:

1. Enterprises, organizations, households, household businesses, and individuals engaging in manufacturing activities in economic sectors below:

- Agriculture, forestry, and fishery;

- Food processing and production: textile; apparel production; leather and related product manufacturing; wood processing and wood, bamboo product manufacturing (except for beds, cabinets, seats, chairs, tables); hay, straw, and plaiting material product manufacturing;

- Paper and paper product manufacturing; rubber and plastic product manufacturing; product manufacturing from other non-metallic alloys; metal manufacturing; mechanical engineering; metal treating and cladding; electronic appliance, computer, and optical product manufacturing; automobile and other motorized vehicle manufacturing; bed, cabinet, seat, chair, table manufacturing;

- Construction;

- Publishing; cinematography; television program, audio recording, music production;

- Crude oil and natural gas mining (deadline extension does not apply to corporate income tax of crude oil condensate, and natural gas obtained under agreements and contracts);

- Drink production; printing, copying records of all kinds; coke and refined petroleum product manufacturing; chemical and chemical product manufacturing; product manufacturing using precast metal (except for machinery and equipment); automobile and motorbike manufacturing; machinery and equipment repair, maintenance, and installation;

- Water drainage and wastewater treatment.

2. Enterprises, organizations, households, household businesses, and individuals operating in business activities in economic sectors below:

- Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading;

- Labor and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organization of travel tours;

- Composing, artistic, recreational activities; operation of libraries, archives, museums, and other cultural activities; sports and recreational activities; movie screening;

- Radio and television broadcasting; computer coding, consulting services, and other activities relating to computer; communication operations;

- Services assisting mining operation.

3. Enterprises, organizations, households, household businesses, and individuals manufacturing supporting industry products prioritized for development; key mechanical engineering products.

4. Small and micro enterprises.

What is the validity period of payment deadline of taxes in 2023 in Vietnam?

Pursuant to Article 6 of the Decree 12/2023/NĐ-CP stipulating the validity period of payment deadline of taxes in 2023 in Vietnam as follows:

Organizing implementation and entry into force

1. This Decree comes into force from the date of signing until the end of December 31, 2023.

2. When the extended periods under this Decree end, payment deadline of taxes and land rents shall conform to applicable laws.

3. The Ministry of Finance is responsible for coordinating, organizing implementation, and resolving difficulties that arise during implementation of this Decree.

4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and relevant enterprises, organizations, households, household businesses, and individuals are responsible for implementation of this Decree.

As regulations above, the validity period of payment deadline of taxes in 2023 in Vietnam is from 14/4/2023 to 31/12/2023.

From 01/01/2024, payment deadline of taxes and land rents shall conform to applicable laws.

In Vietnam: What is the deadline to submit application for extension of payment deadline of tax incase application for extension of payment deadline of tax is not filed at the same time as the tax return?

Pursuant to Clause 1 Article 5 of the Decree 12/2023/NĐ-CP stipulating procedures for extension as follows:

Procedures for extension

1. Taxpayers who declare and pay tax to tax authorities and are eligible for payment deadline extension shall submit application for tax and land rent payment extension (hereinafter referred to as “Application for extension”) for the first time or as revision in case of error (electronically, physically to tax authorities, or post services) using Form under Appendix hereof to supervisory tax authorities once for all the taxes and land rents that arise during tax period of which payment deadline is extended and period in which the monthly (or quarterly) tax return is filed in accordance with tax administration laws. If the application for extension is not filed at the same time as the monthly (or quarterly) tax return, as long as the application for extension is filed before the end of September 30, 2023, tax authorities shall still extend payment deadline of taxes and land rents of periods eligible for extension prior to the filing date of application for extension.

If taxes and land rents of taxpayers eligible for extension are located in many jurisdictions of different tax authorities, supervisory tax authorities of the taxpayers are responsible for communicating and transferring application for extension to relevant tax authorities.

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As regulations above, if the application for extension is not filed at the same time as the monthly (or quarterly) tax return, as long as the application for extension is filed before the end of September 30, 2023.

During this period of time, tax authorities shall still extend payment deadline of taxes and land rents of periods eligible for extension prior to the filing date of application for extension.

Best regards!