Available in Vietnam: Decree 12/2023/ND-CP on extension of the deadlines for tax payment and land rent in Vietnam 2023

Available in Vietnam: Decree 12/2023/ND-CP on extension of the deadlines for tax payment and land rent in Vietnam 2023
Lê Trương Quốc Đạt

On April 14, 2023, the Government issued Decree 12/2023/ND-CP on extending the deadlines for paying value added tax, corporate income tax, personal income tax and land rent in 2023.

Đã có Nghị định 12/2023/NĐ-CP về gia hạn nộp thuế, tiền thuê đất năm 2023

Available in Vietnam: Decree 12/2023/ND-CP on extension of the deadlines for tax payment and land rent in Vietnam 2023

Specifically, the subjects eligible for the extension of the deadlines for payment of value added tax, corporate income tax, personal income tax, and land rent in Vietnam in 2023 according to Article 3 of Decree 12/2023/ND-CP include:

* Enterprises, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:

- Agriculture, forestry, and fisheries;

- 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 and plaiting materials; production of paper and paper products;

Manufacture of products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical; metal treatment and coating; manufacturing electronic products, computers, and optical products; manufacture of automobiles and other motor vehicles; manufacture of beds, cabinets, tables, and chairs;

- Build;

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

- Exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);

- Manufacture of beverages; printing and copying 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); manufacture of motorcycles and motorbikes; repair, maintenance, and installation of machinery and equipment;

- Drainage and wastewater treatment.

* Enterprises, organizations, households, business households, and individuals doing business in the following economic sectors:

Transportation and warehouse services; 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 (1) and (2) of this section is determined according to Decision 27/2018/QD-TTg on promulgating the system of economic sectors in Vietnam.

Economic sub-sectors according to Appendix I issued together with Decision 27/2018/QD-TTg include 5 levels, and the identification of economic sectors is applied according to the following principles:

+ If the name of the economic sector mentioned in (1) and (2) of this section belongs to the first-class industry, the economic sectors subject to the extension regulations include all economic sectors of the 2nd, 3rd, 4th, and 5th levels of the level 1 branches;

+ In the case of a level 2 industry, the economic sector to which the extension is applied includes all economic sectors of the 3rd, 4th, and 5th levels of the level 2 branches;

+ In case of being in a level 3 industry, the economic sector to which the extension is applied includes all economic sectors of the 4th and 5th levels of the 3rd grade;

+ In the case of a level 4 industry, the economic sector to which the extension is applied includes all economic sectors that fall under the 5th level of the level 4 industry.

* Enterprises, organizations, households, business households, and individuals engaged in the production of supporting industry products are prioritized for development; key mechanical products

Supporting industry products prioritized for development are determined according to Decree 111/2015/ND-CP on the development of supporting industries; key mechanical products are identified according to Decision 319/QD-TTg dated March 15, 2018 approving the development strategy of Vietnam's mechanical industry to 2025 with a vision to 2035.

* Small and micro enterprises are defined under the provisions of the Law on Supporting Small and Medium Enterprises 2017 and Decree 80/2021/ND-CP, which detail a number of articles of the Law on Supporting Small and Medium Enterprises.

The economic sectors and fields of enterprises, organizations, households, business households, and business individuals specified in (1), (2), and (3) of this section are industries and fields in which enterprises, organizations, households, business households, and business individuals have production and business activities and generate revenue in 2022 or 2023.

Order of extension of deadlines for payment of tax and land rent in Vietnam according to Decree 12/2023/ND-CP 

The order of implementation of the extension of tax and land rent payments in Vietnam according to Article 5 of Decree 12/2023/ND-CP  is as follows:

- Taxpayers who directly declare and pay tax with tax authorities are eligible for extension and shall send an application for extension of payment of tax and land rent (hereinafter referred to as an application for extension) for the first time or replacing when detecting errors (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 Decree 12/2023/ND-CP to the tax authority for one-time management of the entire tax amount, land rent arising in tax periods is extended together with the time of submitting monthly (or quarterly) tax declaration dossiers in accordance with the law on tax administration.

If the application for extension is not submitted at the same time as the submission of the monthly (or quarterly) tax return, the deadline for submission is September 30, 2023. The tax authorities still extend tax payments, and land rent for the arising period is extended before the time of submitting the application for extension.

In cases where 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 extension to the tax authority. relevant reason.

- Taxpayers themselves determine and take responsibility for the extension request to ensure that the right beneficiaries are eligible for the extension according to Decree 12/2023/ND-CP. If the taxpayer sends a written request for extension to the tax authority after September 30, 2023, the tax payment and land rent payment deadlines shall not be extended as prescribed in Decree 12/2023/ND-CP.

In case the taxpayer makes additional declarations to the tax declaration dossier for the extended tax period, leading to an increase in the payable amount, and sends it to the tax authority before the extended tax payment time limit expires,
The extended tax amount includes the additional payable amount due to the additional declaration.

If the taxpayer makes additional declarations to the tax return for the extended tax period after the extended tax payment time limit expires, the payable amount will not be extended due to the additional declaration.

- The tax authority is not required to notify the taxpayer of the acceptance of the extension of tax payment and land rent.

If during the extension period the tax authority has grounds to determine that the taxpayer is not subject to the extension,
The tax authority shall notify the taxpayer in writing of the non-renewal, and the taxpayer must fully pay the tax, land rent, and late payment interest during the extension period into the state budget.

After the extension period expires, through inspection and examination by a competent state agency, if it is discovered that the taxpayer is not eligible for the extension to pay tax and land rent according to the provisions of Decree 12/2023/ND-CP, taxpayers must pay the outstanding tax, fines, and late payment interest to the state budget.

- No late payment interest for the extended tax and land rent amount within the extended payment time limit.

(Including the case where the taxpayer sends the request for extension to the tax authority after submitting the tax return as prescribed in Clause 1, Article 5 of Decree No. 12/2023/ND-CP and in case the competent authority, through inspection or inspection, determines that the extended taxpayer has an increased payable amount for the extended tax periods.)

In case the tax authority has charged late payment interest (if any) for tax dossiers eligible for extension as prescribed in Decree 12/2023/ND-CP, the tax authorities make the adjustment, no late payment interest.

- Investors of basic construction works and work items with state budget capital, payments from the state budget for capital construction works of ODA-funded projects subject to value-added tax, when carrying out payment procedures with the State Treasury must:

Enclose the notice that the tax authority has received the application for extension or the written request for extension with confirmation that it has been sent to the tax authority of the contractor performing the work.

The State Treasury shall base itself on the dossier sent by the investor to not deduct value added tax during the extension period. When the extension period expires, the contractor must pay the extended tax amount as prescribed.

More details can be found in Decree 12/2023/ND-CP in effect from April 14, 2023, to the end of December 31, 2023.

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