What are the extension periods for paying excise taxes on domestically manufactured or assembled automobiles in Vietnam?

What are the extension periods for paying excise taxes on domestically manufactured or assembled automobiles in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On June 21, 2023, the Government issued Decree 36/2023/ND-CP on extending deadlines for paying excise taxes on domestically manufactured or assembled automobiles in Vietnam.

1. What are the extension periods for paying excise taxes on domestically manufactured or assembled automobiles in Vietnam?

According to Clause 1, Article 3 of Decree 36/2023/ND-CP, Extending deadlines for paying excise taxes on domestically manufactured or assembled automobiles which are payable in the tax periods of June, July, August, and September 2023.

The extension period starts from the excise tax payment deadline set by the tax administration law and ends on November 20, 2023, in specific:

- The deadline for paying the excise tax which is payable in June 2023 tax period is November 20, 2023.

- The deadline for paying the excise tax which is payable in July 2023 tax period is November 20, 2023.

- The deadline for paying the excise tax which is payable in August 2023 tax period is November 20, 2023.

- The deadline for paying the excise tax which is payable in September 2023 tax period is November 20, 2023.

2. Extension of excise tax payment deadlines on domestically manufactured or assembled automobiles in some cases in Vietnam 

According to Clause 2, Article 3 of Decree 36/2023/ND-CP stipulating the extension of excise tax payment deadlines on domestically manufactured or assembled automobiles in some cases

- If the taxpayer files an additional declaration after the initial tax filing for an extended tax period, resulting in an increased payable excise tax amount, and sends it to the tax authority prior to the extended tax payment deadline, then the extended tax amount should include the additional tax payable due to the additional declaration.

- In case the taxpayers are eligible for an extension to make and file excise tax declarations in accordance with applicable law, they do not have to pay the payable excise tax amount arising on the excise tax declaration form during the extended period.

- Branches or affiliated entities of an enterprise may file a separate excise tax declaration with the supervisory tax authority. If they do so, they are also eligible for an extension to pay their excise tax. Branches or affiliated entities of enterprises without automobile production or assembly activities are ineligible for the excise tax payment extension.

3. What objects are subject to excise tax under current regulations in Vietnam?

Pursuant to Article 2 of the Law on Excise Tax 2008 (amended 2014) and Article 2 of Decree 108/2015/ND-CP, the subjects subject to excise tax are as follows:

3.1. Goods:

- Cigarettes, cigars and other tobacco preparations used for smoking, inhaling, chewing, sniffing or keeping in mouth;

- Liquor;

- Beer;

- Under-24 seat cars, including cars for both passenger and cargo transportation with two or more rows of seats and fixed partitions between passenger holds and cargo holds;

- Two- and three-wheeled motorcycles of a cylinder capacity of over 125 cm3;

- Aircraft and yachts;

- Gasoline of all kinds;

- Air-conditioners of 90,000 BTU or less;

- Playing cards;

- Votive gilt papers and votive objects.

Note: goods subject to excise tax must be finished goods products, excluding components for assembling these goods.

3.2. Services

- Dance halls:

- Massage parlors and karaoke bars;

- Casinos; prize-winning video games, including jackpot and slot games and games on similar machines;

- Betting;

- Golf business, including the sale of membership cards and golf playing tickets;

- Lottery business.

More details can be found in Decree 36/2023/ND-CP in effect from June 21, 2023 to December 31, 2023.

After the extension period according to Decree 36/2023/ND-CP, the payment of excise tax on domestically manufactured or assembled automobiles shall comply according to current regulations.

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