Officially extending the deadline for paying VAT and CIT according to Decree 41 / ND-CP

On April 08, 04 the Government issued Decree 41_2020_ND-CP regulates the extension of the deadline for payment of value added tax, corporate income tax, personal income tax and land rent.

Accordingly, extend the payment of VAT for 5 months for the payable tax amount of the month 3-4-5-6, or Quarter 1, 2 of 2020, extend the 5 months for the enterprise income tax amount finalized in 2019, and the payable CIT amount temporarily for the first and second quarters of 1.

This Decree is composed of 5 Articles with the following specific provisions:

5 groups of subjects were extended

Applies to 5 groups of subjects

Decree 41/2020 / ND-CP stipulates application to 5 target groups including:

First group

Enterprises, organizations, households and individuals engaged in production activities in the following economic sectors: Agriculture, forestry and fishery. Manufacturing and processing food; weaving; producing costumes; producing leather and related products; processing wood and producing products from wood, bamboo of various species (except beds, wardrobes, tables, chairs); producing products from straw, plaiting materials and plaiting materials; producing paper and paper products; producing products from rubber and plastic; producing products from other non-metallic minerals; metal production; mechanical; treating and overlaying metal; manufacturing electronic products, computers and optical products; manufacturing automobiles and other motor vehicles; Production of beds, wardrobes, tables, chairs And groups of businesses, organizations, households and individuals engaged in construction activities.

The second group

Enterprises, organizations, households and individuals doing business in the following economic sectors: warehousing; accommodation and catering services; education and training; health and social assistance activities; real estate business. Labor service activities and employment; activities of travel agents, tour operators and support services, related to tourism promotion and organization. Creative, artistic and recreational activities; library activities, archives, museums and other cultural activities; sports activities, entertainment; film screening activities.

The economic industry list mentioned in Clauses 1 and 2 of this Article is determined by Decision 27_2018_QĐ_TTg Promulgating Vietnam's economic system

The third group

Enterprises, organizations, households and individuals engaged in production of industrial products supporting development priority; key mechanical products.

The fourth group

Small and micro enterprises are defined in accordance with the Law on Small and Medium Enterprises Support No. 04/2017 / QH14 and the Government's Decree No. 39/2018 / ND-CP detailing a number of articles of the Law Support for small and medium enterprises.

The fifth group

Credit institutions, foreign banks' branches implement solutions to support customers being enterprises, organizations, and individuals affected by Covid-19 epidemic in accordance with the regulations of the State Bank of Vietnam. The State Bank of Vietnam is responsible for publishing the list of credit institutions and branches of foreign banks participating in customer support for tax authorities to extend the deadline for paying tax and land rents according to the recommendations. this.

Micro enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance on an annual average of no more than 10 people. and total revenue of the year is not more than 3 billion or Total capital is not more than 3 billion dong.

Micro enterprises in the field of commerce and services have an average number of employees participating in social insurance of no more than 10 people per year and total revenue of the year is not more than 10 billion or Total capital is not more than 3 billion dong.

Small enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance of no more than 100 people per year. and total revenue of the year is not more than 50 billion or The total capital is not more than VND 20 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

Small businesses in the field of commerce and services have an average number of employees participating in social insurance of no more than 50 people per year and total revenue of the year is not more than 100 billion or The total capital is not more than VND 50 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

Medium enterprises in the fields of agriculture, forestry, fishery and industry and construction have an annual average number of employees participating in social insurance of no more than 200 and an annual revenue of no more than VND 200 billion. or the total capital source does not exceed VND 100 billion, but it is not a small enterprise or a micro enterprise as prescribed in Clauses 1 and 2 of this Article.

Medium-sized enterprises in the field of commerce and services have an annual average number of employees participating in social insurance of no more than 100 and total annual revenue of not more than VND 300 billion or total capital of not more than VND 100 billion, but is not a microenterprise, or a microenterprise as prescribed in Clauses 1 and 2 of this Article.

Small and medium-sized enterprises' operation domains are determined based on the provisions of law on the system of economic branches and the provisions of specialized laws.

In the case of activities in many sectors, small and medium-sized enterprises are determined based on the field with the highest revenue. Where the highest revenue field is not available, small and medium-sized enterprises are determined based on the areas with the highest labor use.

1. The number of employees participating in social insurance is the total number of employees managed, used and paid by the enterprise for participation in social insurance under the law on social insurance.

2. The average number of employees participating in social insurance is calculated by the total number of employees participating in social insurance of the year divided by the number of months in the year and determined on the voucher of payment of social insurance of the previous year. adjoining enterprises to social insurance agencies.

In case an enterprise operates less than 01 year, the average number of employees participating in social insurance is calculated by the total number of employees participating in social insurance of the operating months divided by the number of operating months.

The total capital source is determined in the balance sheet shown in the financial statements of the preceding year that enterprises submit to tax administration agencies.

In case the enterprise operates for less than 01 year, the total capital is determined in the enterprise's balance sheet at the end of the quarter preceding the time when the enterprise registered to receive support contents.

Total revenue of the year is the total revenue of goods sale and service provision of enterprises and is determined on the financial statements of the preceding year that enterprises submit to tax administration agencies.

Where an enterprise operates for less than 01 year or more than 01 year but has not generated revenue, the enterprise shall base on the criteria of the total capital source specified in Article 9 of this Decree to identify the small and medium-sized enterprise.

1. Small and medium-sized enterprises shall base themselves on the forms prescribed in the Appendix to this Decree to identify and declare their sizes as micro or small-sized enterprises or medium-sized enterprises and submit them to agencies. , SME support organizations. Small and medium-sized enterprises must be responsible before the law for the declaration.

2. In cases where an enterprise detects that its scale is inaccurate by itself, small and medium-sized enterprises shall adjust and re-declare them. The re-declaration must be made before the time when small and medium-sized enterprises enjoy support contents.

3. In cases where enterprises intentionally declare dishonestly on the scale to get support, they must take responsibility before law and return all the related expenses and expenses for which the enterprises have received supports.

Tax categories are extended

Value added tax extension (except for value added tax at the import stage)

Extension of the time limit for paying tax on the arising value-added tax amounts payable in the tax period of March, April, May and June 3 (for cases of monthly value-added tax declaration) and calculation period first and second quarter taxes of 4 (for cases of quarterly value-added tax declaration) of the above enterprises and organizations. The extension is 5 months from the end of the deadline for paying VAT, in accordance with the law on tax administration.

If the taxpayer makes additional declarations of the tax declaration of the extended tax period, resulting in an increase in the amount of value added tax payable and sent to the tax authority before the deadline for tax payment is extended, the tax amount The extension includes the additional tax payable due to additional declaration.

Enterprises and organizations eligible for extension may make and submit monthly and quarterly value-added tax returns according to current law provisions, but must not pay payable value-added tax amounts. born on the declared value-added tax return.

Specifically, the deadline for payment of value-added tax of the month or quarter is extended as follows:

  • The deadline for paying value-added tax in the March 3 tax period is September 2020, 20.
  • The deadline for paying value-added tax in the March 4 tax period is September 2020, 20.
  • The deadline for paying value-added tax in the March 5 tax period is September 2020, 20.
  • The deadline for paying value-added tax in the March 6 tax period is September 2020, 20.
  • The deadline for paying value-added tax of the first quarter 2020 tax period is September 30, 9.
  • The deadline for paying value-added tax of the second quarter 2020 tax period is December 30, 12.

Extension of the time limit for payment of corporate income tax

For enterprise income tax amounts still to be paid according to the final settlement of the tax period 2019 and the provisional enterprise income tax amount to be paid in the first and second quarter of the tax period 2020 by enterprises prescribed on. The extension is 5 months from the end of the deadline for paying corporate income tax in accordance with the law on tax administration.

In case an enterprise or organization remits the payable enterprise income tax amount according to the final settlement of 2019 into the state budget, the enterprise or organization may adjust the enterprise income tax amount already paid for payment. for other taxes payable.

For personal income tax

Only extend personal income tax of business households and individuals. The extension of personal income tax of an enterprise that must be paid on behalf of the employee is not applicable.

For land rent

Extension of land rental payment term for the amount of land rent to be paid in the first period of 2020 of enterprises, organizations, households and individuals subject to the above-mentioned regulations being directly leased by the State decisions and contracts of competent state agencies in the form of annual land rent. The grace period is 5 months from 31/5/2020.

Order and procedures for extension

Taxpayers who are subject to the extension must only submit the written request for extension of tax payment and land rent (electronically or otherwise) according to the form to the supervisory tax authority once for all The duration of taxes and land rents is extended along with the time of filing monthly (or quarterly) tax returns according to the tax administration law.

If the written request for extension of tax payment and land rent is not filed together with the time of submission of monthly (or quarterly) tax declaration dossiers, the deadline for submission is July 30, 7, the tax administration agency still extend the tax payment, land rent of the arising period is extended before the time of submitting the request for extension.

In case taxpayers are leased land by the State in many different localities, tax agencies directly managing taxpayers shall make copies of applications for extension of land tax payment and land rent to tax offices where exist. rented land.

Taxpayers themselves determine and are responsible for the extension to ensure the right subjects are extended under this Decree. If the taxpayer sends a written request for tax payment and land rent extension to the tax authority After July 30, 7, tax payment is not extended, land rents in accordance with this Decree.

During the tax payment time limit extension, based on the written request for extension of tax payment and land rent, tax agencies shall not charge late payment interest for the extended tax amount or land rent (including cases where the paper Proposal for extension to send to the tax agency after submitting a monthly (or quarterly) tax return by July 30, 7.

Official Letter 5977_BTC-TCT further guides 06 notes on extension of payment of corporate income tax and VAT

The remaining payable CIT amount according to the balance sheet of the extended tax period 2019 does not include the temporarily paid quarterly CIT amount specified in Clause 6, Article 4 of Decree No. 91/2014 / ND-CP of October 01 / 10 of the Government and Article 2014 of Circular No. 17/151 / TT-BTC dated October 2014, 10 of the Ministry of Finance. Accordingly, the remaining payable CIT amount according to the final settlement of the tax period in 10 is at most equal to 2014% of the total payable tax amount for the whole year according to the settlement.

In case an enterprise has a tax period for CIT calculation that does not coincide with the calendar year: the extended tax payment time limit shall be determined in accordance with the enterprise's tax period.

If the taxpayer additionally reports the 2019 CIT finalization dossier in accordance with the Law on Tax Administration, the increase in the payable CIT amount must be sent to the tax authority before the deadline for tax payment is extended:

The extended tax amount is determined according to the principle in note (1) above, of which the annual tax amount according to the settlement is based on the additional declaration dossier.

In case of checking and inspecting the finalization of 2019 CIT and issuing conclusions before the deadline for paying tax is extended, then:

The total amount of tax to be extended is determined according to the principle in note (1) above, of which the payable tax amount for the whole year according to the settlement is based on the inspection and examination results.

The extension is 05 months from the end of the deadline for submission of CIT finalization dossier for the tax period 2019.

Subjects eligible for tax payment extension, land rent eligible for extension of payable VAT amounts include VAT at the head office and payable VAT amounts in localities where out-of-province current construction business is carried out, constructing inter-provincial works.

The State Treasury has not deducted VAT (within the extended period) from the payment for the volume of construction works and work items funded by the state budget and payments from State budget sources for capital construction works of ODA-funded projects subject to VAT in cases where contractors are subject to VAT payment extension.

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