The government has just issued Decree 52/2021/ND-CP on extending the tax payment deadline for businesses in 2021. Specifically, it states the following:
🔸 A 5-month extension is granted for VAT payments for March, April, May, and June 2021, and for the first and second quarters of 2021;
🔸 A 3-month extension is granted for the VAT payment for August 2021;
🔸 A 3-month extension is granted for the VAT payment for August 2021;
🔸 Extend the deadline for paying provisional corporate income tax for the first and second quarters of 2021 by 3 months.
Decree 52/2021/ND-CP extends the deadline for paying taxes and land rent for 2021. Effective from September 19, 2021.
The following is a detailed guide on extending the deadline for paying VAT and corporate income tax for businesses in 2021.
Which businesses are eligible for an extension?
a) Agriculture, forestry and fishery;
b) 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); produce products from straw, straw and plaiting materials; production of paper and paper products; manufacture 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;
c) Construction;
d) Publishing activities; cinematographic activities, television program production, sound recording and music publishing;
e) Exploitation of crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements and contracts);
f) Production of beverages; printing and reproduction of all kinds of recordings; production of coke and refined petroleum products; production of chemicals and chemical products; production of prefabricated metal products (excluding machinery and equipment); production of motorcycles and scooters; repair, maintenance and installation of machinery and equipment;
g) Drainage and wastewater treatment.
a) Warehouse transportation; accommodation and catering services; education and training; health and social assistance activities; real estate business;
b) Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;
c) Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie screening activities;
d) Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;
e) Activities related to mining support services.
The list of economic sectors mentioned in Clauses 1 and 2 of this Article is determined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister on the promulgation of the Vietnamese economic sector classification system.
The economic sector classification according to Appendix I issued with Decision No. 27/2018/QD-TTg consists of 5 levels, and the determination of economic sectors is applied according to the following principle: If the name of the economic sector mentioned in Clauses 1 and 2 of this Article belongs to a level 1 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 2, 3, 4, and 5 of the level 1 sector; if it belongs to a level 2 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 3, 4, and 5 of the level 2 sector; if it belongs to a level 3 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 4 and 5 of the level 3 sector; if it belongs to a level 4 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to level 5 of the level 4 sector.
Priority supporting industrial products are identified according to Government Decree No. 111/2015/ND-CP dated November 3, 2015, on the development of supporting industries; key mechanical products are identified according to Decision No. 319/QD-TTg dated March 15, 2018, of the Prime Minister approving the Strategy for the Development of Vietnam's Mechanical Industry until 2025, with a vision to 2035.
Small and micro enterprises are defined according to the provisions of Law No. 04/2017/QH14 on Supporting Small and Medium-Sized Enterprises and Government Decree No. 39/2018/ND-CP dated March 11, 2018, detailing a number of articles of the Law on Supporting Small and Medium-Sized Enterprises.
See the guide on how to identify small and micro-enterprises here.
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Credit institutions and branches of foreign banks shall implement solutions to support customers, including businesses, organizations, and individuals affected by the Covid-19 pandemic, in accordance with the regulations of the State Bank of Vietnam.
The economic sectors and fields of business, organization, household business, and individual business activities specified in Clauses 1, 2, and 3 of this Article are the sectors and fields in which the business, organization, household business, or individual business has production and business activities and generates revenue in 2020 or 2021.
Tax payment deadline extension period
a) Extend the deadline for paying value-added tax (VAT) liabilities arising from the tax period from March to August 2021 (for cases where VAT is declared monthly) and the first and second quarters of 2021 (for cases where VAT is declared quarterly) for the enterprises and organizations mentioned in Article 2 of this Decree. The extension period is 5 months for value-added tax (VAT) payments from March to June 2021 and the first and second quarters of 2021; 4 months for VAT payments in July 2021; and 3 months for VAT payments in August 2021. The extension period mentioned here is calculated from the date of the VAT payment deadline as stipulated by tax administration laws.
In cases where a taxpayer submits an amended tax return for an extended tax period, resulting in an increase in the value-added tax payable, to the tax authority before the extended tax payment deadline expires, the extended tax amount includes the additional tax payable due to the amended return.
b) In cases where the enterprises and organizations mentioned in Article 2 of this Decree have branches or affiliated units that file separate value-added tax returns with the tax authorities directly managing those branches or affiliated units, then those branches and affiliated units are also eligible for the extension of value-added tax payment. However, if the branches or affiliated units of the enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 2 of this Decree do not engage in production or business activities within the economic sectors or fields eligible for the extension, then those branches and affiliated units are not eligible for the extension of value-added tax payment.
Enterprises and organizations eligible for the extension shall declare and submit monthly and quarterly value-added tax declarations in accordance with current law, but have not yet paid the payable value-added tax amount. born on the declared value-added tax return. The time limit for payment of value added tax of the month and quarter is extended as follows:
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the tax period of August 2021 is December 20, 2021 at the latest.
- The deadline for paying value-added tax for the second quarter of 2021 is December 30, 2021.
- The deadline for paying value-added tax for the second quarter of 2021 is December 31, 2021.
a) Extend the deadline for paying the provisional corporate income tax for the first and second quarters of the 2021 corporate income tax period for enterprises and organizations subject to the provisions of Article 2 of this Decree. The extension period is 3 months, starting from the end of the corporate income tax payment deadline as stipulated by the law on tax administration.
b) In cases where the enterprises and organizations mentioned in Article 2 of this Decree have branches or affiliated units that file separate corporate income tax returns with the tax authorities directly managing those branches or affiliated units, then those branches and affiliated units are also eligible for the extension of corporate income tax payment. However, if the branches or affiliated units of the enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 2 of this Decree do not engage in production or business activities within the economic sectors or fields eligible for the extension, then those branches and affiliated units are not eligible for the extension of corporate income tax payment.
Businesses and organizations eligible for the extension of the deadline for paying provisional corporate income tax for the first and second quarters of 2021 are as follows:
- The deadline for paying the provisional corporate income tax for the first quarter of 2021 is July 30, 2021.
- The deadline for submitting the provisional corporate income tax payment for the second quarter of 2021 is October 30, 2021.
Procedures for extending the deadline for paying VAT and corporate income tax in 2021.
1. Taxpayers who directly declare and pay taxes to the tax authority and are eligible for tax payment extension must submit a Request for Extension of Tax and Land Rent Payment for the first time or a replacement when errors are discovered (electronicly; by sending a paper copy directly to the tax authority or by postal service) using the form in the Appendix attached to this Decree to the directly managing tax authority once for all periods of the taxes and land rent eligible for extension, at the same time as submitting monthly (or quarterly) tax declarations as prescribed by tax management law. If the Request for Extension of Tax and Land Rent Payment is not submitted at the same time as submitting monthly (or quarterly) tax declarations, the deadline for submission is no later than July 30, 2021. The tax authority will still grant the extension for tax and land rent payments for the periods arising before the submission of the Request for Extension.
In cases where taxpayers have extensions of payment due in multiple different tax jurisdictions, the tax authority directly managing the taxpayer is responsible for communicating the information and sending the Request for Extension of Tax and Land Rent Payment to the relevant tax authorities.
To be eligible for tax and land rent payment extensions as stipulated in this Decree, taxpayers must pay all taxes and land rent amounts for which payment extensions have been granted, as prescribed in Decree No. 41/2020/ND-CP, and any corresponding late payment penalties (if applicable) into the state budget before July 30, 2021.
2. Taxpayers are responsible for determining and ensuring that their requests for extensions are in accordance with the provisions of this Decree. If a taxpayer submits a request for extension of tax and land rent payment to the tax authority after July 30, 2021, the extension will not be granted as stipulated in this Decree.
3. The tax authority is not required to notify taxpayers about the acceptance of tax and land rent payment extensions. If, during the extension period, the tax authority determines that the taxpayer is not eligible for the extension, the tax authority will issue a written notice to the taxpayer stating that the extension will not be granted, and the taxpayer must pay the full amount of tax, land rent, and late payment penalties for the extended period into the state budget. If, after the extension period expires, an audit or inspection reveals that the taxpayer is not eligible for the tax and land rent payment extension as stipulated in this Decree, the taxpayer must pay the outstanding tax amount, penalties, and late payment penalties as recalculated by the tax authority into the state budget.
4. No late payment penalty will be charged for tax and land rent amounts that are extended within the extended payment period (including cases where the extension request is submitted to the tax authority after the tax return has been filed and cases where the competent authority determines during inspection and audit that the taxpayer granted the extension has an increased tax amount for the extended tax periods).
5. Investors of basic construction projects and project components funded by the state budget, and payments from the state budget for basic construction projects of ODA-funded projects subject to value-added tax, when processing payments with the State Treasury, must include a notification from the tax authority confirming receipt of the extension request or an extension request confirmed by the tax authority that it has been sent to the tax authority by the contractor. The State Treasury will base its decision on the documents submitted by the investor and will not deduct value-added tax during the extension period. Upon expiration of the extension period, the contractor must pay the full amount of tax granted for the extension to the tax authority as prescribed.
6. The tax authorities have not yet implemented the enforcement measures stipulated in points d, e, f, and g of Clause 1, Article 125 of the Law on Tax Administration No. 38/2019/QH14 on the outstanding tax amounts of taxpayers granted extensions under this Decree. The period during which enforcement has not been implemented is from the date of issuance of this Decree until December 31, 2021.
For businesses eligible for tax extension, a request for extension should be submitted once for all periods of the extended taxes, along with the tax return filing. The deadline for submitting the extension request is July 30, 2021.
Note: To be eligible for tax and land rent payment extensions as stipulated in this Decree, taxpayers must pay all taxes and land rent amounts for which payment extensions have been granted, as prescribed in Decree No. 41/2020/ND-CP, and any corresponding late payment penalties (if applicable) into the state budget before July 30, 2021.
