Summary of tax support for businesses facing difficulties due to Covid-19

1. Regulations regarding cases eligible for tax payment extension.

The following cases are eligible for tax payment extensions:

“a) Suffering material damage that directly affects production and business due to natural disasters, fires, or unexpected accidents.

Material damage refers to losses to the taxpayer's assets, quantifiable in monetary terms, such as machinery, equipment, vehicles, supplies, goods, factories, offices, money, and valuable documents equivalent to money.

An unforeseen accident is an unfortunate event that occurs suddenly and unexpectedly, caused by external factors, directly affecting the taxpayer's production and business activities, and not due to any violation of the law. Cases considered unforeseen accidents include: traffic accidents; work accidents; serious illnesses; infectious diseases occurring at times and in areas where competent authorities have declared outbreaks; and other force majeure events.

2. Regarding the documents and procedures for requesting an extension of the tax payment deadline.

To be granted an extension for tax payment as stipulated in point a, clause 1 of this Article, the taxpayer must prepare and submit an application for tax payment extension to the tax authority directly managing the taxpayer. The application includes:

"- The taxpayer's request for an extension of the tax payment deadline must be in the form No. 01/GHAN issued together with this Circular;

– A record of inventory and assessment of the material damage value prepared by the taxpayer or their legal representative;

– A document confirming that the taxpayer suffered damage at the location of the natural disaster, fire, or unexpected accident, and the time of the natural disaster, fire, or unexpected accident, issued by one of the following agencies or organizations: the police; the People's Committee of the commune or ward; the Management Board of the Industrial Park, Export Processing Zone, or Economic Zone where the natural disaster, fire, or unexpected accident occurred; or a rescue and relief organization;

– Documents proving the insurance company has accepted compensation claims (notarized or certified copies, if applicable); documents specifying the responsibility of the organization or individual liable for compensation (notarized or certified copies, if applicable). For taxpayers who are legal entities, the above documents must be originals or copies signed by the legal representative and stamped with the entity's seal.

View the official document here:

Accordingly, the deadline for tax payment is extended as follows:

1. Extension of value-added tax (excluding value-added tax on imports)

The deadline for paying value-added tax (VAT) for the tax periods of March, April, May, and June 2020 (for monthly VAT declarations) and the first and second quarters of 2020 (for quarterly VAT declarations) of the aforementioned businesses and organizations is extended. The extension period is 5 months, starting from the end 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.

Businesses and organizations eligible for an extension to file monthly and quarterly value-added tax returns according to current law are not yet required to pay the value-added tax payable as stated on the filed returns.

Specifically, the deadline for paying value-added tax for the month and quarter has been extended as follows:

• The deadline for paying value-added tax for the tax period of August 2020 is December 20, 2020 at the latest.
• The deadline for paying value-added tax for the tax period of August 2020 is December 20, 2020 at the latest.
• The deadline for paying value-added tax for the tax period of August 2020 is December 20, 2020 at the latest.
• The deadline for paying value-added tax for the tax period of August 2020 is December 20, 2020 at the latest.
• The deadline for paying value-added tax for the first quarter of 2020 is September 30, 2020.
• The deadline for paying value-added tax for the second quarter of 2020 is December 30, 2020.

2. Extending the deadline for corporate income tax payment.

For the remaining corporate income tax payable according to the final settlement for the 2019 tax period and the provisional corporate income tax payments for the first and second quarters of the 2020 tax period for businesses falling under the above-mentioned categories, the extension period is 5 months, starting from the end of the deadline for paying corporate income tax as stipulated by tax management laws.

In cases where businesses or organizations have already paid the remaining corporate income tax due for the year 2019 to the state budget, they may adjust the amount of corporate income tax already paid to cover the remaining amount due for other types of taxes.

3. Regarding personal income tax

This extension only applies to personal income tax for household businesses and individual business owners. It does not apply to personal income tax that businesses are required to pay on behalf of their employees.

4. Renewal procedures
 Taxpayers eligible for the extension only need to submit a Request for Extension of Tax and Land Rent Payment (electronic or other method) to the directly managing tax authority once for all periods of the taxes and land rents being extended, at the same time as submitting monthly (or quarterly) tax returns 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 the monthly (or quarterly) tax return, the deadline for submission is July 30, 2020. The tax authorities will still grant the extension for tax and land rent payments for the periods that were extended before the submission of the request for extension.

In cases where a taxpayer leases land from the state in multiple locations, the tax authority directly managing the taxpayer is responsible for forwarding copies of the Request for Extension of Tax and Land Rent Payment to the tax authority where the leased land is located.

Taxpayers are responsible for determining and ensuring that their requests for extensions are made to the correct eligible entities as stipulated in this decree. If a taxpayer submits a Request for Extension of Tax and Land Rent Payment to the tax authority... No tax payment extensions will be granted after July 30, 2020., land rent as stipulated in this decree.

During the tax payment extension period, based on the Request for Extension of Tax and Land Rent Payment, the tax authority will not charge late payment penalties on the extended tax and land rent amounts (including cases where the Request for Extension is submitted to the tax authority after the monthly (or quarterly) tax return has been filed no later than July 30, 2020).
 

See detailed instructions here:

See the supplementary guidance documents:

Accordingly, the tax payment deadline is extended as follows:

1. Extension of the 2021 Value Added Tax (VAT) deadline (excluding VAT on imports):

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.

2. Extension of the deadline for corporate income tax in 2021.

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.

3. Renewal procedures

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) to the state budget before July 30, 2021.

View the full instructions here:

The official guidelines can be found here: