In the face of a very complicated situation of the Covid-19 epidemic, causing damage to people, halting economic, cultural and social activities, affecting business and production activities of enterprises, organizations, households and individuals. To support people and businesses, on April 8, 2020, the Government issued Decree 41/2020/ND-CP stipulating the extension of time for tax payment and land rent.
Accordingly, subjects are entitled to an extension of time limit for payment of value added tax, corporate income tax, personal income tax and land rent, specifically as follows:
- Enterprises, organizations, households and individuals engaged in production and business activities in the following economic sectors:
- Agriculture, forestry and fishery production;
- 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;
- Build.
- Transport and warehouse business; 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 recreational activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; cinema activities.
The list of economic sectors mentioned in Section 1 is determined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister on promulgating the system of economic sectors in Vietnam.
Economic sub-sectors according to Appendix I promulgated together with Decision No. 27/2018/QD-TTg include 5 levels and the identification of economic sectors is applied according to the following principles: In case the name of the economic sector is mentioned in Sections 1 and 2 Section 2 belongs to a level 1 industry, the economic sector to which the extension is applied includes all economic sectors of the 2nd, 3rd, 4th, and 5th levels of the level 1 industry; 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 2nd grade; in the case of a level 3 industry, the economic sector to which the extension is applied includes all economic sectors of the 4th, 5th 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 under the classification 5 of the level 4 industry.
- Enterprises, organizations, households and individuals engaged in production of supporting industry products give priority to development; key mechanical products.
Supporting industry products prioritized for development are determined according to the Government’s 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 development of Vietnam’s mechanical industry to 2025, with a vision to 2035.
3 Small and micro enterprises are defined according to the provisions of the Law on Supporting Small and Medium Enterprises No. 04/2017/QH14 and Decree No. 39/2018/ND-CP dated March 11, 2018 of the Government stipulating detailing a number of articles of the Law on Supporting Small and Medium Enterprises.
- Credit institutions, foreign bank branches shall implement solutions to support customers being enterprises, organizations and individuals affected by the Covid-19 epidemic in accordance with regulations of the State Bank of Vietnam.
The economic sectors and fields of enterprises, organizations, households and individuals doing business specified in Sections 1, 2 and 3 above are the sectors and fields in which the enterprise, organization, household, business individuals having production and business activities and generating revenue in 2019 or 2020.
What is the procedure for extending the tax payment deadline?
According to Decree 41/2020/ND-CP, in order to get an extension of the time limit for paying tax and land rent, taxpayers only need to send a request for extension of payment of tax and land rent (by electronic method or by other methods). other) to the tax agency for direct management once at the same time as the time of submitting tax declaration dossiers.
In case the request for extension of tax and land rent payment is not submitted at the same time as the submission of monthly (or quarterly) tax declaration dossiers, the deadline for submission is July 30, 2020, the tax administration agency is still extend the payment of tax and land rent of the arising periods which are extended before the time of submitting the extension request.
In case the taxpayer is leased land by the State in many different locations, the tax agency directly managing the taxpayer is responsible for sending a copy of the request for extension of tax payment and land rent to the tax authority of the locality where the taxpayer is located. leased land .
During the extended tax payment period, based on the written request for extension of tax payment and land rent, the tax authority will not charge late payment interest for the extended tax and land rent.
Note:
- Taxpayers self-determine and take responsibility for the extension request to ensure the right subjects;
- 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 of the suspension of the extension. Taxpayers must fully pay tax, land rent and late payment interest during the extension period into the State budget;
- If, after the extension time expires, the tax authority discovers through inspection and examination that the taxpayer is not eligible for the extension to pay tax and land rent, the taxpayer must pay the outstanding tax amount and money. fines and late payment interest shall be re-determined by the tax authorities into the state budget.
For details please contact us:
DHP Law Firm – Phone: 0986.938.627 (Attorney); 0367.774.043 (License and Enterprise);
