Decree No. 12/2023/NĐ-CP Extending the Deadline for Value Added Tax, Corporate Income Tax, Personal Income Tax, and Land Rent Payments in 2023

DECREE
Extending the deadline for paying value-added tax, corporate income tax,
personal income tax, and land rental fees in 2023

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Tax Administration dated June 13, 2019;

At the proposal of the Minister of Finance;

The Government issues this Decree to extend the deadline for paying value-added tax, corporate income tax, personal income tax, and land rental fees in 2023.

Article 1. Scope of Regulation

This Decree stipulates the extension of deadlines for payment of value-added tax, corporate income tax, personal income tax, and land rental fees.

Article 2. Applicability

The subjects to which this Decree applies include: taxpayers; tax authorities; tax officials; other state agencies, organizations, and individuals related to the matter.

Article 3. Subjects eligible for extension

1. Enterprises, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:

a) Agriculture, forestry, and fisheries;

b) Food production and processing; textile manufacturing; garment manufacturing; leather production and related products; wood processing and production of wood, bamboo, rattan products (excluding beds, cabinets, tables, chairs); production of straw, reed, and woven materials products; paper and paper product production; rubber and plastic product production; other non-metallic mineral product production; metal production; mechanical processing; metal surface treatment and coating; electronic, computer, and optical product production; automobile and other motor vehicle production; bed, cabinet, table, and chair production;

c) Construction;

d) Publishing activities; film production, television program production, sound recording, and music publishing;

đ) Crude oil and natural gas extraction (extension does not apply to corporate income tax on crude oil, condensate, and natural gas collected under agreements and contracts);

e) Beverage production; printing and reproduction of recorded media; coke, refined petroleum product production; chemical and chemical product production; cast iron and steel product production (excluding machinery and equipment); motorcycle and bicycle production; repair, maintenance, and installation of machinery and equipment;

g) Sewage and wastewater treatment.

2. Enterprises, organizations, households, business households, and individuals engaged in business activities in the following economic sectors:

a) Transportation and warehousing; accommodation and food service activities; education and training; health care and social assistance; real estate business activities;

b) Employment agency services; travel agency operations, tour organization, and related support services;

c) Artistic creation, artistic, and entertainment activities; library, archive, museum, and other cultural activities; sports, leisure, and entertainment activities; film projection activities;

d) Broadcasting and television activities; computer programming, consulting, and other computer-related activities; information service activities;

d) Mining support services.

The list of economic sectors mentioned in Clause 1 and Clause 2 of this Article is determined according to Decision No. 27/2018/QĐ-TTg dated July 6, 2018 of the Prime Minister on the issuance of the system of Vietnam's economic sectors.

The economic sectors according to Appendix I issued together with Decision No. 27/2018/QĐ-TTg consist of five levels, and the determination of economic sectors follows the principle that if the name of the economic sector mentioned in Clause 1 and Clause 2 of this Article belongs to the first level, then the economic sectors subject to the extension provisions include all sub-sectors at levels two, three, four, and five under the first level; if it belongs to the second level, then the economic sectors subject to the extension provisions include all sub-sectors at levels three, four, and five under the second level; if it belongs to the third level, then the economic sectors subject to the extension provisions include all sub-sectors at levels four and five under the third level; if it belongs to the fourth level, then the economic sectors subject to the extension provisions include all sub-sectors at level five under the fourth level.

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

Priority supporting industries are determined according to Decree No. 111/2015/NĐ-CP dated November 3, 2015, of the Government on developing supporting industries; key mechanical products are determined according to Decision No. 319/QĐ-TTg dated March 15, 2018, of the Prime Minister approving the Strategy for Developing the Mechanical Industry in Vietnam until 2025, with a vision until 2035.

4. Small and micro enterprises are determined according to the Law on Supporting Small and Medium Enterprises 2017 and Decree No. 80/2021/NĐ-CP dated August 26, 2021, of the Government detailing certain provisions of the Law on Supporting Small and Medium Enterprises.

The economic sectors and fields of enterprises, organizations, households, individual businesses, and business individuals specified in Clause 1, Clause 2, and Clause 3 of this Article refer to the sectors and fields in which enterprises, organizations, households, individual businesses, and business individuals engage in production, business operations, and generate revenue in 2022 or 2023.

Article 4. Extension of Tax Payment Period and Land Rent Payment

1. Regarding Value Added Tax (VAT) (excluding import VAT)

a) Extending the deadline for paying value-added tax arising from the period from March to August 2023 (for monthly tax declaration cases) and the first and second quarters of 2023 (for quarterly tax declaration cases) for enterprises and organizations specified in Article 3 of this Decree. The extension period is six months for value-added tax from March to May 2023 and the first quarter of 2023, five months for value-added tax in June 2023 and the second quarter of 2023, four months for value-added tax in July 2023, and three months for value-added tax in August 2023. The extension period here starts from the last day of the tax payment deadline as prescribed by tax management laws.

Enterprises and organizations eligible for the extension shall declare and submit Value-Added Tax Returns according to current laws but do not need to pay the resulting value-added tax immediately. The extended deadlines for paying value-added tax are as follows:

The deadline for paying value-added tax for the March 2023 tax period is no later than October 20, 2023.

The deadline for paying value-added tax for the April 2023 tax period is no later than November 20, 2023.

The deadline for paying value-added tax for the May 2023 tax period is no later than December 20, 2023.

The deadline for paying value-added tax for the June 2023 tax period is no later than December 20, 2023.

The deadline for paying value-added tax for the July 2023 tax period is no later than December 20, 2023.

The deadline for paying value-added tax for the August 2023 tax period is no later than December 20, 2023.

The deadline for paying value-added tax for the first quarter of 2023 tax period is no later than October 31, 2023.

The deadline for paying value-added tax for the second quarter of 2023 tax period is no later than December 31, 2023.

b) In cases where enterprises and organizations specified in Article 3 of this Decree have branches or subordinate units declaring value-added tax separately with the direct tax authority managing those branches or units, these branches or subordinate units also fall within the scope of entities eligible for the extension of value-added tax payments. If the branches or subordinate units of enterprises and organizations specified in Clause 1, Clause 2, and Clause 3 of Article 3 of this Decree do not engage in production and business activities within the sectors and fields eligible for the extension, then such branches or subordinate units are not eligible for the extension of value-added tax payments.

2. Regarding Corporate Income Tax

a) Extend the deadline for paying corporate income tax temporarily paid for the first quarter and second quarter of the corporate income tax year 2023 for enterprises and organizations specified in Article 3 of this Decree. The extension period is three months, starting from the last day of the tax payment deadline prescribed by tax management laws.

b) In cases where enterprises and organizations mentioned in Article 3 of this Decree have branches or subordinate units that declare corporate income tax separately with the direct tax authority managing those branches or subordinate units, these branches or subordinate units also fall within the scope of the tax payment extension. If the branches or subordinate units of enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 3 of this Decree do not engage in production and business activities in the economic sectors or fields eligible for the extension, then such branches or subordinate units are not within the scope of the tax payment extension.

3. Regarding Value Added Tax and Personal Income Tax of Business Households and Individual Businesses

Extend the deadline for paying value-added tax and personal income tax for the amount of tax payable arising in 2023 for households and individuals engaged in business activities in the economic sectors or fields specified in Clauses 1, 2, and 3 of Article 3 of this Decree. Households and individual businesses must pay the extended tax amount under this clause no later than December 30, 2023.

4. Regarding Land Rent

Extend the deadline for paying half of the land rental fees due for payment in 2023 for enterprises, organizations, households, and individuals directly leasing land from the State according to the Decision or Contract of the competent state agency in the form of annual land rental payments as stipulated in Article 3 of this Decree. The extension period is six months, from May 31, 2023 to November 30, 2023.

This provision applies to cases where enterprises, organizations, households, and individuals have multiple land lease decisions or contracts directly from the State and engage in various production and business activities, including those in the economic sectors or fields specified in Clauses 1, 2, and 3 of Article 3 of this Decree.

5. In cases where enterprises, organizations, households, and individual businesses engage in multiple economic sectors, including those specified in Clauses 1, 2, and 3 of Article 3 of this Decree, enterprises and organizations shall be granted an extension for the entire amount of value-added tax and corporate income tax payable; households and individual businesses shall be granted an extension for the entire amount of value-added tax and personal income tax payable, in accordance with the provisions of this Decree.

Article 5. Procedure for Extension

1. Taxpayers who directly declare and pay taxes to the tax authority and are within the scope of the extension shall submit the Application for Extension of Tax Payment and Land Rental Fee (hereinafter referred to as the Application for Extension) for the first time or to replace it when errors are discovered (by electronic means; delivered directly to the tax authority or sent through postal services) using the Form attached to this Decree for the direct tax authority managing them once for the entire amount of tax and land rental fee due for all periods subject to the extension together with the submission of the monthly (or quarterly) tax declaration forms as required by tax management laws. In cases where the Application for Extension is not submitted at the same time as the monthly (or quarterly) tax declaration, the latest submission date is September 30, 2023, and the tax authority will still grant the extension for tax and land rental fee payments for periods subject to the extension before the Application for Extension is submitted.

In cases where taxpayers have extensions applicable to multiple areas managed by different tax authorities, the direct tax authority managing the taxpayer is responsible for transmitting the Application for Extension information to the relevant tax authorities.

2. Taxpayers shall self-determine and bear responsibility for ensuring that their application for extension complies with the scope of eligibility under this Decree. If taxpayers submit the Application for Extension to the tax authority after September 30, 2023, they will not be granted an extension for tax and land rental fee payments as provided for in this Decree. If taxpayers supplement their tax declaration forms for periods subject to the extension before the tax payment deadline and send them to the tax authority, the extended tax amount includes the additional amount due to the supplementation. If taxpayers supplement their tax declaration forms for periods subject to the extension after the tax payment deadline, they will not be granted an extension for the additional amount due to the supplementation.

3. The tax authority does not need to notify taxpayers about accepting the extension of tax and land rental fee payments. In cases where, during the extension period, the tax authority has grounds to determine that the taxpayer does not qualify for the extension, the tax authority will issue a notice to the taxpayer regarding the non-extension, and the taxpayer must pay the full amount of tax and land rental fee, along with late payment penalties, into the state budget for the period already extended. After the expiration of the extension period, if the competent authority discovers through inspection or audit that the taxpayer does not qualify for the extension of tax and land rental fee payments as stipulated in this Decree, the taxpayer must pay the outstanding tax, fines, and late payment penalties into the state budget.

4. No late payment penalties shall be applied to the amount of tax and land rental fees extended during the extension period (including cases where taxpayers submit the Application for Extension to the tax authority after submitting the tax declaration forms as stipulated in Clause 1 of this Article and cases where the competent authority determines through inspection or audit that taxpayers eligible for the extension have additional amounts due for periods subject to the extension). In cases where the tax authority has already applied late payment penalties (if any) to tax declarations falling under the extension provisions of this Decree, the tax authority shall adjust and not apply late payment penalties.

5. The investors of construction projects and sub-projects funded by state budget funds, payments from state budget sources for basic construction projects of ODA-funded projects subject to value-added tax must submit a notice from the tax authority confirming receipt of the application for tax payment extension or a confirmation that the contractor has submitted the application for tax payment extension to the tax authority when processing payment with the State Treasury. The State Treasury will base its decision on the documents submitted by the investor not to deduct value-added tax during the extension period. When the extension period ends, the contractor must pay the extended tax amount as prescribed.

Article 6. Implementation and Effectiveness

1. This Decree takes effect from the date of issuance until December 31, 2023.

2. After the extension period under this Decree, the deadlines for tax payment and land rent shall be implemented according to current regulations.

3. The Ministry of Finance is responsible for directing, organizing the implementation, and resolving any issues arising during the implementation of this Decree.

4. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and related enterprises, organizations, households, business households, and individuals are responsible for implementing this Decree.

Appendix
Pursuant to Decree No. 12/2023/NĐ-CP
(issued in April 2023 by the Government)

SOCIALIST REPUBLIC OF VIET NAM

Independence - Freedom - Happiness

-----------------------------

APPLICATION FOR TAX PAYMENT EXTENSION AND LAND RENT PAYMENT EXTENSION

Respectfully submitted to: Tax authority...

[01] Name of taxpayer:...

[02] Tax code:

[03] Address: …

[05] Name of tax agent (if any): …

[07] Type of tax requested for extension:

☐ a) Value-added tax of enterprises and organizations

b) Corporate income tax of enterprises and organizations

c) Value-added tax and personal income tax of business households and individual traders

d) Land rent (specify detailed address of each leased area subject to extension of land rent)

Land plot 1 pursuant to Decision/Contract No..., dated ..., ..., ...

Land plot 2 pursuant to Decision/Contract No..., dated ..., ..., ...

[08] Cases eligible for extension:

I. SMALL AND MICRO ENTERPRISES

1. Small enterprise:

2. Micro enterprise:

II. ENTERPRISES, ORGANIZATIONS, INDIVIDUAL BUSINESSES, AND INDIVIDUALS
OPERATING IN THE FOLLOWING SECTORS:

1. Agriculture, forestry, and fisheries;

☐ 2. Food production and processing; ☐ 3. Textile weaving; ☐ 4. Garment manufacturing; ☐ 5. Leather production and related products; ☐ 6. Wood processing and wood product manufacturing (excluding beds, cabinets, tables, chairs); straw and woven material product manufacturing; ☐ 7. Paper and paper product manufacturing; ☐ 8. Rubber and plastic product manufacturing; ☐ 9. Manufacturing of other non-metallic mineral products; ☐ 10. Metal manufacturing; ☐ 11. Mechanical processing; metal surface treatment and coating; ☐ 12. Electronic product, computer, and optical product manufacturing; ☐ 13. Automobile and other motor vehicle manufacturing; ☐ 14. Bed, cabinet, table, and chair manufacturing;

15. Construction;

☐ 16. Warehousing and transportation services; ☐ 17. Accommodation and food service activities; ☐ 18. Education and training; ☐ 19. Health care and social assistance activities; ☐ 20. Real estate business activities; ☐ 21. Employment-related service activities; ☐ 22. Activities of travel agencies, tour operators, and related support services, including promotion and organization of tours;

☐ 23. Arts, entertainment, and recreation activities; ☐ 24. Library, archive, museum, and other cultural activities; ☐ 25. Sports and recreational activities;

26. Film exhibition;

27. Production of priority supporting industrial products;

28. Key mechanical product manufacturing;

☐ 29. Publishing activities; ☐ 30. Film, television program production, recording, and music publishing;

31. Radio and television broadcasting;

☐ 32. Computer programming, consulting, and other computer-related activities; ☐ 33. Information service activities;

☐ 34. Crude oil and natural gas extraction (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements and contracts);

35. Mining support service activities;

36. Beverage production;

37. Printing and copying various types of records;

38. Coke and refined petroleum product manufacturing;

39. Chemical and chemical product manufacturing;

40. Manufactured metal product manufacturing (excluding machinery and equipment);

41. Motorcycle and bicycle manufacturing;

☐ 42. Machinery and equipment repair, maintenance, and installation;

☐ 43. Sewage and wastewater treatment.

I hereby certify that the information declared above is accurate and assume legal responsibility for the information provided; I commit to paying the full amount of tax within the extended payment deadline.

..., dated ..., ..., ..., TAXPAYER or LEGAL REPRESENTATIVE OF THE TAXPAYER (Signature, full name; position and stamp if applicable/Electronic signature)

LEASE AGENT EMPLOYEE Name: ...Professional license number:...

Note:

Section I: NNT self-determines according to the provisions of the Law on Support for Small and Medium-sized Enterprises 2017 and Decree No. 80/2021/NĐ-CP dated August 26, 2021, detailing certain provisions of the Law on Support for Small and Medium-sized Enterprises.

Section II: NNT self-determines according to the provisions of Decision No. 27/2018/QĐ-TTg dated July 6, 2018, by the Prime Minister; Decree No. 111/2015/NĐ-CP dated November 3, 2015, by the Government; Decision No. 319/QĐ-TTg dated March 15, 2018, by the Prime Minister.

The application for tax payment extension and land rent payment extension shall be submitted only once to the direct managing tax authority for all taxes and land rents arising from the extended tax periods. The taxpayer may choose the following payment methods:

+ The taxpayer submits electronically to the electronic information system of the tax authority.

+ Taxpayer submits directly to the tax authority or through postal services.