Decree No. 41/2020/NĐ-CP Extending the Deadline for Tax Payment and Land Rent Payment

DECREE

EXTENDING THE DEADLINE FOR PAYING TAXES AND LAND RENT

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Tax Administration dated November 29, 2006;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration dated November 20, 2012;

Pursuant to the Law Amending and Supplementing Certain Provisions of Various Tax Laws dated November 26, 2014;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax, the Special Consumption Tax Law, and the Law on Tax Administration dated April 6, 2016;

At the proposal of the Minister of Finance;

The Government issues this Decree extending the deadline for paying taxes and land rent.

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

This Decree applies to the following subjects:

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

a) Agriculture, forestry, and fisheries;

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

c) Construction.

2. Businesses, organizations, 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) Creative arts and entertainment activities; library, archive, museum, and other cultural activities; sports, recreation, and entertainment activities; film projection activities.

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 sub-sectors of the economy according to Appendix I attached to Decision No. 27/2018/QĐ-TTg consist of five levels, and the determination of the economic sector is applied based on 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 sector subject to the extension provision includes all economic sectors at the second, third, fourth, and fifth levels of the first-level sector; if it belongs to the second level, then the economic sector subject to the extension provision includes all economic sectors at the third, fourth, and fifth levels of the second-level sector; if it belongs to the third level, then the economic sector subject to the extension provision includes all economic sectors at the fourth and fifth levels of the third-level sector; if it belongs to the fourth level, then the economic sector subject to the extension provision includes all economic sectors at the fifth level of the fourth-level sector.

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

Priority supporting industrial products are determined according to Decree No. 111/2015/NĐ-CP dated November 3, 2015 of the Government on the development of 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 the Development of the Mechanical Industry of Vietnam until 2025 with a vision to 2035.

4. Small and micro enterprises are determined according to the provisions of the Law on Supporting Small and Medium Enterprises No. 04/2017/QH14 and Decree No. 39/2018/NĐ-CP dated March 11, 2018 of the Government detailing certain provisions of the Law on Supporting Small and Medium Enterprises.

5. Credit institutions and foreign bank branches implement measures to support customers who are businesses, organizations, and individuals affected by the COVID-19 pandemic according to the regulations of the State Bank of Vietnam. The State Bank of Vietnam is responsible for announcing the list of credit institutions and foreign bank branches participating in customer support so that tax management agencies can implement the extension of the deadline for paying taxes and land rent under this Decree.

The economic sector and field of business of businesses, organizations, households, and individuals engaged in business activities specified in Clause 1, Clause 2, and Clause 3 of this Article is the economic sector and field where the business, organization, household, or individual has production, business operations, and revenue generation in 2019 or 2020.

Article 3. Extension of tax payment deadlines and land rent payments

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

a) Extending the deadline for paying value added tax (VAT) due for the tax periods of March, April, May, and June 2020 (for cases where VAT is declared monthly) and the tax periods of the first and second quarters of 2020 (for cases where VAT is declared quarterly) of the businesses and organizations specified in Article 2 of this Decree. The extension period is five months, starting from the last day of the VAT payment deadline as prescribed by tax laws.

In case the taxpayer supplements their tax declaration for the extended tax period, resulting in an increase in the amount of VAT payable and sends it to the tax authority before the extended payment deadline expires, the extended VAT includes the additional VAT payable due to the supplementary declaration.

Businesses and organizations eligible for the extension shall declare and submit the Monthly and Quarterly VAT Return as prescribed by current laws but are not required to pay the VAT due as declared. The deadlines for paying VAT for the respective tax periods are as follows:

The deadline for paying VAT for the tax period of March 2020 is no later than September 20, 2020.

The deadline for paying VAT for the tax period of April 2020 is no later than October 20, 2020.

The deadline for paying VAT for the tax period of May 2020 is no later than November 20, 2020.

The deadline for paying VAT for the tax period of June 2020 is no later than December 20, 2020.

The deadline for paying VAT for the tax period of the first quarter of 2020 is no later than September 30, 2020.

The deadline for paying VAT for the tax period of the second quarter of 2020 is no later than December 30, 2020.

b) In case the enterprises and organizations mentioned in Article 2 of this Decree have branches or subordinate units that separately declare value-added tax to the directly managing tax authority of such branches or subordinate units, these branches or subordinate units also fall within the scope of entities eligible for extension of payment of value-added tax. In cases where the branches or subordinate units of the enterprises and organizations mentioned in Clause 1, Clause 2, and Clause 3 of Article 2 of this Decree do not engage in production and business activities in industries or sectors eligible for extension, these branches or subordinate units do not fall within the scope of entities eligible for extension of payment of value-added tax.

2. Regarding Corporate Income Tax

a) Extension of the deadline for payment of corporate income tax due according to the final settlement of the 2019 tax year and the provisional quarterly corporate income tax payments of the first and second quarters of the 2020 tax year for enterprises and organizations that are corporate income taxpayers and fall within the scope defined in Article 2 of this Decree. The extension period is five months, starting from the date when the corporate income tax payment deadline expires as prescribed by the laws on tax administration.

In cases where enterprises and organizations have already paid the corporate income tax due according to the final settlement of the 2019 fiscal year into the state budget, the enterprises and organizations may adjust the amount of corporate income tax paid to be applied towards other types of taxes due. To implement this adjustment, the taxpayer shall prepare a review letter (Form C1-11/NS issued together with Circular No. 84/2016/TT-BTC dated June 17, 2016 of the Ministry of Finance), accompanied by tax payment receipts or relevant information related to the adjustment request, and submit it to the tax authority.

b) In cases where the enterprises and organizations mentioned in Article 2 of this Decree have branches or subordinate units that separately declare corporate income tax to the directly managing tax authority of such branches or subordinate units, these branches or subordinate units also fall within the scope of entities eligible for extension of payment of corporate income tax. In cases where the branches or subordinate units of the enterprises and organizations mentioned in Clause 1, Clause 2, and Clause 3 of Article 2 of this Decree do not engage in production and business activities in industries or sectors eligible for extension, these branches or subordinate units do not fall within the scope of entities eligible for extension of payment of corporate income tax.

3. For value-added tax and personal income tax of households and individual businesses

Extension of the deadline for payment of value-added tax and personal income tax for the amounts due in 2020 for households and individual businesses operating in the industries and sectors specified in Clause 1, Clause 2, and Clause 3 of Article 2 of this Decree. Households and individual businesses must complete the payment of the extended tax amount under this clause no later than December 31, 2020.

4. Regarding Land Rent

Extension of the deadline for payment of land rental fees for the initial annual land rental fee due in 2020 for enterprises, organizations, households, and individuals falling within the scope defined in Article 2 of this Decree who are directly renting land from the State pursuant to Decisions or Contracts issued by competent state authorities in the form of annual land rental payments. The extension period is five months, starting from May 31, 2010.

This provision applies to cases where enterprises, organizations, households, and individuals have multiple land rental Decisions or Contracts directly from the State and engage in various production and business activities, including those in the industries and sectors specified in Clause 1, Clause 2, Clause 3, and Clause 5 of Article 2 of this Decree.

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

Article 4. Procedures and Formalities for Extension

1. Taxpayers eligible for extension shall submit a Request for Extension of Payment of Taxes and Land Rental Fees (electronically or otherwise) using the Form attached to this Decree to the directly managing tax authority once for all periods of the extended taxes and land rental fees along with the submission of monthly (or quarterly) tax declaration forms as required by the laws on tax administration. If the Request for Extension of Payment of Taxes and Land Rental Fees is not submitted at the time of filing the monthly (or quarterly) tax declaration, the latest submission date is July 30, 2020, and the tax authority will still grant the extension for the periods eligible for extension prior to the submission of the Request for Extension.

In cases where taxpayers are rented land in multiple locations, the directly managing tax authority of the taxpayer shall be responsible for forwarding the Request for Extension of Payment of Taxes and Land Rental Fees to the tax authority where the rented land is located.

2. Taxpayers shall self-determine and bear responsibility for ensuring that their request for extension complies with the eligibility criteria set out in this Decree. If taxpayers submit the Request for Extension of Payment of Taxes and Land Rental Fees to the tax authority after July 30, 2020, they will not be eligible for the extension of payment of taxes and land rental fees as stipulated in this Decree.

3. The tax authority is not required to notify taxpayers about the acceptance of the extension of payment of taxes and land rental fees. 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 shall issue a notice to the taxpayer regarding the cessation of the extension, and the taxpayer must pay the full amount of taxes, land rental fees, and late payment penalties incurred during the extension period into the state budget. After the expiration of the extension period, if the tax authority discovers through inspection or audit that the taxpayer does not qualify for the extension of payment of taxes and land rental fees as stipulated in this Decree, the taxpayer must pay the outstanding tax amount, penalties, and late payment penalties determined by the tax authority into the state budget.

4. During the extended tax payment period, based on the Application for Extension of Tax Payment and Land Rent Payment, the tax authority shall not impose late payment interest on the extended tax amount (including cases where the Application for Extension is submitted to the tax authority after filing the monthly (or quarterly) tax declaration no later than July 30, 2020).

Article 5. Implementation and Effectiveness

1. This Decree takes effect from the date of signature.

2. The Ministry of Finance shall be responsible for directing, organizing the implementation, and handling any issues arising during the implementation of this Decree.

3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under central city administrations, and related enterprises, organizations, households, and individuals are responsible for implementing this Decree./.

ANNEX

(Attached to Decree No. 41/2020/NĐ-CP dated April 8, 2020 of the Government)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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APPLICATION FOR EXTENSION OF TAX PAYMENT AND LAND RENT PAYMENT

Respectfully submitted to: Tax authority...

[01] Name of taxpayer:...

[03] Address: …

[04] Phone number: …

[05] Name of tax agent (if any): …

[07] Type of tax requested for extension:

a) □ Value Added Tax (VAT) of enterprises and organizations

b) □ Corporate Income Tax (CIT) of enterprises and organizations

c) □ VAT and Personal Income Tax (PIT) of households and individual businesses

d) □ Land rent (specify detailed address of each leased land plot subject to extension of land rent payment)

- Leased Land Plot 1: …

- Leased Land Plot 2: …

….

[08] Cases eligible for extension:

I. Small and Micro Enterprises

□ a) Small Enterprise:

II. Enterprises, Organizations, Households, and Individual Businesses operating in the following sectors:

□ a) Agriculture, Forestry, and Aquaculture;

□ b) Food Production and Processing; □ c) Textile Weaving; □ d) Garment Manufacturing; □ e) Leather and Related Product Manufacturing; □ f) Wood Processing and Wood Product Manufacturing (excluding beds, wardrobes, tables, and chairs); Straw and Rush Product Manufacturing; □ g) Paper and Paper Product Manufacturing; □ h) Rubber and Plastic Product Manufacturing; □ i) Non-metallic Mineral Product Manufacturing; □ j) Metal Product Manufacturing; □ k) Mechanical Processing; Metal Surface Treatment and Coating; □ l) Electronic Product, Computer, and Optical Product Manufacturing; □ m) Automobile and Other Motor Vehicle Manufacturing; □ n) Bed, Wardrobe, Table, and Chair Manufacturing;

□ p) Construction;

□ q) Warehousing and Transportation; □ r) Accommodation and Food Services; □ s) Education and Training; □ t) Health Care and Social Assistance; □ u) Real Estate Activities; □ v) Employment Services; □ w) Travel Agency, Tour Operation, and Related Support Services;

□ x) Arts, Entertainment, and Recreation; □ y) Library, Archive, Museum, and Cultural Activities; □ z) Sports and Recreational Activities;

□ a1) Film Exhibition;

□ b1) Priority Supporting Industrial Product Manufacturing;

□ c1) Key Mechanical Product Manufacturing;

□ d1) Credit Institutions, Branches of Foreign Banks;

I solemnly declare that the information declared above is true and accurate, and I am responsible for the information provided under the law; I commit to paying the full amount of tax according to the extended tax payment deadline./.

Date...Month...Year...

Note:

- Section II: The declarant self-determines according to Decision No. 27/2018/QĐ-TTg dated July 6, 2018 of the Prime Minister; Government's Decree No. 111/2015/NĐ-CP dated November 3, 2015; Decision No. 319/QĐ-TTg dated March 15, 2018 of the Prime Minister. Credit institutions and branches of foreign banks determine according to the list published by the State Bank of Vietnam.

- The Application for Extension of Tax Payment and Land Rent Payment is only sent once to the direct managing tax authority for all periods of the extended taxes and land rent payments. The taxpayer selects the method of submission as follows:

- The application for extension of tax payment and land lease fee payment shall be submitted only once to the directly managing tax authority for all periods of all types of taxes and land lease fees subject to extension. The taxpayer selects the method of submission as follows:

+ Taxpayer submits electronically through the e-Government portal of the tax authority.

+ The taxpayer shall pay directly to the tax authority or by post.