Decree No. 52/2021/NĐ-CP Extending the Deadline for Value Added Tax, Corporate Income Tax, Personal Income Tax, and Land Rent Payments in 2021

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 52/2021/NĐ-CP	Hanoi, April 19, 2021

DECREE

EXTENDING THE DEADLINE FOR PAYING VALUE ADDED TAX, ENTERPRISE INCOME TAX, PERSONAL INCOME TAX AND LAND RENT IN 2021

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, enterprise income tax, personal income tax, and land rent in 2021.

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

a) Agriculture, forestry, and fisheries;

b) Food production and processing; textile manufacturing; garment production; leather production and related products; wood processing and production of wood-based products, bamboo, rattan products (excluding beds, cabinets, tables, chairs); production of straw and rush products and woven materials; 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 and refined petroleum product production; chemical and chemical product production; precast metal product production (excluding machinery and equipment); motorcycle and bicycle production; machinery and equipment repair, maintenance, and installation;

g) Sewage and wastewater treatment.

2. Enterprises, organizations, households engaged in business, and individuals involved in commerce 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;

đ) 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 sector classification according to Appendix I issued together with Decision No. 27/2018/QĐ-TTg consists of five levels, and the determination of the economic sector follows the principle that if the economic sector mentioned in Clause 1 and Clause 2 of this Article belongs to the first level, then the applicable economic sector for the extension includes all economic sectors at the second, third, fourth, and fifth levels within the first-level sector; if it belongs to the second level, then the applicable economic sector for the extension includes all economic sectors at the third, fourth, and fifth levels within the second-level sector; if it belongs to the third level, then the applicable economic sector for the extension includes all economic sectors at the fourth and fifth levels within the third-level sector; if it belongs to the fourth level, then the applicable economic sector for the extension includes all economic sectors at the fifth level within the fourth-level sector.

3. Enterprises, organizations, households engaged in 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 Law on Support for Small and Medium-sized 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 Support for Small and Medium-sized Enterprises.

5. Credit institutions and foreign bank branches shall implement measures to support customers who are enterprises, organizations, and individuals affected by the COVID-19 pandemic in accordance with the regulations of the State Bank of Vietnam.

The economic sector and field of enterprises, organizations, households engaged in business, and individuals engaged in commerce specified in Clause 1, Clause 2, and Clause 3 of this Article refers to the economic sector and field where such enterprises, organizations, households, and individuals have production, business activities, and generate revenue in 2020 or 2021.

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

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

a) Extension of the deadline for paying value-added tax (VAT) due for the period from March to August 2021 (for enterprises and organizations specified in Article 2 of this Decree). The extension period is five months for VAT due from March to June 2021 and the first and second quarters of 2021, four months for VAT due in July 2021, and three months for VAT due in August 2021. The extension period starts from the last day of the VAT payment deadline as prescribed by tax management laws.

In cases where taxpayers supplement their tax declaration forms for the extended tax periods, resulting in increased VAT payable and submit them to the tax authority before the extended deadline, the extended tax amount includes the additional VAT payable due to the supplementation.

Enterprises and organizations eligible for the extension shall declare and submit monthly and quarterly VAT returns according to current laws but are not required to pay the VAT due on those declarations. The extended VAT payment deadlines are as follows:

- The deadline for paying VAT for the March 2021 tax period is no later than September 20, 2021.

- The deadline for paying VAT for the April 2021 tax period is no later than October 20, 2021.

- The deadline for paying VAT for the May 2021 tax period is no later than November 20, 2021.

- The deadline for paying VAT for the June 2021 tax period is no later than December 20, 2021.

- The deadline for paying VAT for the July 2021 tax period is no later than December 20, 2021.

- The deadline for paying VAT for the August 2021 tax period is no later than December 20, 2021.

- The deadline for paying VAT for the first quarter of 2021 tax period is no later than September 30, 2021.

- The deadline for paying VAT for the second quarter of 2021 tax period is no later than December 31, 2021.

b) In cases where enterprises and organizations specified in Article 2 of this Decree have branches or subordinate units that separately declare VAT to the directly managing tax authority, these branches or subordinate units are also eligible for the VAT payment extension. If the branches or subordinate units of enterprises and organizations specified in Clauses 1, 2, and 3 of Article 2 of this Decree do not engage in economic activities within the sectors eligible for the extension, they are not eligible for the VAT payment extension.

2. Regarding Corporate Income Tax

a) Extension of the deadline for paying provisional corporate income tax (CIT) for the first and second quarters of the 2021 CIT tax year for enterprises and organizations specified in Article 2 of this Decree. The extension period is three months, starting from the last day of the CIT payment deadline as prescribed by tax management laws.

b) In cases where enterprises and organizations specified in Article 2 of this Decree have branches or subordinate units that separately declare CIT to the directly managing tax authority, these branches or subordinate units are also eligible for the CIT payment extension. If the branches or subordinate units of enterprises and organizations specified in Clauses 1, 2, and 3 of Article 2 of this Decree do not engage in economic activities within the sectors eligible for the extension, they are not eligible for the CIT payment extension.

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

Extension of the deadline for paying VAT and personal income tax (PIT) for the 2021 tax period for households and individuals engaged in economic activities within the sectors specified in Clauses 1, 2, and 3 of Article 2 of this Decree. Households and individuals must pay the extended tax amount no later than December 31, 2021.

4. Regarding Land Rent

Extension of the deadline for paying land rent for the first quarter of 2021 for enterprises, organizations, households, and individuals specified in Article 2 of this Decree who are directly renting land from the State under decisions or contracts issued by competent state authorities in the form of annual land rent payments. The extension period is six months starting from May 31, 2021.

This provision applies to cases where enterprises, organizations, households, and individuals have multiple direct land rental decisions or contracts with the State and engage in various production and business activities, including those within the sectors specified in Clauses 1, 2, 3, and 5 of Article 2 of this Decree.

Enterprises and organizations engaged in multiple economic activities, including those within the sectors specified in Clauses 1, 2, 3, and 5 of Article 2 of this Decree, are eligible for the full extension of all VAT and CIT payable according to the guidelines set forth in this Decree.

6. In cases where the last day of the extended tax payment deadline coincides with a public holiday, the last day of the extended deadline shall be considered as the next working day following the holiday.

Article 4. Procedures and Formalities for Extension

1. The taxpayer directly files and pays taxes to the tax authority within the scope eligible for extension shall submit the Application for Extension of Tax Payment and Land Rent Payment for the first time or as a replacement when errors are discovered (through electronic means; submitting the paper version directly to the tax authority or sending it via postal service) according to the Model attached hereto by Decree No. [this Decree] to the directly managing tax authority once for all periods of the applicable taxes and land rent payments being extended together with the filing deadline of the monthly (or quarterly) tax declaration as prescribed by the laws on tax administration. In case the Application for Extension of Tax Payment and Land Rent Payment is not submitted at the time of filing the monthly (or quarterly) tax declaration, the latest submission date is July 30, 2021, and the tax authority will still implement the extension of tax payment and land rent payment for the periods eligible for extension before the submission of the Application for Extension.

Where the taxpayer has amounts eligible for extension under the management of different tax authorities, the directly managing tax authority of the taxpayer shall be responsible for transmitting information regarding the Application for Extension of Tax Payment and Land Rent Payment to the relevant tax authorities.

To be eligible for the extension of tax and land rent payments as stipulated in this Decree, the taxpayer must pay all amounts of tax and land rent that have been extended for payment according to Decree No. 41/2020/NĐ-CP and any corresponding late payment penalties (if any) into the state budget before July 30, 2021.

2. The taxpayer shall self-determine and bear responsibility for the application for extension ensuring compliance with the eligible entities as prescribed in this Decree. If the taxpayer submits the Application for Extension of Tax Payment and Land Rent Payment to the tax authority after July 30, 2021, they will not be eligible for the extension of tax payment and land rent payment as stipulated in this Decree.

3. The tax authority is not required to notify the taxpayer about the acceptance of the extension of tax payment and land rent payment. In case during the extension period, the tax authority determines that the taxpayer does not fall within the eligible entities for extension, the tax authority shall issue a notification to the taxpayer regarding the non-extension and the taxpayer must pay the full amount of tax and land rent and any late payment penalties incurred during the extension period into the state budget. In case after the expiration of the extension period, through inspection and audit, the tax authority discovers that the taxpayer does not fall within the eligible entities for extension of tax payment and land rent payment as stipulated in this Decree, the taxpayer must pay the outstanding tax amount, fines, and late payment penalties determined by the tax authority into the state budget.

4. No late payment penalties shall be imposed on the amounts of tax and land rent that are subject to extension during the extension period (including cases where the Application for Extension is submitted to the tax authority after filing the tax declaration and cases where the competent authority determines that the taxpayer eligible for extension has additional tax amounts for the extended tax periods).

5. For the principal investors of construction projects funded by state budget sources, payments from the state budget for basic construction projects of projects using ODA funds which are subject to VAT, when processing payment procedures with the State Treasury, must attach a notice from the tax authority confirming receipt of the Application for Extension or a confirmed Application for Extension sent by the contractor implementing the project to the tax authority. The State Treasury shall base its decision on the documents submitted by the principal investor to refrain from deducting VAT during the extension period. Upon expiration of the extension period, the contractor must pay the extended tax amount to the tax authority as prescribed.

6. The tax authority shall not implement coercive measures provided for in Clause 1, Points d, đ, e, g of Article 125 of the Law on Tax Administration No. 38/2019/QH14 against the outstanding tax amounts of taxpayers eligible for extension as stipulated in this Decree, the period for not implementing coercive measures being from the issuance of this Decree until December 31, 2021.

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 State Bank of Vietnam shall be responsible for announcing the list of credit organizations and foreign bank branches participating in supporting customers so that the tax management authority can implement the extension of the tax payment and land rent payment deadlines as stipulated in Clause 5, Article 2 of this Decree.

4. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial People's Committees, and enterprises, organizations, business households, and individuals related to this Decree shall be responsible for its enforcement.

Place of Receipt: - Central Party Committee Secretariat; - Prime Minister, Deputy Prime Ministers; - Ministries, ministerial-level agencies, and agencies under the Government; - Provincial People's Councils, People's Committees of centrally governed cities; - Central Party Office and Party Committees; - General Secretary's Office; - President's Office; - Ethnic Council and Committees of the National Assembly; - National Assembly's Office; - Supreme People's Court; - Supreme People's Procuracy; - State Audit Office; - National Financial Supervisory Commission; - Social Policy Bank; - Vietnam Development Bank; - Vietnam Fatherland Front Central Committee; - Central Agencies of Social Organizations; - VPCP: Deputy Chairman, all Vice Chairmen, Assistants to the Prime Minister, Director of the Government Portal, all Departments, Bureaus, subordinate units, Official Gazette; - File: VT, KTTH (2b).

PRIME MINISTER DEPUTY PRIME MINISTER DEPUTY PRIME MINISTER Lê Minh Khái

ANNEX

(Attached to Decree No. 52/2021/NĐ-CP dated April 19, 2021 of the Government)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
-----------------

APPLICATION FOR EXTENSION OF TAX PAYMENT AND LAND RENT PAYMENT

□ First Time □ Replacement

Respectfully submitted to: Tax Authority...

[01] Name of taxpayer: ...

[02] Tax code:

[03] Address: …

[04] Phone number: …

[05] Name of tax agent (if any): …

[06] Tax code:

[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 Businesses

□ d) Land Rent (specify the address of each leased land plot eligible for land rent extension)

- Leased Land Plot 1: …

- Leased Land Plot 2: …

- …….

[08] Case for extension: ...

I. SMALL AND MICRO ENTERPRISES

□ 1. Small Enterprise:

□ 2. Micro Enterprise:

II. ENTERPRISES, ORGANIZATIONS, BUSINESS HOUSEHOLDS, INDIVIDUALS OPERATING IN THE FOLLOWING SECTORS:

□ 1. Agriculture, Forestry, and Aquaculture;

□ 2. Food Production and Processing; □ 3. Textile Weaving; □ 4. Garment Manufacturing; □ 5. Leather and Related Products Manufacturing; □ 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. Non-Metallic Mineral Product Manufacturing; □ 10. Metal Product Manufacturing; □ 11. Machinery Processing; Metal Surface Treatment and Coating; □ 12. Electronic, Computer, and Optical Product Manufacturing; □ 13. Automobile and Other Motor Vehicle Manufacturing; □ 14. Bed, Cabinet, Table, and Chair Manufacturing;

□ 15. Construction;

□ 16. Warehousing transportation; □ 17. Accommodation and food services; □ 18. Education and training; □ 19. Health care and social assistance activities; □ 20. Real estate business activities; □ 21. Labor and employment service activities; □ 22. Activities of travel agencies, tour operation, and related support services;

□ 23. Creative, artistic, and entertainment activities; □ 24. Library, archive, museum activities, and other cultural activities; □ 25. Sports and recreational activities;

□ 26. Film exhibition activities;

□ 27. Production of priority supporting industrial products;

□ 28. Production of key mechanical products;

□ 29. Credit organizations, foreign bank branches;

□ 30. Publishing activities; □ 31. Film, television program production, recording, and music publishing activities;

□ 32. Broadcasting and television activities;

□ 33. Computer programming, consulting services, and other computer-related activities; □ 34. Information services activities;

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

□ 36. Mining support services;

□ 37. Beverage production;

□ 38. Printing and reproduction activities;

□ 39. Coke production, refined petroleum product manufacturing;

□ 40. Chemical product and chemical product manufacturing;

□ 41. Manufacture of products from purchased metal (excluding machinery and equipment);

□ 42. Motorcycle and bicycle manufacturing;

□ 43. Repair, maintenance, and installation of machinery and equipment;

□ 44. 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.

TAX AGENT STAFF (Signature, full name) Professional certificate No:...

Date... Month... Year... TAXPAYER or LEGAL REPRESENTATIVE OF THE TAXPAYER (Signature, full name; position and stamp (if any))

Note:

- Section I: NNT self-determines according to the provisions of Law on Support for 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 Support for Small and Medium Enterprises.

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

- The application for tax payment extension and land lease fee only needs to be submitted once to the direct tax management authority for all periods of taxes and land lease fees subject to extension. The taxpayer selects the payment method as follows:

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

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