Decision No. 54/2011/QD-TTg on extending the payment of corporate income tax for 2011 for businesses employing many workers in certain industries to address difficulties and promote business operations.

Pursuant to …;

Regarding the extension of corporate income tax payment for 2011 for enterprises employing many workers

in certain industries to alleviate difficulties and contribute to promoting production and business activities

Pursuant to Resolution No. 77/NQ-CP dated April 3, 2011 and Resolution No. 86/NQ-CP dated July 5, 2011 of the Government;

______________________________

 PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

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

Considering the proposal of the Minister of Finance,

1. The extension of corporate income tax payment for 2011 for a period of one (01) year, starting from the date of the deadline for tax payment according to the Law on Tax Administration, applies to enterprises employing many workers and cooperatives with income from production, processing, and manufacturing agricultural products, forestry products, aquatic products, textiles, footwear, electronic components, and from construction, installation of economic and social infrastructure projects. Specifically:

DECISION:

Article 1. Scope and Applicability

a) Enterprises employing many workers are those with an average of over three hundred (300) employees regularly employed in 2011, excluding short-term contracts under three months. In cases where enterprises operate under a parent company - subsidiary model, the number of employees of the parent company does not include the number of employees of subsidiaries;

b) Production, processing, and manufacturing of agricultural products, forestry products, aquatic products, textiles, footwear, and electronic components are defined according to the classification system of Vietnam's economic sectors issued together with Decision No. 10/2007/QĐ-TTg dated January 23, 2007 of the Prime Minister;

c) Construction and installation of economic and social infrastructure projects include construction, installation, and assembly of: water treatment plants, power plants, transmission and distribution systems; water supply and drainage systems; roads, railways; airports, seaports, river ports; bus stations, railway stations; schools, hospitals, cultural and sports facilities; wastewater treatment systems, solid waste disposal systems; telecommunications infrastructure, irrigation works serving agriculture, forestry, and fisheries.

2. The extended corporate income tax specified in this Article does not include taxes from other activities and other income outside the activities specified in points b and c of Clause 1 of this Article.

3. The extension of tax payment specified in this Article applies to enterprises and cooperatives established and operating under Vietnamese law; implementing accounting records, invoices, and receipts according to legal regulations and declaring taxes.

1. The corporate income tax subject to extension as stipulated in Article 1 of this Decision includes quarterly provisional tax payments and the remaining tax payable after annual settlement for 2011.

Article 2. Determination of Corporate Income Tax Eligible for Extension

2. Enterprises and cooperatives must separately account for income from activities eligible for extended tax payment as stipulated in Article 1 of this Decision. If it is impossible to determine the corporate income tax of the activities eligible for extended tax payment, the income for calculating the extended tax will be determined based on the percentage ratio between the revenue from the activities eligible for extended tax payment and the total revenue of the enterprise. If the percentage ratio between the revenue from the activities eligible for extended tax payment and the total revenue cannot be determined, the enterprise or cooperative shall temporarily calculate and adjust the percentage ratio based on actual figures when settling the tax for 2011.

2. Enterprises and cooperatives must separately account for income from activities subject to deferred tax payment as stipulated in Article 1 of this Decision. In cases where the corporate income tax amount of such deferred payment activities cannot be determined, the income for calculating the deferred tax amount shall be determined based on the percentage ratio between the revenue of the deferred payment activities and the total revenue of the enterprise. In cases where the percentage ratio between the revenue of the deferred payment activities and the total revenue cannot be determined, enterprises and cooperatives shall temporarily determine the percentage ratio and adjust it according to actual circumstances when settling the 2011 tax year.

Article 3. Extension Period for Tax Payment

1. The extension period for corporate income tax payment stipulated in this Decision shall be as follows:

a) The extension period for tax payment on provisional quarterly tax for the first quarter of 2011 shall not exceed April 30, 2012;

b) The extension period for tax payment on provisional quarterly tax for the second quarter of 2011 shall not exceed July 30, 2012;

c) The extension period for tax payment on provisional quarterly tax for the third quarter of 2011 shall not exceed October 30, 2012;

d) The extension period for tax payment on provisional quarterly tax for the fourth quarter of 2011 and the tax payable according to the annual settlement for 2011 shall not exceed March 31, 2013.

2. In cases where the tax payment date specified in Clause 1 of this Article falls on a public holiday as prescribed by law, the extension period for tax payment shall be extended to the next working day.

3. For units applying a tax year other than the Gregorian calendar year, the extension period for tax payment shall only apply to provisional quarterly tax payments made during the year 2011.

Article 4. Implementation provisions

1. This Decision shall take effect from November 30, 2011.

In cases where enterprises or cooperatives have declared and paid the extended corporate income tax for the first, second, and third quarters of 2011 to the state budget before this Decision takes effect, such payments shall be offset against the corporate income tax payable for non-extended activities or against the corporate income tax payable for subsequent tax payments.

2. The Ministry of Finance shall provide guidance on the implementation of this Decision.

3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the Central Government are responsible for enforcing this Decision./.