The General Department of Taxation notes that the deferred time limits for payments of taxes incurred in 2021 given to enterprises, organizations, business households, business individuals negatively affected by Covid-19 pandemic shall be as follows: Read more
- VAT: may be deferred for 05 months with regard to VAT incurred from March to June of 2021 and first and second quarter of 2021; for 04 months with regard to VAT incurred in July, 2021 and for 03 months with regard to VAT incurred in August, 2021;
- EIT: may be deferred for 03 months with regard to EIT declared in the first and second quarters of 2021;
- Land rent: may be deferred for 06 months with regard to land rents that are due in beginning of 2021;
- VAT and PIT incurred by business households, business individuals in 2021: shall be deferred to December 31st, 2021;
The application for deferral for all payments of taxes deferred shall be submitted together with the tax declaration and must be submitted before July 31st, 2021.
According to opinions of the Department of Taxation of Ha Noi city, now the Ministry of Finance has sent the written presentation to the Government for approval of the plan for elaboration of a Decree on extension of time limit for tax and land rent payment in 2021. Read more
After regulations on tax payment deferral in 2021 are promulgated the Department of Taxation of Ha Noi city will post the contents on its website.
The document gathers many new points of the Law on Tax administration No. 38/2019/QH14, which is regulated in details at Decree No. 126/2020/ND-CP. Such regulations take effect from December 5th, 2020. Read more
The new points relate to these issues:
- Tax re-registration after business suspension;
- Re-registration of tax information upon changing personal information;
- Declaration of taxes and supplementation to tax declarations;
- Tax determination (addition of some cases subject to tax determination, bases for determination of tax on activities of transferring real estate; receiving real estate as inheritance or gift);
- Time limit for tax payment with regard to land rents, fees for grant of right to mineral extraction, water resource extraction;
- Fulfillment of tax obligations upon exit from Vietnam. Previously, Clause 1 Article 40 of Circular No. 156/2013/TT-BTC only stipulates that the Vietnamese people that emigrate to reside overseas, Vietnamese people residing overseas, foreigners must fulfill their tax liability before leaving Vietnam. Now, Article 66 and Clause 7 Article 124 of Law No. 38/2019/QH14 regulates that the individual that is the legal representative of an enterprise who has not fulfilled tax obligations under a tax enforcement decision will be suspended from exit from Vietnam;
- Cooperation between tax authorities and Departments of Planning and Investment;
- Application of measures for enforcement of payment of tax debt.
Accordingly, with regard to withholding tax, it is only allowable to defer the payment of tax which is directly declared and paid by foreign contractor. The withholding tax declared and paid by the Vietnamese party on behalf of the foreign contractor shall not be eligible for deferral.
Regarding deferral of payment of enterprise income tax (EIT), with regard to EIT declared in the 2019’s annual statement, it is only allowable to defer the remaining payable EIT under the 2019’s annual statement and it is not exceeding 20% of the payable EIT of the whole year according to the annual statement. With regard to EIT declared in the first and second quarters of 2020 eligible for the deferral, it does not include EIT declared and paid whenever it is incurred on income from real estate transfer.
Relating to deferral of payment of land rents, it is only applicable to establishments that directly lease land of the State in the form of annual payment of land rents engage in business lines or business sectors specified in Article 2 of Decree No. 41/2020/ND-CP and conduct production and business activities as well as earn revenue in 2019 or 2020. In case no revenue is generated in both 2019 and 2020, they are not eligible for the deferral under Decree No. 41/2020/ND-CP.
With regard to affiliates of small and micro enterprises eligible for deferral of tax payment, they have to declare number of employees, revenue, capital according to the figures declared by the enterprises.
If an application for deferral of tax payment which has been sent electronically has errors, the enterprise shall send the additional application together with the written explanation of the changed information to the supervisory tax authority.
Tax debt charge-off means that tax authorities, customs authorities shall temporarily delay collection of tax debt, late payment fine and interest of taxpayers and waive late payment interests on the charged-off tax debt from the time of debt charge-off.
However, debts of lump-sum paid land levies, land rents, and water surface rents shall not be charged-off under this policy.
Decision on debt charge-off shall be publicly posted on websites of Departments of Taxation, Departments of Customs.
Individuals or enterprises shall be subject to cancellation of tax debt charge-off if the tax authorities find out that procedures for charge-off of the debt which has been charged off were carried out inconsistent with Resolution No. 94/2019/QH14 or they have resumed the business operation.
This Circular comes into force as of the date of entry into force of the Resolution No. 94/2019/QH14 (July 1st, 2020 and is implemented within 03 years from the date of entry into force.
However, if importing enterprises suffer from physical damages (which can be converted into cash) caused by natural disasters, fire, unexpected accidents affecting their business and production, they may request for tax deferral according to Clause 8 Article 5 of Decree No. 12/2015/ND-CP . The VAT eligible for deferral in this case must be the amount incurred before the occurrence of damages and must not exceed the damages’ value.
Relating to the policy on deferral on payments of value added tax (VAT), enterprise income tax (EIT) and reduction of land rent as announced at Decree No. 41/2020/ND-CP, the Ministry of Finance assumes that requirements of applications, order, procedures for deferral are regulated in details at this Decree, thereby it is possible to immediately carry out without an instructional circular. Read more
The Ministry of Finance only notes some issues relating to deferral on payments of VAT and EIT as regulated at Article 3 of Decree No. 41/2020/ND-CP as follows:
- EIT declared in the 2019’s annual statement shall be deferred but the maximum EIT amount to be deferred must not exceed 20% of the payable EIT of the whole year of 2019.
- The increased EIT amount because of additional declaration or through tax authority’s inspection of tax statement is also deferred provided that it does exceed the aforesaid rate of 20%.
- The maximum deferral duration is 05 months from the deadline for submission of EIT statement.
- Regarding VAT, the irregular VAT (if any) shall be also deferred.
- The State Treasury shall not offset VAT upon making payments for projects, construction works by state budget.
The General Department of Taxation assumes that the determination of business lines to be entitled to this policy is regulated at Clause 2 Article 2 of this Decree on the basis of the Vietnam Standard Industrial Classification promulgated at Decision No. 27/2018/QD-TTg.
Tax agencies shall base on Annex I and Annex II promulgated together with Decision No. 27/2018/QD-TTg to determine whether an enterprise is entitled to tax and land rent deferral or not.
“...Thời gian gia hạn là 05 tháng kể từ ngày 31 tháng 5 năm 2010” (“…will be deferred for 05 months to May 31st, 2010 at the earliest”) shall be replaced by “...Thời gian gia hạn là 05 tháng kể từ ngày 31 tháng 5 năm 2020” (“…will be deferred for 05 months to May 31st, 2020 at the earliest”).
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