DECREE

EXTENDING PAYMENT DEADLINE OF VAT, CORPORATE INCOME TAX, PERSONAL INCOME TAX, AND LAND RENT FOR 2023

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendment to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

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

At request of the Minister of Finance;

The Government promulgates Decree extending the payment deadline of VAT, corporate income tax, personal income tax, and land rent for 2023.

Article 1. Scope

This Decree prescribes the extension of payment deadline of VAT, corporate income tax, personal income tax, and land rents.

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This Decree applies to: Taxpayers; tax authorities; tax officials, state authorities, other relevant organizations and individuals.

Article 3. Eligibility for extension

1. Enterprises, organizations, households, household businesses, and individuals engaging in manufacturing activities in economic sectors below:

a) Agriculture, forestry, and fishery;

b) Food processing and production: textile; apparel production; leather and related product manufacturing; wood processing and wood, bamboo product manufacturing (except for beds, cabinets, seats, chairs, tables); hay, straw, and plaiting material product manufacturing; paper and paper product manufacturing; rubber and plastic product manufacturing; product manufacturing from other non-metallic alloys; metal manufacturing; mechanical engineering; metal treating and cladding; electronic appliance, computer, and optical product manufacturing; automobile and other motorized vehicle manufacturing; bed, cabinet, seat, chair, table manufacturing;

c) Construction;

d) Publishing; cinematography; television program, audio recording, music production;

dd) Crude oil and natural gas mining (deadline extension does not apply to corporate income tax of crude oil condensate, and natural gas obtained under agreements and contracts);

e) Drink production; printing, copying records of all kinds; coke and refined petroleum product manufacturing; chemical and chemical product manufacturing; product manufacturing using precast metal (except for machinery and equipment); automobile and motorbike manufacturing; machinery and equipment repair, maintenance, and installation;

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2. Enterprises, organizations, households, household businesses, and individuals operating in business activities in economic sectors below:

a) Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading;

b) Labor and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organization of travel tours;

c) Composing, artistic, recreational activities; operation of libraries, archives, museums, and other cultural activities; sports and recreational activities; movie screening;

d) Radio and television broadcasting; computer coding, consulting services, and other activities relating to computer; communication operations;

dd) Services assisting mining operation.

Lists of economic sectors under Clause 1 and Clause 2 of this Article are defined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister.

Economic sector classification under Appendix I of Decision No. 27/2018/QD-TTg consists of 5 levels and is implemented on the basis that: If economic sectors under Clause 1 and Clause 2 of this Article are placed in level 1, all economic sectors under level 2 through 5 corresponding to the economic sectors in level 1 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 2, all economic sectors under level 3 through 5 corresponding to the economic sectors in level 2 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 3, all economic sectors under level 4 through 5 corresponding to the economic sectors in level 3 sector are eligible for extension; if economic sectors under Clause 1 and Clause 2 of this Article are placed in level 4, all economic sectors under level 5 are eligible for extension.

3. Enterprises, organizations, households, household businesses, and individuals manufacturing supporting industry products prioritized for development; key mechanical engineering products.

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4. Small and micro enterprises determined in accordance with the Law on Assistance for Small and Medium Enterprises dated 2017 and Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government.

Economic sectors and fields of operation of enterprises, organizations, households, household businesses, and individuals under Clause 1, Clause 2, and Clause 3 of this Article are sectors and fields in which the enterprises, organizations, households, household businesses, and individuals generate revenues in 2022 or 2023.

Article 4. Extension of tax and land rent payment deadline

1. In case of VAT (except for import VAT)

a) Extend payment deadline for VAT payables (including taxes distributed to other provinces where taxpayers are headquartered, taxes paid every they are incurred) of tax period ranging from March to August of 2023 (if VAT is declared on a monthly basis) and tax period of the first Quarter and the second Quarter of 2023 (if VAT is declared on a quarterly basis) of enterprises and organizations under Article 3 hereof. The extended period of 6 months shall apply to VAT that is incurred during the period from March to May of 2023 and in the first Quarter of 2023; 5 months for VAT that is incurred in June of 2023 and the second Quarter of 2023; 4 months for VAT that is incurred in July of 2023; 3 months for VAT that is incurred in August of 2023. Extended periods under this Point starts from the deadline for VAT payment in accordance with tax administration laws.

Enterprises and organizations eligible for extension shall declare and submit monthly, quarterly tax return in accordance with applicable laws and are not yet required to pay VAT payables on the filed tax return. Extended payment deadline of monthly, quarterly VAT shall be as follows:

Extended payment deadline of VAT period of March of 2023 shall be October 20 of 2023.

Extended payment deadline of VAT period of April of 2023 shall be November 20 of 2023.

Extended payment deadline of VAT period of May of 2023 shall be December 20 of 2023.

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Extended payment deadline of VAT period of July of 2023 shall be December 20 of 2023.

Extended payment deadline of VAT period of August of 2023 shall be December 20 of 2023.

Extended payment deadline of VAT period of the first Quarter of 2023 shall be October 31 of 2023.

Extended payment deadline of VAT period of the second Quarter of 2023 shall be October 31 of 2023.

b) If enterprises and organizations under Article 3 of this Decree have branches and affiliated entities which declare VAT separately to their supervisory tax authorities, these branches and affiliated entities are also eligible for extension of payment deadline. In case branches and affiliated entities of enterprises and organizations under Clause 1, Clause 2, and Clause 3 of this Decree do not conduct business or manufacturing activities within economic sectors and fields eligible for extension of payment deadline, these branches and affiliated entities are not eligible for extension of payment deadline.

2. In case of corporate income tax

a) Extend corporate income tax payment deadline of the first Quarter and second Quarter of tax period of 2023 of enterprises and organizations under Article 3 hereof. The extended period shall be 3 months from the payment deadline of corporate income tax in accordance with tax administration laws.

b) If enterprises and organizations under Article 3 hereof have branches and affiliated entities which separately declare corporate income tax to their direct superior tax authorities, the branches and affiliated entities shall be eligible for extension of payment deadline of corporate income tax. In case branches and affiliated entities of enterprises and organizations under Clause 1, Clause 2, and Clause 3 of this Decree do not conduct business or manufacturing activities within economic sectors and fields eligible for extension of payment deadline, these branches and affiliated entities are not eligible for extension of payment deadline of corporate income tax.

3. In case of VAT and personal income tax of household businesses and individual businesses

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4. In case of land rents

Extend payment deadline of 50% of land rents payable in 2023 of enterprises, organizations, households, and individuals under Article 3 hereof leased land by the Government directly under Decision or Contract of competent authority for annual land rent. The extended period shall be 6 months from May 31 of 2023 to November 30, 2023.

This provision also applies to the case where enterprises, organizations, households, or individuals rent land directly from the Government under multiple Decisions and Contracts and conduct various manufacturing, business activities, among which are those mentioned under Clause 1, Clause 2, Clause 3 Article 3 hereof.

5. If enterprises, organizations, household businesses, and individual businesses conducting manufacturing, business activities in various economic sectors, among which are those under Clause 1, Clause 2, and Clause 3 Article 3 hereof: these enterprises and organizations shall be eligible for extension of payment deadline of all VAT and corporate income tax payable; these household businesses and individual businesses shall be eligible for extension of payment deadline of VAT and personal income tax payable in accordance with this Decree.

Article 5. Procedures for extension

1. Taxpayers who declare and pay tax to tax authorities and are eligible for payment deadline extension shall submit application for tax and land rent payment extension (hereinafter referred to as “Application for extension”) for the first time or as revision in case of error (electronically, physically to tax authorities, or post services) using Form under Appendix hereof to supervisory tax authorities once for all the taxes and land rents that arise during tax period of which payment deadline is extended and period in which the monthly (or quarterly) tax return is filed in accordance with tax administration laws. If the application for extension is not filed at the same time as the monthly (or quarterly) tax return, as long as the application for extension is filed before the end of September 30, 2023, tax authorities shall still extend payment deadline of taxes and land rents of periods eligible for extension prior to the filing date of application for extension.

If taxes and land rents of taxpayers eligible for extension are located in many jurisdictions of different tax authorities, supervisory tax authorities of the taxpayers are responsible for communicating and transferring application for extension to relevant tax authorities.

2. Taxpayers shall determine and assume responsibility for applying for extension in accordance with this Decree. Taxpayers who submit application for extension to tax authorities after September 30, 2023 shall not be eligible for extension of payment deadline of taxes and land rents in accordance with this Decree. If taxpayers file additional tax returns for tax periods in which they are eligible for payment deadline extension thereby increasing the amount payable and submit additional tax returns to tax authorities before the end of the extended period, tax amounts to be extended shall also include amounts under the additional tax returns. If taxpayers file additional tax returns for tax periods in which they are eligible for payment deadline extension after the extended period has ended, tax amounts under the additional tax returns shall not be eligible for extension.

3. Tax authorities are not required to inform taxpayers about whether or not payment deadline extension of their taxes and land rents are approved. If tax authorities have sufficient ground to deem taxpayers not eligible for payment deadline extension during extended period, tax authorities shall inform taxpayers about immediate ceasing of extension and require taxpayers to submit taxes, land rents, and late payment interest for the extended period to state budget. If competent authorities find taxpayers ineligible for payment deadline extension in accordance with this Decree after extended period has ended through means of inspection, taxpayers must pay tax arrears, fine, and late payment interest to the state budget.

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5. When project developers of constructions and work items who carry out capital construction utilizing state budget, amounts from state budget dedicated to capital construction of projects that utilize ODA and are susceptible to VAT proceeds with payment procedures with the State Treasury, the project developers must attach written notice of tax authorities regarding receipt of application for extension or application for extension verified by tax authorities filed by contractors). The State Treasury shall rely on documents submitted by project developers to deduct VAT that arise during the extended period. At the end of the extended period, contractors must pay all extended tax amounts as per the law.

Article 6. Organizing implementation and entry into force

1. This Decree comes into force from the date of signing until the end of December 31, 2023.

2. When the extended periods under this Decree end, payment deadline of taxes and land rents shall conform to applicable laws.

3. The Ministry of Finance is responsible for coordinating, organizing implementation, and resolving difficulties that arise during implementation of this Decree.

4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and relevant enterprises, organizations, households, household businesses, and individuals are responsible for implementation of this Decree.

ON BEHALF OF. THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai

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