DECREE

DEFERRAL OF VALUE-ADDED TAX, CORPORATE INCOME TAX, PERSONAL INCOME TAX AND LAND RENTS IN 2022

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

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

Pursuant to the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies for supporting Socio-economic recovery and development program;

At the request of the Minister of Finance;

The Government promulgates a Decree on deferral of value-added tax (VAT), corporate income tax, personal income tax and land rents in 2022.

Article 1. Scope

...

...

...

Article 2. Regulated entities

Entities regulated by this Decree include: taxpayers, tax authorities; tax officials; state agencies, other relevant organizations and individuals.

Article 3. Entities eligible for deferral

1. Enterprises, organizations, households, household businesses carrying out manufacture in the following lines of business:

a) Agriculture, forestry and aquaculture;

b) Food production, processing; textile; garments; manufacture of leather and related products; timber treatment and manufacture of products from wood, bamboo and rattan (except furniture); manufacture of products from straw, and plaiting materials; manufacture of paper and paper products; manufacture of products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical processing; metal processing and coating; manufacture of electronic products, computers and optical products; manufacture of motor vehicles and other motorized vehicles; manufacture of furniture;

c) Construction;

d) Publishing activities; cinematography activities; TV show production, audio recording and music publishing;

dd) Extraction of crude oil and natural gas (except corporate income tax on crude oil, condensate and natural gas collected under international agreements, contracts);

...

...

...

g) Drainage and wastewater treatment.

2. Enterprises, organizations, households, household businesses having business operation in the following lines of business:

a) Transport, warehousing; accommodation, food and beverage services; education and training; healthcare and social assistance; real estate business;

b) Employment-related services; operation of travel agencies, tourism business, auxiliary services relevant to tour organization and advertising;

c) Composition, art and entertainment; operation of libraries, archives, museums and other cultural activities; sports, entertainment, cinema operation;

d) Audio and video broadcasting; computer programming, consulting services and other computer-related activities; information service activities;

dd) Mining ancillary services.

The list of business lines in Clause 1 and Clause 2 are determined according to the Prime Minister’s Decision No. 27/2018/QD-TTg dated July 06, 2018 on promulgation of Vietnam Standard Industrial Classification.

There are 5 levels of hierarchy in Appendix I of Decision No. 27/2018/QD-TTg, and economic sectors shall be determined as follows: If a business line mentioned in Clause 1 and Clause 2 of this Article belongs to Level 1, deferral will apply to all business lines in Levels 2, 3, 4, 5 under it; If a business line belongs to Level 2, deferral will apply to all business lines in Levels 3, 4, 5 under it; If a business line belongs to Level 3, deferral will apply to all business lines in Levels 4, 5 under it; If a business line belongs to Level 4, deferral will apply to all business lines in Level 5 under it.

...

...

...

Prioritized ancillary products shall be determined according to the Government’s Decree No. 111/2015/ND-CP dated November 03, 2015 on development of ancillary industry; key mechanical products shall be determined according to the Prime Minister’s Decision No. 319/QD-TTg dated March 15, 2018 approving Vietnam's Strategy for Mechanical Engineering Development by 2025 and the vision for 2035.

4. Small enterprises and micro-enterprises according to the 2017's Law on Assistance for Small and Medium-Sized Enterprises and the Government’s Decree No. 80/2021/ND-CP dated August 26, 2021 elaborating some Articles of the Law on Assistance for Small and Medium-Sized Enterprises.

5. Credit institutions and foreign bank branches (FBB) providing assistance for customers that are enterprises, organizations, individuals affected by Covid-19 according to regulations of State Bank of Vietnam.

The business lines of enterprises, organizations, households, household businesses and individual businesses specified in Clause 1, Clause 2 and Clause 3 of this Article are business lines in which they operate and from which revenues are generated in 2021 or 2022.

Article 4. Deferral of tax and land rents

1. VAT (except VAT during importation)

a) Deferral is granted to VAT (including VAT distributed to provinces other than the province in which the taxpayer is headquartered, separately incurred VAT) incurred during the period from March to August 2022 (for monthly declared VAT) and tax periods of the first quarter (Q1) and second quarter (Q2) of 2022 (for quarterly declared VAT) payable by the enterprises and organizations mentioned in Article 3 of this Decree. Deferral period shall be 06 months for VAT incurred during the period from March to May, 2022 and Q1 2022; 05 months for VAT incurred during June 2022 and Q2 2022; 04 months for VAT incurred during July 2022; 03 months for VAT incurred during August 2022. These deferral periods begin from the deadline for payment of VAT prescribed by regulations of law on tax administration.

In case the taxpayer's supplementation of the tax declaration dossier of the period in which tax is deferred leads to increase in the amount of VAT payable and the dossier is sent to the tax authority before expiration of the deferral period, the deferred tax shall also include the increase in tax payable.

Enterprises and organizations that are eligible for deferral shall complete and submit the monthly/quarterly VAT return in accordance with applicable laws but are not required to pay the VAT specified in the VAT return. Deadlines for payment of monthly/quarterly VAT:

...

...

...

- The deadline for payment of VAT of April 2022 is November 20, 2022.

- The deadline for payment of VAT of May 2022 is December 20, 2022.

- The deadline for payment of VAT of June 2022 is December 20, 2022.

- The deadline for payment of VAT of July 2022 is December 20, 2022.

- The deadline for payment of VAT of August 2022 is December 20, 2022.

- The deadline for payment of VAT of Q1 2022 is October 30, 2022.

- The deadline for payment of VAT of Q2 2022 is December 31, 2022.

b) In case an enterprise or organization mentioned in Article 3 of this Decree has branches or affiliated units that separately declare VAT to their supervisory tax authorities, these branches or affiliated units are also eligible for VAT deferral. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 or Clause 3 Article 3 of this Decree does not operate in the business line eligible for tax deferral, it is not eligible for VAT deferral.

2. Corporate income tax (CIT)

...

...

...

b) In case an enterprise or organization mentioned in Article 3 of this Decree has branches or affiliated units that separately declare CIT to their supervisory tax authorities, these branches or affiliated units are also eligible for CIT deferral. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 or Clause 3 Article 3 of this Decree does not operate in the business line eligible for tax deferral, it is not eligible for CIT deferral.

3. VAT and personal income tax (PIT) payable by household businesses and individual businesses

Deferral will be granted to VAT and PIT payable by household businesses and individual businesses operating in the business lines specified in Clause 1, Clause 2 and Clause 3 of this Article. Household businesses and individual businesses shall pay the deferred tax by December 30, 2022.

4. Land rents

Deferral shall be granted to 50% of annual land rents payable in 2022 by enterprises, organizations, households, household businesses, individuals specified in Article 3 of this Decree that are directly leasing land from the State under Decisions or Contracts of competent authorities. Deferral period shall be 06 months from May 31, 2022 to November 30, 2022.

This also applies to any enterprise, organization, household, household business or individual that has multiple land lease decisions or contracts with the State and has various business operations, including those in the business lines specified in Clause 1, Clause 2, Clause 3 and Clause 5 Article 3 of this Decree.

5. In case an enterprise, organization, household, household business or individual has various business operations including those in the business lines specified in Clause 1, Clause 2, Clause 3 and Clause 5 Article 3 of this Decree, the enterprise or organization will be granted deferral of the entire amount of VAT, CIT payable; the household business or individual business will be granted deferral of the entire amount of VAT, PIT payable as instructed in this Decree.

6. In case the expiration date of the deferral period is a statutory day off, it will be the working days succeeding the day off.

Article 5. Deferral procedures

...

...

...

In case the taxpayer has deferred amounts in multiple areas under the management of different tax authorities, the taxpayer's supervisory tax authority shall send information about the deferral application to relevant tax authorities.

2. Taxpayers shall determine and take responsibility for their eligibility for deferral in accordance with this Decree. Deferral applications sent to the tax authority after September 30, 2022 will not be granted.

3. The tax authority shall notify the taxpayer of whether the deferral application is granted. In case during the deferral period the tax authority is able to prove that the taxpayer is not eligible for deferral, the tax authority shall send a written notification to the taxpayer of the ineligibility for deferral and the taxpayer shall fully pay the tax, land rents and late payment interest that accrue over the elapsed period. In case a competent authority discovers through inspection that the taxpayer is not eligible for deferral after expiration of the deferral period, the taxpayer shall pay the arrears, fines and late payment interest to state budget.

4. Late payment interest shall not be charged on deferred tax and land rents during the deferral period (including the cases in which the taxpayer sends the deferral application to the tax authority after submission of the tax declaration dossier as prescribed in Clause 1 of this Article, and the cases in which a competent authority, through inspection, discovers an increase in tax payable by the taxpayer that is eligible for deferral during the tax periods eligible for deferral). In case the tax authority has charged late payment interest (if any) but the taxpayer's deferral application is granted in accordance with this Decree, the tax authority shall cancel the late payment interest.

5. When following procedures for payment with State Treasury, investors in capital construction works, work items funded by state budget, payments from state budget for capital construction works of projects funded by ODA that are subject to VAT shall provide the notification that the tax authority has received the deferral application or the deferral application bearing the tax authority's confirmation of receipt of the contractors. The documents sent by the investors shall be the basis for State Treasury to defer VAT deduction during the deferral period. Upon expiration of the deferral period, the contractors shall fully pay the deferred tax as per regulations.

Article 6. Implementation organization and effect

1. This Decree comes into force from the day on which it is signed to the end of December 31, 2022.

2. After the deferral periods specified in this Decree, deadlines for payment of tax and land rents shall comply with applicable regulations.

3. The Ministry of Finance shall provide guidance, organize implementation and resolve difficulties that arise during the implementation of this Decree.

...

...

...

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

ON BEHALF OF THE GOVERNMENT
PP PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai