Decree No. 52/2021/ND-CP dated April 19, 2021 on deferral of value-added tax, corporate income tax, personal income tax and land rents in 2021

DECREE

DEFERRAL OF VALUE-ADDED TAX, CORPORATE INCOME TAX, PERSONAL INCOME TAX AND LAND RENTS IN 2021

Pursuant to the Law on Government Organization dated June 19, 2015 and 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;

At the request of the Minister of Finance;

The Government promulgates a Decree on deferral of value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rents in 2021.

Article 1. Scope

This Decree provides for deferral of payment of value-added tax, corporate income tax, personal income tax and land rents.

Article 2. Regulated entities

This Decree applies to:

1. Enterprises, organizations, household businesses, individuals that have manufacturing activities in the following economic sectors:

a) Agriculture, forestry and aquaculture;

b) Production and processing of food; textiles; garments; manufacture of leather and leather products; wood treatment and manufacture of products from wood, bamboo, rattan (except furniture); manufacture of products from straw and plaiting materials; manufacture of paper products; manufacture of rubber and plastic products; manufacture of products from other non-metallic minerals; metal production; mechanical working; metal treating and coating; manufacture of electronics, computers and optical products; manufacture of automobiles and other motor vehicles; furniture production;

c) Construction;

d) Publishing; cinematography and production of TV programs, music recording and publishing;

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

e) Beverage production; printing, replication of recordings; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from precast metals (except machinery and equipment); manufacture of motorcycles; repair, maintenance and installation of machinery and equipment;

g) Water drainage and wastewater treatment.

2. Enterprises, organizations, household businesses and individuals that operate in the following economic sectors:

a) Transport and warehousing; accommodation, food and drink; education and training; healthcare and social assistance; real estate trading;

b) Employment services; travel agencies, tourism services and auxiliary tourism services;

c) Composing, art and entertainment; library, archive, museum operation and other artistic activities; sports and entertainment; cinemas;

d) Radio and TV broadcasting; computer programming, counseling services and other computer-related services; information service provision;

dd) Mineral extraction auxiliary services.

The economic sectors mentioned in Clause 1 and Clause 2 of this Article shall be determined according to the Prime Minister’s Decision 27/2018/QD-TTg dated July 06, 2018 on Vietnam Standard Industry Classification.

The economic sectors in Appendix I of Decision 27/2018/QD-TTg are structured in a 5-level hierarchy. When a member of the hierarchy is eligible for deferral, all of its subordinates are also eligible for deferral (e.g. when level-1 business line is eligible for deferral, all of its level-2, level-3, level-4, level-5 subordinates are also eligible for deferral, and so on).

3. Enterprises, organizations, household businesses and individuals that are manufacturers of prioritized ancillary industry products or key mechanical products.

Prioritized ancillary industry products shall be determined in accordance with the Government’s Decree No. 111/2015/ND-CP; key mechanical products shall be determined in accordance with the Prime Minister’s Decision No. 319/QD-TTg dated March 15, 2018.

4. Small enterprises and microenterprises shall be determined in accordance with the Law No. 04/2017/QH14 on Assistance for Medium and Small Enterprises and the Government’s Decree No. 39/2018/ND-CP elaborating the Law on Assistance for Medium and Small Enterprises.

5. Credit institutions and foreign bank branches (FBB) shall provide assistance for enterprises, organizations and individuals affected by Covid-19 as prescribed by the State bank of Vietnam (SBV).

The economic sectors and business lines of enterprises, organizations, household businesses and individual businesses specified in Clause 1, Clause 2 and Clause 3 of this Article are those they operate in and earn revenue from in 2020 or 2021.

Article 3. Tax and land rent deferral

1. VAT (except VAT paid upon importation of goods)

a) VAT (including tax distributed to provinces other than the province where the taxpayer’s headquarters are located, tax paid separately upon incurrence) incurred by the enterprises and organizations mentioned in Article 2 of this Decree during the period from March to August of 2021 (in case of monthly tax declaration), the first and second quarter of 2021 (in case of quarterly tax declaration) is eligible for deferral. VAT incurred during the period from March to June of 2021, the first quarter and second quarter of 2021 will be deferred for 05 months; VAT incurred during July of 2021 will be deferred for 04 months; VAT incurred during August of 2021 will be deferred for 03 months. The deferral period begins from the deadline for VAT payment prescribed by tax administration laws.

In case a taxpayer makes a revision to the tax declaration that results in an increase in the VAT payable and submit the revised tax declaration to the tax authority by the deadline, the VAT amount eligible for deferral will include the increase in VAT payable.

Enterprises and organizations eligible for tax deferral shall submit their monthly or quarterly VAT declarations in accordance with applicable laws and may postpone payment of the VAT declared. Deferral of VAT monthly and quarterly paid VAT:

- Deadline for payment of VAT incurred in March 2021 is deferred to September 20, 2021.

- Deadline for payment of VAT incurred in April 2021 is deferred to October 20, 2021.

- Deadline for payment of VAT incurred in May 2021 is deferred to November 20, 2021.

- Deadline for payment of VAT incurred in June 2021 is deferred to December 20, 2021.

- Deadline for payment of VAT incurred in July 2021 is deferred to December 20, 2021.

- Deadline for payment of VAT incurred in August 2021 is deferred to December 20, 2021.

- Deadline for payment of VAT incurred in the first quarter of 2021 is deferred to September 30, 2021.

- Deadline for payment of VAT incurred in the second quarter of 2021 is deferred to December 31, 2021.

b) In case an enterprise or organization mentioned in Article 2 of this Decree has a branch or affiliated unit that declares VAT separately to its supervisory tax authority, the branch or unit is also eligible for VAT deferral. Branches or affiliated units of the enterprises and organizations mentioned in Clause 1, Clause 2 and Clause 3 Article 2 of this Decree are not eligible for VAT deferral if they operate in economic sectors and business lines that are not eligible for tax deferral.

2. Corporate income tax (CIT)

a) CIT declared in the first and second quarters of 2021 by organizations and enterprises specified in Article 2 of this Decree will be deferred for 03 months form the deadline for CIT payment prescribed by tax administration laws.

b) In case an enterprise or organization mentioned in Article 2 of this Decree has a branch or affiliated unit that declares CIT separately to its supervisory tax authority, the branch or unit is also eligible for CIT deferral. Branches or affiliated units of the enterprises and organizations mentioned in Clause 1, Clause 2 and Clause 3 Article 2 of this Decree are not eligible for CIT deferral if they operate in economic sectors and business lines that are not eligible for tax deferral.

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

The deadline for paying VAT and PIT incurred in 2021 by household businesses and individual businesses that operate in the economic sectors and business lines specified in Clause 1, Clause 2 and Clause 3 Article 2 of this Decree will be deferred to December 31, 2021.

4. Land rents

Deadline for annual payment of rents that are due in beginning of 2021 for direct lease of land by the State to the enterprises, organizations, household businesses and individuals specified in Article 2 of this Article under decisions or contracts of competent authorities will be deferred for 06 months starting from May 31, 2021.

This also applies in case an enterprise, organization, household business or individual is leasing land from the State under more than one decision or contract and operates in multiple economic sectors and business lines including those specified in Clause 1, Clause 2, Clause 3 and Clause 5 Article 2 of this Decree.

5. An enterprise or business organization that operates in multiple economic sectors including those specified in Clause 1, Clause 2, Clause 3 and Clause 5 Article 2 of this Decree will have all the VAT and CIT payable deferred in accordance with this Decree.

6. In case the deferred deadline for tax payment falls on a statutory day off, the deadline will be the day succeeding that day.

Article 4. Deferral procedures

1. The taxpayer eligible for deferral shall submit the original or revised application for tax and land rent deferral (electronically, in person or by post) using the form enclosed here with to the supervisory tax authority for all the periods in which tax. The application shall include all payments of tax and land rent deferred and shall be submitted together with the monthly or quarterly tax declaration as prescribed by tax administration laws. In case this application is not submitted together with the monthly or quarterly tax declaration, the submission deadline shall be July 30, 2021 and the tax authority still defers taxes and land rents incurred during the period eligible for deferral before the application is submitted.

In case a taxpayer is eligible for deferral of amounts payable in multiple areas under management of different tax authorities, the taxpayer’s supervisory tax authority shall transmit information about the application for tax and land rent deferral to relevant tax authorities.

In order to have tax and land rent deferred in accordance with this Decree, the taxpayer shall fully pay the taxes and land rents that were deferred in accordance with the Government’s Decree No. 41/2020/ND-CP and late payment interest (if any) to state budget before July 30, 2021.

2. Taxpayers shall determine their eligibility for deferral themselves according to this Decree and take responsibility for this. Tax and land rent shall not be deferred if the application for tax and land rent deferral is submitted to the tax authority after July 30, 2021.

3. Tax authorities shall inform taxpayers about whether their application for tax and land rent deferral is granted. In case the tax authority discovers that the taxpayer is not eligible for deferral during the deferral period, the tax authority shall send a written notice of ineligibility for deferral to the taxpayer and the taxpayer shall fully pay the tax and/or land rent plus late payment interest that accrue over the deferral period. In case the tax authority discovers that the taxpayer is not eligible for deferral after the end of the deferral period, the taxpayer shall pay the arrears, late payment interest and fines determined by the tax authority.

4. Over the deferral period, interest on the deferred tax and land rent shall not be charged (even if the application for deferral is submitted after submission of the tax declaration or a competent authority finds that the taxpayer understated the tax incurred during the period eligible for deferral).

5. While following procedures for payment with the State Treasury, investors in capital construction works, work items funded by state budget, payments from state budget for capital construction works of ODA-funded projects that are subject to VAT shall enclose the notice that the tax authority has received the application for deferral or the application deferral that has the building contractor’s confirmation that it has been sent to the tax authority. On the basis of the documents sent by investor, the State Treasury shall decide whether to defer deduction VAT during the deferral period. At the end of the deferral period, the contractor shall fully pay the deferred tax to the tax authority as per regulations.

6. Tax authorities shall defer implementation of the enforcement measures specified in Points d, dd, e, g Clause 1 Article 125 of the Law on Tax Administration No. 38/2019/QH14 regarding tax debts of the taxpayers eligible for deferral as prescribed by this Decree. Enforcement deferral period begins on the promulgation date of this Decree to December 31, 2021.

Article 5. Implementation and effect

1. This Decree comes into force from the day on which it is signed.

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

3. SBV shall publish the list of credit institutions and FBBs that provide assistance for tax authorities to grant deferral of tax and land rent as prescribed in Clause 5 Article 2 of this Decree.

4. Ministers, Heads of ministerial agencies and governmental agencies, Presidents of the People’s Committees of provinces, relevant enterprises, organizations, household businesses and individuals are responsible for the implementation of this Decision.

APPENDIX

(Enclosed with the Government’s Decree No. 52/2021/ND-CP dated April 19, 2021)

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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APPLICATION FOR TAX AND LAND RENT DEFERRAL

□ First submission         □ Replacement

To: Tax authority of ........................

[01] Name of taxpayer: ………………………………………………………………..

[03] Address: …………………………………………………………………………………..

[04] Tel: ……………………………………………………………………………

[05] Name of tax agent (if any): ………………………………………………………………..

[07] Tax(es) that need deferring

□ a) VAT (for enterprises and organizations)

□ b) Corporate income tax (for enterprises and organizations)

□ c) VAT and personal income tax for household businesses and individual businesses

□ d) Land rent (specify address of each plot of land eligible for land rent deferral)

- Plot 1: …………..

- Plot 2: …………..

- …….

[08] Eligibility for deferral: ……………………………………………………………….

I. SMALL ENTERPRISE/MICRO-ENTERPRISE

□ 1. Small enterprise:

□ 2. Micro-enterprise:

II. Enterprise/organization/household/individual operating in:

□ 1. Agriculture, forestry and aquaculture;

□ 2. Production and processing of food; □ 3. textiles; □ 4.garments; □ 5. manufacture of leather and leather products; □ 6. wood treatment and manufacture of products from wood, bamboo, rattan (except furniture); manufacture of products from straw and plaiting materials; □ 7. manufacture of paper products; □ 8. manufacture of rubber and plastic products; □ 9. manufacture of products from other non-metallic minerals; □ 10. metal production; □ 11. mechanical working; metal treating and coating; □ 12. manufacture of electronics, computers and optical products; □ 13. manufacture of automobiles and other motor vehicles; □ 14. furniture production;

□ 15. Construction;

□ 16. Transport and warehousing; □ 17. Lodging, food and drink; □ 18. Education and training; □ 19. Healthcare and social assistance; □ 20. Real estate trading; □ 21. Employment services; □ 22. Travel agencies, tourism services and auxiliary tourism services;

□ 23. Composing, art and entertainment; □ 24. Library, archive, museum operation and other artistic activities; □ 25. Sports and entertainment;

□ 26. Cinema;

□ 27. Manufacture of prioritized ancillary industry products;

□ 28. Manufacture of key mechanical products;

□ 29. Credit institution/Foreign Bank Branch;

□ 30. Publishing; □ 31. cinematography and production of TV programs, music recording and publishing;

□ 32.  Radio and television broadcasting;

□ 33. Computer programming, counseling services and other computer-related services; □ 34. information service provision;

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

□ 36. Mineral extraction auxiliary services;

□ 37. Beverage production;

□ 38. Printing, replicating recordings;

□ 39. Production of coke, refined petroleum products;

□ 40. Manufacture of chemicals and chemical products;

□ 41. Manufacture of products from precast metals (except machinery and equipment);

□ 42. Manufacture of motorcycles;

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

□ 44. Water drainage and wastewater treatment.

I hereby declare that I am legally responsible for the truthfulness of information provided herein and that I will fully pay tax by the deferred deadline.

Notes:

- I: The taxpayer decides according to the Law No. 04/2017/QH14 on Assistance for Medium and Small Enterprises and the Government’s Decree No. 39/2018/ND-CP elaborating the Law on Assistance for Medium and Small Enterprises.

- II: The taxpayer decides according to the Prime Minister’s Decision No. 27/2018/QD-TTg dated 06/7/2018; the Government’s Decree No. 111/2015/ND-CP; the Prime Minister’s Decision No. 319/QD-TTg dated 15/3/2018; the list of credit institutions and FBBs published by SBV.

- The application shall include all payments of tax and land rent deferred. Only 01 application shall be submitted to supervisory tax authority:

+ Electronically on the tax authority’s portal.

+ In person at the tax authority or by post.