In order to support businesses affected by COVID 19, the Government has continuously issued many new policies, following the general policies issued from March 2020 onwards, VIVA would like to update the regulations on tax deferral including value-added tax, corporate income tax, personal income tax, and land rent is effective from the beginning of April 2020:
THERE ARE 05 GROUP OF TAXPAYERS ENTITLED TO APPLY THIS TAX DEFERRAL
Group 1: Taxpayers that are manufacturers in the following business lines:
- Agriculture, forestry, aquaculture;
- 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;
- Construction.
Group 2: Taxpayers that operate in the following business lines:
- Transport and warehousing; accommodation, food, and drink; education and training; healthcare and social assistance; real estate trading;
- Employment services; travel agencies, tourism services, and auxiliary tourism services;
- Composing, art and entertainment; library, archive, museum operation and other artistic activities; sports and entertainment; cinemas.
Group 3: Taxpayers that are manufacturers of prioritized ancillary industry products or key mechanical products.
Group 4: Small enterprises and microenterprises
Group 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.
POSTPONE PAYMENT OF TAXES INCURRED FROM APRIL 2020
Officially deferral the deadline for paying value-added tax, corporate income tax, personal income tax and land rent from early April 2020. This deferral of tax payment deadline is one of a series of decisions of The government that aims to energize businesses from the influence of COVID 19.
TAX DEFERRAL OF VAT
Deferral for 05 months from the deadlines for VAT incurred by the enterprises and organizations. 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. Deferred deadlines:
- Deadline for payment of VAT incurred in March 2020 is deferred to September 20, 2020.
- Deadline for payment of VAT incurred in April 2020 is deferred to October 20, 2020.
- Deadline for payment of VAT incurred in May 2020 is deferred to November 20, 2020.
- Deadline for payment of VAT incurred in June 2020 is deferred to December 20, 2020.
- Deadline for payment of VAT incurred in the first quarter of 2020 is deferred to September 30, 2020.
- Deadline for payment of VAT incurred in the second quarter of 2020 is deferred to December 30, 2020.
The deferral is applied for branch or affiliated unit that declares VAT separately to its supervisory tax authority.
TAX DEFERRAL OF CORPORATE INCOME TAX (CIT)
- Deferred for 05 months from the deadline for CIT payment declared in the 2019’s annual statement and CIT declared in the first and second quarters of 2020 by organizations and enterprises.
- In case an enterprise or organization has already paid the CIT declared in the 2019’s annual statement, it may offset the paid CIT against other unpaid taxes.
- The deferral is applied for branch or affiliated unit that declares CIT separately to its supervisory tax authority.
VAT AND PERSONAL INCOME TAX (PIT) OF HOUSEHOLD AND INDIVIDUAL BUSINESSES
- The deadline for paying VAT and CIT incurred in 2020 of household and individual businesses is deferred to December 31, 2020.
LAND RENTS
- Deferred for 05 months to deadline, May 31, 2020, at the earliest, for an annual payment of rents that are due at the beginning of 2020 for direct lease of land by the State to the taxpayers under decisions or contracts of competent authorities.
- This also applies in case a taxpayer is leasing land from the State under more than one decision or contract and operates multiple business lines.
This deferral policy is applicable to specific business and business lines, please refer to our “There are 05 groups of taxpayers who entitled to deferral of tax” or contact with our specialists for practice cases.
VIVA will make every effort to join hands with the CEOs and the business community, spread the strength, overcome spirit and be ready to return strongly when the COVID-19 epidemic is over.
VIVA understands that the enterprises and CEOs are facing great challenges ahead, hand in hand together, we are ready to and free of charge to provide detailed information related to conditions and procedures to support you to apply these policies in the proper and efficient manner.
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- Criteria For Determining SMEs In Vietnam For Applying Preferential Policies From Government
