To ease burdens of Covid-19 on people and enterprises, on 8 April, 2020, the Government issued Decree No. 41/2020/ND-CP on extension for payment of tax and land rental fee (“Decree 41/2020”).
Accordingly, as of 8 April, 2020, enterprises, individuals and households are permitted to extend the payment deadlines of corporate income tax (CIT), personal income tax (PIT), value added tax (VAT) and land rental fee as follows:
1. The eligible taxpayers for tax and land lease payment extension:
The Decree 41/2020 applies to enterprises, individuals and household businesses engaging in the following areas:
- Agriculture, manufacturing and construction:
- Agriculture, forestry and fishery;
- Food manufacturing and processing; weaving; garment manufacturing; production of leather and related products; wood processing and related products made of wood, bamboo of various species (except for beds, wardrobes, tables, chairs); production of straw and plaiting materials; production of paper and related products; production of rubber and plastics products; production of other non-metallic mineral products; production of basic metals; mechanical processing; metals handling and coating; manufacturing of electronic products, computers and optical products; manufacturing of automobiles and other motor vehicles; production of beds, wardrobes, tables, chairs;
- Transportation and warehousing, accommodation and food and beverage, education and training, health services and social support activities; real estate business;
- Labor and employment services; activities of travel agencies, tour operators and support services in relation to advertising and organizing tours;
- Creative, artistic or entertainment activities; libraries, conservation, museums and other cultural activities; sports, recreation activities; cinemas.
- Production of prioritized supporting industrial products; key mechanical products;
- Small and micro enterprise;
- Credit institutions, branches of foreign banks providing support to customers affected by the Covid-19 pandemic.
2. Extension of deadline to pay taxes and land rental fee:
- VAT payment deadlines (apart from VAT upon import) have been extended by five months from the statutory deadlines for the tax period of March, April, May and June of 2020 and for the first and second quarters of 2020;
- As to CIT, the deadlines for due payment of CIT, which is calculated on the remaining sums of 2019 and provisional CIT payments due for Quarter 1 and Quarter 2 of 2020, are extended to five months from the respective statutory deadlines for in-scope companies;
- As to VAT and PIT of individuals and business households payable in 2020, the deadline to pay the aforesaid taxes is 31 December, 2020;
- Besides, the Government also extends the deadlines of land rental fee by five months from 31 May, 2020 regarding the payable land rental fee in the first period of 2020.
The eligible taxpayers shall send a written request to extend payment deadlines of tax and land rental fee by the statutory means of electronic or others, together with the tax declaration dossier on a quarterly (or monthly) to the tax authority. Should the request not be submitted together with the tax declaration dossier on a quarterly (or monthly) basis, the deadline for submission such written request is 30 July, 2020.
Decree 41/2020 took effects from the day on which it is signed, as of 8 April, 2020.