Extension of payment deadline for VAT, CIT, PIT, and land rental in 2022.

On 28 May 2022, the Government released the Decree 34/2022/ND-CP (Decree 34) on payment deadline extension for Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), and land rental in 2022. This belongs to one of the financial and monetary policies supporting social-economic recovery and development mentioned in Resolutions 11/NQ-CP and 43/2022/QH15.

Who are subject to the extension?

1. Manufacturing businesses for selected sectors as below:
   • Agriculture, forestry, and fisheries
   • Food production and processing, weaving, clothing production, production of leather and related products, wood processing and manufacture of products made from wood and bamboo, production of products from straw and plaiting materials, manufacture of paper and paper-related products, manufacture of products from rubber, plastic, and other non-metal minerals, metal production, mechanical, metal treatment and coating, manufacture of electronic products, computers, and optical products, manufacture of automobiles and other motor vehicles, production of beds, wardrobes, tables, and chairs
   • Construction
   • Publishing activities, cinematographic activities, television program production, music recording, and publishing
   • Extraction of crude oil and natural gas (with no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts
   • Beverage production, printing, copying records of all kinds, production of coke coal, refined petroleum products; chemical production and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); motorbike manufacture, repair, maintenance, and installation of machines and equipment
   • Drainage and wastewater treatment.
2. Service businesses:
   • Transportation and warehousing, accommodation and catering services, education and training, medical and social assistance activities, real estate business
   • Labour and employment services, travel agents, tour operators, and support services related to tour promotion and organisation
   • Creative, artistic, and entertainment activities, activities of libraries, archives, museums, and other cultural activities, sports activities, entertainment, film projection activities
   • Radio and television activities, computer programming, consulting services and other activities related to computers, information service activities
   • Mining support services
3. Businesses engaging in the production of supporting industrial products are prioritised for development and other key mechanical products
4. Small and micro businesses are defined by regulations of the Law on Supporting Small and Medium Enterprises
5. Credit institutions and foreign bank branches implement solutions to support customers being enterprises, organisations, and individuals affected by the Covid-19 following the regulations of the State Bank of Vietnam

How do deadlines extend?

VAT (except VAT at the import stage) and CIT for enterprises

VAT payment deadline for March, April, and May 2022 (for companies declaring VAT monthly) and Quarter 1 of 2022 (for companies declaring VAT quarterly) will be extended by 6 months. Payments for June 2022 and Quarter 2 of 2022 will be extended by 5 months, and for July and August 2022 will be extended by 4 months and 3 months, respectively.

The deadline for provisional CIT payment for Quarter 1 and Quarter 2 of 2022 will be extended by 3 months from the statutory deadlines.

In particular:

VAT (except VAT at the import stage) and PIT for individuals and business households

The payment deadline for VAT and PIT in 2022 will be extended to 30 December 2022.

Land rental

50% of the arising land rental payable in 2022 of enterprises, organisations, households, business households, and individuals that are eligible under Decree 34 are entitled to payment extension by 6 months from 31 May 2022 to 30 November 2022.

What are the procedures for extension application?

Eligible taxpayers under Decree 34 are to follow the following procedures to register for the payment extension for taxes and land rental:

• Submit the extension request following the form in the Appendix issued with Decree 34 once for the total tax and land rental arising in the tax period that is extended along with the monthly (or quarterly) tax return or separately by 30 September 2022 directly or online to the tax management authority.
• The tax authority is not required to notify taxpayers of the acceptance of their request for payment extension of taxes and land rental. During the extension period, if the tax authority identifies businesses that are not eligible for the extension, the tax authority would send a written notice to that business on the ineligibility for the extension. The taxpayer must pay tax and land rental and late payment interest during the extension period.
• No late payment interest will be charged for the extended tax and land rental amount within the extended payment period.

Contact our teams for expert support and further information on managing corporate compliance in Vietnam.

Thao Do, Accounting Director | Email: thao.do@acclime.com
Matthew Lourey, Managing Partner | Email: m.lourey@acclime.com