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- 05 / 05 / 2020 -
Deadline for tax payment extension

On April 8th , 2020, the Government issued Decree No. 41/2020/ND-CP stipulating the deadline for tax payment and land rent extension. This Decree takes effect from the date of signing.
In this Decree, there are provisions on subjects entitled to tax payment extension and extension. For individuals and businesses that have been subject to extension, one of the items that individuals and businesses are most interested in during the Covid – 19 period is probably the tax payment extension. Pursuant to Article 3 of Decree 41/2020/ND-CP stipulating the deadline for tax payment extension, specifically as follows:
1. VAT (except VAT paid upon importation of goods)
a) VAT incurred by the enterprises and organizations mentioned in Article 2 of this Decree during March, April, May, June of 2020 (for taxpayers declaring tax monthly), first and second quarter of 2020 (for taxpayers declaring tax quarterly) may be deferred for 05 months from the deadlines for VAT payment prescribed by tax administration laws.
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.
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. The branches and units of the enterprises and organizations does not have production and business activities in the extended economic sector the branch or affiliated unit shall not be eligible for VAT deferral if none of their business lines is eligible for deferral.
2. Corporate income tax (CIT)
a) CIT declared in the 2019’s annual statement and CIT declared in the first and second quarters of 2020 by organizations and enterprises subject to tax payment extension will be deferred for 05 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. The branches and units of the enterprises and organizations subject to tax payment extension shall not be eligible for CIT deferral if none of their business lines is eligible for deferral.
3. 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 in the business lines subject to tax payment extension is deferred to December 31, 2020.