In Resolution No. 45/NQ-CP following the Government’s working session after the consolidated 11th session of the XIV National Assembly, the Government agreed to issue a Decree on extending the tax payment deadline for land rental in 2021 as proposed by the Ministry of Finance based on the economic situation and difficulties caused by the Covid-19 pandemic. Accordingly, on April 19th 2021, the Government promulgated Decree No. 52/2021/ND-CP, stipulating the extension of the deadline for payment of VAT, corporate income tax, personal income tax, and land rental in 2021 for creating more favorable conditions for individuals and organizations involved in economic activities.

In this newsletter, PLF shall provide notable information about the subjects that are extended, the terms and procedure for extension as per this Degree.

Extended subjects include:

Enterprises, organizations, business households and individuals engaged in production activities in various economic sectors (in production and business activities revenue generation in 2020 or 2021) as follows:

No.	Economic sector	Details	Notes
1	Agriculture, forestry and fisheries	– Planting annual crops (rice, corn, sugarcane, tobacco…), planting perennial crops (fruit trees, oil-bearing fruit trees, cashews, pepper, coffee…), multiplication and care of agricultural seedlings (annual seedlings, perennial seedlings), livestock (raising buffaloes, cows, donkeys, horses, mules, goats, sheep, pigs, poultry and breeding buffaloes, cows, horses, donkeys, goats, sheep, deer, pigs, poultry breeds…) , mixed cultivation and husbandry, agricultural services (cultivation, animal husbandry…), hunting, trapping and related activities – Planting forests, taking care of forests and nurseries of forest trees, wood gathering, exploiting and collecting forest products other than timber, forestry service activities – Fishery exploitation, aquaculture (marine aquatic products, inland aquatic products)	To find out more about such sectors, please look up at Phụ lục I ban hành kèm theo Quyết định số 27/2018/QĐ-TTg
2	Industry, manufacturing, andprocessing	Food production and processing, weaving, production of costumes, manufacture of leather and related products, wood processing and production of products from wood, bamboo and cork (except for beds, cabinets, tables and chairs), production of products from straw and plaiting materials, production of paper and paper products, manufacturing products from rubber and plastic, manufacture of other non-metallic mineral products, metal production, mechanical, metal treatment and coating, manufacturing electronic products, computers and optical products, manufacture of automobiles and other motor vehicles, manufacture of beds, cabinets, tables and chairs, beverage production, print, copy records of all kinds, production of coke, refined petroleum products, manufacture of chemicals and chemical products, manufacture of products from pre-fabricated metal (except for machinery and equipment), manufacture of motorcycles and motorbikes, repair, maintenance and installation of machinery and equipment
3	Construction	Construction of houses of all kinds, construction of civil engineering structures and related works, specialized construction activities (demolition, site preparation, etc.)
4	Information and communication	Publishing activities, cinematographic activities, television program production, sound recording and music publishing, radio and television activities, computer programming, consultation services and other computer-related activities, and information services
5	Extractive	Exploiting crude oil and natural gas (without extension for corporate income tax on crude oil, condensate, natural gas collected under agreements or contracts), and extractive support service activities.
6	Waste and wastewater management and treatment activities	Drainage and wastewater treatment.
7	Warehousing transportation	Rail, road and pipeline transport, water transport, Air transport, warehousing and supporting activities for transportation, and postage and delivery.
8	Accommodation and catering services	Short-stay services, other accommodation (dormitory etc.), restaurants and mobile catering services, provisions of occasional contract catering and other food services, and services for drinks
9	Administrative activities and support services	Labor and employment service activities, activities of travel agencies, tour businesses and supporting services, related to the promotion and organization of tours
10	Art, play and entertainment	Creative, artistic and recreational activities, activities of libraries, archives, museums and other cultural activities, sports and entertainment activities, movie screening activities
11	Production of supporting industrial products which are prioritized for development	– Textile and garment industries – Leather and shoe industries – Electronics – Automotive manufacturing and assembling industry – Mechanical engineering industry – Supporting industrial products for high-tech industry	To find out more about such sectors, please look up at Phụ lục ban hành kèm theo Nghị định số 111/2015/NĐ-CP
12	Key mechanical products	– Types of propulsion equipment – Types of cars – Lifting equipment – Industrial plant equipment and electrical equipment – Tractors and agricultural machines – High-grade metal and composite products used in the aviation industry	To find out more about such sectors, please look up at Phụ lục ban hành kèm theo Quyết định số 319/QĐ-TTg

Small and micro enterprises.
Credit institutions, foreign bank branches implementing solutions to support customers who are businesses, organizations and individuals affected by the Covid-19 pandemic.

For value-added tax (“VAT”), including the tax amount allocated to other provincial-level localities where the taxpayer is headquartered and including the tax payable each time it is incurred, except for import, the extension period of the deadline is calculated from the end of the time limit for payment of VAT in accordance with the law on tax administration as follows:

05 months for the VAT amount from March to June (in case of monthly declaration) and the first quarter and second quarter (in case of quarterly declaration) in 2021
03 months for the VAT amount of August 2021.

The Government provided the latest deadline for VAT payment as follows:

No later than September 20, 2021 for the tax period of March 2021
No later than September 20, 2021 for the tax period of April 2021.
No later than September 20, 2021 for the tax period of May 2021.
No later than December 20, 2021 for the tax period of June, July, and August 2021.
No later than September 30, 2021 for the tax period of the first quarter of 2021.

No later than December 31, 2021 for the tax period of the second quarter of 2021.

Note: Subjects entitled to extension shall submit Value Added Tax Declaration according to current law, but the deadline for tax payment is extended as above.

For corporate income tax, the Government provides for an extension of 03 months from the end of the time limit for paying corporate income tax in accordance with the law on tax administration, and for temporarily paid corporate income tax amount of the first quarter and second quarter of 2021.

Notes on VAT and corporate income tax:

If the subjects entitled to the extension and have branches or affiliated units that make separate tax declarations to the tax authorities directly managing the branch, the extension will still be granted. However, if the branches and affiliated units (of enterprises and organizations operating in the lines from items 1 to 10 of the above table) do not operate in such industries, the extension will not be granted.
In addition, the subjects (except for small and micro enterprises) running production activities in many different economic sectors are entitled to a full extension of the tax amount.

For VAT and personal income tax of business households and individuals, the deadline for tax payment is extended to December 31, 2021 for business households and individuals operating in business occupations listed from items 1 to 10 of the above table.

For land rental, extension of 06 months from May 31, 2021 for the payable land rental for the first period of 2021 for subjects eligible for extension (including those running production activities and different businesses, except small and micro enterprises) who are using land leased directly by the State in the form of annual land rental payment.

So what procedures do businesses, organizations and individuals need to follow to get an extension of tax payment and land rental?

Submission of Dossier which includes: Request for extension of tax payment and land rent for all periods of tax and land rental being extended.
Mode: electronic, in person or by post.
Place of submission: Direct tax administration agency.
Time for submission: at the same time as submitting the monthly (quarterly) tax declaration as prescribed by law on tax administration or by July 30, 2021.

Note: Taxpayers must fully pay the tax and land rental for which extension has been provided for the tax period of 2020 and the corresponding late payment interest (if any) before July 30, 2021 to be eligible for extension of tax and land rental in 2021.

Writing time: May 31, 2021

This article is based on the current laws at the above recorded time and may no longer be relevant at the time readers access this article due to changes in applicable law and specific cases which the readers want to apply. Therefore, this article is for reference only.

Source: plf.vn