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Official Letter No. 1307/TCT-CS on extend the deadline to pay tax and land lease

On 27^th March 2020, the General Department of Taxation issued OL 1307 with the following contents:

On 26^th March 2020, The Minister of Finance signed the Government’s report No. 3540/TTr-BTC on the Decree to extend the deadline to pay tax and land lease. The Decree guidelines for extension of payment Value added tax, Corporate income tax, Personal income tax, and land lease.

Specifically, the draft Decree has main content as followings:

Article 2. Subjects of application

1. The enterprises, organizations, households, and individuals engaging in production activities as follows:

– Agriculture, forestry, aquaculture, and related service activities;

– Manufacture of food products; manufacture of textiles; manufacture of wearing apparel; manufacture of footwear; manufacture of rubber products; manufacture of electronic, computer and optical products; manufacture of motor vehicles  (except car smaller than 9-seats).

2. The enterprises, organizations, households, and individuals engaging in business activities as follows:

– Transport via railways; transport via bus and other land transport; water transport; air transport; warehousing and support activities for transportation;

–  Accommodation and hotel; food service activities;

–  Travel agency, tour operator and related service activities;

–  Education and training; health and social work activities;

–  Creative, arts and entertainment activities; sports activities; botanical and zoological gardens and nature reserves activities; activities of amusement parks and theme parks; motion picture projection activities.

The list of economic mentioned in Clauses 1 and 2 of this Article is defined in accordance with Decision No. 27/2018/QĐ-TTg dated 06 July 2018 on promulgating Vietnam standard industrial classification, issued by the Prime Minister.

3. Small and medium-sized enterprises are defined in accordance with the Law on assistance for small and medium-sized enterprises law No. 04/2017/QH14.

Article 3. Extend the deadline to pay tax and land lease

–  Value-added tax (“VAT”) (except import VAT)

The time limit for VAT amount arising in the tax period of March, April, May and June 2020 (if tax is declared monthly) or the period of  Q1 2020 and Q2 2020 (if tax is declared quarterly) is extended.

Deadline extension: 05 months from the previous deadline.

– Corporate income tax (“CIT”)

The time limit for the remaining CIT amount according to 2019 CIT finalization and CIT amount arising in the tax period of 1Q 2020 and 2Q 2020 is extended.

Deadline extension: 05 months from the previous deadline.

– Households and individuals pay Value added tax (“VAT”) and Personal income tax (“PIT”) for the year 2020 before 15 December 2020.

– Land lease

The time limit for land lease arising in the first period in 2020 of enterprises, organizations, households, and individuals that leased land from the State directly under the decisions and contracts of State agencies for production and business purposes are specified in Clause 1 and Clause 2, Article 2 of this Decree is extended.

Particularly for small and medium-sized enterprises as Clause 3, Article 2 of this Decree is extended the whole land lease arising in the first period in 2020.

Deadline extension: 05 months from 31 May 2020.

Official Letter No. 1306/TCT-DNNCN to enforce the support for individuals finalizing personal income tax (PIT) with the tax office

On 11 March 2020, The Prime Minister issued Direction No. 13/CT-TTg about strengthening the COVID-19 epidemic prevention. Following this Direction, the General Department of Taxation issued OL 1306 which requests the local tax offices:

– For the individuals who directly finalize PIT of the year 2019 with the tax office and have PIT payable according to PIT finalization return, the individuals shall prepare and send the tax return to the e-tax portal of the General Department of Taxation (24/7 support). The date to record the completion of tax return submission is the date that the e-tax portal accepted the PIT finalization return. The tax office, when receiving the dossier via post, reconciles the dossier with PIT return submitted via the portal and process the dossier, according to the current regulations.

– According to Clause 4, Article 28, Circular No. 111/2013/TT-BTC dated 15 August 2013 by the Ministry of Finance: In case the individual has the PIT refund but submits PIT finalization return late, the individual will not be imposed the penalty for his/her late PIT finalization declaration. Hence, for individuals who finalize PIT directly with the tax office, and have PIT refund, the individuals can submit PIT finalization dossier for 2019 after 30 March 2020.

– The General Department of Taxation requests the Local Tax office to send the tax notice to the authority offices, local businesses and promote this policy in all means of media to notify and encourage PIT finalization dossier submission via e-tax portal of the General Department of Taxation, according to current PIT policies.

– In case there are any problems during the implementation of this OL, the Local Tax office can inform the General Department of Taxation for further instruction.