Decree 34/2022/ND-CP on extension of deadlines for payment of value-added tax, enterprise income tax, personal income tax and land rental in 2022

DECREE

On extension of time limits for payment of value-added tax, enterprise income tax, personal income tax and land rental in 2022^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of the Local Administration;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the National Assembly’s Resolution No. 43/2022/QH15 of January 11, 2022, on fiscal and monetary policies in support of the socio-economic rehabilitation and development program;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on extension of time limits for payment of value-added tax, enterprise income tax, personal income tax, and land rental in 2022.

Article 1. Scope of regulation

This Decree provides the extension of time limits for payment of value-added tax (VAT), enterprise income tax (EIT), personal income tax (PIT), and land rental.

Article 2. Subjects of application

Subjects of application of this Decree include: taxpayers; tax administration offices; tax administration officials; state agencies; and related organizations and individuals.

Article 3. Subjects entitled to extension

1. Enterprises, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:

a/ Agriculture, forestry and fisheries;

b/ Food production or processing; textile; production of attire; production of leather products and related products; timber processing and production of timber and bamboo products (except beds, wardrobes, tables and chairs); production of products from straw, thatch and plaiting materials; production of paper and paper products; production of rubber and plastics products; production of products from other non-metallic minerals; production of metals; mechanical processing; metal treatment and coating; manufacturing of electronic products, computers and optical products; manufacturing of automobiles and other motor vehicles; production of beds, wardrobes, tables and chairs;

c/ Construction;

d/ Publication; cinematography, production of television programs, and sound recording and music publication;

dd/ Exploitation of crude oil and natural gas (except EIT on crude oil, condensate and natural gas which shall be collected under treaties or contracts);

 e/ Beverage production; printing and reproduction of recordings of all types; production of coke and refined petroleum products; production of chemicals and chemical products; manufacturing of products from precast metals (except machinery and equipment); manufacturing of motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;

g/ Water drainage and wastewater treatment.

2. Enterprises, organizations, households, business households and individuals conducting business activities in the following economic sectors:

a/ Transportation and warehousing; accommodation and catering services; education and training; health and social relief activities; real estate business;

b/ Labor and employment services; travel agency and tour operation and services auxiliary or related to tour promotion and organization;

c/ Creation, arts and recreation; library, archive, museum and other cultural activities; sports, entertainment and recreation activities; film projection;

d/ Radio and television broadcasting; computer programming, counseling services and other computer-related services; and information provision services;

dd/ Auxiliary services for mining.

The lists of economic sectors specified in Clauses 1 and 2 of this Article must comply with the Prime Minister’s Decision No. 27/2018/QD-TTg of July 6, 2018, promulgating Vietnam’s system of economic sectors.

The economic sectors specified in Appendix I to Decision No. 27/2018/QD-TTg shall be divided into 5 grades and determined on the following principles: In case an economic sector specified in Clause 1 or 2 of this Article is a grade-1 sector, the extension of tax payment time limits shall apply to all grade-2, grade-3, grade-4 and grade-5 economic sub-sectors of such grade-1 sector; in case the economic sector is a grade-2 sector, the extension of tax payment time limits shall apply to all grade-3, grade-4 and grade-5 economic sub-sectors of such grade-2 sector; in case the economic sector is a grade-3 sector, the extension of tax payment time limits shall apply to all grade-4 and grade-5 economic sub-sectors of such grade-3 sector; in case the economic sector is a grade-4  sector, the extension of tax payment time limits shall apply to all grade-5 economic sub-sectors of such grade-4 sector.

3. Enterprises, organizations, households, business households and individuals engaged in production of supporting industry products prioritized for development and key mechanical products.

Supporting industry products prioritized for development shall be determined under the Government’s Decree No. 111/2015/ND-CP of November 3, 2015, on development of supporting industries; key mechanical products shall be determined under the Prime Minister’s Decision No. 319/QD-TTg of March 15, 2018, approving the Strategy for development of Vietnam’s mechanical engineering sector through 2025, with a vision toward 2035.

4. Small- and micro-sized enterprises shall be determined in accordance with the 2017 Law on Support for Small- and Medium-Sized Enterprises and the Government’s Decree No. 80/2021/ND-CP of August 26, 2021, detailing a number of articles of the Law on Support for Small- and Medium-Sized Enterprises.

5. Credit institutions and foreign bank branches shall take solutions to support clients being enterprises, organizations and individuals affected by the Covid-19 pandemic under regulations of the State Bank of Vietnam.

The economic sector or field of an enterprise, organization, household, business household or individual specified in Clause 1, 2 or 3 of this Article is the sector or field in which such enterprise, organization, household, business household or individual carries out production or business activities and generates revenues in 2021 or 2022.

Article 4. Extension of time limits for tax and land rental payment

1. For VAT (except VAT at the import stage)

a/ To extend the time limit for payment of payable VAT amounts (including also VAT amounts distributed to provinces or centrally run cities other than those where taxpayers’ head offices are located and VAT amounts paid upon each time the tax liability arises) of the tax period from March thru August 2022 (in case of making monthly tax declarations) and tax periods of the first and second quarters of 2022 (in case of making quarterly tax declarations) of the enterprises and organizations specified in Article 3 of this Decree. The extension duration is 6 months for VAT amounts arising in the tax period from March thru May 2022, and the tax period of the first quarter of 2022, 5 months for VAT amounts arising in June 2022, and the tax period of the second quarter of 2022, 4 months for VAT amounts arising in July 2022, and 3 months for VAT amounts arising in August 2022. The extension duration mentioned at this Point shall be counted from the deadline for VAT payment specified in the law on tax administration.

In case a taxpayer makes an additional declaration in its tax declaration dossier for a tax period which is entitled to extension of the tax payment time limit and sends it to the tax office before the extended tax payment time limit expires, the tax amount eligible for the payment time limit extension is also inclusive of the additional payable tax amount arising as a result of the additional declaration.

Enterprises and organizations entitled to tax payment time limit extension shall make and submit monthly or quarterly VAT declarations in accordance with current regulations but are still not required to pay their payable VAT amounts stated in their filled-in VAT declarations. The deadlines for payment of VAT amounts of months and quarters eligible for tax payment time limit extension are as follows:

- The deadline for payment of VAT for the tax period of March 2022 is October 20, 2022.

- The deadline for payment of VAT for the tax period of April 2022 is November 20, 2022.

- The deadline for payment of VAT for the tax period of May 2022 is December 20, 2022.

- The deadline for payment of VAT for the tax period of June 2022 is December 20, 2022.

- The deadline for payment of VAT for the tax period of July 2022 is December 20, 2022.

- The deadline for payment of VAT for the tax period of August 2022 is December 20, 2022.

- The deadline for payment of VAT for the tax period of the first quarter of 2022 is October 30, 2022.

- The deadline for payment of VAT for the tax period of the second quarter of 2022 is December 31, 2022.

b/ In case an enterprise or organization specified in Article 3 of this Decree has branches or affiliated units that make separate VAT declarations with their managing tax offices, such branches or affiliated units will be entitled to VAT payment time limit extension. In case braches or affiliated units of an enterprise or organization specified in Clause 1, 2 or 3, Article 3 of this Decree do not carry out production or business activities in the economic sectors and fields eligible for tax payment time limit extension, such branches or affiliated units will not be entitled to VAT payment time limit extension.

2. For EIT

a/ To extend time limits for payment of EIT amounts to be temporarily paid for tax periods of the first and second quarters of 2022 of the enterprises and organizations specified in Article 3 of this Decree. The extension duration is 3 months from the deadline for EIT payment specified in the law on tax administration.

b/ In case an enterprise or organization specified in Article 3 of this Decree has branches or affiliated units that make separate EIT declarations with their managing tax offices, such branches or affiliated units will be entitled to EIT payment time limit extension. In case branches or affiliated units of an enterprise or organization specified in Clause 1, 2 or 3, Article 3 of this Decree do not carry out production or business activities in the economic sectors and fields eligible for tax payment time limit extension, such branches or affiliated units will not be entitled to EIT payment time limit extension.

3. For VAT and PIT of business households and individuals

To extend time limits for payment of payable VAT and PIT amounts of 2022 of business households and individuals operating in the economic sectors and fields specified in Clauses 1, 2 and 3, Article 3 of this Decree. Business households and individuals shall pay tax amounts eligible for the payment time limit extension under this Clause not later than December 31, 2022.

4. For land rental

To extend time limits for payment of half of payable land rental amounts of 2022 for enterprises, organizations, households, business households and individuals specified in Article 3 of this Decree and leased land directly by the State under decisions of or contracts signed with competent state agencies in the form of land lease with annual payment of land rental. The extension duration is 6 months counting from May 31, 2022, through November 30, 2022.

This provision also applies to enterprises, organizations, households, business households and individuals that are leased land directly by the State under more than one decision or contract and carry out production and business activities in different sectors and fields, including those specified in Clauses 1, 2, 3 and 5, Article 3 of this Decree.

5. For enterprises, organizations, business households and individuals that operate in different economic sectors and fields, including those specified in Clauses 1, 2, 3 and 5, Article 3 of this Decree, enterprises and organizations will be entitled to extension of time limits for payment of their whole payable VAT and EIT amounts, while business households and individuals will be entitled to extension of time limits for payment of their whole payable VAT and PIT amounts under guidance of this Decree.

6. In case the last day of the tax payment extension duration falls on a law-specified public holiday, then new tax payment deadline will be the working day following such public holiday.

Article 5. Order and procedures for tax payment time limit extension

1. Taxpayers that directly declare and pay taxes to tax offices and are entitled to tax payment time limit extension shall submit a written request for tax and land rental payment time limit extension (below referred to as written request for payment time limit extension) for the first time or a revised one if detecting any errors, made according to the form provided in the Appendix to this Decree, to their managing tax offices (sending by electronic means or hand delivery or by post) once for all tax periods and for taxes of all types and land rental eligible for payment time limit extension upon submission of monthly (or quarterly) tax declaration dossiers in accordance with the law on tax administration. In case a taxpayer fails to submit concurrently a written request for payment time limit extension and a monthly (or quarterly) tax declaration dossier, it/he/she shall submit such request no later than September 30, 2022, and the tax administration offices shall still extend time limits for tax and land rental payment for payment periods preceding the time of submission of such written request.

In case a taxpayer’s payable tax amounts eligible for payment time limit extension arise in different areas under the management by different tax offices, the taxpayer’s managing tax office shall transmit information and send the taxpayer’s written request for payment time limit extension to the related tax office.

2. Taxpayers shall determine by themselves and take responsibility for their requests for extension of time limits for tax and land rental payment, ensuring their eligibility under this Decree. If a taxpayer submits a written request for payment time limit extension to a tax office after September 30, 2022, it/he/she are not entitled to tax and land rental payment time limit extension under this Decree.

3. Tax offices are not required to notify taxpayers of the acceptance of requests for tax and land rental payment time limit extension. In the extension duration, if a tax office has grounds to believe that a taxpayer is ineligible for extension, it shall notify in writing the taxpayer of refusal of extension and the taxpayer shall fully remit into the state budget the payable tax and land rental amounts and late-payment interests for the actual extension duration. In case the extension duration has expired and a competent state agency, through inspection and examination, detects that a taxpayer is ineligible for tax and land rental payment time limit extension under this Decree, the taxpayer shall fully remit into the state budget deficit tax, fines and late-payment interest amounts.

4. In the extension duration, tax offices shall not calculate late-payment interests on tax and land rental amounts eligible for payment time limit extension (even where taxpayers submit written requests for payment time limit extension to tax offices after having submitted their tax declaration dossiers as specified in Clause 1 of this Article, and where competent agencies, through inspection and examination, detect an increase in  taxpayers’  payable tax amounts for tax periods eligible for payment time limit extension). In case tax offices have paid late-payment interests (if any) for tax dossiers eligible for payment time limit extension under this Decree, tax offices shall adjust or no longer calculate late-payment interests.

5. Owners of capital construction works and works items built with state budget funds or payments from the state budget for capital construction works under VAT-liable ODA-funded projects shall, when carrying out procedures for making payments with the State Treasury, submit notices of tax offices’ receipt of work construction contractors’ requests for tax and land rental payment time limit extension or work construction contractors’ requests for tax and land rental payment time limit extension bearing certification of successful submission to tax offices. Based on dossiers sent by project owners, the State Treasury shall postpone the VAT deduction in the extension duration. When the extension duration expires, contractors shall fully pay tax amounts eligible for payment time limit extension to tax offices under regulations.

Article 6. Organization of implementation and effect

1. This Decree takes effect from the date of its signing through December 31, 2022.

2. After the extension duration mentioned in this Decree, tax and land rental payment time limits must comply with current regulations.

3. The Ministry of Finance shall direct, organize, and settle problems arising in the course of, implementation of this Decree.

4. The State Bank of Vietnam shall announce the list of credit institutions and foreign bank branches providing support for clients for tax administration offices to extend tax and land rental payment time limits under Clause 5, Article 3 of this Decree.

5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related enterprises, organizations, households, business households, and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The Appendix to this Decree is not translated.