Decree No. 52/2021/ND-CP on extension of time limits for payment of value added tax corporate income tax in 2021

DECREE

On extension of time limits for payment of value-added tax, enterprise income tax, personal income tax, and land rental in 2021^[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;

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 2021.

Article 1. Scope of regulation

This Decree prescribes 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

This Decree applies to:

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

a/ Agriculture, forestry and fisheries;

b/ Foodstuff production or processing; textile; production of wearing apparel; production of leather and related products; timber processing and production of products from timber, bamboo, and Neohouzeaua (except beds, wardrobes, tables and chairs); production of products from straw, thatch and plaiting materials; production of paper and paper products; production of products from rubber and plastics; production of products from other non-metallic minerals; metal production; mechanical processing; 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;

c/ Construction;

d/ Publishing; cinematography, production of television programs, and music recording and publishing;

dd/ Exploitation of crude oil and natural gas (except EIT on crude oil, condensate, and natural gas 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; manufacture of products from precast metals (except machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;

g/ Water drainage and wastewater treatment.

2. Enterprises, organizations, 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 assistance 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 operations, archives, museums and other cultural activities; sports, entertainment and recreation; cinema;

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 the system of Vietnam’s economic sectors.

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

3. Enterprises, organizations, 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 according to the Government’s Decree No. 111/2015/ND-CP of November 3, 2015, on development of supporting industries; key mechanical products shall be determined according to 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 Law No. 04/2017/QH14 on Support for Small- and Medium-Sized Enterprises and the Government’s Decree No. 39/2018/ND-CP of March 11, 2018, 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 according regulations of the State Bank of Vietnam.

The economic sector or field of an enterprise, organization, or a business household or individual specified in Clause 1, 2 or 3 of this Article is the sector or field in which such enterprise, organization, business household or individual conducts production or business activities and generates revenues in 2020 or 2021.

Article 3. 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 the payable VAT amount (including also the VAT amounts distributed to provincial-level localities other than the locality where the taxpayer’s head office is located and VAT amounts paid upon arising of each tax liability) of the tax periods from March thru August 2021 (in case of making monthly tax declaration) and the tax periods of the first and second quarters of 2021 (in case of making quarterly tax declaration) of the enterprises and organizations specified in Article 2 of this Decree. The extension duration is 5 months for the VAT amounts arising in the tax periods from March thru June 2021, and the tax periods of the first and second quarters of 2021, 4 months for the VAT amount arising in July 2021, and 3 months for the VAT amount arising in August 2021. The extension duration mentioned at this Point shall be counted from the deadline for VAT payment prescribed by the law on tax administration.

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

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

- The deadline for payment of VAT for the tax period of March 2021 is September 20, 2021.

- The deadline for payment of VAT for the tax period of April 2021 is October 20, 2021.

- The deadline for payment of VAT for the tax period of May 2021 is November 20, 2021.

- The deadline for payment of VAT for the tax period of June 2021 is December 20, 2021.

- The deadline for payment of VAT for the tax period of July 2021 is December 20, 2021.

- The deadline for payment of VAT for the tax period of August 2021 is December 20, 2021.

- The deadline for payment of VAT for the tax period of the first quarter of 2021 is September 30, 2021.

- The deadline for payment of VAT for the tax period of the second quarter of 2021 is December 31, 2021.

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

2. For EIT

a/ To extend the time limits for payment of the temporarily paid EIT amounts for the tax periods of the first and second quarters of 2021 of the enterprises and organizations specified in Article 2 of this Decree. The extension duration is 3 months from the deadline for EIT payment prescribed by the law on tax administration.

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

3. For VAT and PIT of business households and individuals

To extend the time limits for payment of payable VAT and PIT amounts of 2021 of business households and individuals operating in the economic sectors and fields specified in Clauses 1, 2 and 3, Article 2 of this Decree. Business households and individuals shall pay the tax amounts eligible for extension of the payment time limits under this Clause by December 31, 2021, at the latest.

4. For land rental

To extend the time limits for payment of the payable land rental amounts of the first period of 2021 for the enterprises, organizations, business households, and individuals specified in Article 2 of this Decree and leased land directly by the State under decisions of and 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, 2021.

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

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

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

Article 4. Order and procedures for extension of tax payment time limits

1. Taxpayers that directly declare and pay taxes to tax offices and are entitled to extension of tax payment time limits shall submit a request for extension of time limits for tax and land rental payment or a substitute one if detecting any errors in the first-time request, made according to the form provided in the Appendix to this Decree, to their managing tax offices (sending requests by electronic means or hand-delivering or sending paper requests by post) once for all tax periods and for taxes of all types and land rental eligible for extension of payment time limits when submitting monthly (or quarterly) tax declaration dossiers in accordance with the law on tax administration. In case a taxpayer does not submit concurrently a request for extension of time limits for tax and land rental payment and the monthly (or quarterly) tax declaration dossier, it/he/she shall submit the request no later than July 30, 2021, and the concerned tax administration office shall still extend the time limits for tax and land rental payment of the periods preceding the time of submission of the request for extension, which are eligible for extension of payment time limits.

In case a taxpayer’s payable tax and land rental amounts eligible for extension of payment time limits are in different areas under the management by different tax offices, the taxpayer’s managing tax office shall transmit information about taxpayer’s request for extension of time limits for tax and land rental payment to the related tax office.

To be entitled to extension of time limits for tax and land rental payment according to this Decree, a taxpayer shall pay all payable tax and land rental amounts eligible for extension of payment time limits under Decree No. 41/2020/ND-CP, and corresponding late-payment interests (if any) to the state budget before July 30, 2021.

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 status as prescribed in this Decree. If a taxpayer submits a request for extension of time limits for tax and land rental payment to a tax office after July 30, 2021, it/he/she will not be entitled to extension of time limits for tax and land rental payment according to this Decree.

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

4. In the extension duration, tax offices shall not calculate late-payment interests on tax and land rental amounts eligible for extension of payment time limits (including also cases in which taxpayers submit requests for extension of payment time limits to tax offices after having submitted their monthly (or quarterly) tax declaration dossiers, and cases in which competent agencies, through inspection and examination, detect an increase in  taxpayers’  payable tax amounts of the tax periods eligible for extension of payment time limits).

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 a notice of tax offices’ receipt of the work construction contractors’ requests for extension of time limits for tax and land rental payment, or the work construction contractors’ requests for extension of time limits for tax and land rental payment bearing the certification of successful submission to tax offices. Based on the dossiers sent by project owners, the State Treasury shall postpone the credit of VAT in the extension duration. When the extension duration expires, the contractors shall fully pay the tax amounts eligible for extension of payment time limits to the tax offices according to regulations.

6. Tax offices shall postpone the implementation of the enforcement measures specified at Points d, dd, e and g, Clause 1, Article 125 of Law No. 38/2019/QH14 on Tax Administration, regarding tax arrears of taxpayers entitled to extension of payment time limits according to this Decree. The enforcement postponement period shall be counted from the date of promulgation of this Decree thru December 31, 2021.

Article 5. Organization of implementation and effect

1. This Decree takes effect on the date of its signing.

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

3. 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 time limits for tax and land rental payment under Clause 5, Article 2 of this Decree.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related enterprises, organizations, 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.