Continuance of the tax and land rental fee payment extension

07/06/2021

The Government has recently enacted Decree No. 52/2021/ND-CP dated April 19, 2012, extending the time for payment of value-added tax, corporate income tax, personal income tax and land rental fee in 2021.

This Decree applies to the following subjects:

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

a) Agriculture, forestry and fishery;

b) 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); produce 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 beds, cabinets, tables and chairs;

c) Construction;

d) Publishing activities; cinematographic activities, television program production, sound recording and music publishing;

đ) Exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);

e) Manufacture of beverages; printing, photocopying records of all kinds; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;

g) Drainage and wastewater treatment.

2- Enterprises, organizations, business households and individuals engaged in business activities in the following economic sectors:

a) Warehousing, transportation; accommodation and catering services; education and training; health and social assistance activities; real estate business;

b) Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;

c) Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie projecting activities;

d) Radio and television activities; computer programming, consulting services and other computer-related activities; information service operations;

d) Mining support service activities.

3- Enterprises, organizations, business households and individuals engaged in production of supporting industrial products give priority to development; key mechanical products.

4- Small and micro enterprises defined according to the provisions of the Law on Support for Small and Medium Enterprises No. 04/2017/QH14 and Decree No. 39/2018/ND-CP dated March 11, 2018 of the Government on regulations detailing a number of articles of the Law on Supporting Small and Medium Enterprises.

5- Credit institutions, foreign bank branches implementing solutions to support customers who are businesses, organizations and individuals affected by the COVID-19 epidemic in accordance with regulations of the State Bank of Vietnam.

More financial resources to maintain and restore production

The Decree clearly states that for value-added tax, (except for value-added tax at the stage of importation), the tax payment deadline for the payable arising value-added tax (including the tax amount allocated to other provincial-level localities where the taxpayer is headquartered, the tax amount to be paid each time) of the tax period from March to August 2021 (for the case of VAT declaration according to month) and the tax period of the first quarter and the second quarter of 2021 (for the case of quarterly value-added tax declaration) of enterprises and organizations is extended.  The extension period is 05 months for the value-added tax amount from March to June 2021 and the first quarter, the second quarter of 2021. The extension period is 04 months for the value-added tax amount of July in 2021 and 03 months for the value added tax amount of August 2021. Extension time is counted from the end of the time limit for payment of value added tax in accordance with the law on tax administration.

For corporate income tax, the Decree stipulates the extension of tax payment deadline for temporarily paid corporate income tax amounts of the first quarter and the second quarter of the 2021 corporate income tax period for the enterprises and organizations mentioned above. The extension time is counted from the end of the time limit for payment of value added tax in accordance with the law on tax administration.

For value-added tax, personal income tax of business households and individuals, the time limit for payment of value-added tax, personal income tax for the amount of tax payable in 2021 of business households and individuals operating in the economic sectors and fields mentioned in (1), (2), (3) above is extended. Business households and individuals shall pay the tax amount extended the payment time in this Clause by December 31, 2021.

With regard to land rent, the time limit for payment of payable land rent in the first period of 2021 of enterprises, organizations, business households and individuals subject to the above provisions and being leased land by the State under a decision or contract of a competent state agency in the form of annual land rental payment shall be extended. The extension period is 6 months from May 31, 2021.

This extension is necessary for businesses and individuals to have more financial resources to maintain and restore production, contributing to achieving the economic growth target for the whole year of 2021.

Thus, this is the third time the Government has extended tax and land rent to support businesses facing difficulties due to the epidemic. Previously, on April 8, 2020, the Government issued Decree No. 41/2020/ND-CP on extending the deadline for paying tax and land rent. The Decree has extended the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent for businesses, organizations, households and individuals doing business directly affected by the COVID-19 pandemic. The extension is 5 months from the end of the tax payment deadline as prescribed by the tax administration law.

On September 5, 2020, the Government issued Decree No. 109/2020/ND-CP on the extension of special consumption tax on domestically manufactured and assembled cars. In this Decree, domestic automobile manufacturers and assemblers are allowed to extend the deadline for paying special consumption tax for the tax period of March, April, May, June, July, August, September and October of 2020. The arising tax amount shall be paid to the state budget from September 20, 2020 to December 20, 2020.

Through assessments, it is shown that the above policies have promptly removed difficulties for production and business, making an important contribution to the effective implementation of the goal of both disease prevention and socio-economic development. .

Source: chinhphu.vn

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