LEGAL UPDATES VOL.01 (MAY 2021)

LEGAL UPDATES VOL.01

MAY, 2021

Dear Valued Customers and Partners,

ADK Lawyers Law Firm would like to introduce to you the Vietnam Legal Newsletter Vol.01 (May 2021) with the content focusing specifically on the decision to extend the payment of value-added tax, corporate income tax, and tax, personal income and land rent in 2021 which Update and supplement the previous 02 Decrees on tax extension.

Continuing the policy of supporting businesses and people suffering by the COVID-19 pandemic, on April 19, 2021, the Government issued Decree No. 52/2021/ND-CP ("Decree 52/2021") providing extension of payment time limits for value-added tax, corporate income tax, personal income tax, and land rentals in 2021. This is the third time the Government has introduced a deadline for tax and land rent payment since the first COVID-19 case was reported in Vietnam on January 23, 2020. Earlier, the Government promulgated Decree 41/2020/ND-CP dated April 8, 2020, on the extension of tax payment, land rent, and Decree Decree 109/2020/ND-CP dated September 5, 2020, on the extension of special consumption tax payment for domestically manufactured and assembled cars.

Decree 52/2021 features the following main contents:

Applicable Subject

The enterprises, organization, business households and individuals which operate in the following economic sectors:

Agriculture, forestry, and fisheries;

Construction

Foodstuff production or processing; textiles; production of wearing apparel; production of leather and related products; wood processing and production of wood products, bamboo or 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 motorized vehicles; production of beds, wardrobes, tables, and chairs;

Publication activities; cinematographic activities, production of television programs, recording music and publishing music;

The exploitation of crude oil and natural gas (not to extend the time limits for corporate income tax payment for crude oil, condensate, and natural gas collected according to an agreement or contract);

Manufacture of beverages; printing, copying records of all kinds; production of coke coal, refined petroleum products; production of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); motorbike and motorcycle manufacture; repair, maintenance and installation of machines and equipment; and drainage;

Treatment of wastewater.

Transportation and warehousing; accommodation and catering services; education and training; medical and social assistance activities; real estate business;

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

Creation, art and recreation; library operations, archives, museums, and other cultural activities; sports, entertainment, and recreation;

Cinema; radio and television; computer programming, consulting services and other activities related to computers; information service activities;

Services supporting mineral exploitation;

Enterprises, organizations, business households, and individuals producing supporting industry products give priority to development; key mechanical products.

Small and micro-sized enterprises (“SMEs”) as specified in the Law on Assistance for Small- and Medium-Sized Enterprises 2017.

Credit institutions and foreign bank branches that provide support to customers hit by the COVID-19 pandemic as requested by the State Bank of Vietnam.

Extension Of Tax Payment Deadline

Tax		Tax Periode	Extension Period
VAT	Enterprise, corporate Note: Extension of the payable VAT amount (including the taxes allocated to other provincial-level localities where the taxpayer is headquartered, the tax payable each time it is incurred); Except for import VAT; The extension period is counted from the end of the time limit for VAT payment in accordance with the law on tax administration.	March - June 2021	5 months
		July 2021	4 months
		Aug 2021	3 months
		Tax period Quarter 1, Quarter 2 of 2021 (for quarterly VAT declaration)	5 months
	Households, business individuals	Tax payable in 2021	Until December 31^st,2021
Corporate Income Tax (CIT): Note: Extension of the tax payment deadlines for the temporarily paid CIR amounts. CIT calculation period in 2021		Quarter 1, Quarter 2	3 months
Personal Income Tax (PIT)		Tax payable in 2021	December 31^st, 2021
Land Rent (for enterprises, organizations, business households, and individuals who are being directly leased land by the State under a Decision or Contract of competent authorities in the form of land lease with annual rental payment)		Payment period in early 2021	6 months from May 21^st, 2021

General Notes on Procedures and Deadlines

Taxpayers who directly declare and pay tax by electronic method, submit a paper copy directly to the tax office or send it via postal service according to the form in the Appendix issued together with Decree 52/2021 to the tax authority directly managing once for all periods of taxes and the land rent is extended with the same time of submitting the monthly (or quarterly) tax under the law on tax administration.

The deadline for applying for extension is July 30, 2021.

In order to receive the extension of tax and land rent payment, taxpayers must fully pay extended tax and land rent which have been extended according to Decree No. 41/2020/ND-CP and the corresponding late payment amounts (if any) before July 30, 2021.

Taxpayers self-determine and take responsibility for the extension request to ensure the right object is extended. If the taxpayer submits a request for extension of payment of tax and land rent to the tax authority after July 30, 2021, taxpayers are not allowed to extend the payment of tax and land rent according to the provisions of Decree 52/2021.

We hope you find this brief letter of legal updates to be informative.

Best regards.

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