NOTES RELATED TO EXTENSION OF THE DEADLINE FOR PAYMENT OF ADDED VALUE TAX, CORPORATE INCOME TAX

Pursuant to Official Dispatch No. 5977/BTC-TCT issued by the Ministry of Finance on and coming into effect from May 20, 2020:

– For extension of the deadline for payment of corporate income taxes:

(I) Remaining payable CIT amount according to the tax finalization procedures of the extended tax period 2019:

• Excluding the prepaid quarterly CIT amount specified in Clause 6 of Article 4 in the Government’s Decree No. 91/2014/ND-CP dated October 1, 2014 and Article 17 of the Circular No. 151/2014/TT-BTC;
• Not exceeding 20% of total payable tax amount for the whole year calculated during the tax finalization process.

(ii) If the CIT assessment period in the fiscal year of any enterprise is not identical to the calendar year, the extended tax payment deadline to be set must be aligned with their CIT assessment period.

(iii) If any taxpayer makes the additional declaration for the 2019 CIT finalization return under the provisions of the Law on Tax Administration, resulting in any increase in the outstanding CIT amount, and such additional declaration is sent to the tax authority by the extended deadline:

• the tax amount paid by the extended deadline will be determined according to the principle specified in the aforesaid point 1 under which the entire-year tax amount payable according to the tax finalization procedures is calculated on the basis of the amount specified in the additional tax declaration.     

(iv) If the competent authority examines and inspects the 2019 CIT finalization and issues a conclusion before expiration of the extended deadline for tax payment:

• the total deferred tax amount (according to the enterprise’s self-declared finalization return and the additional amount portion determined after inspection) shall be determined according to the principle specified at the point (i) above, including the entire-year tax amount payable calculated according to the tax finalization procedures which is based on the inspection and examination results;
• The extension period is 5 months from the date of expiration of the deadline for submission of CIT finalization returns for the fiscal year 2019.

– For Extension of the deadline for payment of VAT:

(i) Enterprises and organizations that are entitled to the extension of deadline for payment of taxes and land rents as prescribed in Article 2 of Decree No. 41/2020/ND-CP shall be allowed to defer the payable VAT amounts specified in clause 1 of Article 3 in the Decree No. 41/2020/ND-CP, inclusive of the VAT amount at the head office and the payable VAT amount at the localities where they have out-of-province irregular construction business or inter-provincial construction works;

(ii) The State Treasury has not yet deducted VAT (within the extended period) from the payment for the quantities of construction works and capital construction work items funded by the state budget capital and payments made by the State budget funding for capital construction works of ODA-funded projects subject to VAT if contractors thereof are eligible for deferment of VAT payment.

Best regards,