Vietnam: Deferral of tax payment and land rent in 2023

In brief

On 14 April 2023, the government issued Decree No. 12/2023/ND-CP ("Decree No. 12") to provide continued support to businesses by granting a deferral of taxes and land rent payments in 2023. The new decree took effect on 14 April 2023 and ends on 31 December 2023.

Taxpayers granted deferral of taxes and land rent payments

  • Group 1 includes enterprises, organizations, households, business households and individuals conducting production activities in agriculture, forestry and fisheries; 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; construction; publication activities; cinematographic activities, production of television programs, recording music and publishing music; exploitation of crude oil and natural gas (not to extend the time limits for corporate income tax payments 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 and refined petroleum products; production of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); motorbike and motorcycle manufacturing; repair, maintenance and installation of machines and equipment; and drainage and treatment of waste water.
  • Group 2 includes enterprises, organizations, households, business households and individuals conducting business activities in transportation and warehousing; accommodation and catering services; education and training; medical and social assistance activities; real estate business; labor and employment service activities; activities of travel agency and tour business and auxiliary services related to tour promotion and organization; creation, art and recreation activities; library operations, archives, museums and other cultural activities; sports, entertainment and recreation; cinema; radio and television activities; computer programming, consulting services and other activities related to computers; information service activities; and services supporting mineral exploitation.
  • Group 3 includes enterprises, organizations, households, business households and individuals engaged in the production of supporting industry products prioritized for development, and key mechanical products.
  • Group 4 includes small and ultra-small enterprises.

Value added tax (VAT) deferral

Eligible taxpayers will enjoy a six-month deferral of VAT payments for monthly VAT declarations from March to May 2023 and Quarter 1/2023 (for quarterly VAT declarations); a five-month deferral of VAT payments for June 2023 and Quarter 2/2023; a four-month deferral of VAT payments for July 2023 and a three-month deferral of VAT payments for August 2023 (for monthly VAT declarations).

Corporate income tax (CIT) deferral

Decree No. 12 grants a three-month deferral of CIT payments for the provisional tax payment of Quarter 1 and Quarter 2 of 2023.

VAT and Personal Income Tax (PIT) deferral for business households and individuals

Business households and individuals are allowed to defer any tax payables for 2023 until 30 December 2023.

Land rent deferral

Eligible businesses that lease land directly from the state can defer 50% of the payment of annual land rent for 2023 for six months from 31 May 2023 to 30 November 2023.

Procedure for deferral

To benefit from the tax and land rent payment deferrals under Decree No. 12, eligible taxpayers are required to submit a prescribed deferral payment request no later than 30 September 2023. After this deadline, the deferral request will not be accepted.

Taxpayers are responsible for self-assessing their eligibility for the deferral. Tax authorities are not required to issue notices to accept the application.

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