HIGHLIGHTS OF DECREE 12/2023/NĐ-CP EXTENDING THE DEADLINE FOR TAXES AND LAND RENT PAYMENT IN 2023

The Vietnamese Government has issued Decree 12/2023/NĐ-CP on April 14, 2023, extending the deadline for the payment of value added tax, corporate income tax, personal income tax, and land rent in 2023.

I. Deadline extension for value added tax (excluding import value added tax)

The deadline for the payment of value added tax, including the tax allocated to other provincial locations where the taxpayers have their main offices, and the tax payable for each occurrence, for the tax period from March to August 2023 (for monthly value added tax declaration) and for the first and second quarters of 2023 (for quarterly value added tax declaration) by enterprises and organizations is extended. The extension period is 6 months for the tax from March to May 2023 and the first quarter of 2023, 5 months for the tax of June 2023 and the second quarter of 2023, 4 months for the tax of July 2023, and 3 months for the tax of August 2023. (Article 1, Clause 4, Decree 12/2023/NĐ-CP)

II. Deadline extension for corporate income tax

The deadline for the payment of temporary corporate income tax for the first and second quarters of 2023 by enterprises and organizations is extended. The extension period is 3 months, starting from the deadline for corporate income tax payment according to the tax administration regulations.

If enterprises and organizations have branches or subordinate units that independently declare corporate income tax to the tax authorities directly managing those branches or units, the branches or units are also eligible for the tax payment deadline extension. If the branches or units of the enterprises or organizations do not engage in economic activities in the regulated economic sectors or areas eligible for the deadline extension, they are not eligible for the extension. (Article 2, Clause 4, Decree 12/2023/NĐ-CP)

III. Deadline extension for value added tax and personal income tax of business households and individual businesses

The deadline for the payment of value added tax and personal income tax for the taxable amounts arising in 2023 by business households and individual businesses is extended. The latest deadline for tax payment by business households and individual businesses is December 30, 2023. (Article 3, Clause 4, Decree 12/2023/NĐ-CP)

IV. Deadline extension for land rent payment

The deadline for the payment of 50% of the land rent amount due in 2023 by enterprises, organizations, households, and individuals directly leasing land from the State based on Decisions or Contracts of competent state agencies under the form of annual land rent payment is extended. The extension period is 6 months from May 31, 2023, to November 30, 2023.

This regulation applies to cases where enterprises, organizations, households, and individuals have multiple Decisions or Contracts directly leasing land from the State and engage in various production and business activities, including economic sectors and fields regulated in this Decree (Article 4, Clause 4, Decree 12/2023/NĐ-CP).

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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This legal update is not an advice and should not be treated as such.