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Vietnam issued Decree 34 extending the deadline for CIT, PIT, VAT, and land rental funds for 2022. The Decree is in impact till December 31, 2022. The federal government issued Decree 34 to assist companies and people get well from post-pandemic results and assist enterprise restoration. Vietnam Briefing describes the tax incentives and the way companies can avail them.
To help enterprise restoration, Vietnam issued Decree 34/2022/ND-CP on extending the deadline for company earnings tax (CIT), private earnings tax (PIT), value-added tax (VAT), and land rental charges for 2022. Decree 34 applies to enterprise actions which have generated income in 2021 or 2022. The Decree took impact on Could 28 and is legitimate till December 31, 2022. Decree 34 is just like Decree 52 final 12 months, which catered to companies affected by the pandemic.
Who’s eligible?
The Decree applies to corporations, people, and companies households (taxpayers). For VAT advantages, the Decree applies to taxpayers who’ve manufacturing actions in agriculture, forestry and fishery, meals, textiles, rubber, steel manufacturing, electronics, vehicles, building, and wastewater remedy.
For CIT and land rental price advantages, the Decree applies to taxpayers in transport, lodging, foods and drinks, training, labor, healthcare, laptop programming, supporting trade merchandise, credit score establishments, and overseas banks.
How are the deadlines for tax cost prolonged?
Eligible taxpayers are granted a particular extension of tax funds of which particulars are as follows:
VAT (Besides VAT on imports)
A descending deferral of VAT cost to eligible taxpayers for sure VAT-reporting intervals, particularly:
- 6-month deferral for VAT payable from March-Could 2022;
- 5-month deferral for VAT payable of Jun 2022 and a couple ofnd quarter of 2022;
- 4-month deferral for VAT payable of Jul 2022 and a couple ofnd quarter of 2022; and
- 3-month deferral for VAT payable of Aug 2022 and a couple ofnd quarter of 2022.
VAT and PIT for people and enterprise households
The deadline for cost for VAT and PIT for people and enterprise households corresponding to SMEs is prolonged to December 30, 2022.
CIT
CIT funds for Q1 and Q2 might be prolonged by three months. So, for instance, cost of Q1 CIT can be due by July 30, 2022. Of notice, taxpayers ought to nonetheless think about the 75 p.c rule when making provisional CIT remittances.
Land rental price
Land rental charges for taxpayers leasing immediately from the federal government has been prolonged with a six-month period from Could 31 to November 30, 2022.
Procedures for extension of funds
It is very important notice that the tax deferral will not be utilized mechanically, somewhat the eligible taxpayers should put together and submit an utility for tax and land hire deferral (both electronically or different strategies) to the managing tax authority for his or her consideration.
Taxpayers are required to submit the deferral together with related varieties in Decree 34 to native tax authorities with their month-to-month or quarterly return no later than September 30, 2022.
Taxpayers might be answerable for doing a self-assessment of their eligibility for deferment of tax funds and tax authorities would not have to tell companies whether or not their utility is accepted.
If taxpayers are discovered to be ineligible for deferment of tax and land lease funds in future tax audits, they are going to be topic to curiosity penalties for late funds by tax authorities.
Subsequently, companies ought to keep sufficient proof to justify their eligibility to mitigate the dangers of any future tax funds and curiosity penalties. Companies are suggested to hunt skilled recommendation to make sure they will reap the benefits of Decree 34 but additionally stay compliant.
About Us
Vietnam Briefing is produced by Dezan Shira & Associates. The agency assists overseas traders all through Asia from workplaces the world over, together with in Hanoi, Ho Chi Minh Metropolis, and Da Nang. Readers could write to vietnam@dezshira.com for extra assist on doing enterprise in Vietnam.
We additionally keep workplaces or have alliance companions aiding overseas traders in Indonesia, India, Singapore, The Philippines, Malaysia, Thailand, Italy, Germany, and the United States, along with practices in Bangladesh and Russia.
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