Hanoi Tax Department guides the implementation of Decree 52/2021/ND-CP for businesses and organizations

On April 19, 2021, the Government issued Decree 52/2021/ND-CP extending the deadline for payment of VAT, CIT, PIT and land rental in 2021. This Decree takes effect from the date of signing. To help the people, businesses apply the Decree easily and conveniently in the process of extending the deadline for tax payment and land rental, recently Hanoi Tax Department has detailed instructions on the application of the Decree to each specific target group, including enterprises and organizations.

Regarding the subjects entitled to extension: The specific extension subjects are specified in Article 2 of Decree No. 52/2021/ND-CP. Accordingly, in addition to those negatively affected by the Covid epidemic such as Decree No. 41/2020/ND-CP, Decree No. 52/2021/ND-CP stipulates additional subjects eligible for tax extension, land rental extension compared to Decree No. 41/2020/ND-CP, including:

(1) Enterprises, organizations, business households and individuals engaged in production activities in the following economic sectors:

- Publishing activities; cinematographic activities, television program production, sound recording and music publishing;

- Exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);

- Manufacture of beverages; print, copy records of all kinds; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance and installation of machinery and equipment;

- Drainage and wastewater treatment.

(2) Enterprises, organizations, business households and individuals doing business in the following economic sectors:

- Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;

- Activities of supporting services for mining.

About the extension period:

- Extension of the tax payment deadline for the arising value added tax payable (including the tax amount allocated to other localities at the provincial level where the taxpayer is headquartered, the tax amount paid for each time of issuance):

+ 05-month extension for the value added tax amount from March to June 2021 and the first and second quarters of 2021;

+ 04-month extension for the value added tax amount in July 2021;

+ 03-month extension for the value added tax amount in August 2021;

- 03-month extension for the corporate income tax amount temporarily paid in the first and second quarters of the corporate income tax period of 2021. The extension period is 03 months from the end of the corporate income tax payment deadline in accordance with the law on tax administration.

- Extension of 06 months of land rental payable for the first period of 2021. The extension period is 06 months from May 31, 2021.

Regarding conditions and procedures for extension: In order to be eligible for an extension of tax and land rental according to the provisions of Decree 52/2021/ND-CP, the taxpayer must first fully pay the tax and land rental already extended according to the provisions of Decree No. 41/2020/ND-CP and corresponding late payment interest (if any) to the state budget before July 30, 2021. The order of payment of taxes, late payment interest and fines shall comply with the provisions of Article 57 of the Law on Tax Administration No. 38/2019/QH14. In addition, taxpayers must send an application for extension of tax and land rental payment for the first time or for replacement when detecting errors to the tax agency directly managing them by July 30, 2021. In case the taxpayer has extended amounts of land leased by the State in different areas managed by the tax authority, the tax authority directly managing the taxpayer must transmit information and make copies of the application to extend the payment of tax and land rental to the tax authority managing the relevant revenue.

Note: Tax administration agencies still extend tax payment, land rents of arising periods are extended before the time of submitting the application for extension.

The Decree also clearly stipulates that taxpayers determine and take responsibility for the extension request to ensure that the right beneficiaries are eligible for the extension as prescribed.

Method of submission of Application for Extension: Taxpayers can submit an application for extension through the following methods: (1) By electronic method: General Department of Taxation has upgraded electronic tax applications (Etax 1.9.0, iCaNhan 3.0.4, Itaxviewer 1.7.5, Support for declaration 4.5.7) to assist taxpayers in making and submitting the Application for extension of tax payment and land rent payment in 2021 (Application for extension ) by electronic means; (2) Sent by post; (3) Paying directly at the tax office.

Source: Cục Thuế TP.Hà Nội hướng dẫn thực hiện Nghị định 52/2021/NĐ-CP đối với nhóm đối tượng là doanh nghiệp, tổ chức