On April 14, 2023, the Government issued Decree 12/2023/ND-CP on extending the deadline for payment of value added tax, corporate income tax, personal income tax and land rent in 2023. In this article, Faro Vietnam will bring new information about the due date to complete the Corporate Income Tax payment in Vietnam. We hope that the foreign entrepreneur and business will find the article helpful for their business making decision process.

1. Extension of the deadline for temporary payment of CIT for the second quarter of 2023

Specifically, in Clause 2, Article 4 of Decree 12/2023/ND-CP, the Government extends the deadline for temporarily paying corporate income tax for the first and second quarters of 2023 as follows:

- Extension of the tax payment deadline for the temporarily paid corporate income tax amount of the first quarter and second quarter of the corporate income tax period of 2023 of enterprises and organizations specified in section 2.

Accordingly, the extension is 03 months from the end of the time limit for paying corporate income tax in accordance with the law on tax administration.

- In case an enterprise or organization mentioned in Section 2 has branches and affiliated units, making a separate corporate income tax declaration with the tax agency directly managing the branch or affiliated unit, the branches or affiliated units shall declare separately. , affiliated units are also subject to the extension of corporate income tax payment.

In case a branch or affiliated unit of an enterprise or organization mentioned in (1), (2), (3) in Section 2 does not have production and business activities in the economic sector or field to which the extension is granted, branches, affiliated units are not subject to the extension of corporate income tax payment.
 

The deadline for applying the extension of temporary payment of CIT payment of the second quarter 2023

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2. Which enterprises can extend the deadline for temporarily paying CIT for the first and second quarters of 2023?

According to Decree 12/2023/ND-CP, the extension of the deadline for temporary payment of CIT payment of the first and second quarters of 2023 is applicable to the following enterprises:

2.1 Enterprises engaged in production activities in the following economic sectors

• Agriculture, forestry and fishery;
• Food production and processing; weaving; production of costumes; manufacture of leather and related products; wood processing and production of products from wood, bamboo and cork (except for beds, cabinets, tables and chairs); produce products from straw, straw and plaiting materials; production of paper and paper products; manufacturing products from rubber and plastic; ....
• Build;
• 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.

2.2 Enterprises doing business in the following economic sectors

• Transport and warehouse; accommodation and catering services; education and training; health and social assistance activities; real estate business;
• Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;
• Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie screening activities;
• Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;
• Activities of supporting services for mining.

 

Deadline for payment of value added tax, corporate income tax, personal income tax and land rent in 2023
 

The list of economic sectors mentioned in (1) and (2) is determined according to Decision 27/2018/QD-TTg. In which, economic sub-sectors according to Appendix I issued together with Decision 27/2018/QD-TTg include 5 levels and the identification of economic sectors is applied according to the following principles:

• In case the name of an economic sector mentioned in (1), (2) belongs to a level 1 industry, the economic sector to which the extension is applied includes all economic sectors under decentralization 2, 3, 4, level 5 of level 1 industry;
• In case of being in a level 2 industry, the economic sector to which the extension is applied includes all economic sectors of the 3rd, 4th, and 5th levels of the level 2 branches;
• In case of being in a level 3 industry, the economic sector to which the extension is applied includes all economic sectors of the 4th, 5th and 5th levels of the 3rd grade;
• In the case of a level 4 industry, the economic sector to which the extension is applied includes all economic sectors under the classification 5 of the level 4 industry.

2.3 Enterprises engaged in production of supporting industrial products give priority to development; key mechanical products

Supporting industry products prioritized for development are determined according to Decree 111/2015/ND-CP; Key mechanical products are determined according to Decision 319/QD-TTg 2018.

2.4 Small and micro enterprises are defined in accordance with the Law on Supporting Small and Medium Enterprises 2017 and Decree 80/2021/ND-CP.

The economic sector or field of an enterprise specified in (1), (2), (3) is the industry or field in which an enterprise, organization, household, business household or business individual operates. production, business and revenue generation in 2022 or 2023.

The deadline for applying the extension of temporary payment of Corporate Income Tax payment of the first quarter and second quarter of 2023 is effective from April 14, 2023 to the end of December 31, 2023.

CONTACT FARO VIETNAM today for comprehensive and reliable tax consulting.

Faro Vietnam
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