Vietnam issued Decree 34 extending the deadline for CIT, PIT, VAT, and land rental payments for 2022. The Decree is in effect until December 31, 2022.

The government issued Decree 34 to help businesses and individuals recover from post-pandemic effects and aid business recovery. Vietnam Briefing describes the tax incentives and how businesses can avail them.

To aid business recovery, Vietnam issued Decree 34/2022/ND-CP on extending the deadline for corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and land rental fees for 2022. Decree 34 applies to business activities that have generated revenue in 2021 or 2022. The Decree took effect on May 28 and is valid until December 31, 2022. Decree 34 is similar to Decree 52 last year, which catered to businesses affected by the pandemic.

The Decree applies to companies, individuals, and businesses households (taxpayers). For VAT benefits, the Decree applies to taxpayers who have production activities in agriculture, forestry and fishery, food, textiles, rubber, metal production, electronics, automobiles, construction, and wastewater treatment.

For CIT and land rental fee benefits, the Decree applies to taxpayers in transport, accommodation, food and drink, education, labor, healthcare, computer programming, supporting industry products, credit institutions, and foreign banks.

Eligible taxpayers are granted a specific extension of tax payments of which details are as follows:

A descending deferral of VAT payment to eligible taxpayers for certain VAT-reporting periods, specifically:

The deadline for payment for VAT and PIT for individuals and business households such as SMEs is extended to December 30, 2022.

CIT payments for Q1 and Q2 will be extended by three months. So, for example, payment of Q1 CIT would be due by July 30, 2022. Of note, taxpayers should still consider the 75 percent rule when making provisional CIT remittances.

Land rental fees for taxpayers leasing directly from the government has been extended with a six-month duration from May 31 to November 30, 2022.

It is important to note that the tax deferral is not applied automatically, rather the eligible taxpayers must prepare and submit an application for tax and land rent deferral (either electronically or other methods) to the managing tax authority for their consideration.

Read More

This article was first published by VietnamBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected]

About the author

ASEAN Briefing features business news, regulatory updates and extensive data on ASEAN free trade, double tax agreements and foreign direct investment laws in the region. Covering all ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Vietnam’s Diversification of Trade and the China Plus One Strategy

Vietnam and China’s bilateral trade jumped to US$230.2 billion and China is Vietnam’s largest trade partner and the second-largest export destination.

Vietnam’s GDP rises by 13.67% in Q3 led by U.S. exports

Vietnam’s economic growth is being led by exports to the U.S., which in the January-September period expanded 25.4% from the same period of 2021.