The Covid-19 epidemic has negatively affected many aspects of the economy and society, including production and business activities of enterprises. Therefore, the State has had many supportive policies to help businesses overcome difficulties and maintain operations, one of the government’s support policies must include the tax support policy. In the framework of the following article, we would like to share with our readers “The tax support policy for businesses affected by the Covid epidemic 19.
On March 3, 2020, the General Department of Taxation issued Official Letter No. 897 / TCT-QLN on extension of tax payment and exemption of late payment interest due to the Covid-19 epidemic. In which, General Department of Taxation determined that Covid-19 epidemic was in case of unexpected accident, so enterprises that suffered from material damage directly affecting production and business due to Covid-19 disease were extended. tax payment, exemption of money for late tax payment.
On April 8, 2020, the Government issued Decree No. 41/2020 / ND-CP on extending the deadline for paying taxes and land rents. Accordingly, enterprises that are extended the tax payment time and land rents include:
First, enterprises operating in the following industries:
Agriculture, forestry and fishery;
Manufacturing and processing food; weaving; producing costumes; producing leather and related products; processing wood and producing products from wood, bamboo of various species (except beds, wardrobes, tables, chairs); producing products from straw, plaiting materials and plaiting materials; producing paper and paper products; producing products from rubber and plastic; producing products from other non-metallic minerals; metal production; mechanical; treating and overlaying metal; manufacturing electronic products, computers and optical products; manufacturing automobiles and other motor vehicles; manufacturing beds, wardrobes, tables, chairs;
Second, businesses do business in the following industries:
Warehouse transportation; accommodation and catering services; education and training; health and social assistance activities; real estate business;
Labor service activities and employment; activities of travel agents, tour operators and support services related to tourism promotion and organization;
Creative, artistic and recreational activities; library activities, archives, museums and other cultural activities; sports activities, entertainment; film screening activities.
Third, enterprises, organizations, households and individuals engaged in the production of industrial products supporting development priority; key mechanical products.
Supporting industry products prioritized for development are determined according to the Government’s Decree No. 111/2015 / ND-CP of November 3, 2015 on supporting industry development:
Textile and apparel industry includes:
Natural fibers: Cotton, jute, prickly, silk;
Synthetic fibers: PE, Viscose;
Knitting yarn, woven yarn; High-strength Polyester yarn, Spandex yarn, high-strength nylon;
Fabrics: Technical fabrics, non-woven fabrics, knitted fabrics, woven fabrics;
Sewing threads in the textile industry;
Chemicals, auxiliaries, dyes for textile finishing industry;
Garment accessories: Button, mex, zippers, elastic band.
Leather and footwear industry:
Shoe soles, uppers, shoelaces;
Shoe sewing threads;
Shoe glue, Decoration accessories such as buckles, rings, hooks …
Basic electronic – optoelectronic components: Transistors, integrated circuits, sensors, resistors, capacitors, diodes, antennas, thyristors;
Materials for manufacturing electronic components: Semiconductors, hard magnetic materials, soft magnetic materials, positive insulators;
Electronic products and components: Plastic components, rubber components, mechanical – electronic components, glass components;
Batteries for laptops, mobile phones;
Wires and cables, LEDs, telephone headsets and speakers;
Refill phone battery;
Manufacturing and assembling cars
Engine and engine parts: Body, piston, crankshaft, connecting rod, gears, exhaust, cylinder, cylinder head assembly, camshaft, cylinder, engine valve;
Lubrication system: Oil filters, coolers, radiators, oil pumps, valves;
Cooling system: Radiator, water tank, blower, constant temperature valve, water pump;
Fuel supply system: Fuel tank, fuel filter, air filter, fuel pump pipes, carburetor, fuel injection system;
Frame – body – door: Details in the form of punching plates, iron bars, truck body, steps, door assemblies;
Suspension system: Tweezers, elastic springs, dampers;
Wheels: Tires, aluminum rims;
Powertrain: Clutch, gearbox, wheelbase, cardan shaft;
Electrical and electronic components:
Power source: Batteries, generators;
Ignition device: Spark plug, high pressure, transformer;
Starting relays, starting electric motors;
Wires, connectors, fuses, sensors, automatic control devices, processors.
Lighting and signaling systems: Lights, whistles, gauges of all kinds;
Automobile exhaust treatment system;
Plastic components for cars;
Rubber components, damping materials;
Windshield, wipers, car seats.
Mechanical engineering industry:
Molds, jigs: Molds, jigs, machining jigs, test jigs;
Tools – cutters: Turning, milling, drilling tools;
Components and spare parts for mechanical processing, welding machines;
Components and spare parts of engines, agricultural machines, shipbuilding;
Components and spare parts of machines, equipment for processing agricultural, forestry and aquatic products and salt;
Measuring and checking instruments used in mechanical engineering: Rulers, 3-dimensional gauges, metal component analyzers, ultrasonic welders;
Machine details: High strength bolts, high strength screws, bearings, bearings, gears, valves, joints of all kinds, machine housing, punching parts, speed reducers, hydraulic cylinders;
Supporting industrial products for the high-tech industry
Types of molds: High precision molds, high precision plastic molds;
High quality standard mechanical parts: high precision nuts, bolts and screws for electronic, mechatronics, medical electronics, industrial robots;
Types of electronic components, microelectronic circuits to develop devices: Peripherals, computers, household electronics, audio-visual equipment, solar cells; microprocessor chips; controllers (PLC programmable controller, CNC controller, …);
Components and spare parts for equipment systems producing electricity from new and renewable energies;
High-quality plastic parts: Precision actuators, durable and durable parts, heat-resistant and wear-resistant plastic;
Sensors of all kinds: Gas sensors, acceleration sensors, magnetic sensors; biological sensor, temperature sensor, humidity sensor, light sensor, pressure sensor ….;
Types of new generation motors: electric motors, magnetic drive motors, servo motors (stepper motors), resistance magnetic motors, linear motors;
The actuators have high accuracy./.
+ Key mechanical products determined under the Prime Minister’s Decision No. 319 / QD-TTg of March 15, 2018, approving the Strategy for development of Vietnam’s mechanical engineering industry up to 2025, with a vision to 2035 :
Types of motivational equipment
Diezel engine types of 50 HP or more; Diezel ship engines with axle and propeller gear systems of a capacity of 300 HP or higher; All types of car engines meet EURO 4 minimum standards from 2018.
Types of cars
Multi-function small agricultural cars;
Special-use cars: Concrete trucks, cisterns, special-purpose vehicles in service of national security and defense;
Medium and short-range passenger cars running intercity, inner city with 10 seats or more;
Fuel-efficient, environmentally friendly vehicles (passenger cars, buses powered by natural gas or using Hybrid or electric technology).
Gantry crane 30 tons or more, platform cranes of 30 tons or more, cranes of 10 tons or more, crawler cranes of 50 tons or more, rigid cranes with 50 tons or more, cranes on ships of 20 tons or more, tower cranes of 5 tons or more; RTGC (Rubber Tyred Gantry Crane) cranes with lifting capacity of 30 tons or more; Rail mounted Quayside Crane (RMQC) with a lifting capacity of 30 tons or more. Rail mounted Gantry Crane RMGC (Rail Mounted Gantry Crane) with a lifting capacity of 30 tons or more.
Industrial plant equipment and electrical equipment
The equipment in power plants includes: coal supply system, ash and slag discharge system, conveyor system; pile and dumping machines, electrostatic precipitator systems, circulating cooling systems, chimney systems, distribution stations and main transformers for thermal power plants, oil supply systems, reducing systems sulfur, water treatment systems, waste water treatment, fire protection systems; steel structure for thermal power plants, condensers for turbine systems and heating equipment for thermal power plants; boiler (Pressure part and Non-pressure part); heat recovery equipment for thermal power plants; various types of high pressure vessels and tanks; large storage tanks of liquefied gases or chemicals; devices used to change the chemical or biological activity of a reaction in chemical extraction processes and distillation tower equipment of petrochemical refining technology; equipment to filter seawater into fresh water for islands and islands; valve; pumps for oil and gas, mining industry and energy; renewable energy equipment: wind, solar, biomass energy; energy-saving devices.
Measuring equipment, current transformers, transformers 110kV – 500kV; medium and high voltage circuit breakers; equipment limiting short-circuit current to 500kV; lightning protection up to 500kV; porcelain string insulators.
Complete equipment line handling ash, slag, gypsum from industrial production
Tractors and agricultural machinery
Tractors for agricultural production; machines for cultivating, harvesting, preserving and processing agricultural-forestry-fishery products, warehouses for preserving agricultural-forestry-fishery products.
High-class metal and composite products used in aviation
Fourthly, small and micro enterprises are defined in accordance with the Law on Support for Small and Medium Enterprises No. 04/2017 / QH14 and Decree No. 39/2018 / ND-CP dated March 11, 2018 of the Government. detailing a number of articles of the Law on Supporting Small and Medium Enterprises:
|Field||Small Business||Micro businesses|
|Agriculture, forestry, fisheries and industry and construction||Average number of employees participating in social insurance ≤ 100 people / year.
Total revenue of the year ≤ VND 50 billion or total capital source ≤ VND 20 billion
|The average number of employees participating in social insurance ≤ 10 people / year.
Total revenue of the year ≤ 3 billion or total capital ≤ 3 billion.
|Commercial and service sectors||The average number of employees participating in social insurance ≤ 50 people / year.
Total revenue of the year ≤ VND 100 billion or the total capital source ≤ VND 50 billion
|The average number of employees participating in social insurance ≤ 10 people / year.
Total revenue of the year ≤ 10 billion dong or total capital source ≤ 3 billion dong.
Fifthly, credit institutions and foreign bank branches implement solutions to support customers being enterprises, organizations and individuals affected by Covid-19 epidemic in accordance with the regulations of the State Bank of Vietnam.
Note: Enterprises are entitled to support when having production and business activities and generating revenue in 2019 or 2020 for the above-mentioned industries.
For value added tax:
Taxes to be extended: the arising value added tax payable of the tax period of March, April, May and June 2020 (for cases of monthly tax declaration) and the first tax period, Quarter 2 (for cases of quarterly VAT declaration).
Enterprises still have to declare and submit the monthly and quarterly value-added tax returns according to the prescribed time limit but have not yet to pay the value added tax amounts arising on the declared tax returns.
The time for payment of value added tax is extended as follows:
+ The deadline for paying value-added tax of the March 2020 tax period is September 20, 2020.
+ The deadline for value-added tax payment for the April 2020 tax period is October 20, 2020.
+ The deadline for paying value-added tax of the tax period May 2020 is November 20, 2020 at the latest.
+ The deadline for value-added tax payment for the June 2020 tax period is December 20, 2020.
+ The deadline for paying value-added tax of the first quarter 2020 tax period is September 30, 2020.
+ The deadline for paying value-added tax in the second quarter of 2020 is December 30, 2020.
Branches and affiliated units of the enterprise that declare value-added tax independently of the business:
+ If the branch or unit directly under the production and business activities of the extended business line is also extended for paying value-added tax.
+ If branches and affiliated units do not conduct production and business activities in the extended business lines, they are not allowed to extend the payment of value added tax.
- For corporate income tax:
Taxes are extended:
+ The remaining corporate income tax amount to be paid according to the final settlement of the tax period 2019.
+ Temporarily paid enterprise income tax amount of the first and second quarters of the tax period 2020.
Extension time: 05 months from the end of the deadline for corporate income tax payment according to regulations.
If an enterprise has already paid corporate income tax according to its 2019 finalization return, it may adjust the amount of corporate income tax paid to pay other taxes. Dossier of modification request sent to the tax agency includes:
+ Check letters (Form C1-11 / NS issued together with Circular No. 84/2016 / TT-BTC dated June 17, 2016 of the Ministry of Finance);
+ Tax payment receipts or information related to the adjustment.
Branches and affiliated units of the enterprise shall declare CIT independently from the enterprise:
+ If the branch or unit directly under the production and business activities of the extended business line is also extended for paying CIT.
+ If branches and affiliated units do not conduct business activities in the extended business lines, they are not allowed to extend the payment of CIT.
For land rent:
Land rent is extended: the amount of land rent for the first period of 2020 of the enterprise is directly leased by the State under the Decision, Contract of the competent State agency in the form of annual land rent.
Duration of extension: 05 months from 5/31/2020.
The order and procedures for extension of tax payment and land rent are prescribed as follows:
Enterprises eligible for extension may send written requests for extension of tax payment and land rent (electronically or otherwise) according to the form provided in the Appendix to Decree No. 41/2020 to tax authorities. One-off direct tax refund for all periods of tax and land rent is extended together with the time of submission of monthly (or quarterly) tax returns according to the tax administration law.
If the written request for extension of tax payment and land rent is not filed together with the time of submission of monthly (or quarterly) tax declaration dossiers, the deadline for submission is July 30, 2020, the tax administration agency still extend the tax payment, land rent of the arising period is extended before the time of submitting the request for extension.
In cases where an enterprise leases land to the State in different localities, it is only required to submit 1 copy at the enterprise’s supervisory tax office and the tax agency directly managing the enterprise shall make copies of the paper. propose extension of tax payment and land rent to the tax office where the land is leased.
Enterprises must determine by themselves and take responsibility for the extension request, ensuring that the right subjects are extended under Decree 41/2020. If an enterprise submits a written request for an extension of the tax payment and land rent to the tax authority after July 30, 2020, it is not allowed to extend the tax payment or land rent payment under the provisions of Decree 41/2020.
In case the enterprise is approved to extend the payment of tax and land rent, the tax authority has no obligation to notify the enterprise.
If during the extended period, the tax agency has grounds to determine that the enterprise is not subject to the extension, the tax agency shall notify in writing the taxpayer of the extension and the enterprise must pay the full amount of money. taxes, land rents and late payment interest within the extended extension period into the state budget.
If after the expiry of the extended period, the tax authority finds out through the inspection that the enterprise is not eligible for the extension of tax payment or land rent as prescribed in Decree 41/2020, the enterprise must pay Tax arrears, fines and late payment interest are re-determined by the tax authorities into the state budget.
During the tax payment time limit extension, based on the written request for extension of tax payment and land rent, tax authorities shall not charge late payment interest for the extended tax amount or land rent (including cases where the paper Proposal for extension to send to the tax agency after submitting a monthly (or quarterly) tax return by July 30, 2020.
* Legal grounds:
– Official Letter No. 897 / TCT-QLN of March 3, 2020 of the General Department of Taxation on extension of tax payment and exemption of late payment interest due to the Covid-19 epidemic;
– Decree No. 41/2020 / ND-CP dated April 8, 2020 of the Government on extending the deadline for paying tax and land rent.