Decree No. 44/2021/NĐ-CP on guidelines for deductible expenses upon determination of income subject to corporate income tax regarding enterprise/organization’s grants to prevention and control of covid-19 pandemic

Regulated entities and scope

This Decree applies to organizations and enterprises (hereinafter referred to as enterprises) which are corporate income taxpayers as prescribed in the Law on Corporate Income Tax and incur expenses being grants to prevention and control of COVID-19 pandemic in Vietnam.

Noteworthy issues

  • Deductible expenses upon determination of taxable corporate income: – An enterprise may claim a deduction from taxable corporate income for any grant in cash or in kind given to the recipients as specified in clause 2 hereof for the prevention and control of COVID-19 pandemic in Vietnam.
  • Recipients of grants include: The Committees of Vietnamese Fatherland Front at all levels; health facilities; the armed force units; units and organizations tasked by competent authorities to perform duties at centralized quarantine facilities; education institutions; press agencies; Ministries, ministerial-level agencies or Governmental agencies; Communist Party organizations, youth unions, central and local trade unions; agencies affiliated to local governments that have fund-raising function; funds for prevention and control of COVID-19 pandemic at all levels; national humanitarian fund web portals; charitable and humanitarian funds, and organizations incorporated and operating under law that have fund-raising function. Recipients of grants are responsible for using and distributing the grants received for prevention and control of COVID-19 pandemic with proper purposes.
  • Dossier of grants includes: A written confirmation of grants using the form hereto appended or a document (physical or electronic form) to confirm the grants with signatures and seals of the representative of the grant-giving enterprise and the representative of the grant recipient; enclosed with legal proof as required by law of the grants in cash or in kind.

This Decree applies to the taxable corporate income period of 2020 and 2021.

The Decree took effect from 31 March 2021.

Decree No. 52/2021/NĐ-CP on deferral of value-added tax, corporate income tax, personal income tax and land rents in 2021

Scope

This Decree provides for deferral of payment of value-added tax, corporate income tax, personal income tax and land rents.

Regulated entities

This Decree applies to:

1. Enterprises, organizations, household businesses, individuals that have manufacturing activities in the following economic sectors:

  • Agriculture, forestry and aquaculture;
  • Production and processing of food; textiles; garments; manufacture of leather and leather products; wood treatment and manufacture of products from wood, bamboo, rattan (except furniture); manufacture of products from straw and plaiting materials; manufacture of paper products; manufacture of rubber and plastic products; manufacture of products from other non-metallic minerals; metal production; mechanical working; metal treating and coating; manufacture of electronics, computers and optical products; manufacture of automobiles and other motor vehicles; furniture production;
  • Construction;
  • Publishing; cinematography and production of TV programs, music recording and publishing;
  • Extraction of crude oil and natural gas (except corporate income tax on crude oil, condensate, natural gas collected under international agreements or contracts);
  • Beverage production; printing, replication of recordings; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from precast metals (except machinery and equipment); manufacture of motorcycles; repair, maintenance and installation of machinery and equipment;
  • Water drainage and wastewater treatment.

2. Enterprises, organizations, household businesses and individuals that operate in the following economic sectors:

  • Transport and warehousing; accommodation, food and drink; education and training; healthcare and social assistance; real estate trading;
  • Employment services; travel agencies, tourism services and auxiliary tourism services;
  • Composing, art and entertainment; library, archive, museum operation and other artistic activities; sports and entertainment; cinemas;
  • Radio and TV broadcasting; computer programming, counseling services and other computer-related services; information service provision;
  • Mineral extraction auxiliary services.

3. Enterprises, organizations, household businesses and individuals that are manufacturers of prioritized ancillary industry products or key mechanical products.

4. Small enterprises and microenterprises

5. Credit institutions and foreign bank branches (FBB) shall provide assistance for enterprises, organizations and individuals affected by Covid-19 as prescribed by the State bank of Vietnam (SBV).

The economic sectors and business lines of enterprises, organizations, household businesses and individual businesses specified in Clause 1, Clause 2 and Clause 3 thereon are those they operate in and earn revenue from in 2020 or 2021.

Tax and land rent deferral is as follows:

Taxpayer’s ObligationsExtension periodExtension time
VATMarch – June 2021 1st and 2nd quarter of 20215 months
VATJuly 20214 months
VATAugust 20213 months
CIT1st and 2nd quarter of 20213 months
Land rentFirst period of 20216 months from May 31, 2021

VAT and PIT of 2021 of household businesses and individual businesses will be deferred to December 31, 2021.

The Decree took effect from 19 April 2021.

Circular No. 31/2021/TT-BTC on prescribing application of risk management to tax administration

Scope

This Circular introduces regulations on application of risk management to tax administration by tax authorities at all levels, including:

  • Collection, processing, management and use of information related to taxpayers to serve risk management.
  • Assessment of the compliance with tax laws and classification of taxpayer risks.
  • Application of tax administration measures corresponding to levels of compliance with tax laws and levels of taxpayer risks.

Regulated entities

  • Taxpayers.
  • Tax authorities.
  • Tax officials.
  • Relevant regulatory authorities, organizations and individuals as prescribed in Article 2 of the Law on Tax Administration.

The Circular shall take effect from 02 July 2021.

Tax Newsletter June 2021