THE DECREE NO. 34/2022/ND-CP OF THE GOVERNMENT ON DEFERRAL OF VALUE-ADDED TAX (VAT), CORPORATE INCOME TAX (CIT), PERSONAL INCOME TAX (PIT) AND LAND RENTS IN 2022

Effective date: May 28, 2022 

Main contents: 

Entities eligible for deferral: 

  • Enterprises, organizations, households, household businesses, individuals carrying out manufacture in the following lines of business: Agriculture, forestry and aquaculture; Food production, processing; textile; garments; manufacture of leather and related products; timber treatment and manufacture of products from wood, bamboo and rattan (except furniture); manufacture of products from straw, and plaiting materials; manufacture of paper and paper products; manufacture of products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical processing; metal processing and coating; manufacture of electronic products, computers and optical products; manufacture of motor vehicles and other motorized vehicles; manufacture of cabinets, tables and chairs; etc. 
  • Enterprises, organizations, households, household businesses, individuals carrying out manufacture in the following lines of business: Transport, warehousing; accommodation, food and beverage services; education and training; healthcare and social assistance; real estate business; employment-related services; operation of travel agencies, tourism business, auxiliary services relevant to tour organization and advertising; etc. 
  • Enterprises, organizations, households, household businesses, individuals manufacturing prioritized ancillary products or key mechanical products. 
  • Small enterprises and micro-enterprises according to the Law on Assistance for Small and Medium-Sized Enterprises in 2017 and the Government’s Decree No. 80/2021/ND-CP dated August 26, 2021 elaborating some Articles of the Law on Assistance for Small and Medium-Sized Enterprises. 
  • Credit institutions and foreign bank branches providing assistance for customers that are enterprises, organizations, individuals affected by Covid-19 according to regulations of State Bank of Vietnam. 

(Please see the provision of Article 3 for more details).

Deferral of tax and land rents 

  • Value-Added Tax (except VAT during importation): 
    • Deferral is granted to VAT (including VAT distributed to provinces other than the province in which the taxpayer is headquartered, separately incurred VAT) incurred during the period from March to August 2022 (for monthly declared VAT) and tax periods of the first quarter (Q1) and second quarter (Q2) of 2022 (for quarterly declared VAT) payable by the enterprises and organizations mentioned in Article 3 of this Decree. Deferral period shall be 06 months for VAT incurred during the period from March to May, 2022 and Q1 2022; 05 months for VAT incurred during June 2022 and Q2 2022; 04 months for VAT incurred during July 2022; 03 months for VAT incurred during August 2022. These deferral periods begin from the deadline for payment of VAT prescribed by regulations of law on tax administration. 
    • In case an enterprise or organization mentioned in Article 3 of this Decree has branches or affiliated units that separately declare VAT to their supervisory tax authorities, these branches or affiliated units are also eligible for VAT deferral. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 or Clause 3 Article 3 of this Decree does not operate in the business line eligible for tax deferral, it is not eligible for VAT deferral. 
  • Corporate Income Tax (CIT). 
    • Deferral will be granted to provisional CIT of Q1 and Q2 2022 payable by the enterprises and organizations specified in Article 3 of this Decree. Deferral period shall be 03 months from the deadline for payment of CIT according to regulations of law on tax administration. 
    • In case an enterprise or organization mentioned in Article 3 of this Decree has branches or affiliated units that separately declare CIT to their supervisory tax authorities, these branches or affiliated units are also eligible for CIT deferral. In case a branch or affiliated unit of an enterprise or organization mentioned in Clause 1, Clause 2 or Clause 3 Article 3 of this Decree does not operate in the business line eligible for tax deferral, it is not eligible for CIT deferral. 
  • Value-Added Tax and Personal Income Tax (PIT) payable by household businesses and individual businesses 
  • Deferral will be granted to VAT and PIT payable by household businesses and individual businesses operating in the business lines specified in Clause 1, Clause 2 and Clause 3 of this Article. Household businesses and individual businesses shall pay the deferred tax by December 30, 2022. 
  • Land rents 
    • Deferral shall be granted to 50% of annual land rents payable in 2022 by enterprises, organizations, households, household businesses, individuals specified in Article 3 of this Decree that are directly leasing land with annual payment of land rents from the State under Decisions or Contracts of competent authorities. Deferral period shall be 06 months from May 31, 2022 to November 30, 2022. 
    • This also applies to any enterprise, organization, household, household business or individual that has multiple land lease decisions or contracts with the State and has various business operations, including those in the business lines specified in Clause 1, Clause 2, Clause 3 and Clause 5 Article 3 of this Decree.