Instructions for extending corporate income tax payment and reducing land rent

The Ministry of Finance has just issued Circular No.16/2013/TT-BTCInstructions on extending the payment of corporate income tax, value added tax; reducing land rent,... according to Resolution No.02/NQ-CPJanuary 7, 2013 of the Government. 6-month extension of corporate income tax payment deadline

Regarding the extension of corporate income tax payment, the Circular stipulates: Extension of 6 months for corporate income tax payment for the corporate income tax payable in the first quarter and 3 months for corporate income tax payment for the corporate income tax payable in the second and third quarters of 2013.

The subjects eligible for extension include 3 groups: 1. Small and medium-sized enterprises, including branches, affiliated units but with independent accounting, cooperatives (using less than 200 full-time employees and having annual revenue not exceeding 20 billion VND), excluding enterprises operating in the following fields: finance, banking, insurance, securities, lottery, prize-winning games, production of goods and services subject to special consumption tax; 2. Enterprises employing many workers (using more than 300 workers) in the fields of production, processing, and manufacturing: Agricultural products, forestry products, aquatic products, textiles, footwear, electronic components; Construction of economic and social infrastructure works is granted an extension in tax payment for the amount of tax calculated on income from production, processing and manufacturing activities: Agricultural products, forestry products, aquatic products, textiles, footwear, electronic components and from construction activities of economic and social infrastructure works; 3. Enterprises investing and trading (selling, leasing, leasing) housing are granted an extension in tax payment for the amount of tax calculated on income from investment and trading in housing, regardless of the size of the enterprise and the number of employees employed.

Regarding the extension of time for paying corporate income tax, the Circular stipulates as follows:

6-month extension of value-added tax payment At the same time, the Circular stipulates a 6-month extension of the deadline for value-added tax (VAT) payment for the VAT payable arising in January, February, and March 2013 (excluding VAT at the import stage) for enterprises that are paying VAT using the deduction method.

The subjects eligible for extension include: Small and medium-sized enterprises; enterprises employing many workers in the fields of production, processing: agricultural products, forestry products, aquatic products, textiles, footwear, electronic components; construction of economic and social infrastructure works; enterprises investing and trading (selling, leasing, leasing) houses and enterprises producing the following items: iron, steel, cement, bricks, tiles.

Regarding the extension period, the Circular clearly stipulates: Enterprises eligible for an extension of VAT payment must declare and submit VAT declarations for January, February and March 2013 as prescribed, but must not immediately pay the VAT payable arising on the declared VAT declarations. Specifically:

In addition, the Circular also specifically stipulates the subjects that are entitled to a 50% reduction in the amount of land rent payable in 2013 and 2014. At the same time, it clearly stipulates: Projects using land for the purpose of building houses for sale, for lease, or for infrastructure business for transfer in the form of land allocation by the State with land use fee collection, for which the investor has been handed over land to implement but has not yet fulfilled financial obligations regarding land use fee due to financial difficulties such as: financial results as of December 31, 2012 are losses or the enterprise's expenses are greater than revenue due to the value of inventory being too large or the enterprise has actually spent large investment costs but has not yet had revenue due to unsold goods, shall be allowed to pay land use fee within 24 months from the date of land use fee payment stated on the tax authority's notice and shall not be charged late payment penalty during this period.

This Circular takes effect from March 25, 2013.

According to (Chinhphu.vn) – LT