On 15 September 2020, the Government issued Decree No. 109/2020/NĐ-CP ("Decree 109") extending the deadline for special consumption tax (“SCT”) payment applying for domestically manufactured or assembled cars. Decree 109 is effective from the date of signing. Some notable contents of Decree 109 are presented below.
1. Extension of tax payment deadline
Decree 109 is applicable to SCT payables incurred in the tax periods from March 2020 to October 2020. The extension for each for tax periods are as follows:
| Tax periods | Special consumption tax payment deadline |
|---|---|
| March 2020 | No later than 20 September 2020 |
| April 2020 | No later than 20 October 2020 |
| May 2020 | No later than 20 November 2020 |
| June, July, August, September, October 2020 | No later than 20 December 2020 |
Guidance for some special cases:
- If the taxpayer revises the tax declaration of the tax period subjected to extension which leads to an increase in the tax payable amount, and has sent the revised declaration to the tax authority before the extended deadline of the tax period, then the extended tax amount would include the additional tax payable due to the declaration revision.
- If the taxpayer has branches and affiliated units that declare the SCT separately, such units are also eligible for SCT payment extension. However, if these units do not conduct car manufacturing or assembly activities, they will not be eligible for the SCT payment extension.
2. Extension procedure
Taxpayers eligible for extension send a written request for special consumption tax payment extension to the tax authority (via electronical system or via direct filing to the tax authority or via post) using the Form in Decree 109’s Appendix. One-time submission is required for all the tax periods subjected to extension. The extension request could be submitted together with the special consumption tax declaration or no later than 30 September 2020. If the submission is made after September 30, 2020, the taxpayers shall not be entitle to the special consumption tax payment extension under Decree 109.