Guidance on deferral of CIT and VAT payment according to Decree 41

Accordingly, the following issues relating to Corporate income tax (“CIT”) and Value added tax (“VAT”) payment deferment as provided in Article 3 of Decree 41 should be noted:

(1) Outstanding CIT payables specified in the tax finalization of tax year 2019 are deferred:

- Excluding provisional quarterly CIT payment as specified in Clause 6, Article 4 of Decree No.91/2014/ND-CP and Article 17 of Circular No. 151/2014/TT-BTC;

- No more than 20% of the CIT liability for the whole year per CIT finalization.

(2) In case the CIT assessment period is determined as the fiscal year which is not identical to the calendar year:

- The extended tax payment deadline must be aligned with the company’s CIT assessment period.

(3) Taxpayers being eligible for extension of deadline for tax and land rental payment may defer paying VAT payables which include VAT payables at their head offices and VAT payables at localities where they are doing their construction business outside of their province or are running inter-provincial constructed projects.

(4) In case of contractors being eligible for extension of deadline for VAT payment, the State treasury have not deducted VAT yet (during the extension period):

- Total payments for construction work or items funded by the State budget capital;

- State budget payments for capital construction activities using ODA funds that are subject to VAT.