The Government promulgated Decree No. 34/2022/ND-CP on 28 May 2022 on deferral of value-added tax, corporate income tax, personal income tax and land rents in 2022 (“Decree 34”) in order to support production and business after COVID-19. This extension is of paramount importance in “energizing” enterprises to take heed of production and business, economic recovery after a year of living with COVID-19.

Deferral period for paying tax, land rent in 2022

1. In regard to organizations and enterprises
1. Value-added tax (including tax distributed to provinces other than the province where the taxpayer’s headquarters are located, tax paid separately upon incurrence) during the period from March to May of 2022 and the first Quarter of 2022 is eligible for six months of deferral, more than one month compared to Decree No. 52/2021/ND-CP on 19 April 2021 on deferral of value-added tax, corporate income tax, personal income tax and land rents in 2021. However, only extended for tax payment, the tax declaration obligation of the enterprise remains the same.
2. The extension incentive for corporate income tax includes a three-months delay in the first and second quarters of 2022 and does not apply for branches and subsidiaries not conducting business activities granted deferral under article 3 of this Decree.
2. In regard to sole proprietorships and individuals, the deadline for tax payment of both value-added text and personal income tax incurred in the year of 2022 will be extended until 31 December 2022.

In regard to land rents, it is additionally noticeable that half the amount of the annual rent fee in 2022 will be delayed by six months since 31 May 2022 for entities eligible for tax deferral that lease the land directly from the State by a Decision or Contract of competent agencies.

Other notes on proceedings

All these deferrals of tax and rent are a great help for many different entities in the economy to ease their financial burden significantly, which stimulates the recovery and growth of the economy at large. However, there are several points needed to take into account related to the proceedings, which are:

1. Taxpayers have to determine whether they are eligible for the deferral by themselves,
2. The deadline to submit a request for tax and rent deferral is 30 September 2022, and

The authorities are not obliged to inform taxpayers their acceptance of the request. During the deferred period, if tax authorities detect that the taxpayers are not within the entities eligible for deferral, they will issue a written notice to terminate the deferral and request the taxpayers to repay due tax/rent and late payment charge or interest if applicable.