The Ministry of Finance has just finalized the draft Decree extending the deadline for payment of excise duty on domestically manufactured or assembled cars.

Regarding the extension period, according to the provisions of Article 44 of the Law on Tax Management No. 38/2019/QH14 and Article 8 of Decree No. 126/2020/ND-CP, the business establishment shall make the monthly declaration of excise duty and the deadline for tax payment by the 20th of the following month.

In order to extend the deadline for payment of excise duty in 2022 for cars manufactured or assembled domestically, which does not lead to the adjustment of the state budget revenue estimates and is in line with the current time, the Ministry of Finance submits to the Government the proposal: To extend the deadline for payment of tax on the amount of excise duty payable arising from the tax period of June, July, August and September 2022 for cars manufactured or assembled domestically.

The extension period from the end of the time limit for payment of excise duty is prescribed by the law on tax administration, specifically as follows: The time limit for payment of excise duty must arise from the tax period of June 2022, July 2022, August 2022, September 2022 no later than November 20, 2022.

The extension applies to the case of additional declaration of tax declaration dossiers of the tax period being extended and applies to the case where the enterprise has branches or subordinate units manufacturing or assembling cars to declare excise duty separately to the direct tax administration.

Regarding the order and procedures for requesting extension, taxpayers subject to extension shall send a written request for extension of the time limit for payment of excise duty (by electronic means; sending a paper copy directly to the tax office or sending by post) to the direct tax authority once for all extended periods together with the time of filing the excise duty declaration dossier in accordance with the law on tax administration.

In case the request for extension of the deadline for payment of excise duty is not submitted at the same time as the submission of the dossier for declaration of excise duty, the deadline for submission of the request for extension of the deadline for payment of excise duty shall be November 20, 2022 at the latest.

If, during the extension period, the tax authorities determine that the taxpayer is not the subject of the extension or after the expiry of the extension period, the tax authorities find that the taxpayer is not the subject of the extension, the tax authorities shall notify the taxpayers of the suspension of the extension and the taxpayers must pay the full amount of the tax and the late payment within the period of the extension into the state budget.

During the extended payment period of excise duty, the tax authority shall not charge late payment for the extended amount of excise duty. In cases where the tax authorities have calculated the late payment amount for the special consumption tax declaration dossiers in the case of being extended according to the provisions of this Decree, the tax authorities shall make adjustment without calculating the late payment amount for special consumption tax.

Because this is an urgent solution that needs to be issued immediately to promptly support domestic automobile manufacturing and assembly enterprises, the Ministry of Finance submits the Government to allow the Decree to take effect from the date of signing.

The Decree is implemented in a short time, not a decree supplementing, amending or replacing the current decree, so to ensure tightness, the Ministry of Finance submits to the Government stipulating: “After the extension period under this Decree, the payment of excise duty on cars manufactured or assembled domestically shall comply with the current regulations”.

The total amount of income tax expected to be incurred is extended for 4 periods (from the June tax period to the September tax period) is about VND 9,300-11,400 billion.

Source: Etime Dan Viet