Proposal to extend payment of excise tax on domestically manufactured and assembled cars

According to the Ministry of Finance, the 4th wave of COVID-19 outbreaks in many provinces and cities in 2021 has inhibited the recovery of Vietnam’s economy. car market. Following the anti-epidemic directive of the local authorities, many auto dealers of Toyota, Ford, Mitsubishi… in Hanoi, Ho Chi Minh City, one of the largest auto markets. The whole country had to temporarily suspend operations and almost fell into a “freeze” situation, especially in the period from June to September 2021.

Not only sales activities, the Ministry of Finance said that the car factories of some car manufacturers were also affected because of the lack of chips and assembled components due to the disruption of the global supply chain. There has never been a year where the Vietnamese auto market has experienced as many turbulence as 2021. The COVID-19 epidemic has left an unforgettable mark on the whole market when sales plummeted. It can be said that domestic automobile production and assembly is an area affected by the COVID pandemic that requires state support.

Therefore, implementing the Government’s assignment, the Ministry of Finance has drafted the Government’s Report and the Government’s Decree on the extension of the excise tax payable on domestically manufactured and assembled automobiles. send it to the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, the Vietnam Federation of Trade and Industry, and get the opinion of the Ministry of Justice to submit to the Government for promulgation the Decree according to the procedural order. continue to abbreviate.

According to the provisions of Article 44 of the Law on Tax Administration No. 38/2019/QH14 and Article 8 of Decree No. 126/2020/ND-CP, business establishments shall declare excise tax on a monthly basis and tax payment deadlines. no later than the 20th of the following month.

In order that the extension of the deadline for paying excise tax in 2022 for domestically manufactured or assembled cars does not lead to an adjustment of the state budget revenue estimate and is consistent with the current time, the Ministry of Finance submit to the Government for an extension of the tax payment deadline for the payable excise tax amount arising in the tax period of June, July, August and September of 2022 for domestically manufactured and assembled automobiles.

The extension period is from the end of the time limit for paying excise tax according to the provisions of the law on tax administration. Specifically, the deadline for paying excise tax incurred in the tax period of June, July, August and September 2022 is no later than November 20, 2022.

The extension applies to the case of additional declaration of tax declaration dossiers of the extended tax period and applies to enterprises with branches and affiliated units engaged in the actual production or assembly of automobiles. currently declare excise tax separately with the tax authority directly managing it.

Regarding the order and procedures for requesting the extension, the draft proposal for taxpayers eligible for extension shall send an application to the tax authority directly managing once for all the extended periods at the same time. submit excise tax returns. If the application for extension of the deadline for submission is not submitted at the same time as the submission of the excise tax return, the deadline for submission is November 20, 2022.

If during the extension, the tax authority determines that the taxpayer is not eligible for the extension, or after the extension period expires, the tax authority discovers that the taxpayer is not eligible for the extension. The tax authority notifies the taxpayer of the suspension of the extension. Taxpayers must pay the full amount of tax and late payment interest during the extension period into the state budget.

During the extended period of excise tax payment, tax authorities will not charge late payment interest for the extended excise tax amount. In case, the tax authority has already charged the late payment interest for the excise tax declarations that are extended according to the provisions of this Decree, the tax authority shall make the adjustment without charging late payment interest. Special Consumption.

Because it is an urgent solution that needs to be issued immediately to promptly support domestic automobile manufacturers and assemblers, the Ministry of Finance has submitted to the Government for permission the decree to take effect from the date of signing. On the other hand, in order to ensure strictness, the Ministry of Finance shall submit to the Government for regulations that, after the extension period according to this Decree, the payment of excise tax on domestically manufactured or assembled automobiles must comply with the provisions of this Decree. current regulations. At the same time, assign the Ministry of Finance to organize the implementation and handle problems arising during the implementation of the Decree.

According to the Ministry of Finance, this tax reduction is expected to reduce budget revenue by 2,000-3,000 billion VND, an average of 170-250 billion VND per month. Thus, the total amount of excise tax expected to arise is extended for 4 periods (from the tax period June to September) from 9,300-11,400 billion VND.

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