THE EXTENSION OF THE PAYMENT PERIOD OF SPECIAL CONSUMPTION TAX FOR DOMESTICALLY MANUFACTURED AND ASSEMBLED AUTOMOBILES

On May 21, 2022, the Government has just issued Decree No. 32/2022/ND-CP (“Decree 32”) stipulating the extension of the payment period for the payable special consumption tax (“SCT”) amount arising in the tax period of June, July, August and September 2022 for domestically manufactured or assembled automobiles. Decree 32 has been taking effect from its signature date until the end of December 31, 2022. In order to assist Clients in legal compliance, ATA Legal Services would like to provide the highlights of this document through the article below.

Some main contents mentioned in Decree 32 include:

1. Extension time[1]

The payment period of SCT was extended from the end of the payment period in accordance with the law on tax administration to the end of November 20, 2022. Specifically, the payable SCT incurred in the tax period of June, July, and September of 2022 shall be extended to November 20, 2022.

2. Regulations on the extension of the payment period of SCT in specific cases[2]

1. In case the taxpayer makes additional declarations to the tax declaration dossier of the extended tax period, leading to an increase in the payable SCT amount to be sent to the tax authority in advance of the expiry of the extended tax payment term, the tax amount shall be extended, including additional tax payable due to additional declaration.
2. In case the taxpayer is eligible for an extension to declare and submit SCT declarations in accordance with current law, he/she has yet been required to pay the payable SCT amount on the SCT declaration filled during the extension period.
3. In case an enterprise has branches and affiliated units, which separately declare SCT with the tax authority directly, those branches and affiliated units are also eligible for the extension of the SCT payment period. In case a branch or affiliated unit of an enterprise is not engaged in automobile manufacturing or assembling, it is not eligible for such extension.

Note: After the aforementioned extension period, the payment of SCT for domestically manufactured and assembled automobiles shall comply with current regulations.

[1] Under Article 3.1 of Decree 32.

[2] Under Article 3.2 of Decree 32.