Domestic automobile manufacturing and assembling enterprises are entitled to an extension of payment of special consumption tax until November 20 this year. — Photo vnbusiness.vn

HÀ NỘI — The Government just issued Decree No. 36 extending the time limit for paying excise tax on domestically manufactured or assembled cars.

The Decree states the extension of the tax payment deadline applies to amounts arising in the tax period of June, July, August and September this year for automobiles manufactured or assembled in Việt Nam.

The extension period is from the end of the deadline for paying excise tax in accordance with the law on tax administration to the end of November 20 this year.

In case the taxpayer makes an additional declaration of the tax declaration dossier of the extended tax period, leading to an increase in the payable amount and sending it to the tax office before the extended payment time limit expires, the extended amount includes additional tax payable due to additional declarations.

In case taxpayers are eligible for an extension to declare and submit excise tax declarations in accordance with current law, they may delay the payment of the payable excise tax amount arising on the excise tax return declared during the extended period.

In case an enterprise has branches and affiliated units, which declares excise tax separately from the tax agency directly managing the branch or affiliated unit, branches and affiliated units are also subject to the extension of special consumption tax payment.

In case a branch or affiliated unit of an enterprise has no automobile manufacturing or assembly activities, the branch or affiliated unit is not eligible for the extension to pay excise tax.

This decree takes effect from the date of signing (June 21) to the end of December 31 this year.

After the extension period according to this decree, the payment of excise tax on domestically manufactured or assembled automobiles shall comply with current regulations.

According to calculations by the Ministry of Finance, the total amount of special consumption tax on cars manufactured and assembled in the country, extended in four tax periods, is about VNĐ10.4 trillion - VNĐ11.2 trillion (US$422 million to US$476 million).

At the same time, the amount of extension for late payment of tax does not affect the estimated state budget revenue this year.

Declared data of domestic automobile manufacturing and assembling enterprises show that the output and the amount of excise tax on domestically manufactured and assembled cars are gradually decreasing.

This is the fourth time that the special consumption tax on domestically manufactured and assembled cars has been extended to support and restore production and business due to the impact of the COVID-19 pandemic from 2020.

Last year, this policy was also applied to support domestic enterprises, with the amount of tax deferred payment up to VNĐ9.6 trillion (US$408 million).

The total amount paid into the state budget is VNĐ8.88 trillion (US$378 million). The remaining amount to be paid into the state budget is VNĐ731 billion (US$31 million). — VNS