Excise tax extension for domestically manufactured and assembled cars

There has been an extension to the tax payment deadline for the payable luxury tax arising from the tax periods of June, July, August, and September 2023 for cars manufactured or assembled in Vietnam, according to the Decree. The extension period lasts from the deadline for excise tax payment under the law on tax administration to the end of November 20, 2023, specifically as follows: The deadline for paying the payable excise tax arising from the tax period of June 2023 is no later than November 20, 2023.

The time limit for paying excise tax in the tax period of July 2023 must be incurred no later than November 20, 2023. The deadline for paying the excise tax arising from the August 2023 tax period is by November 20, 2023. The excise tax arising from the tax period of September 2023 must be paid no later than November 20, 2023.

Simultaneously, the Decree specifies in certain cases. In particular, if a taxpayer makes an additional declaration of tax returns of the extended tax period, leading to an increase in payable luxury tax, and sends it to the tax authority before the deadline of the extended tax payment, the extended tax includes the increased payable tax as a result of the additional declaration.

In case taxpayers are eligible for the extension to tax declaration and file excise tax returns under current law, they have not yet paid the payable excise tax amount arising on the tax return during the extension period.

If an enterprise that has branches and affiliated units declares excise tax separately from the tax authority directly managing the branch or affiliated unit, these branches and affiliated units are also subject to an extension of excise tax payment. In case the enterprise's branch or affiliated unit does not engage in automobile production or assembly, the branch or affiliated unit is not eligible for an extension of excise tax payment.

Regarding the order and procedures for extension, the Decree stipulates that taxpayers who are eligible for tax extension shall submit a written request for an extension of excise tax payment to the tax authority which directly manages once for all extended periods (i.e., electronically or directly to the tax authority or by post) according to the form in the attached appendix of this Decree, at the same time as submission of the excise tax return dossier under the law on tax administration.

If the written request for an extension of the time limit for excise tax payment is not submitted at the same time as the excise tax return dossier, the deadline for submission of the written request is no later than November 20, 2023, and the tax authority must still extend the deadline for excise tax payment as prescribed.

Taxpayers shall identify themselves and take responsibility for the application for an extension to ensure to be the right subjects under this Decree.

The tax authority is not required to notify the taxpayer of the acceptance of the extension of the deadline for excise tax payment. If, during the extension period, the tax authority has a basis to determine that the taxpayer is not subject to the excise tax extension, the tax authority must notify the taxpayer in writing of the extension suspension, and then the taxpayer must pay tax in full plus late payment penalty within the period of extension into the State budget./.