By Khanh Linh.

In order to support domestic automobiles manufacturers and assemblers during the hard time of the economy, the Government of Vietnam promulgated Decree No. 36/2023/ND-CP on extending deadlines for paying special consumption tax (SPT) on domestically manufactured or assembled automobiles (the “Decree”). Notably, key takeaways of the Decree are as below:

1. Only domestically manufactured and assembled automobiles are governed under the purview of the Decree while imported automobiles are subject to existing regulations.
2. SPT payable in the tax periods of June, July, August, and September 2023 will be deferred until November 20, 2023

• In case taxpayers supplement their tax declaration dossiers which lead to increases in the payable SPT amount, the additional SPT shall be deferred if the dossiers are submitted to competent tax authorities before the initial deadlines for SPT.
• The taxpayers eligible for the declaration and declaration form submission deferral shall not have to pay the SPT arising from the declaration form until the end of the deferral period.
• Branches or affiliated entities of companies engaged in the manufacture and assembly of automobiles are also eligible for deferral under the Decree.

3.       Procedures for deferral

• Taxpayers who are eligible for an extension must file a written application for deferral of the SPT payment deadline to the supervisory tax authority.
• The submission is only required once for all deferred periods.
• The submission of this dossier is at the same time as the submission of the SPT declaration as prescribed by law.
• During the deferred period, the tax authority shall not be charged late payment interests for the deferred SPT amount.

The Decree takes effect until the end of December 31, 2023.