Vietnam: What is Sub-entry 1003?

Vietnam: What is Sub-entry 1003?

According to point b, clause 1, Article 4 Circular 324/2016/TT-BTC, a sub-entry (or economic content code – ECC) is a detailed classification of the Entry, used to classify detailed state budget revenues and expenditures according to management targets in each Entry.

Based on Appendix 3 Directory, the sub-entry issued together with Circular 324/2016/TT-BTC, supplemented by Clause 5, Article 1 Circular 93/2019/TT-BTC stipulates personal income tax sub-entry 2024, which includes sub-entry 1003. Specifically:

Thus, sub-entry 1003 is personal income tax from individuals' production and business activities.

Vietnam: What is Sub-entry 1003 tax? (Image from Internet)

Can individuals engaging in production and business activities defer the payment of personal income tax in Vietnam?

According to Article 3 Decree 64/2024/ND-CP, the regulations are as follows:

Entities eligible for deferment

1. Enterprises, organizations, households, business households, and individuals engaging in production activities in the following economic sectors:

a) Agriculture, forestry, and fisheries;

b) Food production and processing; textiles; apparel production; leather and related products production; wood processing and wood, bamboo, rattan product manufacturing (excluding beds, cabinets, tables, chairs); production of straw, thatch, and plaited material products; paper production and paper products; production of rubber and plastic products; production of non-metallic mineral products; metal production; mechanical processing; metal treatment and coating; production of electronic products, computers, and optical products; automotive and other motor vehicle production; production of beds, cabinets, tables, chairs;

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2. Enterprises, organizations, households, business households, and individuals engaged in business activities in the following economic sectors:

a) Transportation and storage; accommodation and food services; education and training; healthcare and social assistance activities; real estate business activities;

b) Labor and employment services; activities of travel agents, tourism business, and related supporting services, including advertising and organizing tours;

c) Creative, artistic, and entertainment activities; activities of libraries, archives, museums, and other cultural activities; sports and amusement; film projection activities;

d) Broadcasting activities; computer programming, consultancy services, and other related activities; information services;

đ) Supporting services for mining operation.

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Individuals engaged in production and business activities are eligible for deferment of personal income tax payment.

What is the extended deadline for personal income tax payment in 2024 for individuals engaged in production and business activities?

According to Article 4 Decree 64/2024/ND-CP, the regulations are as follows:

Extension of tax and land rent payment deadlines

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3. For value-added tax, personal income tax of business households, and individuals

Extension of the deadline for payment of value-added tax and personal income tax for the payable tax amount arising in 2024 of business households and individuals engaged in economic sectors and fields specified in clauses 1, 2, and 3, Article 3 of this Decree. Business households and individuals must pay the extended amount no later than December 30, 2024.

4. For land rent

Extension of the deadline for payment of land rent for 50% of the payable land rent arising in 2024 (second installment of 2024) for enterprises, organizations, households, and individuals subject to the provisions of Article 3 of this Decree who are directly leased land by the State, under Decision or Contract by a competent state agency in the form of annual land rent payment. The extension period is 2 months from October 31, 2024.

This regulation applies to cases where enterprises, organizations, households, and individuals have multiple Decisions, Contracts for direct land leasing by the State and have multiple production and business activities, including economic sectors and fields specified in clauses 1, 2, and 3, Article 3 of this Decree.

5. In case enterprises, organizations, business households, and individuals engaged in multiple economic sectors and fields specified in clauses 1, 2, and 3, Article 3 of this Decree, enterprises and organizations are entitled to an extension for all payable value-added tax and corporate income tax; business households and individuals are entitled to an extension for all payable value-added tax and personal income tax as guided in this Decree.

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Thus, the extended deadline for personal income tax payment in 2024 for business individuals is December 30, 2024.

Note: The extension applies to the payable personal income tax arising in 2024.