Vietnam: Which business lines are eligible for the extension of personal income tax payment for household businesses and individual businesses?

What is the extension period of PIT payment under Decree 64 for household businesses and individual businesses in Vietnam?

Under provisions in clause 3, Article 4 of Decree 64/2024/ND-CP on the extension of personal income tax payment:

Extension of Tax Payment and Land Rent

...

3. For value-added tax, personal income tax of household businesses and individual businesses

Extension of the time to pay value-added tax and personal income tax for the amount of tax payable arising in 2024 for household businesses and individual businesses operating in the business lines mentioned in clause 1, clause 2, and clause 3 of Article 3 of this Decree. household businesses and individual businesses are required to pay the tax amount extended under this clause no later than December 30, 2024.

...

The extension of the personal income tax payment for household businesses and individual businesses applies to the payable amounts arising in 2024 of household businesses and individual businesses operating in business lines eligible for tax extension, which will be extended until December 30, 2024.

Which business lines are eligible for the extension of personal income tax payment for household businesses and individual businesses in Vietnam? (Image from the Internet)

What are the procedures for extension of PIT payment for household businesses and individual businesses in Vietnam?

Under Article 5 of Decree 64/2024/ND-CP regulating the procedures for extension of PIT payment for household businesses and individual businesses in Vietnam:

- Taxpayers directly declare and pay taxes with the tax authority eligible for the extension by sending the Application for Extension of Tax Payment and Land Rent (hereinafter referred to as the Application for Extension) for the first time or as a replacement when errors are found (via electronic means; sending paper documents directly to the tax authority or via postal services) to the directly managing tax authority once for all the tax, land rent payments arising in the tax periods eligible for extension simultaneously with the filing time of the tax declaration dossier as per the law on tax administration.

In cases where the Application for Extension is not submitted simultaneously with the filing time of the monthly (or quarterly) tax declaration dossier, the latest submission date is September 30, 2024. The tax authority still implements the extension for tax and land rent of the periods eligible for extension before the time of submitting the Application for Extension.

- Taxpayers self-determine and take responsibility for requesting an extension to ensure correctness as per Decree 64/2024/ND-CP.

- However, the tax authority is not required to notify the taxpayer about the acceptance of the tax payment and land rent extension.

In case during the extension period, the tax authority has grounds to determine that the taxpayer is not eligible for the extension, the tax authority will issue a written notice to the taxpayer about the non-extension, and the taxpayer must pay the required tax, land rent and late payment amount for the extended period to the state budget.

In case after the extension period ends, through inspection, the competent state authority discovers that the taxpayer is not eligible for the tax extension per Decree 64/2024/ND-CP, the taxpayer shall pay the missing tax amount, fine, and late payment interest to the state budget.

Note: If the taxpayer sends the Application for Extension to the tax authority after September 30, 2024, the tax and land rent will not be extended.

If the taxpayer supplements the tax declaration dossier of the extended tax period leading to an increase in the payable amount and submits it to the tax authority before the extended tax payment deadline, the extended tax amount includes the increased amount due to the supplementary declaration. If the taxpayer supplements the tax declaration dossier of the extended tax period after the extended tax payment deadline, the supplemental payment amount will not be extended.

Which business lines are eligible for the extension of personal income tax payment for household businesses and individual businesses in Vietnam?

Under the provisions in Article 3 and Article 4 of Decree 64/2024/ND-CP, the following household businesses and individual businesses in the specified business lines are eligible for the extension of personal income tax payment:

(1) Enterprises, organizations, households, household businesses, and individuals operating in the following business lines:

- Agriculture, forestry, and fishery;

- Processing and manufacturing of food products; textiles; apparel manufacturing; leather and related products production; wood processing and products manufacturing (except beds, wardrobes, tables, chairs); production of products from straw, thatch, and plaiting materials; paper and paper products manufacturing; rubber and plastic products production; production of other non-metallic mineral products; metal manufacturing; mechanical processing; metal treatment and coating; manufacturing of electronic products, computers, and optical products; automobile and other motor vehicles manufacturing; production of beds, wardrobes, tables, chairs;

- Construction;

- Publishing activities; film production, television program production, sound recording, and music publishing;

- Crude oil and natural gas extraction (excluding corporate income tax for crude oil, condensate, and natural gas collected under agreements, and contracts);

- Beverage product manufacturing; printing, copying of recorded media; coke and refined petroleum product manufacturing; chemical and chemical product manufacturing; finished metal products manufacturing (except machinery and equipment); motorcycle and parts manufacturing; machinery and equipment repair, maintenance, and installation;

- Wastewater treatment and management.

(2) Enterprises, organizations, households, household businesses, and individuals operating in the following business sectors:

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

- Labor and employment service activities; travel agency activities, tour operation, and support services related to advertising and organizing tours;

- Creative, arts, and entertainment activities; library, archive, museum, and other cultural activities; sports, amusement, and recreation activities; cinema operations;

- Broadcasting activities; programming, consulting services, and other related computer services; information service activities;

- Support activities for mining.

The list of business lines is determined according to Decision 27/2018/QD-TTg on promulgating the Vietnamese business line system.

(3) Enterprises, organizations, households, household businesses, and individuals producing prioritized supporting industrial products; key mechanical products.

The prioritized supporting industrial products are determined according to Decree 111/2015/ND-CP by the Government of Vietnam on developing supporting industries; key mechanical products are determined according to Decision 319/QD-TTg in 2018 by the Prime Minister of the Government of Vietnam approving the development strategy of the mechanical industry in Vietnam until 2025, with a vision to 2035.