What is the deadline of the land rent deferral in Vietnam in 2024?

What is the deadline of the land rent deferral in Vietnam in 2024?

According to Article 4 of Decree 64/2024/ND-CP, the extension of land rent payment for 2024 is regulated as follows:

- The payment deadline for 50% of the land rent due in 2024 (due for the second installment in 2024) for enterprises, organizations, households, and individuals subject to the stipulations in Article 3 of Decree 64/2024/ND-CP which are directly leased land by the State under decisions or contracts from competent state authorities, paid annually as land rent, is extended.

The extension period is 2 months from October 31, 2024.

- This provision applies to cases where enterprises, organizations, households, and individuals hold multiple direct land lease contracts or decisions from the state and engage in various production and business activities, including sectors defined in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP.

Thus, the extended land rent payment deadline is December 31, 2024.

What is the deadline of the land rent deferral in Vietnam in 2024? (Image from the Internet)

Who is eligible for the land rent deferral in Vietnam?

Based on Article 4 of Decree 64/2024/ND-CP, the regulations are as follows:

Extension of tax and land rent payment deadlines

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4. Regarding land rent

The payment period for 50% of the incurred land rent due in 2024 (due for the second installment in 2024) for enterprises, organizations, households, individuals covered under Article 3 of this Decree that are directly leased land by the State under decisions or contracts from competent state authorities, paid annually as land rent, is extended. The extension period is 2 months from October 31, 2024.

Specifically, the following entities directly leased land by the State under decisions or contracts from competent state authorities, and pay land rent annually, are eligible for the land rent deferral :

(1) Enterprises, organizations, households, businesses, individuals operating in the following economic sectors:

- Agriculture, forestry, and fisheries;

- Production, food processing; textiles; apparel manufacturing; leather and related products; wood processing and products from wood, bamboo, and rattan (except beds, cabinets, tables, chairs); products from straw, thatch, and woven materials; paper and paper products manufacturing; products from rubber and plastic; products from other non-metallic minerals; metal production; mechanical processing; metal treatment and coating; electronic, computer and optical products manufacturing; automobile and other motor vehicle manufacturing; furniture manufacturing;

- Construction;

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

- Extraction of crude oil and natural gas (no extension for corporate income tax of crude oil, condensate, natural gas collected under agreements, contracts);

- Beverage production; printing and reproduction of recorded media; coking, refined petroleum products; chemical manufacturing and chemical products; products from fabricated metal (except machinery, equipment); motorcycle manufacturing; repair, maintenance, and installation of machinery and equipment;

- Water drainage and waste treatment.

(2) Enterprises, organizations, households, businesses, individuals engaged in the following business sectors:

- Transportation and warehousing; accommodation and food services; education and training; health and social assistance activities; real estate business activities;

- Employment service activities; activities of travel agencies, tour operators, and supporting services related to advertising and organizing trips;

- Creative, arts, and entertainment activities; activities of libraries, archives, museums, and other cultural activities; sports and entertainment activities; film screening activities;

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

- Mining support services.

The list of economic sectors specified in Clauses 1 and 2 of this Article is determined according to Decision 27/2018/QD-TTg on the issuance of the Vietnam economic sector classification system.

Economic sector classifications according to Appendix I issued together with Decision 27/2018/QD-TTg include 5 levels, and the determination of economic sectors is applied according to the following principles:

+ If the economic sector name specified in Clauses 1 and 2 of this Article belongs to Level 1, the economic sector being applied for extension includes all economic sectors under Levels 2, 3, 4, 5 of Level 1;

+ If it belongs to Level 2, the economic sector being applied for extension includes all economic sectors under Levels 3, 4, 5 of Level 2;

+ If it belongs to Level 3, the economic sector being applied for extension includes all economic sectors under Levels 4, 5 of Level 3;

+ If it belongs to Level 4, the economic sector being applied for extension includes all economic sectors under Level 5 of Level 4.

- Enterprises, organizations, households, businesses, and individuals producing prioritized supporting industrial products; key mechanical products.

Supporting industrial products that are prioritized for development are determined according to Decree 111/2015/ND-CP; key mechanical products are determined according to Decision 319/QD-TTg approving the Strategy for Vietnam’s mechanical industry development up to 2025, with a vision to 2035.

- Small and micro-enterprises identified according to the provisions of the Law on Supporting Small and Medium-sized Enterprises 2017 and Decree 80/2021/ND-CP.

The economic sector, field of enterprises, organizations, households, businesses, individuals engaged in business prescribed in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP is a sector, field in which businesses, organizations, households, businesses, and individuals engage in production, business, and generate revenue in 2023 or 2024.

When is the end of the tax and land rent deferral period in Vietnam in 2024?

According to the provisions in Article 6 of Decree 64/2024/ND-CP as follows:

Implementation and effective date

1. This Decree is effective from the date of its signing until the end of December 31, 2024.

2. After the extension period as stipulated in this Decree, the deadlines for tax and land rent payments shall comply with current regulations.

3. The Ministry of Finance is responsible for directing, organizing the implementation, and addressing obstacles arising in the process of enforcing this Decree.

4. Ministers, Heads of ministry-level agencies, Heads of agencies under the Government of Vietnam, Chairpersons of provincial and municipal People's Committees, and related enterprises, organizations, households, businesses, and individuals are responsible for executing this Decree.

Therefore, according to the above provisions, the extension period for value-added tax, corporate income tax, personal income tax, and land rent in 2024 is effective from June 17, 2024, to December 31, 2024.

After the expiration of the extension period under Decree 64/2024/ND-CP, the deadlines for tax and land rent payments shall comply with current regulations.