Which entitiy is eligible for a deferral for VAT, CIT, PIT, and land rent in Vietnam in 2024?

Which entitiy is eligible for a deferral for VAT, CIT, PIT, and land rent in Vietnam in 2024?

Based on Article 3 of Decree 64/2024/ND-CP, the entities eligible for a deferral for VAT, CIT, PIT, and land rent in 2024 include:

[1] Enterprises, organizations, households, business households, individuals engaged in production activities in the following economic sectors:

- Agriculture, forestry, and fisheries;

- Manufacturing and processing of food; textiles; apparel; leather and related products; woodworking and production of wooden goods, bamboo, and rattan (except for beds, cabinets, tables, chairs); production of goods from straw, cereal stems, and woven materials; production of paper and paper products; production of rubber and plastic products; production of articles from non-metal minerals; metal manufacturing; mechanical machining; metal treatment and coating; production of electronic items, computers, and optical products; production of automobiles and other motor vehicles; production of beds, cabinets, tables, and chairs;

- Construction;

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

- Extraction of crude oil and natural gas (not extending for corporate income tax on crude oil, condensate, natural gas collected under agreements, contracts);

- Beverage production; printing, copying of recorded media of all kinds; production of coke, refined petroleum products; production of chemicals and chemical products; production of products from pre-cast metals (excluding machinery, equipment); production of motorcycles, motorbikes; repair, maintenance, and installation of machinery and equipment;

- Water drainage and wastewater treatment.

[2] Enterprises, organizations, households, business households, individuals engaged in business activities in the following economic sectors:

- Logistics and storage; accommodation and catering services; education and training; healthcare and social assistance activities; real estate business activities;

- Labor and employment services; activities of travel agencies, tour operations and support services, related to advertising and organizing tours;

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

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

- Support service activities for mining.

The list of economic sectors mentioned in Clauses 1 and 2, Article 3 of Decree 64/2024/ND-CP is determined according to Decision No. 27/2018/QD-TTg.

- Economic sectors classification according to Appendix I issued together with Decision 27/2018/QD-TTg consists of 5 levels and the determination of economic sectors is applied according to the principle:

+ In cases where the name of the economic sector mentioned in Clauses 1 and 2, Article 3 of Decree 64/2024/ND-CP belongs to level 1, the economic sector applying the extension includes all economic sectors of levels 2, 3, 4, and 5 under level 1;

+ In cases where it belongs to level 2, the economic sector applying the extension includes all economic sectors of levels 3, 4, and 5 under level 2;

+ In cases where it belongs to level 3, the economic sector applying the extension includes all economic sectors of levels 4 and 5 under level 3;

+ In cases where it belongs to level 4, the economic sector applying the extension includes all economic sectors of level 5 under level 4.

[3] Enterprises, organizations, households, business households, individuals engaged in producing priority industrial support products; key mechanical products.

The priority industrial support products are defined according to Decree No. 111/2015/ND-CP on supporting industry development; key mechanical products are defined according to Decision No. 319/QD-TTg that approves the Strategy for Vietnam's Mechanics Industry Development by 2025, vision to 2035.

[4] Small and micro-sized enterprises as determined by the provisions of the Law on Supporting Small and Medium-sized Enterprises 2017 and Decree 80/2021/ND-CP detailing a number of articles of the Law on Supporting Small and Medium-sized Enterprises 2017.

The economic sector, field of enterprises, organizations, households, business households, individual businesses regulated in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP is the sector, field in which the enterprise, organization, household, business household, individual engages in production, business activities and generates revenue in 2023 or 2024.

Which entitiy is eligible for a deferral for VAT, CIT, PIT, and land rent in Vietnam in 2024? (Image from the Internet)

What are the regulations on deferral for taxes and land rent in Vietnam in 2024?

According to Article 4 of Decree 64/2024/ND-CP, the regulations on extending the deadlines for VAT, CIT, PIT, and land rent payments in 2024 include:

[1] For Value-added Tax (excluding VAT on imports)

- Extension of the tax payment deadline for VAT amounts payable (including the tax distributed to provincial levels other than where the taxpayer's headquarters are located, and tax paid per occurrence) for the tax calculation period from May to September 2024 (for monthly VAT declaration) and the second and third quarters of 2024 (for quarterly VAT declaration) of the enterprises and organizations mentioned in Article 3 of Decree 64/2024/ND-CP.

The extension period is 05 months for VAT of May 2024, June 2024, and the second quarter of 2024, 04 months for VAT of July 2024, 03 months for VAT of August 2024, and 02 months for VAT of September 2024, and the third quarter of 2024. The extension time under this point is calculated from the deadline for VAT payment according to tax management rules.

[2] For Corporate Income Tax

- Extension of the payment deadline for provisionally paid CIT of the second quarter of the 2024 CIT calculation period for businesses and organizations within the subjects prescribed in Article 3 of Decree 64/2024/ND-CP. The extension is 03 months from the deadline for CIT payment as stipulated in tax management legislation.

- If the enterprises and organizations mentioned in Article 3 of Decree 64/2024/ND-CP have branches or subordinate units that declare CIT separately with the directly managing tax authority of the branches or units, these branches or units also qualify for CIT payment extension. If the branches or subordinate units of the enterprises and organizations specified in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP do not engage in production and business activities in the economic sectors and fields eligible for the extension, these branches and units do not qualify for CIT payment extension.

[3] For VAT and Personal Income Tax of Business Households, Individual Businesses

The extension of the deadline for VAT and PIT payment for tax liabilities in 2024 of business households and individual businesses operating in economic sectors and fields specified in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP. Business households and individual businesses must pay the extended tax amounts by December 30, 2024, as specified in Clause 3, Article 4 of Decree 64/2024/ND-CP.

[4] For Land Rent

The extension of the deadline for paying land rent for 50% of the land rent due in 2024 (the second installment of 2024) for enterprises, organizations, households, and individuals governed by Article 3 of Decree 64/2024/ND-CP who are being directly leased land by the State under a Decision or Contract from a competent state authority under the form of annual land rent payment. The extension period is 02 months from October 31, 2024.

What are regulations on the extension of tax declaration deadlines in Vietnam?

According to Article 46 of the Law on Tax Administration 2019, specific provisions on the extension of tax filing deadlines are as follows:

- Taxpayers unable to submit tax declarations on time due to natural disasters, calamities, epidemics, fires, unexpected accidents can apply for an extension of tax filing deadlines by the head of the directly managing tax authority.

- The extension should not exceed 30 days for filing monthly, quarterly, annual tax returns, or tax returns for each occurrence of tax obligations; 60 days for filing tax finalization returns from the due filing date.

- Taxpayers must submit a written request for extending the tax declaration filing deadline to the tax authority before the deadline, specifying the reason, with confirmation from the commune-level People's Committee or Police where the extension case occurs is regulated.

- Within 03 working days from receipt of the extension request, the tax authority must reply in writing to the taxpayer regarding the acceptance or rejection of the tax declaration filing extension request.