Who is eligible for deadline extension for land rent payment in Vietnam in 2024 under Decree 64?

Who is eligible for deadline extension for land rent payment in Vietnam in 2024 under Decree 64?

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

Extension of the Deadline for Tax and Land Rent Payment

...

4. Regarding Land Rent

An extension is granted for the payment of 50% of the land rent required in 2024 (the amount payable in the second period of 2024) for enterprises, organizations, households, and individuals outlined in Article 3 of this Decree who are being directly leased land by the State through a Decision or Contract from a competent state agency in the form of annual land rent payment. The extension period is 02 months from October 31, 2024.

Specifically, the following entities directly leased land by the State via a Decision or Contract from a competent state agency in the form of annual land rent payment are eligible for land rent payment extension:

(1) Enterprises, organizations, households, business households, and individuals engaged in production in the following economic sectors:

- Agriculture, forestry, and fisheries;

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

- Construction;

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

- Crude oil and natural gas extraction (extension does not apply to corporate income tax on crude oil, condensate, and natural gas collected according to agreements, contracts);

- Beverage production; printing and copying of various types; coke production, refined petroleum products; production of chemicals and chemical products; production of fabricated metal products (except machinery and equipment); motorcycle and motorbike production; machinery and equipment repair, maintenance, and installation;

- Water drainage and wastewater treatment.

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

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

- Labor and employment services; travel agency activities, tour business, and related supportive services related to promotion and tour organization;

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

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

- Supporting services for mining.

The economic sectors mentioned in clauses 1 and 2 of this Article are determined according to Decision 27/2018/QD-TTg on the promulgation of the Vietnamese economic sector system.

The classification of economic sectors following Appendix I issued with Decision 27/2018/QD-TTg includes 5 levels, and determining the economic sector is applied based on the principles:

+ If the name of the economic sector mentioned in clauses 1 and 2 of this Article belongs to level 1, the sector to be applied under the extension includes all economic sectors at levels 2, 3, 4, and 5 of level 1;

+ If it belongs to level 2, the sector to be applied under the extension includes all economic sectors at levels 3, 4, and 5 of level 2;

+ If it belongs to level 3, the sector to be applied under the extension includes all economic sectors at levels 4 and 5 of level 3;

+ If it belongs to level 4, the sector to be applied under the extension includes all economic sectors at level 5 of level 4.

- Enterprises, organizations, households, and business households engaged in producing prioritized supporting industrial products; key mechanical products.

Prioritized supporting industrial products are determined according to Decree 111/2015/ND-CP; key mechanical products are determined according to Decision 319/QD-TTg approving the Strategy for the Development of Vietnam's Mechanical Industry to 2025, with a vision to 2035.

- Small and micro enterprises are determined according to the provisions of the Law on Support for Small and Medium Enterprises 2017 and Decree 80/2021/ND-CP.

The economic sectors, fields of enterprises, organizations, households, and business households mentioned in clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP are the sectors and fields where the entities have production and business activities and generate revenue in 2023 or 2024.

Who is eligible for deadline extension for land rent payment in Vietnam in 2024 under Decree 64? (Image from Internet)

Policy of deadline extension for land rent payment in Vietnam in 2024

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

- Extending the deadline for land rent payment for 50% of the land rent arising in 2024 (the amount payable in the second period of 2024) for enterprises, organizations, households, and individuals detailed in Article 3 of Decree 64/2024/ND-CP being directly leased land by the State through a Decision or Contract from competent state agencies in the form of annual land rent payment. The extension period is 02 months from October 31, 2024.

- This provision applies even if enterprises, organizations, households, and individuals have multiple Decisions, Contracts of direct land lease from the state and engage in various production and business activities, including economic sectors and fields stipulated in clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP.

What is the deadline for submitting land rent extension application in Vietnam?

Based on Article 5 of Decree 64/2024/ND-CP regulating the procedure for requesting land rent extension as follows:

Procedure for Extension

1. Taxpayers directly declaring and paying taxes with the tax authority subject to extension shall submit a land rent extension application (hereinafter referred to as Extension Proposal) for the first time or as a replacement in case of errors (by electronic means; directly delivering paper copies to the tax authority or sending via postal services) according to the Form in the Appendix issued with this Decree to the directly managing tax authority once for the entire amount of tax and land rent arising in the extended tax calculation periods, at the same time as submitting the monthly (or quarterly) tax return dossier according to law on tax management. If the Extension Proposal is not submitted simultaneously with the tax return filing time of the month (or quarter), the deadline for submission is by September 30, 2024, and the tax authority will still extend the tax and land rent of the periods due for extension before the Extension Proposal submission.

If taxpayers have extension requests covering multiple areas managed by different tax authorities, the tax authority directly managing the taxpayer is responsible for forwarding the Extension Proposal information to the relevant managing tax authorities.

2. Taxpayers themselves determine and are responsible for ensuring that their extension requests are accurate eligible entities under this Decree. If taxpayers submit the Extension Proposal to the tax authority after September 30, 2024, they shall not be eligible for tax and land rent extension under this Decree. If taxpayers submit additional declarations of the tax calculation period extended, leading to an increase in the payable amount and submit them to the tax authority before the extension deadline expires, the extended tax includes the increased amount due to the additional declaration. If taxpayers submit additional declarations of the extended tax calculation period after the extension deadline expires, the additional payable amount shall not be extended.

Therefore, the deadline for submitting the land rent extension application is September 30, 2024.

If submitted after September 30, 2024, the extension for tax and land rent will not be granted.