Will the tax deferral for household businesses and individual businesses in Vietnam end on December 30, 2024?

Will the tax deferral for household businesses and individual businesses in Vietnam end on December 30, 2024?

Pursuant to Clause 3, Article 4 of Decree 64/2024/ND-CP, the tax deferral by household businesses and individual businesses is stipulated as follows:

Deferral of tax and land rents

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

Extension of the value-added tax and personal income tax payment deadline for tax amounts due in 2024 for household businesses and individual businesses operating in the economic sectors and fields mentioned in Clauses 1, 2, and 3, Article 3 of this Decree. household businesses, individual businesses must pay the deferred tax amounts no later than December 30, 2024.

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Therefore, the extension period for value-added tax and personal income tax for household businesses and individual businesses will end on December 30, 2024.

Will the tax deferral for household businesses and individual businesses in Vietnam end on December 30, 2024? (Image from the Internet)

Which household businesses and individuals are granted a tax deferral in Vietnam?

According to Article 3 of Decree 64/2024/ND-CP, household businesses and individual businesses are granted a tax deferral as follows:

(1) household businesses, individuals operating in the following economic sectors:

- Agriculture, forestry, and fisheries;

- Manufacture, processing of food products; textiles; clothing manufacturing; leather and related products manufacturing; processing of wood and production of wood, bamboo, and rattan products (except for beds, cabinets, tables, and chairs); production of products from straw and braided materials; production of paper and paper products; production of rubber and plastic products; production of other non-metallic mineral products; metal production; mechanical metal processing; metal treatment and coating; production of electronic products, computers, and optical products; production of automobiles and other motor vehicles; production of beds, cabinets, tables, chairs;

- Construction;

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

- Extraction of crude oil and natural gas (excluding corporate income tax deferral for crude oil, condensate, contractually collected natural gas);

- Production of beverages; printing, duplication of various recordings; production of coke and refined petroleum products; production of chemicals and chemical products; production of fabricated metal products (except for machinery and equipment); production of motorcycles, scooters; repair, maintenance and installation of machinery and equipment;

- Waste water disposal and sewerage.

(2) household businesses, individual businesses in the following economic sectors:

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

- Labor and employment service activities; activities of travel agencies, tour operation and services supporting, related to advertising and organizing tours;

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

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

- Mining support service activities.

The economic sectors mentioned above are determined according to Decision 27/2018/QD-TTg on issuing the Vietnamese economic sector classification system.

The economic sector classification as per Appendix 1 issued with Decision 27/2018/QD-TTg includes 5 levels and the determination of the economic sector applies as follows:

+ If the name of an economic sector mentioned above belongs to a Level 1 sector, then the extension applies to all economic sectors belonging to sub-levels 2, 3, 4, 5 of Level 1;

+ If belonging to a Level 2 sector, then the extension applies to all economic sectors belonging to sub-levels 3, 4, 5 of Level 2;

+ If belonging to a Level 3 sector, the extension applies to all economic sectors belonging to sub-levels 4, 5 of Level 3;

+ If belonging to a Level 4 sector, the extension applies to all economic sectors belonging to sub-levels 5 of Level 4.

(3) household businesses, individuals producing industrial support products prioritized for development; key mechanical products.

Industrial support products prioritized for development are defined according to Decree 111/2015/ND-CP; key mechanical products are defined according to Decision 319/QD-TTg in 2018.

Note: The economic sector and field of the household businesses, individual businesses mentioned above are those in which they have business, production activities and generate revenue in 2023 or 2024.

Vietnam: Are household businesses, individuals penalized for late tax payment if the extension period ends?

Pursuant to point a, clause 1, Article 59 of Tax Administration Law 2019, the handling of late tax payments is regulated as follows:

Handling of late tax payments

1. Circumstances where late payment interest applies include:

a) Taxpayers late in paying taxes compared to the prescribed deadline, extension deadline, as stated in the tax authority's notice, fixed decision, or handling decision of the tax authority;

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Therefore, in the event that the extension period lapses and household businesses, individual businesses have not paid their taxes, they will be subject to late payment interest.