What are regulations on land rent deferral in Vietnam from June 17, 2024 under Decree 64/2024/ND-CP?
What are regulations on land rent deferral in Vietnam from June 17, 2024 under Decree 64/2024/ND-CP?
On June 17, 2024, the Government of Vietnam issued Decree 64/2024/ND-CP, tax deferral for value-added tax, corporate income tax, personal income tax, and land rent deferral in Vietnam in 2024.
Based on Clause 4, Article 4 of Decree 64/2024/ND-CP, the land rent deferral in Vietnam is stipulated as follows:
- Extending the deadline for payment of 50% of the land rent due in 2024 (the second installment of 2024) for enterprises, organizations, households, and individuals who are directly leased land by the State under a Decision or Contract from an authorized state agency in the form of annual land rent.
The extension period is 02 months from October 31, 2024.
This regulation applies to cases where enterprises, organizations, households, and individuals have multiple Decisions or Contracts for direct land leases from the State and engage in various production and business activities, including the sectors specified in Clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP.
Therefore, the extension for land rent payment is 02 months from October 31, 2024.
What are regulations on land rent deferral in Vietnam from June 17, 2024 under Decree 64/2024/ND-CP? (Image from the Internet)
What are regulations on land lease term in Vietnam?
According to Article 25 of Decree 103/2024/ND-CP, the land lease term in Vietnam is regulated as follows:
(1) The land lease term (except as provided in (2)) is the term specified in the decision on land lease by an authorized state agency or in the Certificate or land lease contract. If the land lease terms specified in the above documents differ, the land management agency determines the term for calculating land rent.
(2) In cases of recognizing leased land use rights, the land lease term is the term specified in the Information Transfer Slip issued by the land management agency to the tax authority as regulated in the Decree on Certificate issuance or according to the signed land lease contract.
Who are the subjects eligible for tax deferral in Vietnam in 2024?
According to Article 3 of Decree 64/2024/ND-CP, the subjects eligible for tax deferral in Vietnam include:
- Enterprises, organizations, households, business households, and individuals engaged in production in the following economic sectors:
+ Agriculture, forestry, and fishery;
+ Food production and processing; textiles; apparel production; leather and related products production; wood processing and production of wood, bamboo, and rattan products (excluding beds, cabinets, tables, and chairs); production of products from straw, thatch, and weaving materials; paper production and paper products; production of rubber and plastic products; production of non-metallic mineral products; metal production; metalworking; metal treatment and coating; electronics, computers and optical products production; automobile and other motor vehicles production; furniture production;
+ Construction;
+ Publishing activities; film activities, television program production, recording, and music publishing;
+ Crude oil and natural gas extraction (corporate income tax is not extended for crude oil, condensate, and natural gas collected under treaties and contracts);
+ Beverage production; printing and reproduction of recorded media; coke production and refined petroleum products; chemical and chemical products production; production of fabricated metal products (excluding machinery and equipment); motorbike and motorcycle production; machinery and equipment repair, maintenance, and installation;
+ Water drainage and wastewater treatment.
- 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; real estate business;
+ Labour and employment services; travel agency activities, tour business, and support services related to promoting and organizing tours;
+ Creation, art, and entertainment activities; library, archival, museum, and other cultural activities; sports and recreational activities; cinema activities;
+ Broadcasting; computer programming, consultancy, and related activities; information service activities;
+ Support services for mining activities.
- Enterprises, organizations, households, business households, and individuals engaged in producing priority supporting industrial products; key mechanical products.
Priority supporting industrial products are defined according to Decree 111/2015/ND-CP dated November 3, 2015, by the Government of Vietnam on supporting industrial development;
Key mechanical products are defined according to Decision 319/QD-TTg dated March 15, 2018, by the Prime Minister of the Government of Vietnam approving the strategy for developing Vietnam’s mechanical industry until 2025, with a vision until 2035.
- Small and micro enterprises are defined according to the provisions of the Law on Supporting Small and Medium Enterprises 2017 and Decree 80/2021/ND-CP.
The economic sectors, fields of enterprises, organizations, households, and business households mentioned above are those in which they have production and business activities and generate revenue in 2023 or 2024.
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