From June 17, 2024, what are regulations on tax deferral for personal income tax for household and individual businesses in Vietnam?
From June 17, 2024, what are regulations on tax deferral for personal income tax for household and individual businesses in Vietnam?
The Government of Vietnam issued Decree 64/2024/ND-CP on June 17, 2024, tax deferral for payment of value-added tax, corporate income tax, personal income tax, and land rent deferral in Vietnam for the year 2024.
Based on Clause 3, Article 4 of Decree 64/2024/ND-CP regulating the tax deferral for personal income tax for household and individual businesses in Vietnam as follows:
Tax and land rent deferral
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3. For value-added tax and personal income tax of household and individual businesses
Extend the deadline for payment of value-added tax and personal income tax for tax amounts arising in 2024 of household and individual businesses operating in the economic sectors and fields specified in Clauses 1, 2, and 3, Article 3 of this Decree. household and individual businesses must pay the extended tax amounts by no later than December 30, 2024.
From June 17, 2024, household and individual businesses operating in the economic sectors and fields listed in Clauses 1, 2, and 3, Article 3 of Decree 64/2024/ND-CP must pay the extended personal income tax amounts no later than December 30, 2024.
From June 17, 2024, what are regulations on tax deferral for personal income tax for household and individual businesses in Vietnam? (Internet image)
Which economic sectors and fields are eligible for tax deferral for personal income tax in Vietnam?
Based on Clauses 1, 2, and 3, Article 3 of Decree 64/2024/ND-CP which stipulates the subjects operating in economic sectors and fields eligible for personal income tax extension include:
(1) Enterprises, organizations, family households, business households, and individuals engaged in production in the following economic sectors:
- Agriculture, forestry, and fisheries;
- Manufacturing and processing of food; textiles; production of apparel; production of leather and related products; wood processing and production of wood, bamboo, and rattan products (excluding beds, cabinets, tables, chairs); production of products from straw, thatch, and plaiting materials; production of paper and paper products; production of products from rubber and plastic; production of non-metallic mineral products; production of metals; mechanical processing; metal treatment and coating; production of electronic products, computers, and optical products; production of automobiles and motor vehicles; production of beds, cabinets, tables, chairs;
- Construction;
- Publishing activities; cinematographic activities, TV program production, recording, and music publishing;
- Extraction of crude oil and natural gas (not extending corporate income tax for crude oil, condensate, and natural gas collected under agreements and contracts);
- Production of beverages; printing, reproduction of recorded media; production of coke, refined petroleum products; production of chemicals and chemical products; production of fabricated metal products (except for machinery and equipment); production of motorcycles and motorbikes; repair, maintenance, and installation of machinery and equipment;
- Sewage and waste treatment.
(2) Enterprises, organizations, family households, business households, and individuals engaged in business in the following economic sectors:
- Transportation and storage; accommodation and food services; education and training; healthcare and social assistance activities; real estate business activities;
- Labor and employment services; travel agency activities, tour operator activities, and support services related to advertising and organizing tours;
- Artistic, creative, and entertainment activities; library, archival, museum, and other cultural activities; sports, amusement, and recreation activities; film screening activities;
- Broadcasting activities; computer programming, consultancy and related activities; information service activities;
- Mining support service activities.
Note: The list of economic sectors mentioned in Clauses 1 and 2 of Article 3 of Decree 64/2024/ND-CP is determined according to Decision 27/2018/QD-TTg dated July 6, 2018, of the Prime Minister of the Government of Vietnam on issuing the Vietnamese economic sector system.
The classification of economic sectors in Appendix I issued with Decision 27/2018/QD-TTg includes 5 levels and is applied based on the following principles:
If the name of the economic sector in Clauses 1 and 2, Article 3 of Decree 64/2024/ND-CP belongs to level 1, the economic sector applying for an extension includes all economic sectors of levels 2, 3, 4, 5 of level 1;
If belonging to level 2, the economic sector applying for an extension includes all economic sectors of levels 3, 4, 5 of level 2;
If belonging to level 3, the economic sector applying for an extension includes all economic sectors of levels 4, 5 of level 3;
If belonging to level 4, the economic sector applying for an extension includes all economic sectors of level 5 of level 4.
(3) Enterprises, organizations, family households, business households, and individuals engaged in the production of priority supporting industrial products; key mechanical products.
Priority supporting industrial products are defined according to Decree 111/2015/ND-CP dated November 3, 2015, of the Government of Vietnam on the development of supporting industries;
Key mechanical products are defined according to Decision 319/QD-TTg dated March 15, 2018 of the Prime Minister of the Government of Vietnam approving the strategy for the development of the Vietnamese mechanical industry until 2025, with a vision to 2035.
When does Decree 64/2024/ND-CP come into effect in Vietnam?
According to Clause 1, Article 6 of Decree 64/2024/ND-CP regulating the effective date:
Implementation and Effective Date
1. This Decree is effective from the date of signing until the end of December 31, 2024.
Thus, Decree 64/2024/ND-CP takes effect on the date of signing in Vietnam, which means the Decree will be effective from June 17, 2024.
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