Procedures for tax deferral for VAT, CIT, PIT, and land rent under the latest regulations in Vietnam

Procedures for tax deferral for VAT, CIT, PIT, and land rent under the latest regulations in Vietnam (Internet image)

On June 17, 2024, the Government issued Decree 64/2024/NĐ-CP extending the payment deadline for value-added tax, corporate income tax, personal income tax, and land rent for the year 2024.

Procedures for tax deferral for VAT, CIT, PIT, and land rent under the latest regulations in Vietnam

According to Article 5 of Decree 64/2024/NĐ-CP, the procedures for tax deferral for VAT, CIT, PIT, and land rent are as follows:

• Taxpayers who directly declare and pay taxes to tax authorities that are eligible for the extension must send a Request for Extension of Tax and Land Rent Payment (hereinafter referred to as the Request for Extension) either for the first time or as a replacement if errors are found (electronically; submit paper directly to the tax authority or send via postal service) using the form in the annex attached to Decree 64/2024/NĐ-CP to the directly managing tax authority once for all amounts of taxes and land rent arising in tax periods eligible for the extension, along with the monthly (or quarterly) tax declaration dossier submission schedule as prescribed by the tax administration law. In case the Request for Extension is not submitted along with the tax declaration dossier for the month (or quarter), the latest submission deadline is September 30, 2024. The tax authority will still implement the extension for the stated taxes and land rent that arise before the submission of the Request for Extension.

In case the taxpayer has extended amounts from different tax authorities, the directly managing tax authority is responsible for forwarding the extension request information to the concerned tax authorities.

• Taxpayers must self-determine and take responsibility for ensuring that extensions are requested for the correct eligible subjects according to Decree 64/2024/NĐ-CP. If the taxpayer submits the Request for Extension to the tax authority after September 30, 2024, the extension for tax and land rent will not be granted according to Decree 64/2024/NĐ-CP. If the taxpayer supplements the tax declaration dossier for the extended tax period leading to an increase in tax payable and submits it to the tax authority before the extended payment deadline, the extended tax amount includes the increased amount due to the supplementation. If the taxpayer supplements the tax declaration dossier for the extended tax period after the extended payment deadline, the extended amount will not include the increased amount due to supplementation.

• The tax authority does not need to notify the taxpayer about the acceptance of the extension for tax and land rent payments. If in the extension period, the tax authority finds that the taxpayer is not eligible for the extension, the tax authority will notify the taxpayer in writing of the non-grant of the extension, and the taxpayer must fully pay the tax, land rent, and late payment interest for the extended period to the state budget. If after the extension period, through inspection or audit, state authorities find that the taxpayer was not eligible for the extension according to Decree 64/2024/NĐ-CP, the taxpayer must pay the outstanding tax, fines, and late payment interest to the state budget.

• No late payment interest will be charged on the tax and land rent extended during the extension period (including cases where the taxpayer submits the Request for Extension to the tax authority after submitting the tax declaration dossier according to clause 1, Article 5 of Decree 64/2024/NĐ-CP and cases where competent authorities after inspection or audit determine that the taxpayer was eligible for an extension of additional amounts payable for the extended tax periods). If the tax authority has calculated late payment interest (if any) for tax dossiers eligible for an extension according to Decree 64/2024/NĐ-CP, the tax authority will adjust and not impose late payment interest.

• Investment owners of projects, basic construction projects using state budget funds, as well as ODA-funded projects liable to VAT must attach the tax authority's receipt notification of the Request for Extension or the extension request confirmation from the tax authority of the contractor executing the project when submitting payment procedures to the State Treasury. The State Treasury will, based on the documents submitted by the investment owner, not deduct VAT during the extension period. When the extension period ends, the contractor must fully pay the deferred tax according to regulations.

More details can be found in Decree 64/2024/NĐ-CP, which comes into force from June 17, 2024, to December 31, 2024.

To Quoc Trinh

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