Who is eligible for the extension of the deadline for paying land rent in Vietnam 2023?

Who is eligible for the extension of the deadline for paying land rent in Vietnam 2023? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

The Government of Vietnam issued Decree 12/2023/ND-CP dated April 14, 2023, on extending the deadline for payment of value added tax, corporate income tax, personal income tax, and land rent in 2023.

1. Who is eligible for the extension of the deadline for paying land rent in Vietnam in 2023?

Specifically, in Article 3 of Decree 12/2023/ND-CP, subjects eligible for an extension of the time limit for paying land rent in 2023 include:

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

- Agriculture, forestry, and fisheries;

- Food production and processing; weaving; production of costumes; manufacture of leather and related products; wood processing and production of products from wood, bamboo, and cork (except for beds, cabinets, tables, and chairs); producing products from straw and plaiting materials; production of paper and paper products; ...

- Build;

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

- Exploiting crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);

- Manufacture of beverages; printing and copying records of all kinds; production of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); manufacture of motorcycles and motorbikes; repair, maintenance, and installation of machinery and equipment;

- Drainage and wastewater treatment.

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

Transportation and warehouse services; accommodation and catering services; education and training; health and social assistance activities; real estate business;

- Labor and employment service activities; activities of travel agencies, tour businesses, and support services, related to the promotion and organization of tours;

- Creative, artistic, and entertainment activities; activities of libraries, archives, museums, and other cultural activities; sports and entertainment activities; movie screening activities;

- Radio and television activities; computer programming, consulting services, and other computer-related activities; information service activities;

- Activities supporting services for mining.

The list of economic sectors mentioned in (1), (2) is determined according to Decision 27/2018/QD-TTg.

Economic sub-sectors according to Appendix I issued together with Decision 27/2018/QD-TTg include 5 levels, and the identification of economic sectors is applied according to the following principles:

+ If the name of the economic sector mentioned in (1), (2) belongs to a first-class industry, the economic sectors subject to the extension regulations include all economic sectors of the 2nd, 3rd, 4th, and 5th levels of the level 1 branches;

+ In the case of a level 2 industry, the economic sector to which the extension is applied includes all economic sectors of the 3rd, 4th, and 5th levels of the level 2 branches;

+ In case of being in a level 3 industry, the economic sector to which the extension is applied includes all economic sectors of the 4th and 5th levels of the 3rd grade;

+ In the case of a level 4 industry, the economic sector to which the extension is applied includes all economic sectors that fall under the 5th level of the level 4 industry.

(3) Enterprises, organizations, households, business households, and individuals engaged in the production of supporting industry products prioritized for development; Key mechanical products: Priority support industrial products are determined according to Decree 111/2015/ND-CP and are determined under Decision 319/QD-TTg.

(4) Small and micro enterprises are defined in accordance with the Law on Supporting Small and Medium Enterprises 2017 and Decree 80/2021/ND-CP.

The economic sectors and fields of enterprises, organizations, households, business households, and business individuals specified in (1), (2) and (3) are the branches and fields of business that enterprises, organizations, households, business households, and business individuals have production and business activities and generate revenue in 2022 or 2023.

2. How long is the extension period of the land rent payable in Vietnam 2023?

According to Decree 12/2023/ND-CP, extending the time limit for paying land rent for 50% of the arising land rent payable in 2023 to enterprises, organizations, households, and individuals are subjects specified in Section 1 and being directly leased land by the State under a decision or contract of a competent state agency in the form of an annual land rental payment.

The extension period is 06 months, from May 31, 2023, to November 30, 2023.

Note: This regulation applies to enterprises, organizations, households, and individuals that have many decisions, direct land lease contracts with the State and many different production and business activities in which there are economic sectors and fields specified in (1), (2), and (3).

More details can be found in Decree 12/2023/ND-CP, effective from the date of signing to the end of December 31, 2023.

After the extension period, the time limit for paying tax and land rent shall comply with current regulations.

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