The Vietnamese government approved Decree No. 64/2024/ND-CP on June 17, 2024, stipulating the extension of deadlines for paying value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT), and land rent for 2024. The following are the key points businesses need to know to apply this decree.
Extension of the deadline for paying taxes and land rent for 2024.
1. Extension of the deadline for paying value-added tax (excluding VAT on imported goods)
Extend the deadline for paying VAT incurred from May 2024 to September 2024 (for monthly declarations) and for the second and third quarters of 2024 (for quarterly declarations).
Extension period:
- 5 months for VAT for May 2024 and June 2024 as well as the second quarter of 2024;
- 4 months for August 2024;
- 3 months for August 2024;
- Two months for September 2024 and Q3 2024.
The deadline for paying VAT has been extended:
- September 2024, at the latest by December 20, 2024;
- September 2024, at the latest by December 20, 2024;
- September 2024, at the latest by December 20, 2024;
- September 2024, at the latest by December 20, 2024;
- September 2024, at the latest by December 20, 2024;
- Q2 2024, no later than December 31, 2024;
- Q3 2024, no later than December 31, 2024.
2. Extension of the deadline for paying corporate income tax.
→ Extend the deadline for paying the provisional corporate income tax for the second quarter of the 2024 corporate income tax period for enterprises and organizations subject to the provisions of Article 3 of this Decree. The extension period is 03 months, starting from the end of the corporate income tax payment deadline as stipulated by the law on tax administration.
→ In cases where the enterprises and organizations mentioned in Article 3 of this Decree have branches or affiliated units that file separate corporate income tax returns with the tax authorities directly managing those branches or affiliated units, then those branches and affiliated units are also eligible for the extension of corporate income tax payment. However, if the branches or affiliated units of the enterprises and organizations mentioned in Clauses 1, 2, and 3 of Article 3 of this Decree do not engage in production or business activities within the economic sectors or fields eligible for the extension, then those branches and affiliated units are not eligible for the extension of corporate income tax payment.
3. Extension of deadlines for value-added tax and personal income tax for household businesses and individual business owners.
This Decree extends the deadline for paying value-added tax and personal income tax for the 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 of Article 3. Household businesses and individual businesses must pay the extended tax amounts no later than December 30, 2024.
The following individuals are eligible for extension:
1. Businesses, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:
a) Agriculture, forestry and fishery;
b) 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); produce products from straw, straw and plaiting materials; production of paper and paper products; manufacture products from rubber and plastic; manufacture of other non-metallic mineral products; metal production; mechanical; metal treatment and coating; manufacturing electronic products, computers and optical products; manufacture of automobiles and other motor vehicles; manufacture of beds, cabinets, tables and chairs;
c) Construction;
d) Publishing activities; cinematographic activities, television program production, sound recording and music publishing;
e) Exploitation of crude oil and natural gas (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements and contracts);
f) Production of beverages; printing and reproduction of all kinds of recordings; production of coke and refined petroleum products; production of chemicals and chemical products; production of prefabricated metal products (excluding machinery and equipment); production of motorcycles and scooters; repair, maintenance and installation of machinery and equipment;
g) Drainage and wastewater treatment.
2. Businesses, organizations, households, business households, and individuals engaged in business activities in the following economic sectors:
a) Warehouse transportation; accommodation and catering services; education and training; health and social assistance activities; real estate business;
b) Labor and employment service activities; activities of travel agencies, tour businesses and support services, related to the promotion and organization of tours;
c) Creative, artistic and entertainment activities; activities of libraries, archives, museums and other cultural activities; sports and entertainment activities; movie screening activities;
d) Radio and television activities; computer programming, consulting services and other computer-related activities; information service activities;
e) Activities related to mining support services.
The list of economic sectors mentioned in Clauses 1 and 2 of this Article is determined according to Decision No. 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister on the promulgation of the Vietnamese economic sector classification system.
The economic sector classification according to Appendix I issued with Decision No. 27/2018/QD-TTg consists of 5 levels, and the determination of economic sectors is applied according to the following principle: If the name of the economic sector mentioned in Clauses 1 and 2 of this Article belongs to a level 1 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 2, 3, 4, and 5 of the level 1 sector; if it belongs to a level 2 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 3, 4, and 5 of the level 2 sector; if it belongs to a level 3 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to levels 4 and 5 of the level 3 sector; if it belongs to a level 4 sector, then the economic sector to which the extension regulations apply includes all economic sectors belonging to level 5 of the level 4 sector.
3. Enterprises, organizations, households, business households, and individuals engaged in the production of priority-development supporting industrial products and key mechanical products.
Priority supporting industrial products are identified according to Government Decree No. 111/2015/ND-CP dated November 3, 2015, on the development of supporting industries; key mechanical products are identified according to Decision No. 319/QD-TTg dated March 15, 2018, of the Prime Minister approving the Strategy for the Development of Vietnam's Mechanical Industry until 2025, with a vision to 2035.
4. Small and micro enterprises are defined according to the provisions of the Law on Support for Small and Medium-Sized Enterprises 2017 and Government Decree No. 80/2021/ND-CP dated August 26, 2021, detailing a number of articles of the Law on Support for Small and Medium-Sized Enterprises.
The economic sector, business field of enterprises, organizations, households, business households, and individual businesses specified in Clauses 1, 2, and 3 of this Article refers to the sector or field in which the enterprise, organization, household, business household, or individual business has production and business activities and generates revenue in 2023 or 2024.
Procedures for extending the tax payment deadline.
1. Taxpayers who directly declare and pay taxes to the tax authority and are eligible for tax payment extension shall submit the Request for Extension of Tax and Land Rent Payment (hereinafter referred to as the Request for Extension) for the first time or as a replacement when errors are discovered (by electronic means; sending a paper copy directly to the tax authority or sending via postal service) according to the Form in the Appendix issued with this Decree to the directly managing tax authority once for the entire amount of tax and land rent arising in the tax periods eligible for extension, at the same time as submitting the monthly (or quarterly) tax return as prescribed by the law on tax administration. If the Request for Extension is not submitted at the same time as submitting the monthly (or quarterly) tax return, the deadline for submission is no later than September 30, 2024. The tax authority will still grant the extension for tax and land rent payments for the periods arising before the submission of the Request for Extension.
In cases where a taxpayer has extensions of payment due in multiple different tax jurisdictions, the tax authority directly managing the taxpayer is responsible for communicating the Extension Request form to the relevant tax authorities.
2. Taxpayers are responsible for determining and ensuring that their extension requests are submitted to the correct eligible entities as stipulated in this Decree. If a taxpayer submits an extension request to the tax authority after September 30, 2024, they will not be granted an extension for tax and land rent payments as prescribed in this Decree. If a taxpayer submits an amended tax return for the extended tax period, resulting in an increase in the amount payable, to the tax authority before the extended tax payment deadline expires, the extended tax amount will include the additional amount due from the amended return. If a taxpayer submits an amended tax return for the extended tax period after the extended tax payment deadline expires, the amount due from the amended return will not be granted an extension.
3. The tax authority is not required to notify taxpayers about the acceptance of tax and land rent payment extensions. If, during the extension period, the tax authority determines that the taxpayer is not eligible for the extension, the tax authority will issue a written notice to the taxpayer stating that the extension will not be granted, and the taxpayer must pay the full amount of tax, land rent, and late payment penalties for the extended period into the state budget. If, after the extension period expires, an inspection or audit by a competent state agency reveals that the taxpayer is not eligible for the tax and land rent payment extension as stipulated in this Decree, the taxpayer must pay the outstanding tax amount, penalties, and late payment penalties into the state budget.
4. No late payment penalties shall be charged on tax and land rent amounts that are extended within the extended payment period (including cases where the taxpayer submits the Extension Request to the tax authority after submitting the tax return as prescribed in Clause 1 of this Article, and cases where the competent authority, through inspection and audit, determines that the taxpayer granted the extension has an increased amount payable for the extended tax periods). If the tax authority has already charged late payment penalties (if any) for tax returns eligible for extension under this Decree, the tax authority shall make adjustments and not charge late payment penalties.
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