Legal News

[Taxation] Extension of the deadline for payment of VAT, corporate income tax, and land rent for the year 2024.

2024/06/20

On June 17, 2024, the Government of Vietnam issued Decree No. 64/2024/ND-CP (“Decree 64”) on extending the deadline for payment of Value Added Tax (VAT), Corporate Income Tax (CIT), and Land Lease Fees. The procedures and points to note regarding the extension of VAT, CIT, and land rent payment deadlines are as follows.

Applicable Subjects

The following cases (1) and (2) apply.

(1) Applicable industries

◆Manufacturing industry (applied based on Decision 27/2018/QD-TTg)
∙ Agriculture, forestry and fisheries
・Food processing, textile, apparel, leather product manufacturing, wood processing, paper manufacturing, rubber and plastic products, metal processing, electronic products, etc.
・Construction
・Oil and natural gas exploration
・Beverage production, printing, production of coke and refined petroleum products, chemical production, manufacture of products from prefabricated metals (excluding machinery and equipment), manufacture of motorcycles, repair, maintenance, and installation of machinery and equipment, etc.
・Manufacture of products of priority supporting industries and important machinery

◆ Service industries (applied in accordance with Decision 27/2018/QD-TTg)
・Transportation and warehousing, accommodation and catering, education and training, health and social welfare, real estate
Employment and labor services, travel agencies, tour operators and businesses related to advertising and planning of tours
・Composition, arts and entertainment, libraries and museums, sports and recreational activities, motion pictures, publishing, television production, music business, etc.
・Wastewater and sewage treatment services
∙ Businesses related to software development, computer-related services, information services, etc.
・Mining support business standards

(2) Small and micro enterprises

In accordance with the Law on Supporting Small and Medium Enterprises of 2017 and Decree No. 80/2021/ND-CP dated August 26, 2021, small and micro enterprises shall be classified as follows

scale	field	standard
		Average annual number of workers with mandatory insurance coverage	Annual Sales	or	Total capital
Micro business	Agriculture, forestry, fisheries, industry, and construction	Less than 10 employees	Less than 3 billion VND		Less than 3 billion VND
	For trading and service companies	Less than 10 employees	Less than 10 billion VND		Less than 3 billion VND
Small business	Agriculture, forestry, fisheries, industry, and construction	Less than 100 employees	Less than 50 billion VND		Less than 20 billion VND
	For trading and service companies	Less than 50 employees	Less than 100 billion VND		Less than 50 billion VND

2.Deadlines for payment of VAT, CIT and land rent after extension of payment

(1)VAT (excluding VAT arising from imports)

◆Subject: VAT amount on tax returns for the taxable period from May to September 2024 (for enterprises filing monthly tax returns) and for the second and third quarter of 2024 (for enterprises filing quarterly tax returns) (including the amount of VAT allocated and the tax amount incurred each time when the enterprise has offices in other provinces and cities subordinate to its headquarters)

◆The extension period shall be calculated from the end of the VAT payment due date in accordance with the provisions of the Tax Administration Law.
・The extension period for the period from May to June 2024 and the second quarter of 2024 is 5 months.
・The extension period for July 2024 is 4 months.
・The extension period for August 2024 will be 3 months.
・The extension period for September 2024 and the third quarter of 2024 is 2 months.

Note: The extension period is only for the payment due date, not for the declaration due date. Declaration documents must be submitted by the due date in accordance with the current regulations.

(2) CIT
The extension period is 3 months from the end of the payment due date in accordance with the regulations.

(3)Land Rent
50% of the land rent for the year 2024 for companies, organizations, households, and sole proprietorships subject to the above are eligible for the extension of the payment deadline. (The land leased under a government decision or contract as annual land rent is eligible for this extension.) The extension period is two months from October 31, 2024.

3. payment extension procedure
Eligible enterprises shall submit the “Application for Extension of Deadline for Payment of Taxes and Land Rent” form attached to this Decree to the competent tax bureau by September 30, 2024 at the latest.

Reference: Decree No. 64/2024/ND-CP dated June 17, 2024