Extending tax deadline for Vietnam company in 2024

On June 17, 2024, the Government issued Decree 64/2024/ND-CP on extending the deadline for paying value added tax, corporate income tax, and land rent in 2024. This Decree aims to support businesses, organizations, and individuals in the context of the economy continuing to decline due to geopolitical influences and after recovering from the COVID-19 pandemic. In the article below, Viet An Law – Tax Agent will brieft the key regulations applied for business.

Subjects of tax payment extension in Vietnam for the year 2024

According to Decree 64/2024/ND-CP, beneficiaries of the policy to extend the deadline for paying taxes and land rent in 2024 include 3 groups of businesses, organizations, and business households specified in Article 3. of the Decree, including:

Taxpayers are branches and affiliated units of the enterprise

In case an enterprise or organization eligible for an extension of the tax payment deadline has branches and affiliated units that make separate tax declarations with the directly managed tax authority, then these branches and affiliated units are also eligible for an extension of tax payment.

Except for the following cases, these branches and affiliated units fall under the above case are not eligible for extension of tax payment: there are no production and business activities in the economic sector or field subject to the extension (even if recorded in the certificate of establishment of branch / affiliated unit).

Business lines are eligible for tax payment extension

Business lines that are eligible for tax payment extension according to the provisions of Clauses 1 and 2 of Article 3 of Decree 64 /2024/ND-CP include:

• Agriculture, forestry and fisheries;
• Food production and processing; weaving; costume production; production of leather and related products; wood processing and production of products from wood, and bamboo (except beds, cabinets, tables, and chairs); manufacture of products from straw and plaiting materials; production of paper and paper products; manufacturing products from rubber and plastic; production of products from other non-metallic minerals; metal production; mechanical; metal treatment and coating; manufacturing electronic products, computers, and optical products; production of automobiles and other motor vehicles; production of beds, cabinets, tables, chairs;
• Contrucstion;
• Publishing activities; cinematographic activities, television program production, recording, and music publishing;
• Crude oil and natural gas exploitation (no extension for corporate income tax on crude oil, condensate, and natural gas collected under agreements and contracts);
• Beverage production; print and copy records of all kinds; production of coke and refined petroleum products; production of chemicals and chemical products; manufacturing products from prefabricated metal (except machinery and equipment); production of motorbikes and motorbikes; repair, maintenance, and installation of machinery and equipment;
• Drainage and wastewater treatment.
• Transport and warehouse; Accommodation and food services; education and training; health and social assistance activities; real estate business activities;
• Labor and employment service activities; activities of travel agents, tour businesses, and support services related to the promotion and organization of tours;
• Creative, artistic, and entertainment activities; operations of libraries, archives, museums, and other cultural activities; sports and entertainment activities; movie screening activities;
• Radio and television broadcasting activities; computer programming, consulting services, and other activities related to computers; information service activities;
• Mining support service activities.

Note:

The above industry is defined as the field in which the enterprise has production and business activities and generates revenue in 2023 or 2024, but not based on the business lines is registered on the Enterprise Registration Certificate.

Time to apply for tax and land rent payment extension in 2024

Value Added Tax (VAT), except VAT on import

• Extending the VAT payment deadline for tax amounts arising from May to September 2024 (monthly tax declaration) and the 2nd and 3^rd Quarters of 2024 (quarterly tax declaration).
• The latest VAT payment deadline in 2024 is specified as follows :

Note:

For business households and individuals operating in industries eligible for tax payment extension according to the provisions of Decree 64/2024/ND-CP, the tax payment deadline is extended no later than 30/12/2024.

Corporate Income Tax (CIT)

• Applicable tax period: Enterprise income tax is temporarily paid for the tax period of the 2^nd Quarter of 2024
• Extended time: three (03) months from the end of the tax payment deadline (July 31, 2024).
• Accordingly, the latest tax payment deadline according to regulations for the second quarter of 2024 is October 31, 2024.

Land rent

• Subjects of application: applies to 50% of the total land rent payable in 2024 of enterprises, organizations, households, and individuals subject to regulations that are directly leasing land from the State according to the Decision or Contract of a competent state agency in the form of annual land rent payment.
• The extension period is 2 months from October 31, 2024, i.e. the latest deadline for paying land rent for half year of 2024 is December 31, 2024.

Thus, the Government has issued Decree 64/2024/ND-CP to extend the deadline for paying taxes and land rent in 2024 to support businesses, organizations, and individuals to overcome economic difficulties. economy in 2024. With the extension of the deadline for paying taxes and land rent, policy beneficiaries will have more time to organize the fulfillment of their financial obligations to the State.

Form of request for tax payment extension

As specified in the appendix attached to Decree 64/2024/ND-CP, the application is submitted by taxpayers for subjects eligible for tax payment extension when making direct tax declarations.

Procedures for tax payment extension in Vietnam

The order and procedures for tax payment extension are specified in Decree 64/2024/ND-CP as follows:

Other incentives for filing extensions tax money

• During the extended period, tax and land rent amounts that are extended under the legal procedures will not be charged late payment interest.
• The above provisions also apply in all cases taxpayer sends a request for extension to the tax authority after submitting the tax declaration according to regulations and in case the competent authority through examination or inspection determines that the taxpayer with the extension has a payable increased tax in extended tax periods.
• Accordingly, in case the tax authority has calculated late payment interest (if any) for tax documents that are subject to extension as prescribed in this Decree, the tax authority will make adjustments and not calculate late payment interest.

Note for businesses in Vietnam

To promptly enjoy the incentives Taxpayers in extending tax payment time in 2024 according to Decree 64/2024/ND-CP, businesses should note:

• Timely update regulations applicable to the second half of 2024 according to Decree 64/2024/ND-CP.
• Check the business industry and regulations on applicable subjects and pay tax deadlines according to regulations;
• Contact the tax accounting service consulting agents for direct guidance on declaration procedures and request tax payment extension on time;
• Submit the extension request to the tax authority on time to receive an extension to pay VAT, CIT, and land rent according to regulations.
• In case additional tax declaration documents increase tax payable, the extension request must include the increased tax amount.
• The acceptance of the extension will not be confirmed by the tax authorities by a specific notification. Enterprises will only receive notification in cases where tax authorities have grounds to determine that the enterprise is not subject to the extension.
• There are still cases where after the extension period expires, businesses are forced to pay the outstanding tax amount, tax fines, and late payment interest if tax inspectors discover that the taxpayer is not eligible for the extension according to regulations. Therefore, businesses need to firmly determine their eligibility for extension through accurate legal advice from a specialized consulting unit.

To help businesses better apply regulations on extending tax deadline for Vietnam company in 2024, Viet An Law Firm – Tax Agent is ready to advise and answer questions and represent the Client to carry out relevant procedures. Please contact us as soon as possible for timely and accurate advice. Bets regard.