On June 17, 2024, the Government issued Decree No. 64/2024/ND-CP ("Decree 64") extending the deadlines for the payment of value-added tax, corporate income tax, personal income tax, and land rent for the year 2024. ATA would like to update some important contents regarding the tax payment extension:
1. Enterprises, organizations, and individuals operating in multiple sectors with at least one sector eligible for the tax extension will receive an extension for the entire amount of tax due
Compared to Decree 12/2023/ND-CP, the entities eligible for the tax extension remain enterprises, organizations, households, and individuals engaged in production and business activities in sectors deemed to be still facing significant difficulties.
In cases where enterprises, organizations, business households, or individual businesses operate in multiple economic sectors, including sectors eligible for the extension, they will receive an extension for the entire amount of value-added tax and corporate income tax due. Business households and individuals will be extended for the total amount of value-added tax and personal income tax due according to regulations.
2. Extension of Land Rent and Various Taxes
a. Value-added Tax (excluding VAT on imports):
An extension is granted for the payment of the value-added tax due (including tax allocated to different provincial areas where the taxpayer has its headquarters, and tax paid on each occurrence) for the tax periods from May to September 2024 (for monthly VAT declarations) and the second and third quarters of 2024 (for quarterly VAT declarations) for enterprises and organizations eligible for the extension. The extension period is calculated from the end of the prescribed deadline for VAT payment, specifically:
| No | Tax Period | Extension Period | Final Deadline for Tax Payment |
|---|---|---|---|
| 1 | May 2024 | 5 Months | November 20, 2024 |
| 2 | June 2024 | 5 Months | December 20, 2024 |
| 3 | July 2024 | 4 Months | December 20, 2024 |
| 4 | August 2024 | 3 Months | December 20, 2024 |
| 5 | September 2024 | 2 Months | December 20, 2024 |
| 6 | Q2 2024 | 5 Months | December 31, 2024 |
| 7 | Q3 2024 | 2 Months | December 31, 2024 |
b. Corporate Income Tax:
An extension is granted for the payment of provisional corporate income tax for the second quarter of the 2024 tax year for enterprises and organizations eligible for the extension. The extension period is 3 months from the end of the prescribed deadline for corporate income tax payment according to the tax management law. Suppose enterprises and organizations eligible for the extension have branches or affiliated units that file separate corporate income tax returns with the tax authority directly managing the branches or units. In that case, those branches or units are also eligible for the tax payment extension.
c. Value-added Tax and Personal Income Tax for Business Households and Individuals:
An extension is granted for the payment of value-added tax and personal income tax for the amount of tax due arising in 2024 for business households and individual businesses operating in sectors eligible for the extension. The deadline for tax payment is no later than December 30, 2024.
d. Land Rent:
An extension is granted for 50% of the land rent due for 2024 (the second payment of 2024) for enterprises, organizations, households, and individuals eligible for the extension who are directly leased land by the State under a Decision or Contract from a competent State authority in the form of annual land rent payment. The extension period is 2 months from October 31, 2024.
Decree 64 takes effect from the date of signing until December 31, 2024.
Comment: