On June 14, 2024, the Government issued Decree 64/2024/ND-CP to extend the deadlines for payment of value added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”) and land rental fees in 2024.

The deferred tax payments aim to ease cash flow and support business recovery, catalyzing overall economic growth and export activity. Companies should review eligibility and factor in the extended payment deadlines for financial planning in 2024.

Eligible taxpayers:

• Taxpayers engaged in production activities in sectors like agriculture, food manufacturing, textiles, construction, publishing, oil/gas extraction, beverage production, motorcycle manufacturing, and sewage treatment, installation of machinery and equipment, etc…
• Taxpayers engaged in business activities in the following economic sectors transportation, accommodation, food services, education, healthcare, real estate, employment services, travel, arts, entertainment, media, software development and IT services, and mining support.
• Taxpayers engaged in the manufacture of prioritized supporting industry products; key mechanical products.
• Small and micro enterprises.

VAT (excluding VAT at importation): Payment extended for May-Sep 2024 by 2-5 months depending on the month. The extended deadlines for payment of monthly and quarterly VAT amounts are as follow:

CIT: Payment extended for Q2/2024 by 3 months.

Land rental: Extends payment of 50% of rental fees for 2024 by 2 months.

For business households and individuals: Extends full year PIT and VAT payments of business households/individuals engaged in selected sectors/ prioritized supporting industry products; key mechanical products to Dec 30, 2024.

Eligible entities with multiple sectors can extend full tax payable amounts.

Procedures for tax payment extension eligibility and application:

• Tax returns are still required on time; only the payment is extended.
• Taxpayers must submit the Application for Extension of Tax and Land Rental Payment to the tax authorities by September 30, 2024, to be eligible. The application covers all extended tax amounts.
• Taxpayers are responsible for ensuring eligibility, and the tax authority will not issue any approval for the extension. Ineligible taxpayers will be notified by the tax authorities and must pay the owed amounts.
• Late payment interest does not apply during the extension period.