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In a move to provide financial relief amid ongoing economic challenges, the Vietnamese government has issued Decree No. 64/2024/ND-CP, granting extensions for various tax payments and land rent due in 2024.
This decision aims to support businesses and individuals by improving cash flow management and easing financial burdens.
Personal Income Tax and VAT for Small Businesses
Individuals, household businesses, and sole traders receive an extension for both VAT and personal income tax payments arising in 2024. The new deadline for these payments is set for December 30, 2024.
Value-Added Tax (VAT) Extensions
The decree offers significant extensions for VAT payments, with deadlines pushed back by two to five months depending on the filing period:
- May and June 2024 VAT payments are extended by five months, now due on November 20 and December 20, 2024, respectively.
- July, August, and September 2024 VAT payments are extended by four, three, and two months respectively, all now due on December 20, 2024.
- The second quarter of 2024 VAT is extended by five months to December 31, 2024.
- Third quarter 2024 VAT is extended by two months to December 31, 2024.
These extensions apply to both monthly and quarterly VAT declarations. Importantly, if an eligible business has branches or affiliated units filing separate VAT declarations, those entities also benefit from the extension.
Corporate Income Tax Extension
For businesses and organizations, the decree extends the deadline for quarterly prepayment of corporate income tax for the second quarter of 2024 by three months from the original due date as specified in the tax management law.
Land Rent Payment Extension
The decree also addresses land rent payments, extending the deadline for 50% of the land rent due for the second period of 2024 by two months, from October 31, 2024. This extension applies to businesses, organizations, households, and individuals who lease land directly from the State under annual rent payment agreements.
Decree No. 64/2024/ND-CP, granting extensions for various tax payments and land rent due in 2024 is set to be effective from June 17, 2024, through December 31, 2024. After the extension period ends, all tax returns and land rent payments must adhere to existing regulations.
This comprehensive set of extensions is expected to provide significant relief to businesses of all sizes and individual entrepreneurs across Vietnam. By allowing for deferred payments, the government aims to help entities better manage their cash flows and maintain operations during these challenging economic times.
The move underscores the government’s commitment to supporting the business community and fostering economic stability. As businesses and individuals navigate the complexities of the current economic landscape, these extensions offer a welcome reprieve. However, it’s crucial for all eligible parties to plan accordingly, ensuring they can meet their obligations when the extended deadlines arrive.
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