The government has issued Decree No. 64/2024/ND-CP dated June 17, 2024, on the extension of the deadline for value-added tax, corporate income tax, personal income tax, and land lease payments in 2024. The decree specifies four groups of beneficiaries as follows:
Businesses, organizations, households, business households, and individuals engaged in production activities in the following economic sectors:
Agriculture, forestry, and fisheries;
Food production and processing; textiles; garment manufacturing; leather and related product manufacturing; wood and wood product manufacturing (except beds, wardrobes, tables, and chairs); straw and plaiting material product manufacturing; paper and paper product manufacturing; rubber and plastic product manufacturing; other non-metallic mineral product manufacturing; metal production; mechanical engineering; metal treatment and coating; electronic product, computer, and optical product manufacturing; automobile and other motor vehicle production; furniture manufacturing (beds, wardrobes, tables, and chairs);
Construction;
Publishing activities; cinematography, television program production, sound recording, and music publishing;
Crude oil and natural gas extraction (excluding corporate income tax on crude oil, condensate, and natural gas collected under agreements or contracts);
Beverage production; printing and reproduction of recorded media; coke, refined petroleum product manufacturing; chemical and chemical product manufacturing; fabricated metal product manufacturing (except machinery and equipment); motorcycle manufacturing; repair and maintenance of machinery and equipment;
Sewage and waste management.
Illustrative image. Source: Chinhphu.vn
Businesses, organizations, households, business households, and individuals operating in the following economic sectors:
Transportation and warehousing; accommodation and catering services; education and training; healthcare and social assistance; real estate business activities;
Employment services; travel agency and tour operator services, including promotional and tour organization support services;
Creative, artistic, and entertainment activities; library, archival, museum, and other cultural activities; sports, amusement, and recreation activities; motion picture projection activities;
Radio and television broadcasting; computer programming, consulting, and other computer-related activities; information service activities;
Mining support service activities.
Businesses, organizations, households, business households, and individuals engaged in the production of prioritized industrial support products and key mechanical products.
Small and micro-enterprises as defined by the Law on Support for Small and Medium Enterprises 2017 and Decree No. 80/2021/ND-CP dated August 26, 2021, of the Government detailing a number of articles of the Law on Support for Small and Medium Enterprises.
Finance Ministry rejects proposed revenue threshold for VAT payment at VND 300 million/year
The Ministry of Finance believes that raising the tax threshold will not incentivize households and individual businesses to transition into corporations, as this would result in the corporations having to pay value-added tax on their generated revenue.
Reducing competition by imposing VAT on Vietnamese exports.
According to businesses, imposing value-added tax on export services will create inequality among enterprises, reducing Vietnam’s competitiveness in goods compared to other countries, leading to the risk of reducing exports.
Perfecting Value Added Tax Policies
The Government requests the Ministry of Finance to fully review the goods and services/groups of goods and services that are not subject to VAT; if necessary, it can consider and add some types of goods and services that are not subject to VAT to meet practical requirements, ensuring the true nature of the goods and services.
