The possibility of extending the tax payment deadline for business

Extending the tax payment deadline is a problem that arises for taxpayers in case of economic difficulties. This form of extension can help businesses better manage cash flow and avoid late penalties. However, the extension must meet certain legal conditions and require approval from tax authorities. The article below will provide information on the process and conditions for tax payment extension according to the law.

Regulations on extending the tax payment deadline for businesses

Subjects whose tax payment deadline is extended

Subjects considered for extending the tax payment deadline include businesses, organizations, households, and individuals doing business in specific fields. Occupations prioritized for consideration for extension 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, bamboo (except beds, cabinets, tables, 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 processing; metal treatment and coating; manufacturing electronic products, computers and optical products; production of automobiles and other motor vehicles; production of beds, cabinets, tables, chairs;
• Build;
• 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 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.

The tax authority will base on the taxpayer’s declared information and the tax industry database to determine who is eligible for the extension. In cases where taxpayers operate in many different business fields, if there is one field subject to extension, the business will have the entire tax amount payable extended.

Legal basis: According to Article 3 of Decree 64/2024/ND-CP.

Taxes are applied on an extended basis

According to the provisions of Article 4 of Decree 64/2024/ND-CP, the types of taxes that subjects have the right to consider extending include:

• Value Added Tax (VAT): The tax amount to be extended is the tax amount payable arising in the tax period from February to July 2024 and the first and second quarters of 2024. Particularly for VAT of the calculation period Tax for July and the second quarter of 2024, the extension only applies to the arising tax amount payable based on the revenue of production and business activities of goods and services specified in Article 1 of this Decree.
• Corporate income tax (CIT): The tax amount to be extended is the tax amount payable according to the final settlement of the 2023 tax period and the tax amount temporarily paid in the first quarter and second quarter of 2024.
• Land rent. For VAT: The amount to be extended is 50% of the land rent payable in 2024. The extension period is calculated from the end of the tax payment deadline according to the law on tax administration to the deadlines. The time is specified in the Decree, depending on the type of tax and tax period

Procedures for extending the tax payment deadline

Documents need to be prepared when applying for extension

The application for tax payment extension needs to be fully and accurately prepared to ensure the approval process goes smoothly.

Dossier for implementing tax payment extension procedures includes a request for extension of tax payment and land rent according to the form issued in the Appendix attached to Decree 64/2024/ND-CP.

>>> Download: Application for tax payment extension

Based on the content of Article 5 of Decree 64/2024/ND-CP.

Procedure for submitting application for extending the tax payment deadline

The process of submitting an application for tax payment deadline extension is carried out according to specific steps:

Step 1: Taxpayers need to fully prepare tax payment extension documents according to regulations;

Step 2: Submit this application to the tax authority directly through accepted methods such as submitting directly to the tax authority, sending it by post or submitting it electronically.

Taxpayers should note that:

• The request for extension of tax and land rent payment shall only be sent once to the directly managing tax agency for the entire amount of tax and land rent arising during the extended tax periods.
• When submitting documents, taxpayers need to pay attention to the submission deadline. The request for extension of payment of taxes and land rent in 2024 is submitted at the same time as submitting monthly (or quarterly) tax declaration documents according to tax administration regulations.
• If you do not submit a request for extension of tax and land rent payment at the same time as submitting your monthly (or quarterly) tax declaration, then no later than September 30, 2024, the tax authority will still extend the tax payment. and land rent for the extended periods before the time of submitting the Extension Application.
• If you submit a request for extension to the tax authority after September 30, 2024, you will not be able to extend the payment of taxes and land rent.

Based on the content of Article 5 of Decree 64/2024/ND-CP.

Important notes when applying for tax payment extension

When applying for a tax payment extension, businesses need to keep in mind a number of important points to ensure the process goes smoothly and according to regulations. Understanding these notes will help businesses avoid unnecessary errors and take full advantage of the tax payment extension policy. Notes include ensuring the accuracy of declared information, complying with filing deadlines and fulfilling tax obligations after the extension.

First, businesses need to ensure the accuracy and completeness of information in tax declarations. This is especially important because the tax authorities will base on this information to determine the subjects eligible for extension. Any errors in the declaration may result in the business not being considered for an extension or having difficulty processing the application. Therefore, taxpayers should carefully check all information before submitting their application.

Second, businesses need to strictly comply with the tax declaration submission deadline. Although the tax payment deadline has been extended, the tax declaration submission deadline remains unchanged. Filing tax returns on time is not only an obligation but also a condition for being considered for a tax payment extension. If you submit your tax return late, your business may be denied an extension and subject to related administrative penalties.

Finally, after being approved for a tax payment extension, businesses need to pay attention to properly fulfilling their tax payment obligations during the extension period. This includes paying the extended tax amount on time and continuing to perform other tax obligations that are not subject to the extension. If this obligation is not properly fulfilled, businesses may be subject to late payment fees and other penalties as prescribed by law.

Professional consulting service on extending the tax payment deadline in Long Phan

At Long Phan, we provide professional consulting services on extending the tax payment deadline for businesses. With a team of experienced experts in the tax field, we support customers throughout the entire process of applying for a tax payment extension. Our services include:

• Advise on cases where tax payment deadlines are allowed to be extended
• Consulting on conditions for extending tax payment deadline
• Support in preparing tax payment extension documents
• Representing businesses in the process of working with tax authorities, submitting documents, and monitoring the results of document processing
• Receive document processing results and deliver them directly to customers

Businesses can have their tax payment deadline extended in case of economic difficulties. However, extending the tax payment deadline must ensure certain conditions according to regulations. In order to improve efficiency when fulfilling tax obligations and complying with tax laws, Long Phan provides professional consulting services on tax payment extension. Please contact us immediately via Hotline 0906.735.386 for assistance in extending the tax payment deadline.