Extension of land rental: Who are the subjects? What are the tax periods?

Extension of land rental 2023 is the important content prescribed in Decree No. 12/2023/ND-CP. So, who are the subjects? And what are the tax periods? The following post shall explain more this problem.

1. What are the subjects for the extension of land rental?

In accordance with Article 3, Decree No. 12/2023/ND-CP, the subjects entitled to an extension of land rental in 2023, including:

- Enterprises, organizations, households, business households, and individuals conducting production activities in the following economic sectors:

• Agriculture, forestry, and fisheries;
• Foodstuff production or processing; textiles; production of wearing apparel; production of leather and related products; wood processing and production of wood products, bamboo or neohouzeaua (except beds, wardrobes, tables, and chairs); production of products from straw, thatch, and plaiting materials.....
• Construction;
• Publication activities; cinematographic activities, production of television programs, sound recording, and music publication;
• The exploitation of crude oil and natural gas;
• Manufacture of beverages; printing, and copying records of all kinds; production of coke coal, and refined petroleum products; production of chemicals and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); motorbike and motorcycle manufacture; repair, maintenance and installation of machines and equipment;
• Drainage and treatment of wastewater.

- Enterprises, organizations, households, business households, and individuals conducting business activities in the following economic sectors:

• Transportation and warehousing; accommodation and catering services; education and training; medical and social assistance activities; real estate business;
• Labor and employment services; travel agency and tour operation and auxiliary services related to tour promotion and organization;
• Creation, art and recreation; library operations, archives, museums and other cultural activities; sports, entertainment and recreation; film projection;
• Radio and television broadcasting; computer programming, counseling services, and other activities related to computers; information service activities;
• Auxiliary services for the mining.

- Enterprises, organizations, households, business households, and individuals engaged in the production of supporting industry products prioritized for development; key mechanical products.

- Small- and micro-sized enterprises.

Note: The above subject must conduct production or business activities and generate revenues in 2022 or 2023.
 

 

2. What is the tax period?

Also in accordance with Decree No. 12/2023/ND-CP, Clause 4, Article 4, this Decree points out clearly that to extend the deadlines for payment of 50% of the land rental amounts payable in 2023 of enterprises, organizations, households, businesses households and individuals that are leased land directly by the State under decisions of or contracts signed with competent state agencies in the form of the land lease with an annual payment of land rental.

Accordingly, the extension duration is 06 months from May 31, 2023, to November 30, 2023.
 

3. What are the procedures and processes for the extension of land rental?

Article 5, Decree No. 12/2023/ND-CP prescribes the procedure and process for extension of land rental:

Step 01: Submit a written request for an extension of deadlines

A taxpayer shall submit a written request for an extension of deadlines for tax and land rental payment for the first time, or a revised one if detecting any errors to the managing tax office once for all tax periods and for taxes of all types and land rental eligible for payment deadline extension upon submission of monthly (or quarterly).

• In case a taxpayer fails to submit concurrently a written request for payment deadline extension and a monthly (or quarterly) tax declaration dossier, it/he/she shall submit a such request no later than September 30, 2023. The tax administration offices shall still extend deadlines for tax and land rental payment for payment periods preceding the time of submission of the such written request.
• In case a taxpayer’s payable tax amounts eligible for payment deadline extension arise in different areas under the management of different tax offices, the taxpayer’s managing tax office shall transmit information and send the taxpayer’s written request for a payment deadline extension to the related tax office.

Note:

- A taxpayer shall determine by itself/himself/herself and take responsibility for its/his/her request for a deadline extension.

- If a taxpayer submits a written request for a payment deadline extension to a tax office after September 30, 2023.

Step 02: Tax offices are not required to notify taxpayers of the acceptance of the requests for extension of deadlines for tax and land rental payment

During the extension period, if a tax office has grounds to believe that a taxpayer is not entitled to an extension, it shall notify in writing the taxpayer of the non-extension

Within that, the taxpayer shall fully remit to the state budget tax and land rental amounts and late-payment interests for the actual extension period.

In case the extension period has expired and a tax office, through inspection and examination, detects that a taxpayer is not entitled to an extension of deadlines for tax and land rental payment under this Decree, the taxpayer shall fully remit to the state budget the deficit tax amount, fines and late-payment interests re-determined by the tax office.