DEADLINE FOR CORPORATE TAX PAYMENT MAY BE FURTHER EXTENDED

The Ministry of Finance has suggested extension of the deadline for tax payment and land rent to assist businesses affected by the COVID-19 pandemic.

Accordingly, the ministry proposed a five month-deferment for value added tax (VAT) and three-month extension for corporate income tax.

For household businesses, the ministry proposed extension of the deadline for VAT and personal income tax payment for amounts payable in 2021 in the fields which previously received an extension.

Regarding land rent, the ministry proposed an extension of the payable land rent in the first period of 2021 by eligible enterprises, organizations, businesses, or individuals. The extension duration depends on the circumstances of each individual business.

The total tax amount expected to be postponed or deferred is estimated at VND115 trillion (US$5 billion).

Last year, total amount of tax and land rent postponed or deferred was VND130 trillion (US$ 5.62 billion). Many experts said that the incentives not only benefited enterprises but also served as impetus for economic growth.

Statistics showed that over 80% of local enterprises have been negatively affected by the pandemic in which small-sized enterprises are the most hit victims.

Source: VGP