The Government on April 8 issued Decree 41 approving the extension of deadlines for payment of some taxes and land rentals in order to support businesses suffering the COVID-19 pandemic.
Taking effective immediately, the new regulation applies to enterprises, organizations, households and individuals engaged in agro-forestry-fishery sector; food processing and manufacturing, textile and garment; wooden, leather, bamboo, straw, plastic, paper and rubber products; metal working mechanical engineering; electronics, information technology, automobile, optical and furniture products, and construction.
Other beneficiaries include enterprises, organizations, households and individuals producing auxiliary and key mechanical products; small-sized and micro-enterprises, credit institutions and foreign bank branches that provide support to their customers affected by the pandemic.
The grace period will be five months from the initial deadline for payment of value-added tax (VAT) in March, April, May and June, or the first quarter and second quarter of this year.
As for corporate income tax (CIT), the five-month extension will be given to the remaining payable tax amounts of 2019, and provisional tax amounts of the first and second quarters of 2020.
As for business households and individuals, deadlines for VAT and CIT payment will be prolonged to December 31.
Meanwhile, the deadline for payment of land rentals for the first quarter of 2020 may be extended by five months counting from May 31.
Under the Decree, to be eligible for tax payment deadline extension, taxpayers have to submit extension requests to tax administration agencies before July 30.- (VLLF)