Government extends tax, land rent payments to boost growth

By Trang Nguyen
Sat, April 15, 2023 | 12:04 pm GMT+7

Companies and business households have been offered an extension to pay value-added, corporate and personal income tax, as well as land rent for the fifth time since April 2020, to support production and growth.

The decree outlining the extensions was signed on Friday by Deputy Prime Minister Le Minh Khai. This is the fifth time the government has introduced such a policy since the beginning of the Covid-19 pandemic, as businesses continue to face difficulties due to a decline in orders.

The total amount of tax and land rent deferrals in 2023 is estimated at more than $4.77 billion. Photo courtesy of the government portal.

The total amount of tax and land rent deferrals in 2023 is estimated at more than $4.77 billion. Photo courtesy of the government portal.

Accordingly, companies and organizations that declare value-added tax (except for import value-added tax) on a monthly basis will be entitled to an extension for tax payment of the March-August 2023 period.

Companies declaring tax quarterly will be entitled to an extention for taxable amount arising in the first and second quarters.

The tax extension period is six months with taxes arising in March-May 2023 and Q1/2023. The arising tax amount paid in June 2023 and Q2/2023 will be extended for five months. In case the company incurs tax in July, the extension is four months; if tax is incurred in August, the extension will be extended for three months.

Individuals and business households doing business in priority fields like agriculture, forestry, fisheries, food processing, textiles, construction, transportation and warehousing, real estate, crude oil and natural gas extraction will also receive an extention for VAT and personal income tax payment until December 31, 2023.

Corporate income tax will be extended for three months for Q1 abd Q2/2023. In case the companies has a branch or affiliated unit that declares tax separately, the latter's tax payment time is also extended.

Branches and units of enterprises that do not have production and business activities will not be eligible for tax extensions.

Enterprises, business households and individuals in priority fields will see 50% of their land rent in 2023 enjoy a payment extension of six months from May 31, 2023.

The total amount of tax and land rent deferrals this year is estimated at more than VND112 trillion ($4.77 billion), compared to VND233 trillion ($9.5 billion) last year.

Comments (0)
  • Read More
Gelex Electric majority shareholder of new tech firm

Gelex Electric majority shareholder of new tech firm

Gelex Electric, under Vietnam's leading multi-sector corporation Gelex Group, has announced a board decision on capital contribution to establish a technology company, bringing its subsidiaries to 10.

Companies - Tue, May 13, 2025 | 9:25 pm GMT+7

Vietnam’s auto sales in April increase 21% year-on-year

Vietnam’s auto sales in April increase 21% year-on-year

The Vietnam Automobile Manufacturers’ Association (VAMA) on Tuesday said that its members, not including VinFast and Hyundai, reported sales of 29,585 units in April, down 7% month-on-month but up 21% year-on-year.

Companies - Tue, May 13, 2025 | 9:16 pm GMT+7

Malaysia a prime site for nuclear plants: expert

Malaysia a prime site for nuclear plants: expert

Malaysia is a logical choice to host nuclear power plants given that it is less prone to tectonic activities such as earthquakes compared with its Southeast Asian neighbors, according to an expert.

Southeast Asia - Tue, May 13, 2025 | 9:07 pm GMT+7

Thailand sends trade proposal to US

Thailand sends trade proposal to US

Thailand has sent a trade proposal to the U.S., Prime Minister Paetongtarn Shinawatra said on Tuesday, as her government seeks negotiations to reduce U.S. tariffs.

Southeast Asia - Tue, May 13, 2025 | 9:01 pm GMT+7

UOB forecasts USD price at VND26,100 in Q2, VND26,300 in Q3

UOB forecasts USD price at VND26,100 in Q2, VND26,300 in Q3

Singaporean bank UOB's updated forecasts on the price of USD against the Vietnamese dong (VND) are 26,100 in Q2/2025, 26,300 in Q3, 26,000 in Q4, and 25,800 in Q1/2026.

Banking - Tue, May 13, 2025 | 4:15 pm GMT+7

US’s manufacturing service provider Key Tronic expanding in Vietnam despite tariff uncertainties

US’s manufacturing service provider Key Tronic expanding in Vietnam despite tariff uncertainties

Key Tronic, a leading American design and manufacturing service provider, is proceeding with the buildout of new production capacity in Arkansas (U.S.) and Vietnam despite tariff uncertainties.

Industries - Tue, May 13, 2025 | 4:01 pm GMT+7

Motorbike maker Piaggio plans €26 mln paint shop at Vietnam plant

Motorbike maker Piaggio plans €26 mln paint shop at Vietnam plant

Italian motorbike manufacturer Piaggio plans to build a new paint shop at its factory in Vietnam by 2027, with an expected investment of €26 million, according to its 2024 financial statements.

Industries - Tue, May 13, 2025 | 3:37 pm GMT+7

Vietnam stands out in human development amid global slowdown: UNDP

Vietnam stands out in human development amid global slowdown: UNDP

As the world enters the age of artificial intelligence (AI), Vietnam continues to maintain a strong standing in human development, defying a global slowdown, according to the United Nations Development Programme's (UNDP) 2025 Human Development Report.

Southeast Asia - Tue, May 13, 2025 | 3:26 pm GMT+7

Apple supplier Wistron plans 30% output boost in northern Vietnam

Apple supplier Wistron plans 30% output boost in northern Vietnam

Wistron Infocomm (Vietnam) Co., Ltd, under Taiwan-headquartered electronics manufacturer Wistron - a supplier to Apple, will increase its output in the northern province of Ha Nam by 30% and hire over 3,000 workers in the time ahead to support the ramp-up.

Industries - Tue, May 13, 2025 | 3:01 pm GMT+7

Stock of Vingroup’s hospitality arm Vinpearl hits ceiling price in market debut

Stock of Vingroup’s hospitality arm Vinpearl hits ceiling price in market debut

VPL, the ticker of Vinpearl JSC - the hospitality subsidiary of Vietnam's leading conglomerate Vingroup, surged 20% to its ceiling price of VND85,500 ($3.29) per share within the first trading hours on the Ho Chi Minh bourse Tuesday morning.

Finance - Tue, May 13, 2025 | 12:39 pm GMT+7

Vietnam welcomes Swedish investment expansion in digital economy, infrastructure: PM

Vietnam welcomes Swedish investment expansion in digital economy, infrastructure: PM

Vietnam welcomes Swedish companies to further invest in the areas that they have strengths in and align with Vietnam’s development priorities like the digital economy, infrastructure, and information-communication technology.

Economy - Tue, May 13, 2025 | 12:04 pm GMT+7

Vietnam, Belarus issue joint statement on establishing strategic partnership

Vietnam, Belarus issue joint statement on establishing strategic partnership

Vietnam's Party General Secretary To Lam and Belarusian President Aleksandr Lukashenko have signed a joint statement officially establishing a strategic partnership between Vietnam and Belarus, during the Vietnamese leader’s state visit on May 11-12.

Politics - Tue, May 13, 2025 | 11:23 am GMT+7

CEO of Covid-19 vaccine developer Nanogen dies at 59

CEO of Covid-19 vaccine developer Nanogen dies at 59

Ho Nhan, CEO of Nanogen - the first Vietnamese company to conduct clinical trials for a Covid-19 vaccine, passed away on Monday at the age of 59 due to heart disease.

Companies - Tue, May 13, 2025 | 11:09 am GMT+7

How easing US-China trade tensions could impact Vietnam's benchmark VN-Index?

How easing US-China trade tensions could impact Vietnam's benchmark VN-Index?

Analysts have turned bullish on Vietnam's benchmark VN-Index as the U.S.-China reached a positive tariff deal, delivering a wave of upbeat signals to financial investors.

Finance - Tue, May 13, 2025 | 10:50 am GMT+7

Vietnam's leading property developer Novaland denies 'panic selling' amid chairman-linked share divestments

Vietnam's leading property developer Novaland denies 'panic selling' amid chairman-linked share divestments

Novaland has denied allegations of panic selling following major planned divestments by entities linked to its chairman Bui Thanh Nhon, affirming that the moves are strategic steps to support its ongoing debt restructuring, not signs of instability.

Companies - Tue, May 13, 2025 | 8:17 am GMT+7

Vietnam's leading dairy firm TH Group inaugurates large-scale plant in Russia

Vietnam's leading dairy firm TH Group inaugurates large-scale plant in Russia

TH Group inaugurated its state-of-the-art fresh milk processing plant in Borovsk district in Kaluga oblast of Russia on Sunday.

Companies - Mon, May 12, 2025 | 10:37 pm GMT+7