The national government has just issued Decree No. 34/2022/ND-CP dated May 28, 2022 on extending the deadline for the payment of value added tax (VAT), corporate income tax, personal income tax and land rent 2022.

Illustrative image (Source: DNO)

Subjects eligible for tax payment extension include enterprises, organisations, business households and individuals operating in agro-forestry-fishery, construction, entertainment, crude oil extraction, food production, transport vehicles production, waste water treatment, logistics, hospitality and catering services, education, healthcare and real estate.

Credit institutions and branches of foreign banks in Viet Nam providing support for enterprises and customers affected by the COVID-19 pandemic according to regulations of the State Bank of Viet Nam could also enjoy the extension of tax payment deadline.

The Decree stipulates a 6-month extension for VAT from March to May 2022 and the first quarter of 2022, 5-month extension for VAT in June 2022 and the second quarter of 2022, 4-month extension for VAT in July 2022, and 3-month extension for VAT in August 2022.

For corporate income tax (CIT), the extension of the tax payment that enterprises have to pay temporarily for the second and third quarters of 2022 is three months.

In addition, there is a six-month extension for the payment of fees for leasing land and water surface in 2022, starting from May 31, 2022 to November 30, 2022.

For corporate income tax, a 3-month extension of the provisional tax payment of the first quarter and the second quarter of the corporate income tax period of 2022 of enterprises and organizations subject to the above regulations.

Along with that, the national government also gave a nod to a 6-month extension for the payment of 50% of the arising land rent payable in 2022 by enterprises, organisations, households, and families-run businesses that are regulated subjects. The extension period is 6 months from May 31 to November 30, 2022.

The above-mentioned tax payment extension is seen as an interest rate-free loan provided by the State to support enterprises and individuals to gather more financial resources to overcome difficulties triggered by the COVID-19 pandemic.

This is the fourth time the national government has approved the extension of the payment deadline of taxes and land rental fees for businesses and people affected by COVID-19, estimated to be worth up to VND54 trillion (US$2.32 billion).

Decree 34 shall take effect from the date of issuance to December 31, 2022.

Reporting by MAI QUE - Translating by A. THU