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Apr 09, 2020 / 15:10

Vietnam rolls out fiscal relief package

The relief package is estimated at VND180 trillion (US$7.63 billion).

Prime Minister Nguyen Xuan Phuc on April 8 signed Decree No.41/2020 on five-month delay of deadline for payments of taxes and land rental fees, applicable for enterprises and individuals affected by the Covid-19 pandemic.

 Illustrative photo. 

The decree covers five beneficiary groups that are entitled for delay of payment of value-added tax, corporate tax and income tax.

The first group include enterprises, organizations, business households and individuals operating in the fields of agro-forestry-fishery, industrial production (wood, garment, plastic, leather, automobile, among others), food processing, garment, and construction.

The second group comprises companies operating in logistics; hospitality and catering services; education, healthcare, job consultancy, entertainment, among others.

The third group covers enterprises, household businesses, organizations and individuals in the field of supporting industries for priority mechanized products.

The fourth group comprises micro and small sized enterprises and the final one consists of credit institutions and foreign bank branches providing support programs for customers affected by the Covid-19 pandemic.

Under the decree, value added tax subject for payment in March would be delayed to September 20, payment in April to October 20 and so on.

Additionally, value added tax payment corresponding to the first quarter of 2020 is scheduled to September 30 at the latest, and that corresponding to the second quarter to December 30.

Similarly, deadlines for payment of corporate and income taxes, as well as land rental fees are extended by five months.

The Ministry of Finance estimated the total amount subject to deferral at VND180 trillion (US$7.63 billion), but the amount would still be paid to the state in 2020.

The ministry said tax payers only need to submit one single request for taxes and land rental fee deferral to local tax authorities, with the deadline on July 30, 2020.