Vietnam To Extend Tax Relief

Vietnam is planning to extend tax relief to tackle the problem of liquidity for households, businesses and to accelerate the economic growth momentum.

Report says tax authorities are drafting a range of tax relief measures, including the extension of the deadline for tax payments.

According to the country’s ministry of finance, the extension also include submission of annual rental fees on publicly-owned land.

The ministry in its proposal said Vietnam may allow an extension of up to six months for the payment of value-added taxes, VAT this year.

It estimated revenues from VAT payments eligible for the extension at 64 trillion to 65 trillion Vietnamese dong (about 2.7 billion U.S. dollars).

“The extension of payment deadlines will also apply to corporate income taxes, under which the government would offer a three-month extension worth around 42.8 trillion-43.6 trillion dong (about 1.8 billion U.S. dollars),” the ministry said.

It added that household businesses would be allowed to extend their payments of VAT and income taxes until December, 30 2023.

Besides, fiscal efforts include extending up to six months the deadline for submission of land rentals, estimated at 3.5 trillion Vietnamese dong (147 million U.S. dollars) it added.

Despite a costly tax relief in 2022, Vietnam generated 1,803 trillion Vietnamese dong (75.9 billion U.S. dollars) in tax revenues.

According to finance Minister, Ho Duc Phoc the generated revenue is 27.76 percent higher than its official target and up 14 percent from the 2021 revenues.

NAN/Confidence Okwuchi