The decree took effect immediately and the extension will be five months from the deadline for payments.
Accordingly, businesses operating in the agro-forestry-fishery, food processing, textile, garment and construction industries will enjoy the extension, as well as those operating in the transportation, warehouse, accommodation and catering, education, medical services and part-supply sectors.
Others subject to the extension include small and micro-sized enterprises and credit institutions and branches of foreign banks which provide support to customers hit by the COVID-19 pandemic, in line with the requirements of the State Bank of Vietnam (SBV).
The SBV will be in charge of announcing the list of eligible banks for the extension.
The five-month extension will apply to value added tax (VAT) from the assessment periods of March, April, May, June, the first quarter and the second quarter. As a result, the payment of VAT in the March assessment period will now be extended to September 20 while that of the second quarter assessment to December 20.
For corporate income tax (CIT), an extension will be given to any remaining sums from 2019, and the provisional tax of the assessment period of the first and the second quarter.
For household and individual businesses, the deadlines for paying VAT and CIT will be extended to December 31.
Payment of land use fees will also extended five months from May 31.
The decree also allows businesses operating in multiple sectors, any of whom who are subject to the extension, toalso enjoy the extension for all payable VAT and CIT.
The Ministry of Finance estimated that the deadline for a total of VND180 trillion (US$7.64 billion) worth of taxes and fees willbe extended. The sum will still be collected in the State budget within the year.
Taxpayers must submit a proposal to tax management agencies before July 30 to be granted the extension.
According to the ministry, more than 700,000 enterprises or 98 percent of firms would be given the extension.
