Draft Decree on deferral of VAT, CIT, PIT, and land rent in Vietnam in 2025

Draft Decree on deferral of VAT, CIT, PIT, and land rent in Vietnam in 2025

The Ministry of Finance is currently soliciting feedback on the draft Decree on deferral of value-added tax, corporate income tax, personal income tax, and land rent in 2025 (referred to as the draft Decree on submission of VAT, CIT, PIT, and land rent in 2025).

>>> View the full text of the draft Decree on submission of VAT, CIT, PIT, and land rent in 2025 here.

The draft Decree stipulates the extension of the deadline for the submission of value-added tax, corporate income tax, personal income tax, and land rent.

Applicable subjects include taxpayers; tax authorities; tax officials; other state agencies, organizations, and individuals involved.

If approved, this Decree will be effective from the date of signing until December 31, 2025.

Draft Decree on deferral of VAT, CIT, PIT, and land rent in Vietnam in 2025 (Image from the Internet)

Key provisions of the Draft Decree on deferral of VAT, CIT, PIT, and land rent in Vietnam in 2025

The draft Decree on deferral of VAT, CIT, PIT, and land rent in 2025 Download includes the following key provisions:

(1) Subjects Eligible for Extension

The Ministry of Finance proposes the subjects eligible for extension as follows:

Continuing the extension of the tax and land rent submission deadline for subjects specified in Article 3 of Decree No. 64/2024/ND-CP dated June 17, 2024, of the Government of Vietnam.

(2) Extension Mechanism

The Ministry of Finance proposes the scope of the policy to be the extension of the submission deadlines for value-added tax, corporate income tax, personal income tax, and land rent as per Decree No. 64/2024/ND-CP.

(3) Implementation Time (in 2025)

- For value-added tax

+ The Ministry of Finance proposes: Extend by 6 months for the value-added tax amounts of February, March 2025, and the first quarter of 2025; extend by 5 months for the value-added tax amounts of April, May, June 2025, and the second quarter of 2025.

+ Impact assessment: By implementing the above plan, the total extended VAT amounts to about 62,000 billion VND. However, the state budget revenue for 2025 does not decrease as enterprises must remit it to the state budget no later than December 31, 2025.

- For corporate income tax

+ The Ministry of Finance proposes: Extend by 5 months for the provisional corporate income tax amounts of the first and second quarters of the corporate income tax assessment year 2025.

+ Impact assessment: It is estimated that the provisional CIT amounts extended are about 36,000 billion VND.

- For business households and individual business

+ To support difficulties for business households and individuals, the Ministry of Finance proposes: Extend the deadline for submission of value-added tax, personal income tax for the amounts arising to be paid in 2025 by business households and individuals. Business households and individuals will remit the extended tax amounts to the state budget no later than December 31, 2025.

+ Impact assessment: The extended tax amount for business households and individuals is around 350 billion VND, but the state budget revenue for 2025 is not reduced as they must remit it to the state budget no later than December 31, 2025.

- For land rent

+ As per current regulations in Clause 3, Article 18 of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam, detailing several articles of the Tax Administration Law, the annual land rent submission deadline is in 2 periods (first period: pay 50% by May 31; second period: pay the remaining amount by October 31 annually); the Ministry of Finance proposes: Extend the land rent submission deadline for 50% of the land rent amount due in 2025 by enterprises, organizations, households, and individual business subject to Article 3.

+ This Decree applies to entities leasing land directly under a Decision or Contract with an authorized state agency, paying annual land rent. The extension period is 6 months from May 31, 2025.

+ Impact assessment: The projected extended land rent amounts to about 3,600 billion VND; however, state budget revenue for 2025 is not reduced.

Thus, the total estimated extended tax amounts per the policies in the draft Decree is nearly 102,000 billion VND.

Deadline for VAT deferral in Vietnam according to the Draft Decree

Based on point a, clause 1, Article 4 of the draft Decree on submission of VAT, CIT, PIT, and land rent in 2025 Download, the proposed VAT deferral deadlines (excluding imports) are as follows:

(1) Extension of the tax submission deadline for value-added tax amounts due (including additional accrued tax from other localities where the taxpayer's headquarters is located, tax due per each instance of occurrence) for the tax periods from February to June 2025 (for monthly VAT declarations) and first quarter 2025, second quarter 2025 (for quarterly VAT declarations) by enterprises, organizations in the category defined in Article 3 of the draft Decree.

- Extension period is 6 months for VAT amounts of February, March 2025, and first quarter 2025, and 5 months for VAT amounts of April, May, June 2025, and second quarter 2025.

- Extension period is counted from the end of the tax submission deadline as per legal provisions on tax administration.

- Enterprises, organizations eligible for extension must declare and submit VAT declaration forms monthly, quarterly as per current legal provisions but are not required to submit VAT accruals on the declared VAT forms. The VAT deferral deadlines are as follows:

+ Submission deadline for VAT of the February 2025 tax period is no later than September 20, 2025.

+ Submission deadline for VAT of the March 2025 tax period is no later than October 20, 2025.

+ Submission deadline for VAT of the April 2025 tax period is no later than November 20, 2025.

+ Submission deadline for VAT of the May 2025 tax period is no later than December 20, 2025.

+ Submission deadline for VAT of the June 2025 tax period is no later than December 31, 2025.

+ Submission deadline for VAT of the first quarter 2025 tax period is no later than October 31, 2025.

+ Submission deadline for VAT of the second quarter 2025 tax period is no later than December 31, 2025.

(2) In cases where enterprises, organizations mentioned in Article 3 of this Decree have branches, subordinate units declaring VAT separately with the tax authority managing the branches, subordinate units are also eligible for VAT deferral.

- In cases where branches, subordinate units of enterprises, organizations mentioned in clauses 1, 2, and 3 of Article 3 of the draft Decree Download do not engage in production business within the sectors, fields eligible for extension, the branches, subordinate units are not eligible for VAT deferral.