Hanoi (VNS/VNA) 🍸- The Ministry of Finance (MoF) is seeking public feedback on a draft decree proposing an extension for the payment deadlines of value-added tax (VAT), corporate income tax, personal income tax and land rents in 2025.

The total deferred amount is estimated at nearly 102 trillion VND (over 3.99 billion USD), doanhnhansaigon.vn reported. Under the draft decree, value-added tax (VAT) payments will be deferred for six months for amounts due in February, March, and the first quarter of 2025. Tax payments for April, May, June, and the second quarter of 2025 will be extended by five months. The total deferred VAT payments are estimated at 62 trillion VND, with the final payment deadline set for December 31, 2025. For corporate income tax, the ministry has suggested a five-month extension for provisional tax payments for the first and second quarters of 2025, with the total deferred amount estimated at 36 trillion VND. Business households and individual entrepreneurs will also benefit from an extended deadline for VAT and personal income tax payments for 2025, with the latest due date set for December 31, 2025. The total deferred tax amounts for this group are estimated at 350 billion VND. Regarding land rent, the proposal includes a six-month extension for 50% of the land rent payable in 2025 for enterprises, organisations, households and individual business owners who lease land directly from the State under annual payment agreements. The total deferred land rent is projected at 3.6 trillion VND. Despite positive signs of economic growth in 2024, Vietnam continues to face challenges, including economic stabilisation pressures, constrained credit access, rising bad debt, and slower public investment disbursement compared to the previous year. Several industries, including agriculture, forestry, fisheries, crude oil extraction, iron and steel production, machine tools, tobacco and beverages, are still struggling, with production levels stagnating or declining from 2023. The tourism sector has yet to see a strong recovery, while car production recorded only a modest growth of 2.94%. According to the MoF, this is a policy of extension, not a tax exemption or reduction. As a result, the State budget for 2025 will not be negatively impacted, since businesses and households will still be required to settle all deferred taxes and land rent by December 31./.