Government support businesses amid Covid-19

The Government of Vietnam has discussed on some supports to the businesses in fighting with the Covina virus breakout. 

The General Tax Department of Vietnam has recently issued Official Letter No. 1307 to all tax departments on the Government's intention to support certain industries including Agriculture, Foods production, Garments, Rubber production, Car-maker, except for manufacturing cars for passenger less than 9 seats, Logistics, Foods & Beverage, Education, Medical supports, Arts, Sports, and Tourism. The support will be also applied for Small & Micro Enterprises as per Law on Small and Medium-Sized Enterprise No. 04/2017/QH, allowing:

 

For companies in the being-supported industries:

  • Value Added Tax (VAT): extending payment for VAT payables (except for VAT of imported goods) for March to June 2020 (for monthly declaration), and for the 1st quarter, 2nd quarter of 2020 (for quarterly declarations). Time for extension of payments: 5 months.
  • Corporate Income Tax (CIT): extending the tax payment timeline for the remaining CIT payables of 2019 finalisation, and temporary CIT payables for quarter 1 and quarter 2 of 2020 for 5 months from the date of normal submission.
  • In case the company has paid CIT finalisation 2019 for the period, the Company can use it to offset other tax payables.

For households, business individuals:

  • Extending payment timeline for VAT, PIT for 2020 to 15 December 2020.

For Land rental:

 

For enterprises working in the being-supported industries, the land rental payables to the State budget will be delayed for the first period. For Small & Micro Enterprises, the exemption will be for full payable for the first period. The exemption period is 5 months from 31 May 2020. The deadline for submission of land rental is no later than 31 October 2020.