The Government agreed to extend VND 125,000 billion in taxes and land lease

The content is stated in Decree 245 dated June 27 of the Government on extending the deadline for payment of value added tax (VAT), corporate income (CIT), personal income and land rent in 2026. Accordingly, taxes and land rent are postponed for an additional 2 to 5 months, depending on each declaration period.

Specifically, businesses and organizations that declare VAT on a monthly basis are allowed to defer the deadline for submitting arising amounts for the May-September periods. In particular, taxes for the May period will be paid no later than November 20, while taxes for the June-September periods will be delayed until December 21.

For businesses declaring quarterly, the VAT incurred in the second and third quarters will also be deferred to November 2 and December 31, respectively. Temporarily paid corporate income tax for these two quarters also applies the same timelines.

For business households and individuals, personal income tax arising from May to September (or the second and third quarters) is extended to the same deadline as VAT. As for land rent, the deadline for payment is half the amount of the first period of 2026, no later than November 2.

Previously, the Ministry of Finance estimated that the total amount of taxes and land rent extended under this policy was about VND 125,000 billion. This level is about 10,000 billion VND higher than last year.

In fact, the policy to extend tax and land rent payments has been applied by competent authorities from 2020 to present to support the economy. For the period 2023-2025 alone, the total amount extended is nearly VND 293,000 billion.

According to the Ministry of Finance, this measure helps businesses improve cash flow and supplement working capital, but does not reduce budget revenue estimates. According to the Decree, taxpayers only need to send a request for extension to the tax authority, no later than the deadline for submitting the third quarter tax declaration. Applicable taxes and land rent will not be charged late payment fees.