Continue to extend tax and land rent payment deadline in 2021
For the third time, the Government has decided to extend the deadline for paying taxes and land rents for businesses and organizations facing difficulties due to the epidemic.
The Decree on continuing to extend the deadline for tax and land use fee payment in 2021 has just been signed and issued by Prime Minister Pham Minh Chinh.
Accordingly, enterprises and organizations declarevalue added taxMonthly tax declaration will be extended for 5 months for the tax arising in the tax period of March-August 2021. If the enterprise declares this tax quarterly, it will be extended for the tax arising in the first and second quarters.
In case the enterprise incurs value added tax in July, it will be extended for 4 months; in case the tax is incurred in August, it will be extended for another 3 months.
According to the previous estimate of the Ministry of Finance, the budget will reduce revenue by about 68,800 billion VND during the months of this tax extension, but it will not affect the budget balance.
Corporate income taxwill extend by 3 months the deadline for provisional tax payment of the first and second quarters of the 2021 corporate income tax period. The extended tax amount is about 40,500 billion VND.
In addition, business households and individuals in the fields of agriculture, aquaculture, textiles, supporting industries, construction, transportation, warehousing services, tourism, etc. will also have their VAT and corporate income tax payment deadline extended to December 31, 2021. About VND 1,300 billion is the amount of tax these subjects will be extended.
Withland rent,Enterprises, business households, and individuals in priority sectors will have their land rent payments extended for the first period of 2021. The extension period is 6 months, starting from May 31, 2021. The extended land rent amount is approximately VND 4,400 billion.
This is the third time the Government has introduced a policy to extend and postpone tax payment deadlines (value added tax, corporate income tax, land rent, etc.) for businesses, business households and individuals in priority sectors affected by Covid-19.
The total amount of tax deferral and extension this time is expected to be nearly 115,000 billion VND. The budget revenue in 2021 will not decrease because this policy only extends the tax payment deadline. Taxpayers will still fulfill their obligations by the end of 2021.
