The Ministry of Finance on Wednesday submitted a draft decree on extending the deadline for payment of value-added tax, corporate income tax (CIT), personal income tax (PIT) and land lease fee in 2023 to the Government for consideration.

The ministry said the extension would support enterprises to overcome difficulty and have resources to invest in production and business, adding that the extension would not affect the balance of the State budget at both central and local levels.

Under the proposal, the extension would be given to enterprises, business households and individuals listed in Article 3 of the Government’s Decree No 34/2022/ND-CP dated May 28, 2022, excluding credit institutions and branches of foreign banks.

For value-added tax, the ministry estimated that a total sum of VND64 trillion - 65 trillion (US$2.74 billion - $2.78 billion) would be given an extension to the end of this year.

For business households and individuals, the ministry said that the value-added tax and PIT payment would be extended to December 20, 2023, with a total sum of around VND272 trillion.

The ministry also proposed to give a six-month extension to 50 per cent of the land lease fee of 2023, with a total sum of around VND3.5 trillion.

The ministry said that from the fourth quarter of this year to date, the world and domestic economic and financial developments became increasingly complicated, posing challenges to the domestic economy and operation of enterprises and creating huge pressure on macroeconomic stability.

As difficulties were forecast to continue, the ministry said it was necessary to support enterprises, business households and individuals, adding that the extension would be an important solution.

Implementing Decree No 34/2022/ND-CP, as of February 1, 2013, the total taxable which had been given extension was more than VND100.15 trillion. — VNS