MoF proposes $4.9 billion tax and land-rent deferral package for 2026

MoF proposes $4.9 billion tax and land-rent deferral package for 2026

The Ministry of Finance has proposed extending tax and land-rent payment deadlines in 2026, potentially deferring almost $5 billion to support business activity.

The ministry is drafting a decree on the extension of payment deadlines for VAT, corporate income tax, personal income tax, and land-rent obligations in 2026. The measure aims to provide businesses and individuals with additional financial resources to sustain production and economic growth.

Under the draft, tax and land-rent payments would be deferred by between two and five months, depending on the relevant filing period.

Specifically, businesses and organisations filing VAT on a monthly basis would be granted extensions for tax liabilities arising between May and September this year. VAT due for May would be payable no later than November 20, while liabilities for June through September would be deferred until December 21.

For enterprises filing VAT quarterly, payments due for the second and third quarters would also be postponed, with new deadlines of November 2 and December 31, respectively. Provisional corporate income tax payments for the same quarters would be subject to identical extensions.

Business households and individual entrepreneurs would likewise be eligible for extensions on personal income tax liabilities arising between May and September, or in the second and third quarters, in line with the VAT deferral schedule.

For land-rent payments, the Ministry of Finance (MoF) has proposed extending the deadline for 50 per cent of the first instalment due in 2026, with payment deferred until November 2.

The MoF estimates that the total value of taxes and land-rent payments covered by the policy would amount to approximately VND125 trillion ($4.9 billion), around VND10 trillion ($390 million) higher than the figure recorded last year.

Tax and land-rent deferral policies have been implemented by the Vietnamese government since 2020 as part of broader measures to support the economy. Between 2023 and 2025 alone, nearly VND293 trillion ($11.5 billion) in tax and land-rent obligations were deferred.

According to the MoF, the policy has helped businesses improve cash flow and supplement working capital without reducing state budget revenue, as the deferred amounts remain payable at a later date.

Under the draft decree, eligible taxpayers would only be required to submit a request for extension to the tax authorities no later than the deadline for filing third-quarter tax declarations. Deferred tax and land-rent obligations would not incur late-payment interest charges.

The MoF plans to submit the decree to the government for approval in June, with the aim of bringing the policy into effect immediately upon issuance and applying it through the end of the year.

VIR