The Ministry of Finance in Vietnam is taking steps to improve the economy and support taxpayers. A draft resolution has been accomplished, outlining key changes that will come into effect in the second half of 2024.
VAT rate reduction
The reform is the reduction of the value-added tax (VAT) rate from 10% to 8% for various goods and services. This reduction aligns with the previous adjustment, which was in place from 1 January 2024, until 30 June 2024. However, certain supplies—such as telecommunications, banking services, mining products, and items subject to excise tax—remain exempt from this reduction.
Extended tax payment deadlines
To ease financial burdens, the Ministry proposes extended deadlines for tax payments:
VAT payments
A 5-month extension for value-added tax (VAT) payments covering May and June 2024, as well as the second quarter of 2023.
- A 4-month extension for VAT payments due in July 2024.
- A 3-month extension for VAT payments due in August 2024.
- A 2-month extension for VAT payments due in September 2024.
Corporate tax payment
A 3-month extension for the quarterly corporate tax payment in the second quarter of 2024.
Individuals and business households
An extension until 30 December, 2024, for the payment of value-added tax (VAT) and personal income tax by business households and individuals.
Land rent fees
A 6-month extension for paying 50% of the land rent fee due for 2024. This extension applies to land directly rented from the government and covers the period from 31 May 2024, to 30 November, 2024.
Transparency and implementation
While further details on the implementation are forthcoming, these reforms signal the government’s commitment to economic recovery and a supportive business environment. Businesses and taxpayers should stay informed about specific guidelines and deadlines to ensure compliance.
