Vietnam approves $7.6 billion in tax breaks to support coronavirus-hit firms

The government announced to delay the collection of value-added tax, corporate income tax, personal income tax and land rent for five months for various businesses and households.

Businesses operating in the agricultural sector, food processing, textile, garment, and construction industries would enjoy the tax holiday.  Those operating in transportation, warehouse, accommodation and catering, education, medical services and part-supply sectors will also benefit from the policy.

The five-month extension would be given to the value-added tax of the assessment periods of March, April, May, June, the first quarter and the second quarter.

As a result, the payment of VAT of March assessment period would be extended to September 20 while of the second-quarter assessment period to December 20, State media said.

For household and individual businesses, the deadlines for paying tax will be extended to December 31. More than 700,000 enterprises or 98% of firms in Vietnam would be given the extension.