The decree took effect immediately and the extension would be five months from the deadline for payments.
Accordingly, businesses operating in the agro-forestry-fishery, food processing, textile, garment and construction industries would enjoy the extension, besides those operating in transportation, warehouse, accommodation and catering, education, medical services and part-supply sectors.
Others subject to the extension included small and micro-sized enterprises and credit institutions and branches of foreign banks which provided support to their customers who were hit by the COVID-19 pandemic following the requirements of the State Bank of Vietnam (SBV).
The SBV would be in charge of announcing the list of eligible banks for the extension.
The five-month extension would be given to value added tax (VAT) 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 second quarter assessment period to December 20.
For corporate income tax (CIT), the extension would be given to the remaining sums of 2019, provisional tax of the assessment period of the first and the second quarter.
For household and individual businesses, the deadlines for paying VAT and CIT will be extended to December 31.
Payment of land use fees would also extended five months from May 31.
The decree also allowed businesses operating in multiple sectors, one of which was subjected to the extension, would also enjoy the extension for all payable VAT and CIT.
The Ministry of Finance estimated that a total of VND180 trillion (US$7.64 billion) worth of taxes and fees would be extended. Still, the sum would still be collected to the State budget within this year.
Taxpayers must submit a proposal to the tax management agencies before July 30 to be given the extension.
According to the ministry, more than 700,000 enterprises or 98 percent of firms would be given the extension.