Ministry of Finance explains proposal to extend land rent and personal income tax in 2026

Xuyên Đông |

The Ministry of Finance is proposing to extend the payment of some types of taxes and land rents in 2026. According to calculations, the amount of extension this time is 125,000 billion VND.

The Ministry of Finance is seeking opinions on the draft Decree extending the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent in 2026.

According to the draft, personal income tax (PIT) of business households and individual businesses is also extended as follows: Tax for May 2026 is paid no later than November 20, 2020; June, July, August, September 2026 are paid no later than December 21, 2020; tax for the second quarter of 2026 until November 2, 2020 and the third quarter of 2026 until December 31, 2020.

Regarding land rent, the Ministry of Finance proposes to extend for 50% of the land rent arising to be paid in 2026, corresponding to the land rent in the first period of the year. The payment deadline is extended to November 2, 2026.

For value-added tax (VAT) for the tax period of May 2026, it is extended to November 20, 2026. For the tax periods of June, July, August and September 2026, the latest payment deadline is December 21, 2026. VAT for the second quarter of 2026 is extended to November 2, 2026 and the third quarter of 2026 to December 31, 2026.

For corporate income tax (CIT), the tax payment deadline for the second quarter of 2026 is extended to November 2, 26, and the third quarter of 2026 is until December 31, 2026.

According to the Ministry of Finance, with a forecast rate of budget revenue growth of about 10%, the total amount of taxes and land rent extended under this Decree is estimated at about 125,000 billion VND.

Explaining the necessity of the policy, the Ministry of Finance said that in the period 2020 - 2025, based on Article 63 of the Law on Tax Administration, the Government has repeatedly issued decrees extending the deadline for VAT, CIT, PIT and land rent payments to support businesses and business households in balancing financial resources, restoring production and business and promoting economic growth.

The extension policies in the past have received the consensus of the business community when helping units have more short-term capital because they do not have to immediately pay arising taxes into the state budget.

At the same time, the policy still ensures that it does not change the budget revenue estimate that has been decided by the National Assembly.

The implementation results show that in 2023, the total amount of tax and land rent extended reached 95,156.9 billion VND; in 2024 it was 83,009.3 billion VND; and in 2025 it was 114,789.6 billion VND.

The rate of recovery of extended amounts is also high. By the beginning of 2025, the special consumption tax extended in previous years had been fully paid 100% into the budget.

For land rent, the recovery rate will reach 99.2% in 2022 and 98.2% in 2023.

VAT, corporate income tax and personal income tax have recovery rates of 99.4% and 97.9% respectively in these two years.

However, the Ministry of Finance believes that the economy is still facing many difficulties and challenges. Growth of industries, construction and services has not met expectations; demand for goods and services is still weak; trade deficit has been prolonged for 6 consecutive months and tends to increase; the progress of state budget revenue is showing signs of slowing down.

In addition, natural disasters, extreme weather, drought, saltwater intrusion, and climate change continue to develop complicatedly, putting pressure on electricity production and supply and macroeconomic stability.

The lives of a part of the population, especially in remote, isolated, border and island areas, are still facing many difficulties.

In the context that the world and regional situation is forecast to continue to fluctuate unpredictably, the Ministry of Finance believes that the Vietnamese economy still faces many adverse external factors as well as internal difficulties that have not been completely overcome.

Therefore, this agency believes that continuing to extend the deadline for tax payment and land rent in 2026 is necessary to support production and business activities, create momentum to promote economic development, while still ensuring the balance of the state budget and in accordance with the authority of the Government according to the provisions of the Law on Tax Administration.

Xuyên Đông
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