You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 16, 2020

Vietnam Offers Deferred Tax and Land Rental Payments in COVID-19 Epidemic

Subscribe to Updates

On April 8, 2020, the Government of Vietnam issued Decree No. 41/2020/ND-CP, which took effect on the same day, on deferral of payment of taxes and land rental (“Decree 41”). This is considered a relief measure for taxpayers amid the COVID-19 epidemic.

Decree 41 provides for extension of the deadline for tax payment for a number of taxpayers, including companies in many sectors, small and extra-small enterprises, and credit institutions providing supporting services for clients affected by the COVID-19 epidemic.

In detail, taxpayers in the following businesses are eligible for this incentive:

  1. Agriculture; forestry; aquaculture;
  2. Food production and processing; textiles; garment production; manufacture of leather and leather products; wood treatment and manufacture of products from wood, bamboo, rattan (except furniture); manufacture of products from straw and plaiting materials; manufacture of paper products; manufacture of rubber and plastic products; manufacture of products from other non-metallic minerals; metal production; mechanical working; metal treating and coating; manufacture of electronic products, computers, and optical products; manufacture of cars and other motor vehicles; manufacture of beds, wardrobes, desks, and chairs;
  3. Construction;
  4. Transport and warehousing; accommodation and dining services; education and training; healthcare and social assistance; real estate trading;
  5. Employment services; travel agencies, tourism services and auxiliary tourism services;
  6. Composing, arts, and entertainment; library, archive, and museum operations and other artistic activities; sports and amusement; cinemas; and
  7. Manufacture of prioritized ancillary industrial products or key mechanical products.

Additionally, enterprises that qualify as small or extra-small enterprises are also eligible for this incentive, including foreign-invested companies. In the trading and service area, small enterprises are defined as those with an annual average number of employees participating in social insurance not exceeding 50 people and having annual revenue not exceeding VND 100 billion (approx. USD 4,254,000) or total capital not exceeding VND 50 billion (approx. USD 2,127,000). Extra-small enterprises are those with an annual average number of employees participating in social insurance not exceeding 10 people and having annual revenue not exceeding VND 10 billion (approx. USD 425,400) or total capital not exceeding VND 3 billion (approx. USD 127,000).

The deferral is applicable to payments of value-added tax (except for value-added tax paid at the import stage), corporate income tax, personal income tax for households and individuals doing business, and land rental.

Regarding value-added tax (VAT), the deadline for payment of the VAT due for March, April, May and June of 2020 (for those filing VAT returns monthly) and for Quarters 1 and 2 of 2020 (for those filing VAT returns quarterly) is extended for five months. For instance, the VAT payment for March is now due on 20 September 2020 and the deadline for VAT of Quarter 1 of 2020 is 30 September 2020.

For corporate income tax (CIT), the amount of CIT as finalized in the 2019 annual statement and CIT declared in the first and second quarters of 2020 will be deferred for five months. If a taxpayer has already paid the CIT of 2019, it may offset the paid CIT against other unpaid taxes.

Regarding land rental, for land users that leased their land directly from the state with annual rental payments, the deadline for payment of the first installment of 2020 is extended to 31 October 2020. It is worth noting that this deferred payment policy does not seem to apply to land which is leased from developers of industrial or economic or processing zones (including state-owned developers). Decree 41 does not specifically mention this form of land lease while referring to the deferred payments to the local tax offices (which are applicable to cases where land is leased directly from the local authorities).

Taxpayers that wish to enjoy this incentive are required to submit a prescribed request form of deferral (as enclosed with Decree 41) together with their periodical tax returns.

If you have any questions or concerns, please reach out to us at [email protected] for our further assistance.

Related Professionals

Practices

Corporate/M&A

Real Estate

Tax

Location

RELATED INSIGHTS​ 

January 6, 2026
Thailand is developing new legislation on responsible business conduct that would impose statutory obligations on large enterprises to manage human rights and environmental risks throughout their operations and supply chains. The Draft Act on the Promotion of Responsible Business Conduct, commonly referred to as the Human Rights and Environmental Due Diligence (HRDD) Bill, has been developed through extensive consultation involving a wide range of stakeholders, with the Ministry of Justice playing a leading role. If enacted, the HRDD bill would reshape how certain large businesses operate and manage their supply chains, reflecting a recognition of international standards and global concerns regarding human rights and environmental protection. By introducing legally binding due diligence obligations, the draft aims to ensure that businesses operating in Thailand are held accountable for adverse impacts throughout their operations and supply chains, in line with emerging global legal frameworks. Who Will Have to Comply? The HRDD bill primarily targets large enterprises based on their annual revenue thresholds: Manufacturing businesses with annual revenue exceeding THB 500 million Wholesale, retail, or service businesses with annual revenue exceeding THB 300 million The draft would also cover state-owned enterprises and foreign businesses operating in Thailand if their operations meet the applicable revenue thresholds. What Does Human Rights and Environmental Due Diligence Involve? Under the HRDD bill, due diligence is not a one-time checklist but an ongoing process with several key requirements: Adopt and publicly disclose a sustainability policy. Businesses must commit publicly to respecting human rights and protecting the environment, and must integrate this policy into corporate governance and risk management systems. Identify and assess risks. Companies must identify and assess risks of human rights violations and environmental harm across their operations and value chains. Prevent or reduce risks. Businesses must implement effective and proportionate measures to prevent or mitigate
Read More
December 30, 2025
On December 17, 2025, Laos’ Ministry of Industry and Commerce (MOIC) issued a notice introducing a new digital system that allows e-commerce businesses to obtain required certificates and licenses through an online, application-based platform. Notice No. 3988, which will take effect on February 1, 2026, introduces the E-Trust platform, a downloadable application that allows e-commerce businesses to remotely obtain acknowledgement certificates and business operating licenses. New Digital Registration Options Under the previous framework established by the Decree on E-commerce (2021), businesses were required to complete registration exclusively through paper-based submissions. The new system now offers businesses two registration options: Traditional paper-based process at the Division of E-commerce Management within the MOIC; or Electronic registration and renewal through the E-Trust platform. This change is expected to streamline procedures, reduce administrative burdens, and enhance accessibility for businesses operating outside Vientiane. The E-Trust platform facilitates compliance for both individuals and legal entities required to submit applications and renewals for required certificates and licenses. The development is particularly beneficial for businesses located in remote provinces, as it eliminates the need for physical travel and significantly accelerates processing times. Compliance Requirements and Penalties Businesses must obtain or renew the required certificates and licenses to avoid sanctions under the Decision on Fines and Other Measures for Violation of the Decree and Regulations on E-commerce (No. 2828/MOIC, dated November 11, 2025). Penalties for noncompliance may include monetary fines and other enforcement measures.
Read More
December 25, 2025
On December 11, 2025, Vietnam’s National Assembly issued Resolution No. 254/2025/QH15 (Resolution No. 254) to address practical difficulties encountered in implementing the Law on Land 2024. The resolution provides specific mechanisms and policies to resolve issues related to land allocation, land leasing, and conversion of land-use purposes, while also addressing land valuation principles, timing of information collection, and land valuation methods. The resolution takes effect on January 1, 2026. Key provisions affecting investors are discussed below. Land Use Terms for Transferred Investment Projects The National Assembly has addressed situations where the remaining term of a transferred investment project is insufficient for the transferee’s business or financial plans. Resolution No. 254, along with the Law on Investment 2025, introduces aligned regulatory solutions. Under the Law on Investment 2025 (4th version submitted to the National Assembly for promulgation), if an investment project implemented prior to March 1, 2026, has been transferred and the transferor holds a Land Use Rights Certificate, has fulfilled all land-related financial obligations, and is not subject to termination, the competent authority may determine a new operating term if the remaining operating term does not meet the transferee investor’s financial or business plan. This adjustment occurs when approving or adjusting the investment policy or issuing or amending the investment registration certificate. The revised operating term is calculated from the date of the approval or issuance and must not exceed the statutory maximum of 70 years for projects in economic zones and 50 years for projects outside economic zones. Resolution No. 254 also permits adjustment of the land use term for transferred investment projects involving land, provided that the transferee investor pays additional land rent in accordance with applicable law, thereby ensuring consistency with the Law on Investment 2025. Land Rent Payment Options Resolution No. 254 generally expands the
Read More
December 19, 2025
Prior to the dissolution of the House of Representatives, Thailand’s cabinet approved a draft amendment to the Administrative Procedure Act, following review by the Council of State. If enacted, this reform will fundamentally change how state agencies process business applications and appeals by imposing enforceable timelines and legal consequences for inaction. The draft directly targets a longstanding commercial frustration: applications and appeals that vanish into administrative silence, stalling investment and foreclosing judicial review across sectors ranging from real estate and manufacturing to healthcare and finance. The “Silence Means Yes” Rule for Applications At the core of the reform is a new automatic “approval by implication” for applications subject to statutory processing deadlines. If an official fails to notify an applicant of a decision within the legally prescribed period, the application will be deemed approved as a matter of law. This presumption shifts the costs of delay from businesses to the bureaucracy and gives applicants a definitive legal position once time expires. The mechanism applies to routine licensing and registration matters governed by explicit consideration periods in existing statutes or ministerial regulations. Officials may extend the decision period by up to thirty days, but only if they notify the applicant before the original deadline and substantiate that the delay arises from genuinely exceptional circumstances beyond their control. Certain sensitive applications are expressly excluded from automatic approval, including those that may significantly affect national security or defense, public safety and health, the environment or natural resources, or national cultural heritage. Once the deadline passes without a decision, businesses can proceed with deployment of capital and operations—construction, hiring, procurement, and market entry—without waiting for formal permission that may never arrive. For time-sensitive projects, this materially reduces regulatory timing risk. The “Deemed Rejection” Rule for Appeals The draft introduces a parallel “deemed rejection”
Read More