The Ministry of Finance (MoF) said that, on April 5, 2024, the Government issued Resolution 44/NQ-CP, which assigned MoF to "urgently research and submit the matter to the Government and Prime Minister before April 30, 2024 for consideration and promulgation of regulations on extending VAT, CIT, PIT and SCT payment deadline for domestically produced automobiles; reducing registration fees for domestically manufactured and assembled automobiles and slashing land and water surface rents. The ministry will promptly consider and promulgate according to its authority or submit policies on reduction of taxes, fees and charges to competent authorities as done in 2023 to further support business entities to deal with difficulties and expand operations. At the same time, MoF will make a review summary on VAT reduction and report it to the 7th Plenary Meeting of the 15th National Assembly which is expected to pass the proposal which is set to be applied in the second half of 2024.

Accordingly, on April 23, MoF issued Official Dispatch 4232/BTC-TCT, asking the Prime Minister for permission to devise a decree on extending the deadline for payment of VAT, CIT, PIT and land rent in 2024 and a decree on extending the deadline for payment of special consumption tax for domestically manufactured or assembled automobiles in a streamlined fashion. These decrees take effect from the date of signing.

On April 26, 2024, the Government Office issued Official Dispatch 2803/VPCP-KTTH. This dispatch announced that Deputy Prime Minister Le Minh Khai agreed with the MoF’s proposal. Accordingly, MoF was assigned to urgently coordinate with the Ministry of Justice and relevant ministries and agencies to compile and complete the draft decree on extending the deadline for payment of VAT, CIT, PIT and land rent in 2024 and the draft decree on extending the deadline for payment of special consumption tax on domestically manufactured and assembled automobiles. Such decrees will be submitted to the Government in May.

Currently, General Department of Taxation is consulting with its relevant affiliated units before seeking legal opinions from the Ministry of Justice and then submitting it to the Government for decision.

Regarding the proposed continued reduction of 2% VAT in the second half of 2024, the Government also submitted Report 177/TTr-CP to the National Assembly on the outcomes of these policies according to Resolution 110/2023/QH15 dated November 29, 2023 of the National Assembly.

Based on the certified review on the outcome of the 2% VAT reduction as per Resolution 110/2023/QH15, the Government submitted another 2% VAT reduction for some goods and services currently subject to 10% VAT to the National Assembly for consideration and application (from July 1, 2024 to December 31, 2024). The Government was assigned to execute this resolution.

The 6-month 2% reduction of VAT in the last six months of 2024 was estimated to result in a State Budget revenue reduction of VND24 trillion (US$1 billion).