Only domestic VAT extension
 |
Many leather and footwear businesses are eligible for VAT extension - Photo: TVNghi |
Speaking to Tuoi Tre, Mr. Tuan said that next week the Ministry of Finance is expected to issue a circular providing detailed instructions on implementing Resolution 13 of the Government on removing difficulties for production and business activities and supporting the market, including two important contents: extending VAT for April, May and June as well as reducing land use fees...
Enterprises only declare, do not have to pay
| Regarding the 30% reduction in corporate income tax, VAT exemption for households providing babysitting services, renting out boarding houses, providing meals for workers, etc., according to Mr. Tuan, the Ministry of Finance will submit it to the National Assembly at the session taking place this May. In Clause 1, Article 3 of Decree 56 of 2009, small and medium enterprises are divided into fields corresponding to the number of employees and capital, including: |
Mr. Do Hoang Anh Tuan added that for imported goods, machinery, equipment, and raw materials will not have to pay VAT to help ease difficulties for businesses. However, imported consumer goods still have to pay VAT as usual.
Except for enterprises in the fields of finance, insurance, banking, etc., small and medium enterprises with less than 300 employees and total capital of less than 100 billion VND, depending on the field, will have VAT extension. In addition, enterprises employing more than 300 employees in the fields of production, processing, processing of agricultural, forestry, aquatic products, textiles, footwear, electronic components, construction of economic and social infrastructure works will also enjoy this policy.
Regarding the extension procedure, Mr. Nguyen Van Phung, Deputy Director of the Tax Policy Department (Ministry of Finance), said that enterprises only declare VAT as before but do not have to pay immediately. And of course, enterprises that have been granted an extension will not be fined for late tax payment.
At the same time, small and medium enterprises, enterprises using a lot of labor and enterprises producing mechanical products as means of production, waterway transportation, steel and cement production are also granted a nine-month extension to pay corporate income tax from 2011 and earlier. Mr. Tuan explained that this is tax arrears, and if according to regulations, enterprises pay late, they will be fined. However, to support enterprises, the Government allows the payment of arrears to be delayed. This month, the Ministry of Finance will have detailed instructions to help enterprises feel secure in production and business.
Reduced land rent by nearly 2,000 billion VND
The Ministry of Finance will also guide the reduction of 50% of land use fees in 2011 and 2012 for enterprises operating in the fields of trade and services. Mr. Tuan emphasized that only enterprises that are being leased land by the State and must determine the land rental price in 2012 will be entitled to a 50% reduction in land use fees. It is estimated that the budget will reduce revenue from this by nearly 2,000 billion VND this year.
To be eligible for a land rent reduction, an enterprise must meet three conditions: first, the State is directly leasing land; second, the leased land is used for the correct purpose and in accordance with the provisions of the land law; third, the re-determined land rent according to the provisions of Decree No. 121 of 2010 is twice as large as the land rent payable in 2011 after deducting incentives for land rent reduction (if any).
In addition, the State extends the deadline for land use fee payment for project investors facing financial difficulties by up to 12 months. According to the Ministry of Finance, most of these policies are mainly for real estate projects. There are real estate projects that owe thousands of billions of dong in land use fees because they cannot sell houses and land. To get an extension, enterprises that are in debt for land use fees submit an application with documents to the tax department. The tax department reviews the documents and discusses with the finance department to submit to the provincial People's Committee for consideration. After the provincial People's Committee has a decision, the tax department will issue a notice to the enterprise.
A representative of the Ministry of Finance said that because land use fees belong to the local budget, the provincial People's Committee will consider and decide on the specific extension period for each project and group of projects after reporting to the standing committee of the People's Council at the same level. The province will balance the province's budget capacity to extend the projects for 3, 6, 9 or 12 months...
According to Tuoi Tre - H
