Proposal to continue extending tax and land rent payment deadline for businesses

This is information that businesses are very interested in at this time because in reality,tax support solutionsThe Government's land rent implemented in 2020 has been effective, helping many businesses maintain production and business activities, some even growing.

Last year, timely support policies in tax deferral and land rent extension were considered a timely "ventilator" to help businesses recover from numerous difficulties. This time, the Ministry of Finance continues to propose solutions to support businesses. Specifically, for value-added tax, the Ministry of Finance proposed a 5-month extension. For corporate income tax, it proposed a 3-month extension.

For business households and individuals, the Ministry of Finance proposes to extend the deadline for paying value added tax.personal income taxFor the tax amount payable in 2021, in the economic sectors and fields that are extended. For land rent, it is proposed to extend the land rent amount payable in the first period of 2021 for enterprises, organizations, business households and individuals that are eligible for reduction. According to research by the Ministry of Finance, if the proposal is approved, the total amount expected to be deferred and extended for tax payment is estimated at about 115,000 billion VND.

According to the Ministry of Finance, if the proposal to postpone tax and land rent payments for businesses is approved by the Government, the new regulation will be applied immediately, promptly reducing difficulties for businesses.

It is estimated that in 2020, the Ministry of Finance has exempted, reduced, and extended about VND 130,000 billion in taxes, fees, and charges of all kinds for businesses and households affected by the Covid-19 pandemic. Many businesses believe that this prescription is not only useful for businesses but also a driving force for economic development.

Ms. Nguyen Thi Nga, Chairwoman of BRG Group, said that last year, the Covid-19 epidemic had severely affected the Group's business sectors, but the Government's timely support solutions had provided great support to the business community:

According to Ms. Nga: "The government also spends a lot of effort and material resources totax reduction, tax deferral, create conditions and opportunities for them to overcome difficulties. I think this is the most important thing...".

Ms. Pham Thi Tuyet Lan, Deputy Director of the Tax Revenue Estimation Department, General Department of Taxation, said that thanks to good control of the epidemic and support from policies, many businesses have had a spectacular recovery, especially the 2020 budget revenue of the tax sector has exceeded the assigned estimate.

"The policy is very fast, very timely and very effective. After the second quarter, when growth decreased sharply, the economy recovered very quickly in the third and fourth quarters and we saw that revenue also recovered quite well. That is also a good experience for us to implement the task of collecting the budget for this year..." - Ms. Lan emphasized.

Last year, timely support policies in tax deferral and land rent extension were seen as a timely "ventilator" to help businesses recover from numerous difficulties.

According to the Ministry of Finance, if the proposal to postpone tax and land rent payments for businesses is approved by the Government, the new regulation will be applied immediately, promptly reducing difficulties for businesses.

Ms. Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consultants Association, said that this is the third time the Ministry of Finance has proposed extending tax and land rent payments to help businesses overcome difficulties in the face of the complicated developments of the pandemic.

According to Ms. Cuc, when businesses are in difficulty, the state is also in difficulty, the state and businesses share and so the state will try to suffer a little more to let businesses pay late, when businesses overcome difficulties, they can increase revenue, increase the number of products, and thereby increase tax revenue and only then can they collect the second round to continue to the state budget.

It is estimated that up to now, over 80% of businesses are being negatively affected by the Covid-19 pandemic, with small-scale businesses being the most affected./.