Nghe An: Nearly 2,000 businesses granted tax extensions.
(Baonghean.vn) - The Covid-19 pandemic has had a severe impact on production and business activities nationwide, and Nghe An is no exception. In accordance with the Government's policy, the Nghe An Tax Department has been implementing tax extensions under Government Decree 41/2020.
Revenue from land use fees exceeded the plan.
According to the Nghe An Provincial Tax Department's report, the total domestic tax revenue for the province in July 2020 reached VND 1,307 billion, equivalent to 104% of the figure for July 2019. The cumulative revenue for the first seven months of 2020 reached VND 8,086 billion, equivalent to 63% of the central government's budget estimate, 60% of the provincial People's Council's budget estimate, and 104% compared to the same period last year.
Excluding land use fees, the cumulative revenue for the first seven months reached VND 5,598 billion, equivalent to 51% of the projected amount and 91% compared to the same period last year.
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| Beer production at Saigon Song Lam Brewery. Photo: Tran Chau |
Taxes with lower cumulative revenue compared to the same period last year include: revenue from central state-owned enterprises (69%); local state-owned enterprises (88%); foreign-invested enterprises (84%); non-state-owned industrial, commercial and service enterprises (83%)...
Regarding the implementation of revenue targets by locality, 2 Tax Sub-departments have completed their targets for total revenue: Phu Quy 2 (total reached 135%, excluding land at 60%); Bac Nghe 2 (total reached 100%, excluding land at 68%).
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| Graphics: Lam Tung |
The tax sector has issued 69,948 debt notices and sent 2,147 debt collection messages; issued 1,025 enforcement decisions totaling 370 billion VND, with 7.8 billion VND collected through enforcement. In July, the total amount of debt collected was 113 billion VND, including 105 billion VND from this year and 8 billion VND from previous years. The total estimated debt for the entire sector as of July 31, 2020 is 1,318 billion VND.
Ms. Nguyen Thi Trang, Head of the General Budgeting Department of the Nghe An Tax Department, stated: Revenue from production and business activities such as central state-owned enterprises (SOEs), local SOEs, enterprises with foreign investment, and non-state-owned service companies all fell short of the projected targets and compared to the same period last year. The reason for the revenue decrease is the combined impact of the Covid-19 pandemic and related policies.
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| Instructions for businesses on filing tax returns at the Nghe An Tax Department. Photo: Lam Tung |
Focus on extending tax deadlines for businesses.
The severe impact of the Covid-19 pandemic has caused hundreds of businesses to struggle, disrupting production and business operations, breaking contracts, and halting import and export activities.
Against this backdrop, the Government has issued numerous policies to support businesses in overcoming this difficult period. A notable example is Government Decree 41/2020/ND-CP dated April 8, 2020, extending the deadline for tax and land rent payments, effective from April 8, 2020.
The decree specifies that taxpayers subject to the regulations fall into five basic groups: Manufacturing and business sectors (transportation and warehousing; accommodation and food services; education and training; health and social assistance activities; real estate business; labor and employment services; activities of travel agencies, tourism businesses and support services related to promotion and organization of tours; creative, artistic and entertainment activities; library, archive, and museum activities; sports, entertainment, and film activities...); production of priority industrial support products; small and micro enterprises; credit institutions and branches of foreign banks providing support to customers affected by the Covid-19 pandemic…
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| Production at businesses in the Southeast Economic Zone. Photo: Lam Tung |
To implement this policy, the Nghe An Tax Department has intensified its efforts to raise awareness among taxpayers and expedite the necessary paperwork for businesses to receive support.
As of July 31, 2020, 2,616 taxpayers had their tax deadlines extended (including 1,977 businesses and 639 individual business owners) with a total extension amount of VND 758 billion (VND 753 billion for businesses and VND 5 billion for individual business owners). Some businesses with large extensions include: Masan MB Co., Ltd. requesting an extension of over VND 57 billion; Hoa Sen Nghe An Co., Ltd. requesting an extension of over VND 17 billion…
Currently, the tax sector is continuing to implement steps to manage taxes on e-commerce business activities, receiving and processing applications for exemption and reduction of land use fees and land rent; applications for recording revenue and expenditure of land rent and land use fees; applications for extension of land rent payment; applications for personal income tax refund; and applications for determining land rent unit prices in a timely and compliant manner, thereby strengthening tax management...
