Resolution 13/NQ-CP removes difficulties for businesses

(Baonghean.vn) -The Government has just issuedResolution 13/NQ-CP on settlementSolutions to remove difficulties for production and business, support the market, including solutions to extend the payment of value added tax and income tax for some enterprises; reduce land rent; exempt business license tax in 2012 for seafood fishing households and salt production households...

Immediately after receiving information about Resolution 13 of the Government, many businesses in the province called the Tax Department to find out. Ms. Hong Anh - Head of the Tax Support and Propaganda Department said that solutions to remove difficulties for production and business last year were also available, but if the reduction of land rent in 2011 was applied to production enterprises, this year it will be applied to trade and services.

Resolution 13/NQ-CP proposes many groups of solutions to remove difficulties for production and business.

According to the guidance document No. 6326 dated May 11, 2012 of the Ministry of FinanceAllow a 6-month extension of the deadline for payment of value added tax for April, May and June 2012 for 2 groups of enterprises that are paying value added tax by the deduction method, which are small and medium-sized enterprises, excluding small and medium-sized enterprises operating in the fields of lottery, securities, finance, banking, insurance, production of goods and services subject to special consumption tax and enterprises ranked 1, special class belonging to economic groups and corporations; Enterprises employing many workers in the fields of production, processing, and processing of agricultural, forestry, aquatic products, textiles, footwear, electronic components, and construction of economic and social infrastructure works.

Besides,The Government extended by 9 months the deadline for paying corporate income tax from 2011 and earlier that has not been paid to the state budget; exempted business license tax in 2012 for seafood catching households and salt production households; reduced 50% of land rent payable in 2012 according to the provisions of Decision No. 2093/QD-TTg of the Prime Minister on reducing land rent in 2011 and 2012 for a number of economic organizations for enterprises operating in the fields of trade and services that are being leased land by the State.

The leader of Nghe An Tax Department said: Regarding the extension procedure, 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, water transport, steel and cement production are also granted a 9-month extension to pay corporate income tax from 2011 and earlier. This is tax arrears, if according to regulations, enterprises are late in paying, they will be fined but contributing to supporting enterprises, the Government will allow late payment of the arrears. This month, the Ministry of Finance will have detailed instructions to help enterprises feel secure in production and business.

According to Resolution No. 13 on a number of solutions to remove difficulties for production and business, and support the market, the total support package is up to 29,000 billion VND. What is the reaction from businesses to this new information?

GrandfatherChau Hong Lam– Director, Chairman of the Board of Directors of Traffic Construction and Management Joint Stock Company 487 said: “The solution in Resolution 13 of the Government does not have much effect on loss-making enterprises. For example, the extension of corporate income tax is only for enterprises with a fairly high growth rate, while for enterprises that are not profitable, of course they do not have to pay tax. I think the extension of VAT does not have much effect on enterprises because what enterprises are currently concerned about is the large amount of inventory. To release inventory and recover cash, there must be stronger support policies.”

Older brotherTrinh Ngoc Son– Director of Nghe An Trading Joint Stock Company said: the company is not subject to VAT deferral but is entitled to a reduction in land rent. According to calculations, the company's land rent will be reduced according to regulations by about 300 million VND. This amount partly helps to ease the difficulties of the company in the current difficult period of production and business.This is truly a "lifesaver" for many businesses.

At Austdoor Nghe An Joint Stock Company, Ms.Tran Thi Hiep- The company's chief accountant said that right after Resolution 13 was issued, the company received a guidance document from the Ministry of Finance sent by the Nghe An Tax Department to the email address. "In 2011, the company received a 30% reduction in income tax, and according to the spirit of Resolution 13, the company continued to extend VAT debt for 3 months 4, 5, and 6, with the latest payment deadline being January 20, 2012, with the deferred debt amounting to nearly 100 million. Currently, some large projects have been completed but have not been paid, causing the outstanding debt of 2011 and 2012 to be 4 billion VND. The government's debt extension, although not much, has helped us reduce our worries about tax pressure." - Ms. Hiep shared.

Thu Huyen