Information from the Government Office said that Prime Minister Nguyen Xuan Phuc has agreed to the proposal to develop a decree regulating the extension of tax payment deadline and land rent in 2021 as proposed by the Ministry of Finance.
The budget is not affected
According to the proposed plan of the Ministry of Finance, enterprises (DN), business households, and business individuals affected by the Covid-19 epidemic will be deferred and deferred payment of VAT, corporate income tax (CIT). personal income tax (PIT) and land rental for certain periods of 2021.
When the tax extension policy is implemented, businesses will have more cash flow to maintain and restore production. Photo: TAN THANH
Specifically, extending the VAT in 5 months for the tax payable from January to June 2021, equivalent to about 68,800 billion; extension of provisional corporate income tax for the first quarter and second quarter of the 2021 corporate income tax period in 3 months, with about 40,500 billion dong; extension of VAT and PIT of business households and individuals until December 31, 2021 is about VND 1,300 billion; Extension of land rent payable for the first period of 2021 in 6 months is about 4,400 billion VND. It is expected that the amount of tax and land rental will be extended about 115,000 billion VND. However, the budget revenue of 2021 will not be affected because taxpayers still have to fulfill their tax obligations by the end of 2021. “The above extension is necessary for businesses and individuals to have more financial resources. to maintain and restore production, contributing to achieving the economic growth target for the whole year 2021 “- said a representative of the Ministry of Finance.
In addition, the Ministry of Finance is also reviewing and evaluating the implementation of solutions issued in the past time to continue advising, proposing and reporting to competent authorities tax, fee and fees in line with actual developments in the future.
According to the Ministry of Finance, in 2020, the taxation branch has received nearly 185,000 papers requesting extension of tax payment from organizations and individuals, thereby extending payment of over 87,300 billion dong in taxes of all kinds and land rent. In addition, there are 14 domestic automobile manufacturers and assemblers to be extended to pay more than VND 20,000 billion in special consumption tax. This capital source has supported many businesses and business households to balance their finances to maintain production and business activities.
Talking to Nguoi Lao Dong Newspaper as soon as he got the information about the Government about to issue a policy of extending tax payment time and land rent, Mr. Chu Tien Dung, Chairman of HCM City Association of Enterprises (HUBA), said that The Prime Minister’s request to the Ministry of Finance to urgently develop a draft Decree according to the simplified order and procedures, before March 20, showed the Government’s concern to the people and the business community, demonstrating the Accompanying, creating favorable conditions for businesses in the context of many negative impacts of the Covid-19 pandemic. “Another positive point is that this policy will help improve cash flow, liquidity in production and business activities, basically to help businesses overcome immediate thirst” – the chairman of HUBA said. .
According to Mr. Chu Tien Dung, the extension of this tax payment deadline is both material and spiritual, but more spiritual. Most businesses want to extend the tax deferral period, but the most important thing that businesses always expect is that the Government continues to improve the business investment environment, reform administrative procedures, and land problems. Belt and bottlenecks in state administrative management are the basis for supporting enterprises. “The epidemic affects industries unevenly, each enterprise must have its own response solution. In general, the support packages issued in 2020 are very basic, important is the implementation organization. for businesses to absorb “- Mr. Dung expressed.
Need to be flexible and flexible
From an expert perspective, Dr. Nguyen Van Thuan (University of Finance – Marketing), commented that the disease situation at home and abroad is getting better. However, economic sectors are still facing difficulties, people still restrict travel, leading to weak consumption of goods and services. Therefore, when the tax extension policy is implemented, businesses will have more cash flow to maintain and restore production. And the tax office only delays the collection for a certain time because after the extension period expires, the taxpayer will pay the full amount to the state budget.
According to lawyer Tran Xoa, tax consultant, director of Minh Dang Quang Law Firm, this year, the budget is difficult, the Government still decides to extend tax payment for businesses, although the extension is shorter, Shows interest in supporting and accompanying businesses of the Government. “In my opinion, policy makers have considered the extension time and made a reasonable decision. However, learning from the actual implementation, can consider adjusting the regulations in a flexible direction. more, more flexible to support more practical businesses “- tax expert Tran Xoa noted.
Specifically, in 2020, the Government also has a policy to reduce and extend the payment of corporate income tax, VAT and land rental, helping businesses to partially reduce financial pressure. However, mainly businesses are supported to extend the tax payment deadline, while very few enterprises are allowed to extend their land rental due to problems with regulations. Specifically, the condition for enterprises to extend the payment of land use fees is to stop working for at least 15 days and send a written notice to the Department of Planning and Investment of the suspension. Quite a lot of restaurants and 4-5 star hotels have not had customers for many consecutive months, the annual revenue is only 5% -10% but could not announce the closure of operation, so in the end, there is no support despite the value. The payable land rent is quite large, if it is reduced and extended, they will save hundreds to billions of dong in difficult times.
Mr. Nguyen Van Duoc, General Director of Trong Tin Tax Consulting Services Co., Ltd, evaluated the Prime Minister’s decision to extend tax right from the beginning of 2021 is a very positive signal and brings a lot of hope for businesses. This is considered a production-business stimulus policy to recoup tax money back to the state budget, so it is very positive.
However, he was advised to add an appropriate tax reduction and exemption policy to further support businesses. Specifically, he proposed to reduce VAT by 50% for goods and services directly affected by translation; In addition to the 30% CIT reduction like last year, it is also necessary to consider reducing the CIT rate because this is a meaningful long-term support for businesses in any circumstances.
“The Law on Small and Medium Enterprises Support, effective from January 1, 2018, has regulated reducing corporate income tax for this sector to a level lower than that of businesses in general, but so far it has not been implemented. in accordance with the regulations by removing problems related to other laws that block the implementation process “- Mr. Suggested.
Representatives of Thanh Cong Motor Vietnam Joint Stock Company said that the recurrence of the disease caused the entire auto market in January 2021 to decrease by 32% compared to the last month of 2020, according to the Registry Department. This is an out of market rule because normally, January every year – before the Lunar New Year – is the time when shopping demand is highest.
“The cause of this decline is due to the 50% reduction in registration fee policy which has expired from January 1, 2021, and a recurrence of the epidemic, which increases people’s saving psychology.” – A representative of the enterprise stated clearly and expressed concern that the difficulties that happened in the first half of 2020 could once again occur when the economy has not completely recovered.
Therefore, this auto company proposes the Government to consider extending tax and fee incentives at least in 2021, so that the auto industry can maintain its growth momentum as before. Because, by maintaining the growth momentum, the fledgling automobile industry of Vietnam has the conditions and the driving force to promote the movement of deep and wide development in the direction of specialization, increasing the rate of localization and creating a stepping stone to participate in the global value chain.
Aviation offer credit assistance
In a letter to the President of the National Assembly and the Prime Minister, the Vietnam Aviation Business Association proposed to continue to make (with adjustment) subsidies for airlines, such as: implementation of support packages. credit for firms improving solvency (credit package of 25,000 – 27,000 billion dong); continue to consider and restructure the repayment term that enterprises affected by Covid-19 have borrowed from banks until the end of 2024.
The Association also proposed to continue supporting the reduction of fees and charges for a number of aviation services and activities (parking fees with Vietnamese airlines, take-off / landing fees …), as well as 50% reduction in the concession fee for airport and airport operations and continuing to reduce the cost of flight control, tax extension and financial obligations for each enterprise, applying the price bracket with a minimum of 0 VND for the service. aviation specialized services on the list of the state until the end of 12-2021; further reduction of environmental protection tax with flying fuel (minimum 70% reduction) in 2021 …