VIETNAM, April 15 –
A sign in the Phố Nối A industrial park in the northern province of Hưng Yên. The Ministry of Finance has proposed a six-month extension to the payment of land and water rental charges for businesses in 2022, starting May 31. Photo baodautu.vn
HÀ NỘI — Two decrees on the extension of time limits for payment of taxes and land royalties will come into effect immediately after the government’s approval, according to Đặng Ngọc Minh, deputy director of the Ministry of Finance’s (MoF) General Directorate of Taxes.
The finance ministry has submitted the draft decrees to the government and expects them to be ratified this month, Minh said.
According to the project, the payment of value added tax (VAT), corporation tax (IRS), personal income tax (IPP) and land leasing fees and waters in 2022 will be extended.
Regarding VAT, it proposes a six-month extension of VAT from March to May 2022 and the first quarter of 2022; five-month extension for VAT in June 2022 and in the second quarter of 2022; four-month extension for VAT in July 2022; and 3-month extension for VAT in August 2022.
If the plan is approved, the total extended VAT will be VNĐ53.3-54.3 trillion. However, the collection of the state budget in 2022 will not decrease because companies will have to pay taxes before December 31, 2022.
For CIT, the MoF is proposing an extension of the payment of the tax that companies must pay temporarily for the second and third quarters of 2022. The extension period is three months. The total tax amount to be extended is estimated to be VNĐ 51-52 trillion.
As for professional households and individuals, the MoF proposes the extension of VAT and IRP in 2022. They will have to pay taxes no later than December 31, 2022. The amount of tax to be extended is 15,304 billion VNĐ.
In addition, the Ministry of Finance has proposed a six-month extension for payment of land and water lease fees in 2022, effective May 31, 2022.
Beneficiaries of the policies include companies, organizations, business households and individuals operating in the sectors of agro-forestry-fisheries, construction, entertainment, crude oil extraction, production food, transport vehicle production, waste water treatment, logistics, hospitality and catering services, education, healthcare. and real estate.
Credit institutions and branches of foreign banks in Viet Nam providing support to companies and customers affected by the pandemic may also be subject to an extension of the tax payment deadline under the decree.
Since 2020, the Ministry of Finance has offered a number of assistance solutions related to taxes and fees with a total value of VNĐ477.25 trillion, of which VNĐ134.454 trillion was tax exemption and VNĐ342.8 trillion of VNĐ were an extension of tax payment.
The extension of tax payment is considered an interest-free loan granted by the state, which helps companies and individuals to have more financial resources.
Many economists believe that extending taxes and land rents benefits businesses because companies have substantial cash flow that they can invest in manufacturing and business, thereby promoting growth.
According to Hồ Đức Phớc, Minister of Finance, the extension of the deadlines for the payment of taxes and land royalties is part of the Government’s efforts to support businesses and populations in overcoming the difficulties in recovering and developing in the context of falling state budget revenues. —VNS