Tax deadline should be delayed for businesses, says

MoF
Update: February, 25/2021 - 10:32
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A tax official guides a business owner through online tax procedures. In the
latest proposal by the Ministry of Finance, businesses may have several
months more before they must pay taxes and land use fees. — Photo
laodong.vn

HÀ NỘI — Businesses may have several additional months before they have
to pay income tax and land-use fees, per a proposal from the Ministry of
Finance (MoF) to the Government. 

The ministry proposed a five-month extension for business VAT tax, a three-

month extension for income tax (for certain businesses only) and land-use
fees, which may result in a more than US$5 billion reduction in the State's
budget collection during the first half of 2021.
The proposal also included household and private businesses in
sectors eligible for support as well as their income tax.

The MoF said the State budget would still even out as taxpayers were
expected to make full payments by the end of the fiscal year while citing
numerous difficulties faced by the business community in dealing with the
adverse effects of the COVID-19 pandemic as grounds for the proposal.

The ministry stressed the importance of allowing businesses to hold on to their

cash as it's essential to the country's economic recovery. This is the third
proposal made by the ministry in support of the business sector. 

Last year, tax offices issued extensions for nearly 185,000 businesses with a
total tax payable of $3.8 billion with the main benefits being 14 domestic car
manufactures to the tune of $870 million.

Economist Đinh Trọng Thịnh said the Government must do more to support
the business community, saying it is an important factor in maintaining social
and economic security. Thịnh, however, added inspection and oversight of
support policies must be thorough to prevent waste and corruption. 

Head of the General Department of Taxation Cao Anh Tuấn said reviews had
been conducted by his department to gauge the damage caused by the
pandemic to the business sector and local tax offices have been instructed to
submit reports on if and how the pandemic has affected businesses under
their jurisdiction.

The department has also established online channels to answer tax-related

questions, carried out administrative reforms and simplified the inspection
process to support businesses. — VNS