Tax deferrals help firms

Thursday, Jun 16, 2022 18:00

The tax deferral policy helped ease the financial burden on enterprises and supported them in recovering production and business in the post-pandemic period. — Photo Thanh Liem

Tax deferral policies are giving significant support to enterprises to overcome difficulties and recover production and business in the post-pandemic period, experts have said.

Passed on May 28, Decree 34/2022/ND-CP will give deferrals on about VND125 trillion (US$5.4 billion) worth of taxes and land lease fees.

This was the fourth time enterprises were given tax deferrals since the outbreak of the COVID-19 pandemic.

Dau Anh Tuan, Head of the Legal Department under the Viet Nam Chamber of Commerce and Industry, said that there were several ways to support businesses to overcome difficulties, but the fastest was tax policies.

The timely tax deferral policy will support businesses in the post-pandemic recovery and development process while creating a spillover effect on the whole economy, Tuan said.

Tuan said the business community appreciated the Government’s support policies, such as tax and fee deferral, exemption, and reduction, as well as interest rate reduction.

However, it was important to simplify procedures and lower requirements to ensure the support policies were accessible to many businesses, Tuan added.

According to Ly Phuong Duyen from the Vietnam Academy of Finance, the tax deferral policy would soon have a direct impact on enterprises.

Duyen said that this was considered the most timely support measure compared to support through interest rates or other forms, which would take more time for verification.

Nguyen Van Thien, director of garment company Thien Oanh, said that the policy of tax deferral was timely, which helped businesses to have more cash flow to maintain production, create jobs and ensure stable incomes for workers.

Thien said the policy helped ease the financial burden on enterprises, which was extremely important in that any enterprise must optimise resources to revive operation and business after a hard time during the pandemic. — VNS

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