Up to $3.4 billion of tax and land rent deadlines extended

Sunday, Oct 03, 2021 16:21

Taxpayers at a tax office in Ha Noi before social distancing was implemented. — Photo hanoimoi.com.vn

The total amount of tax and land rent which has been extended is VND78.5 trillion (US$3.4 billion) so far, said Nguyen Thi Thu Ha from the General Department of Taxation at an online policy forum on supporting businesses during the COVID-19 pandemic on Friday.

As the COVID-19 pandemic spread, especially in industrial zones in the northern provinces of Bac Ninh, Bac Giang, Hai Duong and in the southern central region, the Ministry of Finance, as an advisory body, implemented measures to support financial resources for businesses, said Ha.

The Ministry of Finance has proposed the Government maintain the policy of exemption or reduction for about 30 types of fees and charges which have impacts on business operations and people's lives; while maintaining the reduction of import tax rates for essential items.

The Ministry of Finance estimates the support package under Decree 52/2021/ND-CP to be about VND115 trillion.

The total amount of tax and land rent that has been extended is VND78.5 trillion; in which the tax seeing the most support is value added tax, accounting for 60 per cent of the total amount of support.

These policies partly helped reduce the pressure on the amount of money to be paid to the State budget and also created conditions for businesses to ensure financial resources for production, capital turnover as well as payment for other inputs, said Ha.

Recently, the Government has submitted to the National Assembly Standing Committee a resolution on a number of solutions to support businesses and people affected by the COVID-19 pandemic with an amount of about VND21.3 trillion.

This support package is a direct exemption or reduction of the payable tax amount, while the previous support packages are only an extension of the tax payment deadline.

The percentage of business households, which have had to close or suspend operations, is very large, especially since April. Therefore, the Ministry of Finance has proposed entire tax exemption with business households in the third and fourth quarters of this year.

Most recently, the Government issued Decision No 27/2021/QD-TTg on the reduction of land rent this year for those affected by the COVID-19 pandemic. The validity of this support package is from September 25 to December 31 this year.

Every time a policy was issued, the tax sector got involved early and designed beneficiary plans so that they were appropriate and easy for taxpayers to access, added Ha. — VNS

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