Ho Chi Minh City proposes series of incentives for businesses hit by COVID-19

March 17, 2020 | 17:52
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If the proposal of Ho Chi Minh City People’s Committee goes through, enterprises that are impacted by the COVID-19 epidemic will be either exempted or get a reduction of the land rent, as well as get access to numerous tax incentives to help them through tough times.
ho chi minh city proposes series of incentives for businesses hit by covid 19
Ho Chi Minh City submitted the PM a package of measures that could help businesses and workers overcome the difficulties raised by COVID-19

Ho Chi Minh People’s Committee has submitted a document to the prime minister, seeking for approval for its proposal to help businesses deal with difficulties, including firms working in the services, tourism, and agricultural sectors, as well as small- and medium-sized enterprises.

Notably, the city proposed to either exempt or halve value-added tax, halve corporate income tax and import tax for these enterprises. Additionally, employees working in the tourism sector will receive personal income tax cuts based on the level of impact they suffer.

Furthermore, in order to support companies to maintain operations, the city proposed extending the deadline of tax payment to the third or fourth quarter of this year.

Regarding land rent, businesses in Ho Chi Minh City which are impacted by the epidemic are proposed to have fees halved for two years (2020-2021) and extend the payment timeline to early 2021.

Ho Chi Minh City requested access to the VND250 trillion ($10.87 trillion) credit support package, which was approved by the prime minister and assigned to the State Bank of Vietnam (SBV) to implement, to widen the timeline for paying debts and decrease interest rates on loans.

In addition, the city proposed the SBV to direct local banks to issue loans with interest rates 30 per cent lower than the existing interest regulation.

Furthermore, employees working at companies impacted by the epidemic were proposed to be given an extension on social insurance payments, while enterprises are proposed a discount of 50 per cent on social insurance payments, unemployment insurance, and health insurance.

By Ha Vy

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