The Ministry of Finance has just proposed extending the deadline for tax payment and land rent to assist businesses in overcoming the COVID-19 pandemic.
|Vietnamese authorities are preparing to support businesses affected by COVID-19 by extending tax payment deadline |
Accordingly, the Ministry of Finance (MoF) submitted its proposals for different tax categories with expectations that state revenue would be affected due to the extensions.
Regarding value-added tax (VAT), the MoF proposed another five-month extension to cushion vulnerable companies impeded by the pandemic. The ministry predicted budget revenue in these five months to decrease by about VND68.8 trillion ($3 billion).
For corporate income tax (CIT), the MoF proposed a three-month extension. It is estimated that the CIT to be extended is about VND40.5 trillion ($1.76 billion).
For businesses and individuals, the MoF also intends to extend the deadline for VAT and personal income tax (PIT) payment for amounts payable in 2021 in the fields which previously received an extension. The amount subject to this extension is calculated at around VND1.3 trillion ($56.5 million).
Regarding land rent, the MoF proposed an extension of the payable land rent in the first period of 2021 by eligible enterprises, organisations, businesses, or individuals. The duration depends on the circumstances of each individual business. The affected land rental is about VND4.4 trillion ($191.3 million)
The total tax amount expected to be postponed or deferred is estimated at VND115 trillion ($5 billion).
The MoF believes this forthcoming extension plays a considerable role in supporting businesses and individuals to maintain their production and business activities, thus contributing to achieving the economic growth target for the whole year 2021.
The overall budgetary revenue for 2021 will not decrease because the extension will not push deadlines over to next year.
This is the third time that the MoF proposed an extension of tax and land rent to help enterprises to weather the storm.