Tax deferrals help firms

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 : VNA)

Hanoi - 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 125 trillion VND (5.4 billion USD) worth of taxes and land lease fees.

This is the fourth time enterprises have been given tax deferrals since the outbreak of the COVID-19 pandemic.

Dau Anh Tuan, Head of the Legal Department under the Vietnam Chamber of Commerce and Industry, said that there are several ways to support businesses to overcome difficulties, but the fastest is 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, he said.

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

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

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

Duyen said that this is 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 is timely, which helps businesses to have more cash flow to maintain production, create jobs and ensure stable incomes for workers.

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