Minister Dinh Tien Dung: To solve difficulties for enterprises, synchronous implementation of fiscal solutions needed

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Minister of Finance Dinh Tien Dung explained contents raised by National Assembly deputies

Tax reduction is appropriate

According to deputy Dang The Vinh (Hau Giang), the Covid-19 pandemic has affected the whole society, so the proposal on corporate income tax for enterprises is appropriate.

He said that the tax reduction wasonly applied in 2020, so it was suggested to consider criteria and objects to be easy to implement and promote efficiency. The simpler it is, the easier it is to be implemented and avoid arising problems.

Agreeing with the view of CIT payable reduction in 2020 at the Government's Proposal, deputy Vu Tien Loc (Thai Binh) stated that the Law on Supporting Small and Medium Enterprises includes the concept of small enterprises.

“Because of the limited budget, it is not possible to support all enterprises, at least the support is also offered to small enterprises, avoiding the concept of small-scale enterprises. Please support the right small enterprises as prescribed in the Law, so there is no need to combine the criteria of sales and the number of employees paying social insurance as in the Government's Proposal, enterprises only meeting one criterion is enough for support,”said Loc.

Supporting the policy of reducing corporate income tax payable in 2020, however, deputy Phung Van Hung (Cao Bang) said that it should not only support small enterprises but should expand the support scope to medium enterprises.

He said that small and medium enterprises play an important role in the economy. This group lacks resources, science and technology and has weak management capacity, as well as poor accessibility to credit compared to large enterprises.

"I suggest the Government should consider amending the Law on Enterprise Income Tax and other related laws to bring the Law on Supporting Small and Medium Enterprises into practice," said Phung Van Hung.

Paying much attention to subjects entitled to CIT reduction, according to deputy Pham Van Hoa (Dong Thap), the provision of support for small enterprises that meet two criteria of turnover of less than VND50 billion and social insurance contributions for less than 100 employees is quite vague.

“The business should have a real revenue of VND55 billion, even VND 60 billion, but they will declare just under VND50 billion, even VND 49.9 billion to receive the support. I think it should be clear that all small enterprises are entitled to reduction,” said Hoa.

In addition, Hoa said that, even if medium and large enterprises face real difficulties they are entitled to tax reduction because difficulties are too much,large enterprises also go bankrupt.

The synchronous implementation of fiscal policy is needed

Explaining opinions of National Assembly deputies, Minister of Finance Dinh Tien Dung stated that the Resolution is a fiscal solution introduced by the Government to support enterprises in the current situation.

The National Assembly deputies agreed with the need for this Resolution.

Regarding subjects, through the opinions of the National Assembly deputies, the drafting agency acquires and will report to the Government and the Prime Minister for early reporting to the National Assembly.

The discussion session on June 16.

Regarding criteria, Minister Dinh Tien Dung said that it is necessary to select the criteria to implement and manage smoothly, avoiding risks.

Recently, the Government has synchronously implemented fiscal solutions to support enterprises. The Government has issued Decree No. 41/2020 / ND-CP of April 8, 2020 on extending the deadlines for payment of taxes and land rent for those who are in difficulty due to the impact of the Covid-19 pandemic. Until now, the policy has been put into practice and is very convenient for enterprises to calculate and declare taxes by themselves. The implementation is very convenient, so it has not been inspected.

Regarding the reduction of fees and charges, until now, the Ministry of Finance has issued 18 circulars to reduce fees and charges. Many types of fees and charges have been greatly reduced, including for the aviation sector. Especially, service prices in the securities sector have been reduced, so it has had a great impact, contributing to stabilizing the market.

In addition, policies such as personal income tax deduction have been approved by the National Assembly Standing Committee. In terms of reducing costs for enterprises, the Ministry of Finance has submitted to the Government amendments to some decrees on adjusting import tax rates, solving difficulties for enterprises' production and import-export activities, in which support is given to the supporting industries, footwear and textile.

In addition, in the near future, under the direction of the Government, the Ministry of Finance is building and will submit to the Government the proposal on reducing 50% of registration fee for domestically manufactured cars; and submit to the Government for submission to the National Assembly Standing Committee a resolution on environmental protection tax on jet fuel. These tax policies are intended to assist vulnerable enterprises, especially airlines.

This is one of the solutions, but to solve difficulties for enterprises, the synchronous implementation of fiscal solutions is needed.

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"We agreed with the deputies on that the implementation procedures must be very simple. As a rule, enterprises are allowed to calculate, declare, and pay taxes and fees by themselves. However, in the process of management, we have to strengthen risk management and conduct inspections for case of necessity,” said the Minister of Finance.