MoF proposes Government to extend payment deadlines of taxes and land and water surface rents in 2022

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The MoF affirmed that this policy is in line with the common context of many countries around the world in providing solutions to remove difficulties for businesses most severely affected by the Covid-19 pandemic.According to the MoF, this support package will contribute to reducing difficulties for businesses and individuals affected by the Covid-19 pandemic. The ministry ensures that the support will reach the right beneficiaries and comply with the state budget.

Previously, to finalize the draft Decree before submitting it to the Government, the MoF sent an official dispatch to ministries, Government agencies and local agencies as well as worked with VCCI to organize a conference to collect opinions.

The participants all agreed with the MoF’s proposal on the necessity to issue a policy to extend the tax payment deadline to support businesses and people to resume production and business. The MoF has also asked for the Ministry of Justice's opinions. Thereby, the MoF made a report on receiving and explaining the opinions of the Ministry of Justice and completed the draft Decree to submit to the Government.

The MoF said that the policy aims to restore production and business, create conditions to promote exports, and thereby generate revenue for the state budget. Accordingly, the beneficiaries proposed for the support include all subjects specified in Article 2 of Decree 52/2021 dated April 19, 2021 of the Government.

In terms of implementation, in 2022 for VAT so as not to affect the state budget balance in the year, the MoF proposes a 6-month extension of the VAT amounts from May 3, 2022 and the first quarter of 2022; a 5-month extension for the VAT amounts of June and the second quarter; a 4-month extension of the VAT amounts of July and a 3-month extension of the VAT amounts of August of the businesses and organizations that are subject to the application. The extension period is from the end of the prescribed time limit for VAT payment.

According to the MoF, this extension will make the total deferred VAT amount from March to August 2022 and the first and second quarters about VND53,300 to VND54,300 billion. However, the state budget revenue for 2022 will not decrease because businesses must pay taxes before December 31, 2022.

As for CIT, to support capital for businesses, the MoF proposes to extend the deadline for the temporary payment of CIT for the first and second quarters of the tax term in 2022. The extension period is three months from the end of the prescribed CIT payment deadline. With this proposal, the deferred tax amount is expected to be about VND51,000-VND52,000 billion.

Particularly for business households and individuals, the MoF proposes to extend the payment deadline of PIT and VAT payable in 2022. Accordingly, the payment deadline for VAT and CIT is extended to no later than December 30, 2022. The deferred tax amount is expected to be about VND15,304 billion, but the state budget revenue will not decrease.

Notably, in this draft Decree, the MoF has asked the Government for permission to extend the payment deadline of land and water surface rents in 2022.

Payment deadlines extended for domestic automobiles

According to the MoF, in Clause 3, Article 18 of the Decree 126/2020, the payment deadline for land and water surface rents is two periods (the 1st period is to pay 50% by May 31; the 2nd period is to pay the rest in full by October 31). Accordingly, the MoF proposes to extend the deadline for paying land and water surface rents for 50% of the arising land and water surface rents payable in 2022. The extension period is 6 months from May 31, 2022 to November 30, 2022. The deferred amount is expected to be about VND3,500-3,700 billion.