Solutions on taxes, fees and charges to support enterprises

	2021 tax extension policy is more flexible and specific
	Ministry of Finance proposes extension of tax payment deadline to the tune of VND 115 trillion
	Revenue collection continues to drop

Director of Department for Tax Declaration and Accounting , Le Thi Duyen Hai.

The Covid-19 pandemic has impacted the economy, delaying production and business activities. Especially, micro and small-sized enterprises had to reduce their scale or suspend operations.

The Government’s promulgation of the policy on extension of payment deadline for firms in 2020 and 2021 has created trust for firms to overcome difficulties amid the pandemic. The extension of payment deadlines is an interest-free loan that the State gives to taxpayers to remove difficulties in capital and maintain operations, restore production and business activities, which is highly appreciated by the business community.

Businesses have complied with the provisions in Decree 41/2020/ND-CP and paid tax amounts before the extended payment deadline. As of December 31, more than 96% of extended tax and land rent amounts paid into the State budget. In addition, the tax sector has taken measures to collect the remaining amounts.

Following Decree 52/2021/ND-CP, the total extended tax and land rent amount is estimated at VND115,000 billion. The revenue from VAT is expected at VND68,800, billion, VND4,400 billion and about VND1,300 billion from corporate income tax, land rent fee, and business households and individuals, respectively.

However, due to Covid-19, the actual extended amount will depend on the results of production of firms, Hai said.

In 2020, the General Department of Taxation issued documents instructing tax offices at all levels to perform so that taxpayers are allowed to extend payment deadlines as Decree 41/2020/ND-CP takes effect.

Tax offices at all levels widely publicized the extension on the media such as radio, television, newspaper, online newspapers, websites, social networks and via email to taxpayers. The General Department of Taxation issued documents guiding and specifying taxpayers subject to extension.

The department also reported and advised the Ministry of Finance and the Government to amend shortcomings in Decree 41/2020/ND-CP and supplement in Decree 52/2020/ND, such as the extension of payment deadlines for construction contractors using the State budget capital and for taxpayers to understand.

In 2020, the Government issued Decree 109/2020/ND-CP on the extension of payment deadlines of Special Consumption Tax for domestically manufactured and assembled cars. The decree provides that the local automakers can extend the deadline from March to October 2020.

The Ministry of Finance said that the extension of payment deadline of tax and land rent in 2020 has contributed to effective performance the dual goal of both disease prevention and socio-economic development. Especially, contributing to developing the economy, restoring production and business, boosting export growth, stabilizing the macro-economy and market prices, and performing fiscal and budgetary tasks.

The Government has assigned the Ministry of Finance to assess the impact of tax policies on production and business as well as the State budget revenue.

Closely monitor the disease development and the impact of the Covid-19 pandemic, thereby evaluating the implementation of the issued solutions across the country. On that basis, the Tax sector will propose and report to the competent authorities regarding solutions on taxes, fees and charges in accordance with actual developments in the near future.