Supportive policies on taxes are timely "lifebuoy"

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To help enterprises surmount difficulties at present, the Government and the Ministry of Finance have issued many policies on taxes, fees and charges. What does it mean, especially for small and micro enterprises?

In 2020, there was an unexpected and objective "incident" to the economy, which is the Covid-19 pandemic. Although Vietnam has had agood response to the crisis, and the domestic market has returned to normal, its impact isremarkable.

In fact, all enterprises are affected by the pandemic. Therefore, the Government has offered a series of supportive policies, especially on taxes, fees and charges, which are of great significance for reviving the business and production situation of enterprises. This is especially significant for small and micro enterprises because this group has a common feature of low capital flow and insignificant accumulation, they are easily affected when facing difficulties. Just a few months of difficulties can push them to risk stopping operations or bankruptcy.

In my opinion, the issued supportive policies aresynchronous and unified from production and business. All will be a timely "lifebuoy" to enterprises during difficulties.

In the long term, the Ministry of Finance is proposing to the Government for submission to the National Assembly on reducing the CIT rate for small and micro enterprises to 15-17% for businesses which have more resources to reinvest in production and business, and at the same time export and exempting income taxes for business households converted into enterprises. How do you evaluate these proposals?

I highly appreciate the Ministry of Finance's proposalson reducing taxes for small and micro enterprises. Because the disease causes difficulties for enterprises, in 2020, the state budget revenue will be significantly affected.

Moreover, the Government, as well as the Ministry of Finance, have also provided support for enterprises through various policies. Although the number of enterprises benefiting from tax reduction is not high, in terms of policies and political will, the State has paid attention and incentives, especially for small and micro enterprises.

For business households, they have more advantages than the enterprise model: paying compliance cost with the law on corporate governance much lower than other enterprise models. The business household owner has full authority to decide its management structure and business activities, while the enterprise must follow the model of corporate governance, management and decision-making process. In addition, the business household is not an accounting unit as prescribed by the Accounting Law, so they are not required to organize the accounting apparatus and to prepare and submit financial statements.

Therefore, the encouragement of small business households to transform into enterprises with reasonable policies is in line with the inevitable trend and the objective of one million enterprises nationwide. Each supportive policy will be a motivation for business households to "transform" and overcome initial obstacles for development. The contents of the Draft Resolution have touched upon what enterprises and business households need.

I know that there are also many policies to support business households in transformation, such as exemption of license fees for the first three years, exemption of evaluation fees and first-time business license fees for conditional business lines. Therefore, this new proposal will be an important "push" to promote business households.

The policy to promote the development of the private sector, especially small and micro enterprises, has been mentioned many times by the Party, Government and National Assembly. To do this policy, what do the authorities need to pay attention to besides the preferential and supportive policies, sir?

The biggest concern of business households upon transformation into enterprises as well as of enterprises in their operation process is administrative procedures. Therefore, besides tax exemption, I think that it is necessary to simplify administrative procedures in fulfilling tax obligations. Recently, the Finance sector in general and the Taxation agency in particular have made great efforts to complete this task well. Hopefully, it will be done better in the near future to provide maximum support to the development of enterprises.

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At the same time, it is necessary to closely examine and control the compliance with tax obligations of enterprises to ensure fairness, transparency and avoid profiteering in tax collection. These solutions must be consistent to create a strong push to help enterprises to grow strongly.

Thank you,