Tax extension: Only need to be object, no declaration and no damage assessment

Tax extension: subjects applying for Tax extension do not belong to be extended; they will still be charged late payment interest

In the draft, the Ministry of Finance proposedto extend the tax for fivemonths. Whatis this proposal based on? Why is the Ministry of Finance not promulgating a circular so that it can be applied soon?

Based on the Government's authority prescribed in Article 49 of the Law on Tax Administration (amended and supplemented Clause 14 Article 1 of Law No. 21/2012 / QH13, Clause 3 Article 6 of Law No. 71/2014 / QH13): tax payment time limit in case of being "unable to pay tax on time due to other special difficulties as prescribed by the Government and the maximum tax payment time shall not exceed oneyear from thetax expiry date."

Regarding the authority to extend tax payment, Clause 1, Article 50 of the Law on Tax Administration (amended and supplemented to Clause 15, Article 1 of Law No. 21/2012 / QH13) says: “The Government extends tax payment in case atax extension does not lead to the adjustment of State budget revenue already decided by the National Assembly." Therefore, the Ministry of Finance proposed solutions on taxes, fees, charges and land rent to tackledifficulties and support businesses to cope with the impacts of the Covid-19 epidemic.

This pandemicis spreading through many countries around the world. For Vietnam, the impact will be on social life, especially in areas such as import, export, trade, tourism and industries which we have just proposed tax extension. We must develop a decree within the Government's jurisdiction in accordance with the law.

The draft decree states three objects will be given tax extension and land rent. So how do they know whether they are mentioned objects or not?

The list of economic is specified in the Prime Minister's Decision No. 27/2018 / QD-TTg of July 6, 2018, promulgating the Vietnamese economic system. There are fivelevels. For example, in the proposal of the Ministry of Finance, the ministry proposed the food processing industry. In section C, level 1 is the processing and manufacturing industry; level 2 is food production and processing.

Of which: processing of meat products, meat, slaughtering of cattle and poultry, processing and preserving meat products; processing and preserving aquatic products; processing and preserving frozen aquatic products; processing and preserving dried aquatic products; processing and preserving fish sauce products; processing and preserving other products from aquatic products; processing and preserving fruit and vegetable products (including the juice production industry; processing and preserving other fruits and vegetables); production of vegetable oils (production of vegetable fats and oils, production of margarine); andprocessing milk and milk products.

The economic sectors are understood as such, the level 2 economic sector is in the economic sector level 1, meaning that the economic sectors of level 3, level 4, level 5 in the level 2 economic sectors are entitled to the tax extension.

To be extended, what do businesses needdo and do theyneed the confirmation or assessment of insurance agencies or local authorities?

The order and procedures for implementation are specified in the draft decree. Accordingly, enterprises, organisations, households and individuals are the object extensions send the written request for a tax extension and land rent according to the promulgated form attached withthe decree is managed by tax authorities before May 31, 2020 (electronic or otherwise selected by taxpayers).

Just only the object of the decree is extended, no declaration, no damage assessment or confirmation.

Amid difficulties caused by the Covid-19 epidemic, many businesses said that the tax extension would not work much. Why do we not exempt, reduce or extend corporate income tax?

Enterprise income tax has been temporarily declared on a quarterly basis and money has been remitted into the State budget in 2019. In fact, tax has been declared and paid to the State budget and implemented in 2019 according to the Law on State Budget and approved by the National Assembly.

In the context of a prolonged epidemic, many businesses saidthey could not maintain and accept bankruptcy, why are we not exempting tax?

Up to now, the Ministry of Finance has always updated the news about the disease situation to promptly propose solutions. However, bankrupt enterprises are not producing, doing business without tax, so even though they want to, they won't be exempt because how can there be tax?.