Gov’t continues delaying tax payment
Gov’t continues delaying tax payment
This move may result in a more than US$5 billion reduction in the State's budget collection in 2021.
The Vietnamese government will this year continue to extend deadline for payment of value added tax, corporate income tax, personal income tax and land rental fees.
This will be the third time that the government supports businesses and people coping with the Covid-19 pandemic impacts, which may result in a more than US$5 billion reduction in the State's budget collection this year.
Produciton at a Masan's subsidiary. Photo: Trong Tung
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Under the Decree No.52/2021/ND-CP issued recently, beneficiaries include enterprises, organizations, business households and individuals operating in agro-forestry-fishery, construction, entertainment, crude oil extraction, food production, transport vehicles production and waste water treatment.
The decree also expands its coverage for those in logistics, hospitality and catering services, education, healthcare and real estate.
Credit institutions and branches of foreign banks in Vietnam providing support for enterprises and customers affected by the pandemic could also be subject to extension of tax payment deadline under the decree.
The government also delays the collection of value added tax corresponding to the first and second quarter of 2021 for five months , while the payment value added tax corresponding to July and August would be delayed for four and three months, respectively.
Meanwhile, the payment deadline of corporate income tax corresponding to the first and second quarter would be delayed for three months while the deadline for payment of value added tax and personal income tax for business households and individuals would be extended until December 31, 2021.
The land rental fees are deferred for six months from May 31, 2021.
Banking expert Can Van Luc urged the government to ensure greater simplification in freezing and delaying tax payments for enterprises, especially in providing transparent information and instruction.
"Such move would help more enterprises and people access to this program," Luc said.
The government first announced its decision to defer payment of taxes and land rental fees for businesses and individuals by five months on April 8, 2020. Five months later, the authorities continued to issue another decree on the extension of excise tax for domestically-produced and assembled cars.
In 2020, the Government delayed tax payments worth VND87.3 trillion (US$3.8 billion) for 185,000 taxpayers, while 14 local cars manufacturers/assemblers were subject to extension of excise tax payment worth VND20 trillion (US$868.7 million).
