Gov’t delays tax payments to dampen COVID-19 impacts

VGP – The Government has recently issued Decree 41/2020/ND-CP on extension of deadlines for tax and land use fee payment, taking effect immediately.

The decree shall be applicable to enterprises, organizations, households, and individuals operating in agro-forestry-fishery sector; food processing and manufacturing, garment and textile; straw and plastic products; metallurgy, mechanical engineering; and construction. 

Other beneficiaries include enterprises, organizations, households, and individuals producing auxiliary and key mechanical products; micro and small-sized enterprises, credit organizations, and branches of foreign banks which support their COVID-19 affected customers. 

The decree specifies duration of extension for payment of value added tax, corporate income tax, and land-use fees.  

Specifically, a five-month extension shall be given to value added tax of the assessment periods of March, April, May, June, the first quarter and the second quarter. As a result, the payment of VAT of March assessment period would be extended to September 20 while of second quarter assessment period to December 20.

For corporate income tax, extension would be given to the remaining sums of 2019, provisional tax of the assessment period of the first and the second quarter.

For household and individual businesses, the deadlines for paying value added tax and corporate income tax was extended to December 31.

Payment of land use fees would also extended five months from May 31.

The decree also allowed businesses operating in multiple sectors, one of which was subjected to the extension, would also enjoy the extension for all payable VAT and CIT.

It is estimated that a total of VND180 trillion worth of taxes and fees would be extended, according to the Ministry of Finance.

Taxpayers must submit a proposal to the tax management agencies before July 30 to be given the extension.

According to the finance ministry, more than 700,000 enterprises or 98 per cent of firms would be given the extension./.

 By Kim Loan

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