Ministry to further extend tax payment deferrals for pandemic-hit businesses
The Ministry of Finance has announced it may further extend tax payment deferrals to support companies suffering from the COVID-19 pandemic this year.
Last month, the ministry submitted to the government a proposal on the further extension on the payment deferral period of value-added, corporate income and personal income taxes as well as land use fees for pandemic-hit companies and household businesses in 2021.
It estimated that a total of VND115 trillion (US$4.98 billion) worth of tax and land use fee payments would have their deadlines extended.
According to the proposal, a five-month extension would be given to value-added tax (VAT) payments of the assessment period periods from January to June, worth around VND68 trillion.
For corporate income tax (CIT), a three-month extension would be given to the payments of the first and second quarters of this year, worth about VND40.5 trillion.
For household and individual businesses, the deadline for paying VAT and personal income taxes, worth around VND1.3 trillion, would be extended to December 31, 2021.
Payment of land use fees would also be extended six months.
The Ho Chi Minh City Tourism Association has also proposed up to 50% deduction of VAT for tourism-related businesses, applicable by the end of 2021. Companies subject to the tax exemption will include restaurants, lodging and transport service providers, tour operators, and tourism complexes.
The Ministry of Finance, however, said that there are no current regulations on VAT deduction.
It will keep a close watch on the COVID-19 developments and its impacts on business and production to propose proper support for affected people and businesses.