Tax sector: Prepare carefully to promote tax support policy effectively

VCN – Answering Customs News on supporting enterprises to remove difficulties in production and business while ensuring social security to cope with the Covid-19 pandemic towards Directives 11/CT-TTg of the Prime Minister, Nguyen Thi Thu Ha, Deputy Director of Tax Declaration and Accounting Department – General Department of Taxation said that the tax sector has prepared carefully to deploy solutions.
Tax sector: Prepare carefully to promote tax support policy effectively
Nguyen Thi Thu Ha, Deputy Director of Tax Declaration and Accounting Department – General Department of Taxation

What solutions have been prepared by the General Department of Taxation to support enterprises as well as business households?

The Covid-19 pandemic has impacted significantly on all businesses and business households. The most obvious effect is that the taxpayer did not gain revenue so the source of tax payment was very difficult. Facing this fact, the General Department of Taxation instructed localities to support taxpayers. Accordingly, tax authorities guided taxpayers to determine whether they were subject to difficulties due to force majeure (pandemic) or not, guiding taxpayers to make applications for the extension of tax payment for those cases which had been due or make dossiers to be considered for a tax penalty exemption of late payment.

As for individual business households (very vulnerable subjects), in case of revenue loss of 50% or more, the tax authority would consider, evaluate and adjust the presumptive tax rate for taxpayers, especially in months directly affected by the pandemic.

To help businesses and business households to overcome difficulties, the Government and the Ministry of Finance have issued many decisions related to taxes and fees. In particular, Decree No. 41/2020/ND-CP stipulating the extension of tax and land rent. Right after this decree was issued, what actions did the tax sector take to help businesses access this support package?

Decree 41 was issued by the Government in a timely manner, conveying the Government's support policy to the business community. The scope of this decree was very large with many taxes, many subjects and many tax payment periods. More than 90% of operating businesses would be subject to tax extension. Besides that, the decree also covered most industries and sectors that heavily affected by the Covid-19 pandemic, such as the textile industry, which is highly dependent on imported raw materials, so when the supply chain was "broken", their business was definitely affected; or the tourism industry was also greatly affected due to a sharp decline in the number of visitors to Vietnam.

Decree 41 extended the deadline of tax payment up to five months for organisations and enterprises subject to pay VAT in the tax period of March, April, May and June of 2020 (for the case where value added declaration by month) and tax period of quarters 1 and2 of 2020 (for the case of quarterly VAT declaration).

In particular, the decree also extended deadline of tax payment for corporate income tax arising in the tax finalisation period in 2019. Although 2019 was considered a prosperous business year and there were positive taxes, to have sources of liquidity in the first quarter of 2020, the Government has also issued an extension policy to facilitate businesses in using that source of money for maintaining their production and business.

To support businesses and taxpayers, tax authorities have also carefully prepared the problem of processing electronic dossiers. The application has been upgraded so taxpayers can submit in the fastest and most effective way.

So far, how many businesses and taxpayers have submitted dossiers for tax payment extensions?

The deadline for submitting dossiers for tax payment extension is July 30, 2020. Taxpayers would choose the submission time for both tax declaration and tax payment extension dossiers. The tax authority would handle synchronously both the amount of tax payment and the extension of the tax payment.

As of May 12, the tax authority had received 96,500 dossiers of tax payment extension. However, this was only the number of dossiers, the actual number of subjects extended was much larger because if the parent company has branches in many different areas subject to extension, those branches would also be extended tax.

Along with that, the total amount of tax and land rent accumulated by May 12was more than VND 27,000 billion.

Besides Decree 41, the Government also issued Resolution No. 42/NQ-CP on measures to support people facing difficulties caused by the Covid-19 pandemic, including supporting individual business households. Could you tell us how the tax sector has cooperated with agencies and departments to bring the Government's support policy to the right people?

Along with extending tax payment and land rent in Decree 41, Resolution 42 was about policies to support people facing difficulties due to the Covid-19 pandemic. This means the Government would transfer part of the State budget to taxpayers who are in difficulties.

For taxpayers who are business individuals, normally, when revenue was at VND 100 million/year, they would be subject to the group of taxpayers. However, the Covid-19 pandemic caused a revenue loss to less than VND 100 million per year. For this subject, the Resolution 42 has provided VND 1 million/month for each household (for three consecutive months).

To identify the right beneficiaries of this policy, the tax authorities have collaborated with local authorities and with the Tax Advisory Council to identify those who were seriously affected and no longer have financial capacity to operate their business. From there, they "filter" out exactly those who was entitled to the State budget, avoiding policy profiteering.

In addition, the tax authority also worked with the district People's Committee to review and list business households entitled to support policies, and send it to the provincial People's Committee to make a list of the State.

Could you tell us about support solutions on tax in the future?

By this time, the pandemic has been controlled quite well and is not continuing to affect the economy, but the repercussions were very large. Therefore, the tax sector would continue to implement Decree 41 and Resolution 42. We would continue to spread information to the business community and taxpayers so they would grap information and receive support policies from the Government.

At the same time, the tax sector will support more channels for submitting dossiers of extending tax payment in different forms. Recently, the General Department of Taxation integrated 93 tax administrative procedures on the National Online Public Service Portal. As a result, taxpayers could not only submit dossiers for extending tax payment at the tax portal, but also on the National Online Public Service Portal.

At this point, the tax sector would also assess the damage level of "post" the Covid-19 pandemic, consult with the Ministry of Finance and submit to the Government on support policies of the State such as: Considering adjusting tax reduction of the corporate income tax rate to about 15-17% for small and micro enterprises; tax reduction or exemption for two years with micro enterprises established from business households; raising the family income tax deduction level. Besides that, tax exemption policies of using non-agricultural land were also a very timely measure to support people for recovering production and business.

By Thùy Linh/Thanh Thuy

Related News

Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Urging issuance of e-invoices in petroleum retail

Urging issuance of e-invoices in petroleum retail

VCN - The Government, the Prime Minister, the Ministry of Finance and other agencies have issued many instructions to implement electronic invoices on every sale at petroleum retail stores. Besides the achieved results, this work still has difficulties. The tax sector has been taking drastic action to urge the coverage of e-invoices in the petroleum retail trading.
Revenue collection increased by 10.4% over the same period in 2023

Revenue collection increased by 10.4% over the same period in 2023

VCN - At the online progress meeting of financial and budget work in February and deploy tasks in March 2024 held by the Ministry of Finance, the Minister of Finance Ho Duc Phoc stressed that in the context of an increasingly difficult economy, while the budget collection task becomes increasingly difficult, it is necessary to focus on promoting revenue management, tax refund work, and creativity in budget collection work.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Revenue from casino contributes about VND9,000 billion to the State budget

Revenue from casino contributes about VND9,000 billion to the State budget

VCN - The management of lottery and casino business activities is one of contents asked by National Assembly delegates to Minister of Finance at the question and answer session took place on the morning of March 18, within the framework of the 31st session of the National Assembly Standing Committee.
Credit and access to credit: A problem for banks and businesses

Credit and access to credit: A problem for banks and businesses

VCN - Since the beginning of the year until now, the Prime Minister, the Government and the State Bank (SBV) have continuously issued instructions to promote credit, but the situation of banks having excess cash and businesses lacking capital is still a concern of the economy.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version