Businesses welcome tax payment deferral proposal

– The Ministry of Finance has proposed that the Government extend the deadline for payments of taxes and land rental fees due to the ongoing complications of the COVID-19 pandemic. Under the plan, this year’s VAT deadline will be extended for an additional 5 months , and corporate income tax for 3 months.

For the first period of 2021, the mandatory land lease will be extended for eligible enterprises, organizations, business households and individuals.

The total amount of delayed tax revenue is estimated at more than 5 million USD.

Chu Tien Dung, Chairman of Ho Chi Minh City Business Association, said the tax payment deferral will help businesses overcome difficulties, while maintaining production and trading.

“The relevant departments should allow more time for businesses to pay tax, so that they can have additional capital in the short-term to help production recover,’ said Dung, adding “Although delaying tax payments for one term, or three months, is necessary and valuable, this can only help businesses in the short-term. Tax payment deferral needs to be applied for longer-term.”

 

Source: VOV5

 

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