Finance Ministry plans to extend enterprises’ tax payments

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The tax payment extension, which is not expected to reduce state budget revenue, will help enterprises have capital for production and business.

Finance Ministry plans to extend enterprises’ tax payments

The Ministry of Finance (MOF) is collecting opinions from ministries and branches about the draft decree on extending the deadline of the payment of VAT (value added tax), CIT (corporate income tax), PIT (personal income tax) and land and water surface leasing fees for 2022.

The tax payment extension is seen as an interest rate-free loan provided by the state, which helps enterprises and individuals have more financial resources.

The subjects to enjoy the extension are mentioned in Article 2 of Government’s Decree 52/2021 dated April 19, 2021.

MOF has proposed the extension of VAT, CIT and PIT payment, and land and water surface leasing fees as stipulated in Decree 52/2011.

Regarding VAT, it proposes a six-month extension for VAT from March to May 2022 and the first quarter of 2022; five-month extension for VAT of June 2022 and Q2 2022; four-month extension for VAT for July, and 3-month extension for VAT for August 2022.

If the plan is approved, the total VAT to be extended from March to August 2022 and Q1 and Q2 of 2022 would be VND53.3-54.3 trillion. However, the state budget collection in 2022 won’t decrease because businesses will have to pay tax prior to December 31, 2022.

For CIT, MOF proposes extension of the tax payment that enterprises have to pay temporarily for the second and third quarters of 2022. The extension time is three months.

It’s estimated that the total amount of tax to be extended is VND51-52 trillion.

As for business households and individuals, MOF proposes the extension of VAT and PIT in 2022. They will have to pay taxes no later than December 31, 2022.

The amount of tax to be extended is VND15.304 trillion.

In addition, MOF has proposed a six-month (from May 31, 2022) extension for the payment of fees for leasing land and water surface in 2022.

Since 2020, MOF has proposed a number of support solutions related to tax and fees with the total value of VND477.254 trillion. This includes VND134.454 trillion of remission and VND342.8 trillion of payment extension.

Luong Bang

The value added tax (VAT) will be reduced by 2 percentage points to 8 percent starting this February as part of measures helping taxpayers tackle difficulties.

Businesses that have borne the brunt of the COVID-19 pandemic for the past two years expect they will get easy access to the recently approved US$15 billion bailout package to stay afloat.

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