Ministry proposes extending excise tax payment for local auto firms

Must Read

An automobile production line of VinFast, local carmakers and assemblers will soon enjoy the extension of excise tax payment. —

HÀ NỘI — The Ministry of Finance (MoF) has proposed the Government continue extending the deadline for excise tax payment for domestically-manufactured and assembled cars.

The ministry reports that the fourth wave of the COVID-19 outbreaks nationwide last year has slowed the recovery of the local car market.

To comply with social distancing measures, many auto dealers temporarily suspended their businesses, and most of them fell into a “frozen state”, particularly from June to September 2021.

It is reported that automobile manufacturers had to face chip and component shortages due to the disruption of the global supply chain.

The pandemic has left an unforgettable mark on the local automobile market as sale volume plummeted.

The locally-made and assembled auto industry has suffered impact from the pandemic that requires support from the Government.

The MoF has proposed a draft decree on extending the excise tax payment for domestically-manufactured and assembled automobiles. It has sent the draft decree to the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, and the Vietnam Federation of Trade and Industry for comments before submitting it to the Government.

According to Article 44 of the Law on Tax Administration No 38/2019/QH14 and Article 8 of Decree No 126/2020/ND-CP, excise tax should be declared monthly, and payment should be made no later than the 20th day of the following month.

The time limit for paying the payable excise tax arising in June, July and September tax period is no later than November 20, 2022.

Taxpayers must pay the total tax and late payment interest into the State budget during the extension period.

During the extended period of excise tax payment, tax authorities will not charge late payment interest for the ample excise tax amount.

If the tax authority has already charged the late payment interest for the excise tax declarations that are extended according to the provisions of the draft decree, then it must adjust without charging late payment interest.

The MoF has submitted the draft decree to the Government for taking effect immediately from signing.

According to the MoF, this tax cut is expected to reduce budget revenue by US$87 million –130 million.

In another development, the MoF has proposed to extend the payment deadline for value-added tax, corporate income tax, personal income tax, land and water surface rental fees this year. This proposal is set to take effect immediately once it is approved.

The finance ministry reports that the new decree will help support businesses and people who are hard hit by the COVID-19 pandemic.

Accordingly, the application period for the extension is subject to value-added tax incurred from March to August 2022, estimated at around VNĐ53.3-54.3 trillion.

Regarding corporate income tax, the MoF proposed the delay of the payment deadline for the first two quarters this year, which could go up to VNĐ51-52 trillion.

The ministry also called for a delay of the payment deadline of VAT and personal income tax for individuals and home businesses in 2022, or around VNĐ15.3 trillion, until December 31, 2022.

Under the Government’s Resolution No 126 on the elaboration of the Law on Tax Administration, the payment of rents for land and water surfaces is in two instalments, with 50 per cent on May 31 at the latest and the remaining on October 31.

However, the deadline is now expected to be extended for another six more months after May 31, with a total delayed payment of around VNĐ3.5-3.7 trillion.

Due to the emergency nature of the proposal to timely provide much-needed support for businesses and people affected by the pandemic, the MoF advises the resolution to take immediate effect.

The Government has issued supporting policies in tax and fees reductions worth a combined VNĐ477.2 trillion due to the pandemic, of which businesses and people benefited from taxes and fees cut or waiver of VNĐ134.4 trillion, and delay in payment of VNĐ342.8 trillion. — VNS

- Advertisement -spot_img


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest News

Flower festival in Ho Chi Minh City’s Phu My Hung attracts multiple visitors

Despite having yet to be inaugurated, a flower festival with the theme ‘Xuan Phon Vinh’ (Prosperous Spring) in the...
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img