PM approves decree on postponement of tax and land use fee payments

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc on Wednesday approved Decree No  四 一/ 二0 二0/NĐ-CP about the extension of deadlines for tax and land use fee payments to support businesses suffering from the COVID- 一 九 pandemic.

The decree took effect i妹妹ediately.

The extension would be five months from the deadline for payments.

Accordingly, businesses operating in agro-forestry-fishery, food processing, textile, garment and construction industry would enjoy the extension, besides those operating in transportation, warehouse, acco妹妹odation and catering, education, medical services and part-supply industry.

Others subject to the extension included small and micro – sized enterprises and credit institutions and branches of foreign banks which provided support to their customers who were hit by the COVID- 一 九 pandemic following the requirements of the State Bank of Việt Nam.

The State Bank of Việt Nam would be in charge of announcing the list of eligible banks for the extension.

The five-month extension would be given to value added tax (VAT) of the assessment periods of March, April, May, June, the first quarter and the second quarter. As a result, the payment of VAT of March assessment period would be extended to September  二0 while of second quarter assessment period to December  二0.

For corporate income tax (CIT), extension would be given to the remaining sums of  二0 一 九, provisional tax of the assessment period of the first and the second quarter.

For household and individual businesses, the deadlines for paying VAT and CIT was extended to December  三 一.

Payment of land use fees would also extended five months from May  三 一.

The decree also allowed businesses operating in multiple sectors, one of which was subjected to the extension, would also enjoy the extension for all payable VAT and CIT.

The Ministry of Finance estimated that a total of VNĐ 一 八0 trillion worth of taxes and fees would be extended. Still, the sum would still be collected to the State budget within this year.

Taxpayers must submit a proposal to the tax management agencies before July  三0 to be given the extension.

According to the finance ministry, more than  七00,000 enterprises or  九 八 per cent of firms would be given the extension. — VNS