The Ministry of Finance proposes to extend 3 types of taxes for businesses

The Ministry of Finance has completed the draft Decree extending the deadline for payment of value added tax, corporate income tax, personal income tax and land rent and water surface rent in 2022.

By series FinanceThis policy will continue to support and reduce difficulties for the enterpriseindividuals who have production and business activities before the negative impact of the COVID-19 epidemic, ensure to support the right subjects directly affected by the epidemic on a basis suitable to the context of the state budget.

The Ministry of Finance continues to propose to extend many taxes for businesses. Illustration

In essence, the tax payment extension and postponement mechanism is a non-interest-bearing loan from the State to businesses and individuals to have financial resources for production and business, increase resources in the future, thereby increasing the contribution to the state budget.

The tax payment extension policy does not reduce state budget revenue and is in line with the Government’s authority as stipulated in the Tax Administration Law. The extension of tax payment does not lead to an adjustment of the state budget revenue estimate decided by the National Assembly.

The Ministry of Finance proposes that the scope of the policy is to extend the deadline for paying VAT, corporate income tax, personal income tax, and land rent and water surface rent as in Decree No. 52/2021/ND-CP.

Regarding the implementation time (in 2022), the Ministry of Finance proposes a 6-month extension of the VAT amount from March to May and the first quarter; 5 month extension for the VAT amount of June and the second quarter; 4 months extension for the VAT amount of July; 3-month extension for the VAT amount of August, applicable to enterprises and organizations mentioned above.

The extension of the deadline for VAT payment according to the above plan, the total amount of extended VAT is about 53,300 – 54,300 billion VND. However, the budget revenue of 2022 will not decrease because businesses must pay into the budget before December 31.

For corporate income tax, the Ministry of Finance proposes to extend tax payment for the temporarily paid corporate income tax amount of the first quarter and second quarter of the corporate income tax period of 2022. The extension period is 3 months. , from the deadline for paying corporate income tax as prescribed. It is estimated that the extended tax amount is about 51,000 – 52,000 billion VND.

For business households and individuals, the Ministry of Finance proposes to extend the payment deadline for arising tax amounts payable in 2022. Business households and individuals shall pay the extended tax amount. in this account no later than December 31. The estimated amount of extended tax for business households and individuals is about VND 15,304 billion.

For land rent and water surface rent, according to the provisions of Clause 3, Article 18 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration, the time limit for paying the annual land rent and water surface rent is 2 installments (the first period is to pay 50% by May 31; the second period to pay the rest in full by October 31 every year). The Ministry of Finance proposes: Extension of time limit for payment of land rent and water surface rent for the amount of land rent and water surface rent payable in the first period of 2022, the extension period is 6 months from May 31, 2022 . It is expected that the amount of land rent and water surface rental will be extended about 3,500 – 3,700 billion VND.

Because this is an urgent solution that needs to be issued immediately to promptly support businesses and those affected, the Ministry of Finance has submitted to the Government for permission the decree to take effect from the date of signing.