[NEWS] - Continue to extend tax, remove difficulties for businesses

Recently, the Ministry of Finance completed the Decree extending the deadline for payment of value-added tax (VAT), corporate income tax (CIT), personal income (PIT), and land rent in 2023 and sent an Appraisal of the Ministry of Justice.

Tax extension and removal of difficulties for businesses

In the draft Decree, the Ministry of Finance proposed the scope of policies to extend the time for payment of VAT, CIT, PIT, and land rent according to Decree No. 34/2022/ND-CP of the Government. At the same time, the Ministry of Finance also proposes to extend the tax payment time with the amount of VAT incurred to be paid according to the tax period from January to June 2023 (in the case of monthly VAT declaration). tax calculation in the first and second quarters of 2023 (for cases of quarterly VAT declaration).

More specifically, a 6-month extension with the VAT amount for the period January - May 2023; a 5-month extension for VAT in June 2023 and the second quarter of 2023; a 3-month period for CIT temporarily paid in the first and second quarters of the CIT period in 2023; Business households and individuals shall pay VAT and PIT in 2023 no later than December 30, 2023.

As for the land rent, according to the provisions of Clause 3, Article 18 of Decree 126/2020/ND-CP dated October 19, 2020, of the Government detailing the articles of the Law on Tax Administration, the payment time The annual land rent will be paid in 2 installments (the first installment will pay about 50% by the end of May, the second period will pay the rest by the end of October every year).

In addition, in the draft Decree, the Ministry of Finance also proposed: Extend the time for paying land rent with 50% of the arising land rent payable in 2023 by businesses, organizations, households, and business individuals specified in Article 3 of this Decree are directly leased land by the State under a decision or contract of a competent state agency in the form of annual land rental payment. The extension period is about 6 months from May 31, 2023, to November 30, 2023.

The Ministry of Finance shall report to the Prime Minister for permission to issue the decree according to the shortened order and procedures. Because this is an urgent solution that needs to be issued immediately to promptly support businesses and people, the Ministry of Finance will submit to the Government for permission for the decree to take effect from the date of signing.

The reason for this proposal is that the Ministry of Finance has forecast that our economy in 2023 will be affected by the following factors: conflict between Russia and Ukraine; inflation increases in countries around the world; prices of raw materials, materials, and input fuel increased, especially petrol and oil prices; The economic recovery is slow in many major trading partner countries… Therefore, businesses are still under considerable pressure and are in need of companionship and sharing to give more impetus for better development.

Assessing the impact of the extension of tax payment time, the Ministry of Finance shared, extending the deadline for VAT payment according to the above plan, the total amount of VAT was extended from January 1 to June 2023. and the first and second quarters of 2023 is about 64,000 - 65,000 billion VND; the total tax extension of the deadline for the temporary payment of CIT payable in the first and second quarters of the CIT period of 2023, is estimated at 42,800 - 43,600 billion VND. The total tax extension for business households and individuals is about VND 272 billion. However, the state budget revenue in 2023 does not decrease because the tax amount has been extended, businesses, business households, and business individuals must pay into the state budget before December 31, 2023.

Similarly, the amount of land rent and water surface rent is expected to be extended to about 3,500 billion VND, but the state budget revenue in 2023 will not decrease because businesses, business households, and business individuals must pay into the state budget. state before November 30, 2023.

With the current economic downturn, many businesses struggle with taxes and rent. Therefore, this Decree is what small and medium enterprises need most right now. Tax is one of the most important activities of a business after it is established. Indochina Holding is currently a consulting unit in the fields of finance, especially tax, capital, and restructuring to support units to understand and timely update tax laws to avoid problems with tax authorities.

Yen Dang (Source of collection)