Proposing to continue to extend tax and land rent 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.

Proposal to extend the payment of corporate income tax for 3 months

Tax payment extension to support business recovery

According to the Ministry of Finance, the evolution of the COVID-19 epidemic is complicated, unpredictable and has not been forecasted at the end of the world. In fact, in the past time, many industries and fields faced difficulties; The production and business activities of many enterprises were stagnated, especially small-scale enterprises that had to shrink or temporarily cease operations.

The decline in sales and the interruption of commercial transactions lead to businesses having difficulty in balancing financial resources to maintain production and business activities. Therefore, the State's support policy through the mechanism of relaxing and delaying the payment of arising taxes will help businesses and individuals overcome difficulties caused by the impact of the epidemic and restore production and business.

In order to contribute to the completion of the socio-economic development goals of 2022, import and export activities need to continue to be promoted to create a driving force for the entire economy. Therefore, the Ministry of Finance believes that it is necessary to have supportive policies from the State to promote import-export growth in the coming time, including a policy of extending and delaying taxes payable to the state budget. country.

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.

From the above reasons, in order for businesses and individuals to have more financial resources to maintain and restore production, contributing to achieving the economic growth target of 2022, the Ministry of Finance said that it is necessary to have solutions to extend tax, land rent and water surface rent in order to remove difficulties for production and business and support the market.

Enterprises have more capital but the budget is not affected

The draft Decree clearly stipulates who can be extended or postponed. The Ministry of Finance proposes the subjects to be extended as follows: Continue to extend the deadline for paying tax and land rent and water surface rent for all the subjects specified in Article 2  of Decree No. 52/2021/ND- CP  dated 19/04/2021 of the Government.

The Ministry of Finance proposes that the scope of the policy is to extend the deadlines for payment of value-added tax, corporate income tax, personal income tax, and land and water surface rents as in  Decree No. 52/2021/ND - CP .

Regarding the implementation time, for value-added tax, in order not to affect the state budget balance in 2022, the Ministry of Finance proposes as follows: A 6-month extension of the value-added tax amount from May 1. 3 to May 2022 and the first quarter of 2022, 5 months extension for the value added tax amount of June 2022 and the second quarter of 2022, 4 months extension for the value added tax amount of July 2022, 3-month extension for the value added tax amount of August 2022 of enterprises and organizations subject to the above application. The extension at this point is counted from the end of the time limit for payment of value added tax in accordance with the law on tax administration.

According to the Ministry of Finance, extending the deadline for value added tax payment according to the above plan, the total tax extension from March to August 2022 and the first quarter and second quarter of 2022 is about 53,300-54.3 trillion. copper. However, the state budget revenue of 2022 will not decrease because businesses must pay to the state budget before December 31, 2022.

3 months corporate income tax payment extension

For corporate income tax, the Ministry of Finance proposes to extend the payment deadline for corporate income tax as follows: Extension of tax payment deadline for temporarily paid corporate income tax of the first and second quarters the corporate income tax period in 2022. The extension period is 3 months from the end of the corporate income tax payment deadline in accordance with the law on tax administration.

Extending the tax payment deadline for the temporarily paid corporate income tax in the first and second quarters of the corporate income tax period in 2022 is estimated to be about 51,000-52,000 billion VND.

For business households and individuals, the Ministry of Finance proposes: Extension of the deadline for payment of value-added tax and personal income tax for the arising tax payable in 2022 of business households and individuals. business people. Business households and individuals shall pay the extended tax amount in this Clause by December 31, 2022.

According to the Ministry of Finance, the extended tax amount for business households and individuals is about VND 15,304 billion, but the budget revenue of 2022 will not decrease because business households and individuals must pay before December 31. 2022.

Extension of the time limit for paying land and water surface rents for 6 months

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 rent to be extended is about VND 3,500-3,700 billion. However, the budget revenue of 2022 will not decrease because businesses, business households and individuals must pay before November 31, 2022.

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.

The extension of many taxes, land rents, and water surface rentals for businesses is highly appreciated by the public. According to many economic experts, the extension of taxes and land rents is of great significance to businesses, because for a while, businesses have a large source of capital, instead of paying taxes to the State, they spend sources to invest in production and business, promote growth, thereby returning to contribute to the budget.

Source: Cổng thông tin điện tử Chính phủ

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