Currently, the COVID-19 pandemic is developing complicatedly both domestically and internationally, affecting the production and business activities of enterprises. In order to support enterprises affected by the COVID-19 pandemic to overcome this difficult period, the state has implemented a number of policies to support these enterprises. To be specific:
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1. Regarding the obligation to pay taxes
The draft Decree on extending the deadline for tax and land rent payment is currently in the public consultation phase. Accordingly, it is expected to extend the deadline for VAT payment for the VAT payable arising in March, April, May, and June 2020 (monthly VAT declaration) and the deadline for VAT payment for the VAT payable arising in Quarter I and Quarter II of 2020 (quarterly VAT declaration) for the following enterprises and organizations:
- Enterprises, organizations, individuals, groups of individuals, and households operating in the following economic sectors:
+ Agriculture, forestry, and aquaculture;
+ Food production and processing; Textile; Apparel production; Footwear production; Rubber product manufacturing; Electronic and computer product manufacturing; Automobile manufacturing and assembly (excluding manufacturing and assembling of automobiles with 09 seats or fewer).
- Enterprises, organizations, individuals, groups of individuals, and households operating in the following economic sectors:
+ Railway transport; Road transport; Waterway transport; Air transport; Warehousing and support activities for transport;
+ Accommodation services, food services;
+ Activities of travel agencies, tour operators, and supporting services related to advertising and organizing tours.
- Small and micro enterprises as defined in the Law on Supporting Small and Medium Enterprises 2017 and Decree 39/2018/ND-CP.
The extension period is 05 months from the end of the VAT payment deadline as stipulated by the tax management law. According to the draft, the extended VAT payment deadlines are as follows:
- The VAT payment deadline for March 2020 is no later than September 20, 2020;- The VAT payment deadline for April 2020 is no later than October 20, 2020;- The VAT payment deadline for May 2020 is no later than November 20, 2020;- The VAT payment deadline for June 2020 is no later than December 20, 2020;- The VAT payment deadline for Quarter I of 2020 is no later than September 30, 2020;- The VAT payment deadline for Quarter II of 2020 is no later than December 30, 2020.
Thus, if this draft is approved, businesses affected by the Covid-19 pandemic may have their VAT payment deadlines extended by 05 months from the end of the VAT payment deadline.
View the detailed content of the draft HERE.
2. Regarding the contribution of social insurance, health insurance, and unemployment insurance
On March 9, 2020, the Ministry of Labor - Invalids and Social Affairs issued Official Dispatch 797/LDTBXH-BHXH guiding the temporary suspension of social insurance contributions to the retirement and survivorship fund for businesses facing difficulties due to the Covid-19 pandemic. During the time of the pandemic until the Prime Minister of the Government of Vietnam announces the end of the pandemic, businesses facing difficulties due to COVID-19, if they meet the conditions, can temporarily suspend contributions to the retirement and survivorship fund for a maximum of 12 months according to Clause 1, Article 88 of the Law on Social Insurance, Article 16 of Decree 115/2015/ND-CP, and Article 28 of Circular 59/2015/TT-BLDTBXH.
View detailed guidance HERE.
3. Regarding union fee payment
Recently, the Vietnam General Confederation of Labor issued Official Dispatch 245/TLD to the provincial and city Labor Confederations; sectoral unions at the central level and equivalent about delaying the timing of union fee payments for businesses affected by the Covid-19 pandemic. It allows businesses affected by the Covid-19 pandemic (those with 50% or more of their workforce who are participating in compulsory social insurance temporarily laid off) to delay union fee payments for the first 6 months of 2020 until June 30, 2020.
If after this period, the Covid-19 pandemic has not subsided and businesses continue to face difficulties, the extension period will be until December 31, 2020.
Nguyen Trinh
