The Ministry of Finance proposed the Government to extend the payment of VAT, corporate income and land rental in 2021 when Covid-19 was complicated.
Specifically, the extension period for enterprises to pay value added tax (VAT) is 5 months. The budget is expected to decrease by VND 68,800 billion in the extended months but will not affect the state budget balance for the whole year 2021.
In addition, the provisional corporate income tax for the first two quarters of the year is also proposed to be extended for 3 months, applicable to some eligible businesses. It is estimated that this tax is extended about 40,500 billion VND.
Business households and individuals doing business in a certain industry or field are also entitled to extension of value-added tax and personal income tax payable in 2021. It is expected that this tax amount is extended about 1,300. billions dong.
In addition, the Ministry of Finance proposed an extension with the payable land rent in the first period of 2021 of a number of enterprises, organizations, business households and individuals, estimated at about 4,400 billion VND.
The total amount expected to be postponed or deferred according to the proposed plan by the Ministry of Finance is estimated at VND 115,000 billion. 2021’s budget revenues will not be affected as taxpayers still have to fulfill their tax obligations by the end of 2021.
According to the Ministry of Finance, this extension is necessary for businesses and individuals to have more financial resources to maintain and restore production, contributing to achieving economic growth targets. This is also the third time that the Ministry of Finance has proposed to extend tax and land rental to support businesses that are struggling due to epidemics.
In 2020, the tax agency has extended about 87,300 billion tax and land rental for 184,900 turns of taxpayers. In which, 14 domestic car assemblers and manufacturers are extended with the total special consumption tax of 20,012 billion dong.