Hanoi (VNS/VNA) - Two decrees on the extension of deadlines forpayment of taxes and land rental fees will take effect immediatelyafter the Government’s approval, according to Dang Ngoc Minh, Deputy Directorof the Ministry of Finance (MoF)’s General Department of Taxation.

MoFhas submitted the draft decrees to the Government and expect them to beratified this month, Minh said.

Accordingto the draft, the payment of value added tax (VAT), corporate income tax (CIT),personal income tax (PIT) and land and water surface leasing fees in 2022 willbe extended.

RegardingVAT, it proposes a six-month extension for VAT from March to May 2022 and thefirst quarter of 2022; five-month extension for VAT in June 2022 and Q2 2022;four-month extension for VAT in July 2022; and 3-month extension for VAT inAugust 2022.

Ifthe plan is approved, the total extended VAT will be 53.3-54.3 trillion VND.However, the State budget collection in 2022 won’t decrease because businesseswill have to pay tax prior to December 31, 2022.

ForCIT, MoF proposes extension of the tax payment that enterprises have to paytemporarily for the second and third quarters of 2022. The extension time isthree months. It’s estimated that the total amount of tax to be extended is 51-52trillion VND.

Asfor business households and individuals, MoF proposes the extension of VAT andPIT in 2022. They will have to pay taxes no later than December 31, 2022. Theamount of tax to be extended is 15.304 trillion VND.

Inaddition, MoF has proposed a six-month extension for the payment of fees forleasing land and water surface in 2022, starting from May 31, 2022.

Beneficiariesof the policies include enterprises, organisations, business households andindividuals operating in agro-forestry-fishery, construction,entertainment, crude oil extraction, food production, transport vehiclesproduction, waste water treatment, logistics, hospitality and cateringservices, education, healthcare and real estate.

Creditinstitutions and branches of foreign banks in Viet Nam providing support forenterprises and customers affected by the pandemic could also be subject toextension of tax payment deadline under the decree.

Since2020, MoF has proposed a number of support solutions related to tax and feeswith the total value of 477.25 trillion VND, of which 134.454 trillion VND was taxexemption and 342.8 trillion VND was tax payment extension. 

Thetax payment extension is seen as an interest rate-free loan provided by theState, which helps enterprises and individuals have more financial resources.

Manyeconomists believe that extending taxes and land rents benefits companies sinceenterprises have a substantial flow of cash that they may invest inmanufacturing and business, therefore promoting growth.  

Accordingto Minister of Finance Ho Duc Phoc, the extension of deadlines for paymentof taxes and land rental fees is part of the Government's efforts to support businesses and people to overcomedifficulties to recover and develop in the context of declining State budgetrevenue./.