According to a survey of Vietnam Chamber of Commerce and Industry (VCCI), up to 55% in the third quarter DNmaintain production scale, 22% expand and only 13% fail to maintain. Many businesses are negative profits, suspend production and business but still ensure the life for officials and employees. These are positive signals of the business community.
Time to pay taxes determines the “survival” of businesses
Government assistance measures are extremely important in the current context. However, according to the business community, in the coming time, the Government needs to supplement measures to exempt and reduce taxes, extend the time for tax debt extension and postponement, etc.
“The most important thing is to promote rapid and effective implementation and the authorities are concerned about the policies that the Government has issued,” VCCI emphasized and proposed many solutions on fiscal policy to restart the background economy.
According to VCCI, stipulating the extension of the time limit for paying value-added tax (VAT), enterprise income tax (CIT), personal income tax (PIT) and land rent for a maximum period of 5 months is not yet sufficient, the proposal is extended to 12 months.
In fact, the enterprise survey showed that if the epidemic lasted for more than a year, 80% of enterprises had to stop production and business, then the extension of the tax payment deadlines had no positive support effect for businesses.
In addition to the policy of extending the deadline, many businesses think that this is the most effective, practical and urgent solution for businesses today. However, Mr. Nguyen Van Than, Chairman of the Association of SMEs, said that the Government should allow 50% exemption of land rent, 50% of VAT, 50% of CIT, and increase and decrease of personal income. Application period until the end of 2020.
Consider extending the deadline for export tax payment to the end of 2020 to create conditions for enterprises to have more capital for export activities. Consider refunding VAT for some industries heavily affected, directly by the Covid-19 epidemic such as aviation, tourism, transportation …
Particularly for the policy of extending the time limit for paying taxes and land rents under Decree 41 / ND-CP, businesses are affected by the Covid-19 epidemic to varying degrees, so this policy should be applied. for all businesses, including hospitals.
In addition, the Government approved for businesses a 50% reduction of land rent to pay in 2 years 2020 and 2021 to support and revive businesses to overcome this difficult period.
Tax breaks help businesses not go bankrupt
Simultaneously with allowing the transfer of losses for the next 5 years, VCCI proposed to allow the deduction of losses of 2020 due to the impact of the Covid-19 epidemic to the profit year of 2019. This allows businesses pay taxes in 2019 – 2020 and help avoid bankruptcy for businesses that have profits in 2019 but lose a lot in 2020 due to the impact of the Covid-19 epidemic.
Most of the petitions sent to the Prime Minister stated that there are many types of fees, charges and prices related to the operation of enterprises. In particular, at present, many types of transportation-related fees such as BOT prices, tolls, parking, storage fees, taxes on flight fuel, road traffic charges collected on the top of the vehicle, translation prices aviation services, fees for investment, capital construction … VCCI proposed the Ministry of Transport to reduce the price of freight transport services, reduce service charges at the port to reduce the cost of goods circulation, contributing to support businesses. .
Controlling the ceiling interest rate of 30% still makes it difficult for businesses. Therefore, the business community believes that only applying the ceiling interest rate for enterprises having associated transactions, but these transactions are not in accordance with the nature of the market, reduces the tax liability of enterprises to the state budget. As for enterprises having associated transactions but true to the nature of the market, without reducing the tax liability of enterprises to the state budget, the interest rate ceiling will not be applied.
The Government soon issued a decree to immediately implement a retroactive loan interest expense calculation in 2017 and 2018 and allow the transfer of expenses within 5 years. The retrospective and allowing the transition have sufficient legal basis, ensuring the legitimate interests of businesses, contributing to strengthening the confidence of the business community in the shared companion of Government agencies with difficulties. of businesses, helping businesses maintain and develop production and business, create jobs for workers, generate revenue for the state budget.
For businesses that have contributed and supported the Government in the anti-epidemic activities of Covid-19, these costs should be considered and deducted from deductible expenses when calculating corporate income tax. At the same time, the costs incurred in the prevention of disease also need to be deducted when calculating corporate income tax.
