The tax policy to support businesses after Covid-19 was basically implemented by Ho Chi Minh City

A series of supporting policies for post-Covid-19 enterprises is being implemented by Ho Chi Minh City. In particular, the tax extension policy has basically been completed.

The 19-year corporate income tax policy was released in Ho Chi Minh City

Thousands of businesses have been extended tax payment

Tax payment extension of over VND 8,000 billion

Regarding tax policy, Ho Chi Minh City Tax Department has developed a set of criteria to guide cases of tax exemption, reduction and extension due to the effects of the Covid-19 epidemic; carry out the extension of tax payment and land rental (according to the online extension procedure); coordinating with 24 districts to review the list of individual business households with tax revenue of less than VND 100 million / year temporarily suspending business to support under the Government’s policies.

In addition, the Department of Taxation has limited or not organized inspection and examination of businesses directly affected by the disease.

As of June 12, the Tax Department has processed 684 VAT refund records for businesses with a refund of more than VND 4,500 billion.

According to Ho Chi Minh City Tax Department, implementing Decree 41/2020 / ND-CP dated April 8, 2020 on extension of tax payment and land rent, by the end of May 2020, there were 22,207 businesses, organizations and 9,823 households. families and individuals that are subject to the regulations of the decree register for tax payment extension with the amount of VND 8,096 billion. In particular, the value-added tax proposed to be extended for VND 3,500 billion, the enterprise income tax for extension of VND 3,700 billion, the land and water surface rent for extension of VND 800 billion; households and businesses renewed 96 billion.

According to the analysis of Ho Chi Minh City Tax Department, the Covid-19 epidemic greatly affected the socio-economic situation, in which, businesses were the most clearly affected.

As a result, the domestic budget revenue of Ho Chi Minh City in the first 5 months of 2020 decreased due to the effect of Covid-19 of VND 10,040 billion. In which, production and business sector decreased by VND 6,300 billion; details of the affected revenues are value-added tax reduction of VND 2,000 billion, corporate income tax reduction of VND 2,500 billion, special consumption tax reduction of VND 1,800 billion.

Many support policies

Along with tax policy, Ho Chi Minh City has implemented a series of policies to support businesses to restore production and export after epidemic.

Accordingly, Ho Chi Minh City built a group of solutions to help small and medium enterprises survive, develop and avoid bankruptcy. At the same time, building a group of solutions that call for the cooperation and support of businesses and large economic groups in Ho Chi Minh City to help small and medium enterprises in the direction of mutual benefits in cooperation, such as: Support find new sources of raw materials, find export markets, promote trade, support vocational training …

In particular, Ho Chi Minh City has set up a solution group to encourage digital transformation, digital economy, online public services, cashless payment and e-commerce. Ho Chi Minh City is committed to supporting policies for businesses applying high technology, innovating machines, equipment, digitizing data … through the stimulus lending program of Ho Chi Minh City.

In addition, Ho Chi Minh City has a specific plan to support tourism businesses to promote domestic tourism, tourism associated with the transport industry, remove bottlenecks of real estate projects, land auctions, quick deployment of public investment, creating widespread mobilization of social capital.

At present, commercial banks and credit institutions have to balance, meet fully and promptly the capital demand for production and business, shorten the time to consider loan application; applying supportive measures such as rescheduling loan repayment, considering loan interest exemption and reduction, keeping the same group of debts, reducing fees … for 476 enterprises facing difficulties caused by the Covid-19 epidemic. Commercial banks supported mainly focusing on two groups including interest rate reduction and debt restructuring to maintain the debt group. By the end of March 2020, it has supported 230,600 customers with a total outstanding loan of VND 382,500 billion.

Supporting enterprises in the field of social insurance, Ho Chi Minh City has processed dossiers of temporary postponement of paying social insurance into the retirement and death fund for 274 enterprises with nearly 23,900 employees. It is expected that the number of enterprises allowed to postpone social insurance payment is 2,000 units with 136,700 employees.

Le Thu

Source: Customs Newspaper

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