Ministry proposes five-month tax payment delay due to COVID-19 outbreak

Enterprises which are unable to pay tax on time due to impacts of covid-19 will have tax payment deadlines extended and be exempted from late payment fees.

Businesses directly affected by the COVID-19 outbreak would be allowed to pay VAT and rent five months late, according to a Government's draft decree being developed by the Ministry of Finance.

The ministry said almost all sectors and and industries, especially small, medium-sized and micro enterprises, individuals, groups of individuals, production households have been affected by the epidemic.

The targeted beneficiaries may include those working in agriculture, forestry and fishery production, food processing, weaving, clothing production, shoe and footwear production, rubber production, manufacturing of electronic products, computers, manufacturing and assembling automobiles.

The extension may also be applicable to rail, road, waterway, aviation, warehousing, and other supporting activities for transportation, accommodation, catering and other activities of travel agencies, as well as tour and support services.

In addition, about VND3 trillion (US$130.43 million) of VAT and personal income tax payable in 2020 by individuals, groups of individuals, and business households are proposed to be extended to December 15.

Earlier on March 3, the General Department of Taxation issued Document No. 897/TCT-QLN asking local departments of tax to extend tax payment deadlines in abid to help ease enterprises' difficulties caused by the COVID-19 epidemic. 

(Source:VGP)