HN proposes tax cuts to ease coronavirus pain

24/03/2020

VGP - Ha Noi’s Department of Taxation has been providing support policies to help the business community cope with COVID-19 pandemic, including waiving, lowering and extending tax payment.VGP - Ha Noi’s Department of Taxation has been providing support policies to help the business community cope with COVID-19 pandemic, including waiving, lowering and extending tax payment.

Beneficiaries entitled to these supports are businesses, organizations, individuals, and household businesses in the fields of agro-forestry-fishery, food processing, textile, electronics and computers production, automobile, transportation, accommodation, tourism, catering services, and others.

Director of the Ha Noi Department of Taxation Mai Son requested tax officials to provide timely support for tax payers, while strictly punishing those abusing policies for personal gains.

Ha Noi’s tax authority is committed to creating the most favorable conditions for businesses to recover from this difficult period, stressed Son.

The department previously predicted the city's state budget revenue in 2020 could decline up to VNDV16.6 trillion (US$712.14 million) in case the pandemic lingers to the fourth quarter, equivalent to a decrease of 7.17% in revenue year-on-year.

Implementing the instruction of the Prime Minister in the Directive No.11 on emergency tasks to resolve difficulties for production and business activities and ensure social security for those affected by the Covid-19 pandemic, the ministries of Finance and Industry and Trade have been rushing to build regulations to timely support enterprises. 

Particularly, the Ministry of Finance proposed the Government to extend the payment of value-added tax (VAT) regardless of business industries. 

The grace period is five months, including value-added tax, personal income tax, payable land rent arising in March, April, May, and June this year in case of monthly declaration, or in the first and second quarters of this year in case of quarterly declaration. 

The department informed that in the first two months of 2020, over 2,600 household businesses were forced to dissolve, and 6,400 others suspended operation, representing an increase of 22% and 37.8% year-on-year, respectively./. 

By Vien Nhu