Aviation is one of the loss-making industries in 2022 that is being proposed to be exempted from late tax payment penalty. (Photo: tienphong.vn) In 2022, many enterprises in the real estate, securities, steel, and aviationindustries suffered losses from a few hundred to a thousand billion Vietnamese dongdue to difficulties. Statistics of financial data provider Fiin Group showedthat in the fourth quarter of 2022, there were about 251 loss-makingenterprises out of a total of about 1,000 enterprises that published financialstatements. The loss-making enterprises also caused the amount of deferred taxto constantly increase over the years and reach nearly 135 trillion VND (5.75billion USD), accounting for 9.2% of the total budget revenue in 2022.
The Ministry of Finance said the penalty on late tax payment in 2022 increasedcompared to previous years as a result of the COVID-19 pandemic. The volatileprices of oil and input materials affected most economic sectors, which causedmany difficulties for taxpayers in production and business. The taxpayers madeloss and owed tax so the tax payment penalty increased.
Under the current regulations, taxpayers are charged a late tax payment penaltyof 0.03% per day of their total tax liability. According to calculations by theMinistry of Finance, the proposed exemption of late tax payment penalty canreduce the State budget revenue by about 2.5 trillion VND.
To support enterprises, the Ministry of Finance has also proposed reduction of36 fees and charges in many economic sectors by 50% from July 1 this year.
Mac Quoc Anh, deputy chairman and general secretary of the Hanoi Association ofSmall and Medium Enterprises, said enterprises made a loss and could no longerpay their tax liability. If they are not exempt, enterprises will have theirtax liability suspended, affecting their reputation when signing cooperationdeals.
In order to support enterprises through the difficult times, Anh suggested theGovernment speed up the disbursement of public investment capital to push moneyinto the economy, besides freezing previous debts and bad debts. Along withthat, enterprises want banks to reduce interest rates on loans from the end of2022 that are bearing high interest rates.
Can Van Luc, chief economist of the Joint Stock Commercial Bank for Investmentand Development of Vietnam (BIDV), said financial difficulties and cash flowdisruption are biggest challenges enterprises have to face. The ability toabsorb capital of enterprises and the economy is currently very low. In thefirst five months of 2023, credit growth was about 3%, much lower than the sameperiod last year. The channel to raise capital from the stock and corporatebond markets is still narrow. Disbursement of public investment is still slowwith many localities having not met the requirements.
In the past three months, a series of Government decisions related tohealthcare, land, real estate, construction, finance, credit, import and exporthave been implemented. Though many incentive policies and supporting packagesfor enterprises have been issued, they have not been really effective inpractice, said Luc.
Luc suggested the Government focus on removing difficulties that are hinderingenterprises, such as regulations related to fire prevention, visas for touristsand experts, and VAT refund.
Besides, competent authorities should completely resolve violations ofsecurities and real estate.
All of the works need to be assigned with specific deadlines and strictsanctions should be imposed if they are not implemented, Luc said.
According to representatives of enterprises, along with the extension andexemption of late tax payment penalty, the Ministry of Finance needs to havespecific policies to revive enterprises in the long term, such as sharplyreducing corporate income tax, exempting and reducing taxes and fees paid foradministrative procedures and services./.
VNA
