An automobile production line of VinFas. Local carmakers and assemblers will soon enjoy the extension of excise tax payment. (Photo: nld.com.vn) Theministry reports that the fourth wave of the COVID-19 outbreaks nationwide lastyear has slowed the recovery of the local car market.
Tocomply with social distancing measures, many auto dealers temporarily suspendedtheir businesses, and most of them fell into a “frozen state”, particularlyfrom June to September 2021.
Itis reported that automobile manufacturers had to face chip and componentshortages due to the disruption of the global supply chain.
Thepandemic has left an unforgettable mark on the local automobile market as salevolume plummeted.
Thelocally-made and assembled auto industry has suffered impact from thepandemic that requires support from the Government.
TheMoF has proposed a draft decree on extending the excise tax payment fordomestically-manufactured and assembled automobiles. It has sent the draftdecree to the Ministry of Planning and Investment, the Ministry of Industry andTrade, the Ministry of Foreign Affairs, and the Vietnam Federation of Trade andIndustry for comments before submitting it to the Government.
Accordingto Article 44 of the Law on Tax Administration No 38/2019/QH14 and Article8 of Decree No 126/2020/ND-CP, excise tax should be declared monthly, andpayment should be made no later than the 20th day of the following month.
Thetime limit for paying the payable excise tax arising in June, July andSeptember tax period is no later than November 20, 2022.
Taxpayersmust pay the total tax and late payment interest into the State budget duringthe extension period.
Duringthe extended period of excise tax payment, tax authorities will not charge latepayment interest for the ample excise tax amount.
If thetax authority has already charged the late payment interest for the excise taxdeclarations that are extended according to the provisions of the draft decree,then it must adjust without charging late payment interest.
TheMoF has submitted the draft decree to the Government for taking effectimmediately from signing.
Accordingto the MoF, this tax cut is expected to reduce budget revenue by 87 –130million USD.
Inanother development, the MoF has proposed to extend the payment deadline forvalue-added tax, corporate income tax, personal income tax, land and watersurface rental fees this year. This proposal is set to take effect immediatelyonce it is approved.
Thefinance ministry reports that the new decree will help support businesses andpeople who are hard hit by the COVID-19 pandemic.
Accordingly,the application period for the extension is subject to value-added tax incurredfrom March to August 2022, estimated at around 53.3-54.3 trillion VND.
Regardingcorporate income tax, the MoF proposed the delay of the payment deadline forthe first two quarters this year, which could go up to 51-52 trillion VND.
Theministry also called for a delay of the payment deadline of VAT and personalincome tax for individuals and home businesses in 2022, or around 15.3 trillionVND, until December 31, 2022.
Underthe Government’s Resolution No 126 on the elaboration of the Law on TaxAdministration, the payment of rents for land and water surfaces is in twoinstalments, with 50 percent on May 31 at the latest and the remaining onOctober 31.
However,the deadline is now expected to be extended for another six more months afterMay 31, with a total delayed payment of around 3.5-3.7 trillion VND.
Dueto the emergency nature of the proposal to timely provide much-needed supportfor businesses and people affected by the pandemic, the MoF advises theresolution to take immediate effect.
TheGovernment has issued supporting policies in tax and fees reductions worth acombined 477.2 trillion VND due to the pandemic, of which businesses and peoplebenefited from taxes and fees cut or waiver of 134.4 trillion VND, anddelay in payment of 342.8 trillion VND./.
VNA
