Tax extension: subjects applying for Tax extension do not belong to be extended; they will still be charged late payment interest
admin 21-06-2020, 17:05

VCN- It is the affirmation of Mr. Luu Duc Huy - Director of Policy Department, General Department of Taxation when discussing the procedures for applying tax extension at the proposal of the Ministry of Finance for those affected by the Covid-19 epidemic.

Tax extension: subjects applying for Tax extension do not belong to be extended; they will still be charged late payment interest
Tourism businesses suffer because of a sharp decline in the number of visitors due to the Covid-19 epidemic. Photo: internet

Businesses easilyaccess information

As the Customs Newspaper reported, recently, the Ministry of Finance has published proposals to support businesses, organizations, individuals and business households affected by Covid-19. One of the policies is the extension of five-month value-added tax for three target groups.

The first group consists of enterprises, organizations, individuals, groups of individuals, and households engaged in production activities in the agriculture, forestry and fishery sectors; production and processing of food; weaving; producing costumes; producing shoes; producing itemsfrom rubber; producing electronic products, computers; manufacturing and assembling cars (except for manufacturing and assembling cars with nine seats or fewer).

The second group is enterprises, organizations, individuals, groups of individuals, households doing business in railway transport industry; trucking; water transport; air transport; warehousing and support activities for transportation; accommodation services, catering services; activities of travel agents, tour business and support services, related to tour promotion and organization.

The third group is small and micro enterprises defined under the Law on Support for Small and Medium Enterprises No. 04/2017 / QH14 and Decree No. 39/2018 / ND-CP dated 11 March 2018, of the Government. The Government details some articles of the Law on Support forSmall and Medium Enterprises.

The order and procedures for implementation are specified in the draft Decree. Accordingly, enterprises, organizations, households and individuals subject to extension shall send a written request for extension of tax and land rent to the tax and land rent to be extended according to the form attached. This Decree is for tax authorities to manage by May 31, 2020 (electronic or otherwise selected by taxpayers).

If the objectsarestipulated as the Decree, they willbeextended; they need not declare, assess damage or have any confirmation.

Mr Luu Duc Huy

Regarding the enterprises' declaration of applying for extension, Mr. Luu Duc Huy said thatthe draft decree clearly has stipulation for the prioritized and supportedindustries under the Decision No. 27/2018 / QD -TTg on promulgating Vietnam's economic system. Enterprises compare with Decision 27 to determine whether they are eligible for extension or not to register with tax authorities.

In fact, the representative of the General Department of Taxation also said that do not worry about enterprises without being able to access information, missing out on their rights because now more than 99 percent of enterprises are declaring and paying electronic taxes and accessing documents. The legal norm is sufficient, so it is certain that enterprises will know how to come to declare.

Unable to arrange agroup to identify support objects

There is an opinion that the tax sector should take time to send delegations to the survey and determine the subjects to be extended. It should not be done.

The first reason is that the support object is so many. Particularly, small and micro enterprises account for 93percent of the total number of operating businesses, in addition to other businesses and individual business households.

"At present, the tax authority is also managing the method of risk management. That is, if we detect taxpayers showing signs of risk as prescribed, they will carry out inspections. Hopefully, the taxpayers will be able to determine the right time for their extension," Mr. Huy said.

The case of misidentification is nota registered object but still registerfor renewal, if discovered later, the representative of the General Department of Taxation emphasized,this content has been clearly specified in the Law on Tax Administration.

“The extended enterprise is not required to charge the late payment interest, but it is provided that the enterprise is indeed the extended entity. If not subjects, it will be subject to delayed payment and must handle in accordance with the law on tax,” Director of Policy Department said.

By Hong Van /Bui Diep