MOF to issue Circular guiding tax payment exemption, reduction and extension

(vasep.com.vn) In May 23rd 2012, Ministry of Finance (MOF) has issued the Circular No. 83/2012/TT-BTC guiding the implementation of tax exemption, reduction and extension for national budgets under the Resolution No.13/NQ-CP of the government dated May 10th 2012 on measures to ease difficulties against businesses and support the market.

Pursuant to the Resolution No.13/NQ-CP, the government requested Ministers, leaders of govermental agencies, Chairman of provincial People’s Committee to direct implementation these measures according to the Resolution of the party, National Assembly, Resolution No. 01/NQ-CP dated January 3rd 2012 on main solutions for social-economic development plans and state budget estimates in 2012 based on the actual situation.

They are also requested to deploy some solutions for easing difficulties in business and supporting market’s development which include exemption, reduction and extension of tax payment for national budget.

The Circular No.83 contains instructions to implement tax payment exemption, reduction and extension as follows:

1. Six-month extension for payment of VAT

The government approves a six-month extension for payment of VAT of April, May and June 2012 (without VAT in importing process), available for the following two groups of enterprises which pay VAT under deduction VAT method:

Group1: small and medium-sized enterprises, excluding those operating in the field of lottery, securities, finance, banking, insurance, and production of commodities and services subjected to special consumption tax, and excluding those enterprises of special or first place ranking attached to economic groups, corporations.

Group 2: labor-intensive enterprises engaging in production and processing of agriculture, forestry and aquaculture products; garments; footwear, electronic equipment; socio-economic infrastructure works.

2. The extension of corporate income tax payments

- Corporate income tax payments will be deferred within 9 months. The regulation is proposed for the enterprises falling within groups 1 and 2 above which until May 5th 2012 haven’t paid tax of 2010 and earlier.

- The tax extension is also applied to enterprises which are mechanic producers such as means of production, in the field of water transport (including inland waterway transport and maritime transport), producers of steel and cement, small and medium-sized enterprises in the field of real estate business.

3. 50 percent reduction of land lease fees for enterprises in 2012

MOF proposes lowering land lease fees by 50 percent for economic organizations and businesses operating in trade, services, tourism sectors whose land lease prices in 2012 are determined in accordance with Governmental Decree No. 121/2010/ND-CP of December 3rd 2010. The reduction of land lease fees is implemented in compliance with regulation in the Prime Minister’s Decision No. 2093/QĐ-TTg of November 23rd 2011.

The Circular also guides exempting fisheries and salt production households from the business license tax and extending of land use fees.

The Circular takes effect since the date of signing.

KT

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