Recently, the Government has issued Decree No. 41/2020 ND-CP on the extension of deadlines for tax and land use fee payments. Around this content, Bac Giang Newspaper had an interview with Pham Van Thinh, Director of the provincial Tax Department.

Helping businesses at this time has an important meaning. Could you please tell us who are the beneficiaries under Decree No. 41?

On April 8, 2020, the Prime Minister signed Decree No. 41 on the extension of deadlines for tax and land use fee payments. Accordingly, businesses operating in the agro-forestry-fishery, food processing, textile, fashion, wood processing, production of wood and bamboo products, electronics and computer manufacturing would enjoy the extension, alongside those operating in transportation, warehouse, accommodation and catering, education and training, social assistance.

Pham Van Thinh, Director of the provincial Tax Department.

Others subject to the policy include small and micro-sized enterprises and credit institutions and branches of foreign banks which provided support to their customers who were hit by the Covid-19 pandemic following the requirements of the State Bank of Vietnam (SBV)...

To help enterprises to get the fastest access to this policy, what procedures should be implemented?

First of all, businesses need to carefully review the regulations on eligible industries as stated in the Decree, thoroughly grasp extension periods for each type of tax, and calculate the specific amount of tax to be extended to complete dossiers and send them to the tax authority for appraisal and certification.

For value-added tax (VAT), the extension of five months from the statutory deadline would be given to the assessment periods of from March to June 2020 (on a monthly basis), or the first quarter and the second quarter (on the quarterly basis).

For corporate income tax (CIT), the deadline for settling the CIT obligation for fiscal year 2019 and provisional CIT of the first quarter and second quarter of 2020 shall be extended to five months from the statutory deadline. In case the enterprises already settled the CIT obligation of fiscal year 2019, they are allowed to offset with other tax obligations.

Officers of the Lang Giang-Luc Nam branch of the provincial Tax Department review enterprises facing difficulties due to Covid-19 pandemic to guide them how to complete procedures for tax payment rescheduling.

The deadline for settling land rent fee obligation in the first period of 2020 shall be extended for five months from May 31, 2020.

Tax payers must submit the application with provided form enclosed in this Decree to the tax authority, together with the tax extension form, online or by post no later than July 30, 2020.

Through fact-finding studies, could you give some initial information on the situation of businesses affected by Covid-19 epidemic as well as the number of units that will be entitled to this policy in the province?

The amounts of money from taxes and land rent fees that businesses are allowed to postpone paying will help them have more capital to invest in and restore production. Under the Decree, a total of 180 trillion VND (7.64 billion USD) worth of taxes and fees would be extended in the country.

In the province, the provincial Tax Department currently manages more than 8,000 manufacturing and business enterprises, of which about 6,000 operate and generate taxes. Through the review and comparison with the conditions prescribed in Decree 41, more than 4,500 enterprises affected by Covid-19 in the province will be extended tax and land rent fee payment deadlines this year with a total amount of nearly 948 billion VND (40.6 million USD).

In the first days of implementing the Decree, about 30 enterprises have submitted applications to extend deadlines for paying taxes and land rent fees to the provincial Tax Department and a number of its regional branches. The provincial Tax Department has appointed officers to check and verify the documents in line with regulations.

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