Vietnam: Gov’t extends payment deadlines for US$5.3 billion worth of land rental fees in 2021
Extending land rental fees and taxes payment deadlines are among key measures from the Government to support businesses and individuals during the pandemic.
The Vietnamese Government in 2021 extended the payment deadlines for VND121 trillion (US$5.3 billion) worth of land rental fees for businesses and individual households affected by the pandemic.
By late 2021, the majority of businesses qualified for payment deadlines extension have completed their financial obligations, informed Nguyen Van Phung, director of the Tax Policy Department under the Ministry of Finance (MoF).
The economy since early 2020 has faced severe consequences from the Covid-19 pandemic and natural disasters, for which the Government’s support policies and measures are essential to aid socio-economic recovery, including waiving and freezing of taxes and land rental fees.
Businesses eligible to these programs are of micro, small and medium-size, said Phung, adding the extension of payment deadlines of taxes and fees also subject to foreign banks and credit institutions providing support for enterprises and people affected by the pandemic.
Data from the MoF revealed nearly VND130 trillion ($5.74 billion) in land rental fees were waived or had payment deadline extended in 2020, including around VND31.5 trillion ($1.4 billion) being waived for businesses and VND97.5 trillion ($4.3 billion) whose payment deadlines extended.
In 2021, the Government decided to extend the validity of the program and expand its scope to help enterprises and people cope with the Covid-19 pandemic.
The MoF also pushed for greater administrative reform efforts to aid taxpayers, including the removal of 30 fees and expenses for businesses worth a total of VND1 trillion ($44.2 million).
According to Phung, the MoF also enhance tax management for e-commerce and online business models, which helps ensure a fair and transparent business environment for all enterprises.
Since late 2021, the MoF started piloting the implementation of e-invoices in six provinces/cities (Hanoi, Ho Chi Minh City, Haiphong, Quang Ninh, Binh Dinh, and Phu Tho) to prepare for nationwide adoption since July 1, 2022.
“The use of e-invoices is a step into the right direction to create convenience for businesses and people in realizing economic transactions, while tax authorities can ensure efficient tax management without costing huge social resources,” Phung said.
Phung, however, stressed the issue of the biggest concern for businesses at present is not financial support, but ensuring clear and transparent regulations, which is seen as one of the priorities for Government agencies this year.