The Ministry of Finance is consulting with the proposal to develop a Resolution of the National Assembly on the exemption of late payment interest for businesses and organizations that incur losses in the tax period of 2022...

The draft resolution proposes: exempting late payment of tax, land use levy and land rent for businesses and organizations that suffer losses in 2022 in order to support these subjects to reduce financial difficulties, focus on restoring production and business.

According to the Ministry of Finance, as of the end of December 2022, the total amount of tax owed by the tax sector is 134,967 billion VND (including debt in process and in complaint), accounting for 9.2% of the total tax amount. state budget revenue in 2022. 

The amount of tax debt in 2022 tends to increase compared to previous years, mainly because the consequences of the COVID-19 epidemic still have a bad impact on the economy, affecting people and businesses. On the other hand, the price of oil and input materials has many fluctuations, affecting most economic fields and industries, leading to taxpayers having many difficulties in production and business, loss of business results, so they cannot capable of timely payment of tax arrears to the state budget, increasing tax debt. 

According to the Ministry of Finance, as of the end of December 2022, the total amount of tax owed by the tax sector is 134,967 billion VND (including debt in process and in complaint), accounting for 9.2% of the total tax amount. State budget revenue in 2022. Regarding the expected impact on the budget, the implementation of this proposal can reduce state budget revenue by about 2.5 trillion VND. 

According to the provisions of the current Tax Administration Law, taxpayers are charged a late payment interest at the rate of 0.03%/day of the total amount of tax owed, increasing the financial burden on tax debtors. Many businesses and organizations, despite many difficulties, have tried to pay the full amount of the principal debt of taxes, land use fees and land rents.

On October 19, 2021, the National Assembly Standing Committee issued Resolution No. 406/NQ-UBTVQH15 on promulgating a number of solutions to support businesses and people affected by the COVID-19 epidemic, including: solution: exempting late payment interest arising in 2020 and 2021 of taxes, land use fees, and land rents for enterprises and organizations (including dependent units, business locations). ) incurred a loss in 2020. 

Accordingly, as of December 31, 2022, tax authorities have exempted VND 2,116 billion of late payment arising in 2020 and 2021 of 5,753 corporate and organizational taxpayers incurring losses in 2020. in which: in 2020 late payment interest is exempted with the amount of 929 billion VND, in 2021, late payment interest is exempted in the amount of 1,187 billion VND). The solution mentioned above has really supported the right people at the right time (taxpayers have financial difficulties due to production and business losses), helped taxpayers overcome difficulties, focus resources to continue maintaining business activities. maintaining and restoring production and business activities after the pandemic.

To continue to support businesses and organizations to reduce financial difficulties, focus resources to overcome difficulties caused by the impact of the epidemic and fluctuations of the world economy, especially businesses and organizations. Organizations suffering losses in 2022, in order to help these subjects reduce their burden and have conditions to restore production and business.

Accordingly, the Government proposed the same solution as implemented in 2020 and 2021 according to Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021 of the National Assembly Standing Committee and Decree No. 92/2021/NDCP dated October 27, 2021 of the Government, specifically as follows: exemption of late payment interest arising in 2022 and 2023 of tax debts, land use levy, and land rent for enterprises and organizations ( including dependent units, business locations) incurs a loss in the tax period of 2022. This provision does not apply to cases where late payment interest has been paid before the effective date of this Resolution. .

Regarding the expected impact on the budget, the implementation of this proposal could reduce the state budget revenue by about 2.5 trillion VND. This is the late payment amount of businesses and organizations that suffer losses and are unable to pay the budget on time, so it does not have a great impact on reducing state budget revenue, but has the effect of reducing the financial burden of enterprises. businesses and organizations so that they can rest assured and soon recover their production and business activities./

Via:  www.vneconomy.vn