Accompanying businesses affected by Covid-19

The extension of tax contributes to remove difficulties for businesses affected by Covid-19.

According to Mr. Ngo Xuan Tong, Director General of Taxation, immediately after receiving information about the situation Covid-19 epidemic, leaders of the Provincial Tax Department directed units receiving revenue estimates to review, check and forecast the impact of the Covid-19 epidemic on the situation of production and business and the arising tax amount. Complying with the estimates assigned by the Ministry of Finance and the provincial People's Council. The Tax Authority conducted to check the business situation of tax-payers in the management area, especially key businesses such as Samsung Display Vietnam Co., Ltd., Samsung Electronics Vietnam Co., Ltd. and other big satellite businesses.

However, at present, due to the situation of Covid-19 epidemic, the companies have not been able to accurately assess the situation of production and business. If in the case of prolonged epidemics, it will affect the supply of raw materials for production and consumption of products, leading to a decrease in revenue, profits and budget revenues arising in 2020. Only in the first 2 months of the year, the State budget revenue reached VND 5,304 billion, reaching 23% of the estimate and only equal to 87% over the same period.

In order to solve difficulties for enterprises, the Provincial Tax Department has clearly specified the extension of tax payment for cases of damage caused by epidemics in epidemic areas announced by the State agencies, which will be extended from 1 - 2 years depending on the extent of damage on the total value of damaged properties compared to the total value of assets of the previous year. However, this depends on whether Bac Ninh Province is declared an epidemic area.

On the other hand, the Ministry of Finance is currently constructing a Draft Decree on extension of value-added tax and land use fees for taxp-ayers affected by Covid-19. Through researching the content of the Draft Decree, the leaders of the Provincial Tax Department also exchanged that, the taxpayers of the industries of processing agricultural products and foodstuffs, shoe leather, textiles, electronics, hotels, tourism, restaurant ... will be extended 05 months compared with the regulations. Specifically, for land rent in the first period of 2020 is extended from May to October; Value added tax arising in March, April, May and June is extended to the end of the year. After the Government's Decree is officially issued, the Provincial Tax Department will guide enterprises to carry out the procedures for extension, preliminary estimates, the tax amount to be extended is over VND 330 billion.

Lying in the whirlwind affected by Covid-19, Mr. Nguyen Trong Thanh, Director of Gia Bao Hotel, Dong Nguyen Ward, Tu Son Town said, since the epidemic, this was the most difficult time for businesses since operating in 2011. With 39 rooms with a regular use capacity of 70-75% of the room with customers mainly from foreigners such as Korea, China, Japan. Now, the occupancy rate is only 10-20% of the rooms, especially, many customers who book before New Year have canceled the schedule, affecting revenue, forcing businesses to cut employees from 20 - 25 people down to only 10 people.

Facing the general difficult situation, Mr. Thanh hopes that the Government's Decree will be issued soon and the provincial taxation branch will have the support solution as prescribed, especially to extend the time for paying corporate income tax in 2019; reducing and extending value added tax by 2020 to reduce the pressure of financial difficulties of enterprises.

While waiting for the Decree, businesses should continue to be proactive in the prevention and control of epidemics, and coordinate with functional agencies to try to maintain production and business activities and ensure the rights of employees.