Supporting Businesses to Revive Operations

10:45:10 AM | 31/7/2020

To promptly remove difficulties against local enterprises, taxation authorities of Vinh Phuc province will continue measures on delayed tax payment and exemption of late payment interest for taxpayers affected by the Covid-19 pandemic.

According to a report released by the Vinh Phuc Taxation Department, the province’s budget revenue totaled VND12,735 billion in the first six months of 2020, equal to 42% of the full-year estimate and 89% of the value recorded in the same period of 2019. Apart from four criteria of land-use fee, personal income tax, commune-collected takings and fees and charges that increased from a year earlier, the 12 remaining indicators retreated from the same period of 2019. Foreign-invested companies were the biggest tax payers in the period with VND8,700 billion, a decrease of VND5,620 billion from the same period in 2019. The decline in tax revenue was attributed to the Covid-19 pandemic that caused many businesses to reduce capacity or suspend operations due to supply disruptions and narrowed output markets.

Business performance of local enterprises was forecast to still face hardships caused by the globally complicated development of the disease from now to the end of the year. To deal with emerging difficulties for local businesses, the Vinh Phuc Taxation Department has focused on measures to support businesses as guided by the province and the General Department of Taxation. In addition to reviewing and assessing difficulties and damages caused by Covid-19 to advise the Provincial People’s Committee to direct tax administration, tax payment extension, exemption of late payment interest and measuring the impact of the pandemic on budgetary revenue, the Vinh Phuc Taxation Department has instructed and publicized information on its website, announced businesses entitled to tax payment extension, exemption of interest subject to late tax payment and land rent and tax payment rescheduling for taxpayers incapable of paying their obligations to the State budget. Besides, the department will not conduct regular inspections into enterprises engaged in restaurants, hotels and catering services in 2020, except for those showing signs of tax law violations.

In the coming time, the Vinh Phuc Taxation Department will further uphold the discipline and responsibility of tax officers; speed up tax administrative procedure reform; apply information technology to tax management, especially reviewing, analyzing and classifying overdue taxes to carry out consistent measures to encourage and remove difficulties related to tax policies and to advise and propose the Provincial People’s Committee to promptly solve existing problems to shape the best business environment for local enterprises to recover and develop their operations.

Vinh Phuc Taxation Department Holds Talks with Korean Businesses

The Vinh Phuc Taxation Department recently hosted a dialogue with South Korean enterprises to respond to their difficulties in dealing with tax administration policies and procedures in 2020.

Attendants to the dialogue consisted of Mr. Keunbae Lee, Chairman of the Korean Business Association in Vinh Phuc, together with 235 South Korean firms doing business in the province.

Aimed to tackle difficulties and obstacles between South Korean firms and Vinh Phuc tax authorities in handling tax policies and procedures, representatives of the Vinh Phuc Taxation Department answered 30 questions raised by attending companies, including eight direct questions.

South Korean businesses present at the dialogue got clear answers to many problems. Tax authorities expect further cooperation of businesses in general and South Korean firms particularly, for the sustainable development of both businesses and the province.

Quynh Ngoc (Vietnam Business Forum)