Joint Efforts to Support Businesses to Surmount Difficulties

The General Department of Taxation and the General Department of Customs have continuously given solutions to create the most favorable business conditions, namely extending payment of VAT, CIT, reducing the collection rate of more than 30% of fees for businesses, supporting urgent customs clearance for aid items serving pandemic prevention and control in Vietnam. These solutions have marked the outstanding efforts of the two sectors to fulfill the "dual goals" in 2021.

Timely supporting taxpayers

According to Deputy General Director of the General Department of Taxation Vu Xuan Bach, in 2021, the COVID-19 pandemic situation was very complicated, adversely affecting the economy and society. However, the tax sector has always worked closely with businesses, performing "dual goals" while focusing on pandemic prevention and promoting production and business. Total state budget revenue managed by the tax sector has exceeded the estimate by over VND177 trillion. 60 out of 63 localities have completed or exceeded the state budget revenue estimate in 2021.

In particular, to promptly support businesses and people to respond to the COVID-19 pandemic in accordance with the country's context and conditions, and continue to implement socio-economic development goals and tasks in 2021, the General Department of Taxation has proactively proposed to the Ministry of Finance to submit to the Government for promulgation Decree 52/2021/ND-CP to extend the deadline for tax payment and land rent in 2021 for those facing difficulties due to the COVID-19 pandemic. Accordingly, up to October 31, 2021, the tax authority had extended the tax period for more than 139,000 taxpayers with a total tax amount of about VND78,840 billion.

The taxation sector has also implemented solutions to support businesses and people facing difficulties due to the COVID-19 pandemic in accordance with Decision 406/NQ-UBTVQH15 dated October 19, 2021 of the UBTVQH and Decree 92/2021/ND-CP dated October 27, 2021 of the Government on solutions to support businesses and people affected by the COVID-19 pandemic; Decision 27/2021/QD-TTg dated September 25, 2021 on the reduction of land tax in 2021 for subjects affected by the COVID-19 pandemic; Circular 47/2021/TT-BTC of the Ministry of Finance on the continued exemption and reduction until December 31, 2021 for 30 types of fees and charges in the fields of securities, passenger transport and aviation.

The timely implementation of support solutions on taxes, fees, charges and land rent is highly appreciated by the business community and people, contributing to removing difficulties and stabilizing production and business activities.

Quick clearance of goods

In the context of the COVID-19 pandemic, the Customs sector has implemented many solutions to support businesses to overcome difficulties, especially issuing guidelines and policies to remove difficulties and obstacles specific to each commodity industry, speeding up the clearance of export and import goods. Deputy General Director of the General Department of Customs Mai Xuan Thanh, said that the industry has reduced six business conditions, simplified 13 business conditions out of a total of 29 business conditions; and reduced 22 out of 52 components in the application procedures for recognition of duty-free shops, warehouses, yards and locations specified in Decree 68/2016/ND-CP of the Government.

In order to solve the difficulties and obstacles in the complicated situation of pandemics in many areas of the country, including some areas with large seaports and border gates which have a significant impact on import and export activities, the Customs sector has actively implemented solutions such as allowing enterprises to submit documents in electronic form in customs dossiers for customs clearance of goods; considered not implementing sanctions for administrative violations in the customs domain for violations of regulations on a time limit for carrying out customs procedures due to force majeure situations; and allowed enterprises to submit electronic scans of Certificates of Origin to enjoy special preferential tax rates under the Free Trade Agreement with South Korea. The Customs sector has also suspended the organization of compliance inspection and assessment for enterprises with no signs of violations to create conditions for enterprises to focus on solving difficulties and maintaining production and business activities. The sector has ensured the settlement of customs procedures for export and import goods, so that the customs clearance of goods is not interrupted and does not disrupt the supply chain of goods. The support teams of the General Department of Customs work round the clock to promptly receive and handle problems of customs declarants to ensure quick assistance, especially goods serving the prevention of the COVID-19 pandemic such as supplies, medical equipment, modern medicines, vaccines and biological products.

Thanks to solutions to promote support for businesses in import-export activities, the Customs sector managed to hit the target. In 2021, the total state budget revenue is estimated to reach VND370 trillion, equal to 117.46% of the state budget revenue estimate (VND315, trillion), an increase of 19.2% over the same period last year.

By Le Hien, Vietnam Business Forum