In a bid to tackle the issue of liquidity for households and businesses, Vietnam is mulling over extending tax relief this year. The move is aimed at boosting the economic growth momentum in the Asian country. In this direction, the tax authorities in Vietnam are framing a range of tax relief measures.
The tax relief measures being planned to help accelerate the country’s economy include the extension of the deadline for tax payments and submission of annual rental fees on publicly-owned land, local media reports suggested. Additionally, the country could also given an extension of up to six months for the payment of value-added taxes (VAT) in 2023.
Vietnam’s Ministry of Finance estimates revenues from VAT payments eligible for the extension at 64 trillion to 65 trillion Vietnamese dong ($2.7 billion).
The ministry’s proposal to push ahead the deadline for tax payments will also apply to corporate income taxes, under which the government would offer a three-month extension worth around 42.8 trillion-43.6 trillion dong. Further, household businesses will be given an extension in their VAT payments and income taxes until December 30.
Besides, fiscal efforts include extending up to six months the deadline for submission of land rentals, estimated at 3.5 trillion dong.
Despite a costly tax relief last year, Vietnam generated 1,803 trillion dong in tax revenues, 27.76 per cent higher than its official target and up 14 per cent from the 2021 revenues, Finance Minister Ho Duc Phoc told the media.
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Meanwhile, the country’s government has also directed the central bank – State Bank of Vietnam (SBV) - to take required measures to ease a credit crunch for property developers. Many Vietnamese property developers have been facing liquidity difficulties.
The SBV was on Sunday directed to postpone loan repayments or restructure bad debts for some property companies so that they are better able to access new loan.2023-03-17T14:26:50Z dg43tfdfdgfd