HCM City calls for more tax breaks

31-May-2012 Intellasia | Saigon Times Daily | 7:01 AM Print This Post

With businesses still struggling amid the economic downturn, the HCM City People’s Committee wants the government to allow them to pay their tax every three months instead of every month as at present.

The proposal, which is considered to be a pilot measure, was raised at a conference organised in HCM City last week to carry out the government Resolution No 13/NQ-CP issued on May 10 to support troubled enterprises and boost the local market.

The resolution allows certain categories of companies – small and medium-sized and labour-intensive ones involved in sectors such as agriculture, forestry and aquaculture, garments, footwear, electronic equipment, and infrastructure – to defer payment of value-added and corporate taxes due in the middle of this year by six months.

More benefits are offered to some other categories of businesses too.

One of the important measures finding mention in the resolution is the simplification of administrative procedures.

For instance, it says that companies eligible for the six-month deferment of value-added tax only need to submit their tax returns and promise to meet the stipulations to enjoy the deferment, and do not have to wait for official sanction.

The city People’s Committee, however, wanted the government to further simplify administrative procedures by allowing every company to pay tax on a quarterly basis.

This would also enable them to plough back the money into their business.

This would be more helpful to them than the government’s measure to subsidise their loans, deputy chairwoman of the committee, Nguyen Thi Hong, said.

The HCM City Real Estate Association wanted the government to provide more support to property firms by extending to them the same VAT breaks that small and medium-sized enterprises get since most made big losses due to the market collapse.

Officials from the Ministry of Finance told the conference they would consider these proposals and petition the government to allow companies not in the financial and credit sectors to lend money to other firms and not to tax profits from such lending.


Category: Legal

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