The Ministry of Finance (MoF) will issue detailed circular guiding implementation of Value Added Tax (VAT) payment extension by 6 months for businesses in Q2/2012 within this week.
The information was provided by Nguyen Van Phung, deputy director general of Tax Policy Department under MoF in an interview with the local newspaper Dau Tu (Investment) on May 21.
Besides building the resolution No. 13/NQ-CP on solutions to help enterprises solve difficulties in production, business and support the market, MoF had had final discussion on contents of payment time extension to Value Added Tax (VAT), corporate income tax (CIT), land use tax for project owners have financial difficulties, the deputy director general disclosed.
When the circular comes into effect, businesses can use fund of tax payment in 6 months to turnover capital, expand production and business, Phung said, adding that MoF had informed ministries, branches and provincial people’s committees to not yet collect VAT of April, May and June while waiting for the circular to come into effect (under the law, businesses must list and pay VAT for April latest by May 20th).
The policy of tax payment extension will not show remarkable effectiveness within first few months of implementation but it will post impressive results afterwards, Phung commented.