New tax policies favor enterprises

Law No. 71 on amendments and supplementation of some tax legal clauses is  officially put into force from and on January 01, 2015. The new tax regulations are endorsed by enterprises for favorable conditions offered to enterprises for their production development; however, to facilitate access to new tax policies, propaganda should be promoted more.

Facilitate development of the enterprises

Law No. 71 amends and supplements some articles of Law on Enterprise Income Tax, Law on Personal Income Tax, Law on Value-added Tax, Law on Special Consumption Tax, Law on Natural Resource Tax, Law on Tax Management, Law on Importing and Exporting Taxes, and Law on Customs.

Production activities are going on at Thanh Loi Feeds in Tan Uyen Town. Photo: P. An.

Mr. Le Van Trang, Chief Commissioner of Binh Duong Provincial Tax Department affirmed the role of Law No. 71 in boosting tax administrative procedure reforms with reduced tax declaration rate to facilitate the tax payers. Under Law No. 71, tax declaration dossiers are conditioned for simplification by omission of goods purchased and sold listing in monthly tax declaration, quarterly declaration of VAT and Special Consumption Tax. Besides, the calculation of deferred tax payment fine reduces the amount from 0.07% to 0.05% to remove obstacles of the enterprises. Enforcement measures shall not be applied and deferred tax payments is exempted for the event where taxpayers are supplying goods and service to be paid by the State’s budget but not yet paid resulting in failure of overdue tax payments in a bid to ensure equality in terms of rights and obligations of the States towards the enterprises. The foreign currency exchange is simpler by applying the current exchange rate at the time of incurrence.

Mrs. Le Thi Ngoc Hien, accountant of Thanh Loi Feeds in Tan Uyen Town affirmed of time saving upon application of new tax policies.

According to Mr. Le Van Trang, Enterprise Income Tax (EIT) is offered with new priority and preferential approaches to develop agriculture and rural area including EIT reduction for income gained from agricultural and aquacultural products of collectives and enterprises located in specially challenging area and 10-15% for cases of tax administration.

Particularly, new tax policies added up favorable subject of EIT for new investment projects of auxiliary industrial products with prioritization of high-tech auxiliary industries in accordance with Law on High-tech.

The new tax policies also admends and supplements Clause 3 of Article 2 of Law No. 32. Accordingly, enterprises offered with preferential EIT by Law on EIT at the time of being licensed or granted with investment certificate. In the event of Law on EIT changes by which the enterprises can satisfy the conditions for preferential tax policies newly amended and supplemented to be able to select preferential tax rate or tax grace or tax reduction for the remaining duration of preferential policies. Vietnamese enterprises investing to foreign countries are offered reasonable EIT policies.

To resolve drawbacks

Majority of the enterprises are glad for benefits brought in by Law No. 71; however, some enterprises are currently perflexed for discountable taxes on goods before taxes.

Talking to us, Mrs. Do Thi Xuan Hong, General Director of Thanh Loi Feeds revealed her documents submitted to Department of Tax calling for resolution of tax application as per availability of Law No. 71; however, no replies have been received. Law No. 71 enableed tax exemption for the company’s feeds; however, the product quantity taxed with 5% rate previously is still in the inventory, prompting the Company to question the tax return to be or not to be practiced by the tax authority for such amount of products due to availability of a new law.

Mr. Vo Long Hai, Head of Taxpayer Communication and Support of Binh Duong Provincial Department of Tax affirmed the concerns of many enterprises regarding the tax discounts as new tax policies apply.

To boost dissemination

According to Hai, the Department has dispatched documents of Law No. 71 to every enterprises in the province while uploading all document types and general guidance on new tax policies on its website for easier access. Besides, the Department has demanded tax sector agencies to organize training for each enterprise while preserving a hot line to reply to all questions of enterprises and individuals regarding the implementation of new tax policies.

On gaining access to decree and guiding circular to be established, the Department shall immediately resolve particular cases of the enterprises’ concerns.

new tax policies are integrated into tax administrative reforms with priority and preference of EIT and VAT. If information dissemination is boosted, agreement of enterprises should be high as new tax policies are facilitating production development of enterprises.

Reported by Phuong Le – Translated by Vi Bao