Tax reductions proposed for HCM City enterprises
  • | | March 20, 2020 01:15 PM
HCM City authorities are seeking Prime Minister Nguyen Xuan Phuc’s approval for extending tax payments and slashing different kinds of taxes for local businesses amid the worsening Covid-19 epidemic.

Under the HCM City People’s Committee’s proposal, tax payment deadlines should be extended to the third or fourth quarter of this year for companies in different areas such as tourism, agriculture and rural development supporting industry and small and medium-sized enterprises. 


Tax reductions proposed for HCM City enterprises

The committee also recommended the exemption or the 50% reduction of value-added tax, corporate income tax and import tax for these enterprises. Employees working in the tourism sector have been recommended to enjoy personal income tax cuts based on the level of impact they have faced.

The committee has asked for permission to access the VND250 trillion (USD10.7 billion) credit package designed to support those affected by the Covid-19 outbreak.

According to the committee, companies in the most affected sectors need to be offered interest rate cuts and preferential loans, particularly those in the tourism sector.

People working at companies hit by the epidemic were proposed to be given an extension on social insurance payments, while enterprises are recommended a discount of 50% on social insurance payments, unemployment insurance, and health insurance.

The committee has suggested the 50% discount on land rental for companies in 2020 and 2021 and the same reduction for electricity prices at peak hours between March and May.

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