Enterprises will be allowed to pay their tax debts by installments fromthe beginning of July, under a new proviso intended to assist firms inweathering the economic storm.
The concession is set to be added to the amended law of tax management, due to come into force on July 1.
Under the caveat, deferred tax debts must be paid off within 10months. Enterprises will then have to pay late payment fines at 0.05percent of the debts per day.
Enterprises must obtain aguarantee from credit institutions to qualify for the deferred payment.Under the guarantee, institutions must confer with tax agencies aboutthe ability of firms to pay the taxes and fines for late payment in caseenterprises do not fulfil their obligations.
If enterprisesfailed to pay tax debts according to the registered schedule, afterfive days of the deadline passing, guarantee institutions will beresponsible for paying enterprises’ tax debts and fines for latepayment.
However, at a conference held last week by the GeneralDepartment of Taxation, enterprises said the rate of 0.05 percent perday for late payment, equivalent to 18 percent per year, was high incomparison with the current loan interest rate of 12-13 percent peryear.
Enterprises also said that it will be difficult forthem to gain such guarantees from credit institution for deferredpayment.-VNA