Enterprises will be allowed to pay their tax debts by installments from the beginning of July, under a new proviso intended to assist firms in weathering 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 10 months. Enterprises will then have to pay late payment fines at 0.05 percent of the debts per day.

Enterprises must obtain a guarantee from credit institutions to qualify for the deferred payment. Under the guarantee, institutions must confer with tax agencies about the ability of firms to pay the taxes and fines for late payment in case enterprises do not fulfil their obligations.

If enterprises failed to pay tax debts according to the registered schedule, after five days of the deadline passing, guarantee institutions will be responsible for paying enterprises’ tax debts and fines for late payment.

However, at a conference held last week by the General Department of Taxation, enterprises said the rate of 0.05 percent per day for late payment, equivalent to 18 percent per year, was high in comparison with the current loan interest rate of 12-13 percent per year.

Enterprises also said that it will be difficult for them to gain such guarantees from credit institution for deferred payment.-VNA