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Firms get right to defer tax payments

Update: June, 20/2013 - 11:50

HA NOI (VNS)— Enterprises would be allowed to pay their tax debts by installments from the beginning of next month, 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 12 months. Enterprises would then have to pay late payment fines at 0.05 per cent of the debt per day.

Enterprises must obtain a guarantee from credit institutions to qualify for the deferred payment. Under the guarantee, credit 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 would 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 per cent per day for late payment, equivalent to 18 per cent per year, was high in comparison with the current loan interest rate of 12-13 per cent per year.

Enterprises also said that it would be difficult for them to gain such guarantees from credit institutions for deferred payment. — VNS

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