Apr 07, 2020 / 18:02

98% enterprises in Vietnam to benefit from fiscal stimulus package

The Hanoitimes - The package, which is specified in a draft decree, is set to become effective immediately upon the approval of Prime Minister Nguyen Xuan Phuc.

The Vietnamese Ministry of Finance (MoF)’s decision to expand the scope of the fiscal stimulus package to VND180 trillion (US$7.64 billion) would cover 98% of total operational enterprises, according to Pham Dinh Thi, head of the ministry’s Tax Policy Department.

 Pham Dinh Thi, head of the MoF's Tax Policy Department. Source: MoF. 

The package is part of a draft decree that is set to be submitted to Prime Minister Nguyen Xuan Phuc for approval, Thi said, expecting it to become effective immediately after being signed.

On April 3, the MoF said it would more than double the package from VND80.2 trillion (US$3.42 billion) to VND180 trillion (US$7.64 billion), six-fold the original proposal of VND30 trillion (US$1.27 billion).

In the latest proposal, the ministry extends the scope of the fiscal stimulus package in forms of tax breaks, delay in tax payments, and reductions in land rental fees in five months, for real estate and construction, leather, wood, plastic, metal, manufacturing of car with up to nine seats, job consultancy; supporting industries; metal production; among others.

Credit institutions and foreign bank branches providing support programs for customers affected by the Covid-19 pandemic are also targets of the fiscal stimulus package.

The ministry said tax payers only need to submit one single request for taxes and land rental fee deferral to local tax authorities, with the deadline on July 30, 2020.