According to HoREA - Ho Chi Minh City Real Estate Association, Decree 132 (effective from December 20, 2020) and Decree 126/2020/ND-CP (effective from December 5, 2020) , said that the tax industry is forcing businesses because if they underpay taxes, they will be fined, but if they overpay, they will only be compensated or lose everything.
HoREA has just proposed that the Government and the Ministry of Finance consider the following inadequacies in corporate income tax regulations and new regulations in the Tax Law that could push businesses that are already facing difficulties due to the COVID-19 pandemic:
1. REGULATIONS ON TEMPORARY TAX PAYMENT FOR THE FIRST 3 QUARTER OF THE YEAR MUST NOT BE LESS THAN 75% OF THE CITIZED TAX Amount PAYABLE ACCORDING TO THE YEAR'S SETTLEMENT
This regulation causes great disadvantages for real estate businesses and commercial and service businesses, which often have sudden revenue increases in the fourth quarter of the year, which cannot be predicted in advance in the plan. revenue and profit for the whole year. Because, if just a few unplanned transactions arise, the business can violate the above regulations due to a sudden increase in revenue and profits.
2. FOR VIOLATIONS IN TAX DECLARATION
Accordingly, this Association proposes not to impose sanctions on cases where businesses have submitted their fourth quarter revenue and profit plan reports, accompanied by a list of projects or business activities that generate revenue. Unplanned revenue and profits have been declared and registered with the tax industry.
3. ABOUT CORPORATE TAX REFUND
Decree 132 does not stipulate that businesses can receive tax refunds in cash, but can only be offset against corporate income tax from 2020 to the end of 2024, so it is not really fair to businesses.
The association believes that the amount of overpayment by businesses that is retained to offset taxes can create two problems. First, businesses that suffer losses in 2020-2024 are unlikely to receive a tax refund. Second, by the end of 2024, if the entire tax amount that should have been refunded has not been refunded, businesses will not receive the remaining tax refund amount.
Source: VnExpress