The Government on May 10 issued the Resolution 13/NQ-CP on some solutions for easing difficulties against production and business and supporting the market. The following are the solutions.
1. To offer six-month extension of value added tax (VAT)payment of April, May and June of 2012 for the following enterprises which are entitled to pay the VAT under deduction method.
a) Small and medium-sized enterprises, excluding those operating in the fields of lottery, securities, finance, banking, insurance, and production of commodities and services subjected to special consumption tax; and No. 1 special ranked enterprises under economic groups, corporations.
b) Intensive labor used enterprises engaging in production and processing of agriculture, forestry and aquaculture products; garments; footwear, electronic equipment; socio-economic infrastructure works.
2. To reduce 50% of land rent fees in 2012 in accordance with the provisions in Decision No. 2093/QD-TTg dated on November 23, 2011 by the Prime Minister on reducing land rent fees in 2011-2012 for some economic organizations operating in trading and service sectors which their renting land’s fee in 2012 are determined by the Decree No. 121/2010/ND-CP, dated December 30, 2010 by the Government on amending and supplementing a number of articles of the Decree No. 142/2005/ND-CP dated November 14, 2005 by the Government on collection of land rents and water surface rents.
3. To offer nine-month extension of corporate tax payment backwards since 2011 that were not paid to the State budget (excluding corporate tax items extended under Decision No. 04/2012/QD-TTg dated on January 19, 2012 on granting a three-month extension for payment of corporate income tax which small and medium-sized enterprises and labor-intensive enterprises must pay for the first and second quarters of 2011) by enterprises as set forth in point a, point b, item 1 hereof and by enterprises specializing in the manufacture of mechanical products which are production materials, waterway transports (including inland transports and sea transports), manufacture of steel and cement.
4. Households engaging in aquaculture and salt production are exempted from paying license tax in 2012.
5. For investors encountering financial difficulties, the Government decided to grant the maximum of twelve-month extension of land used fees. Provincial People’s Committees are assigned to consider and decide the specific extension deadline for each project and each project group after reporting it to the Standing Board of the same-level People’s Council.
6. The Minister of Finance is authorized by the Prime Minister to report to the National Assembly to consider and decide the followings:
a) To reduce 30% of corporate income tax payable in 2012 for small and medium-sized enterprises (excluding those operating in the fields of lottery, securities, finance, banking, insurance, and production of commodities and services subjected to special consumption tax; and No. 1. special ranked enterprises under economic groups, corporations) and those as set forth in point b, item 1 hereof.
b) To exempt the value added tax, personal income tax and corporate income tax in 2012 for individuals and households engaging in boarding houses, guest houses, workers’ dormitory and students’ hostels; individuals and households engaging in baby sitting; and individuals, households and organizations engaging in supplying workers’ meals provided that rental, baby-sitting and meal supply prices are as similar as those at the end of 2011.
7. Ministries: Finance, Planning and Investment, Industry and Trade, Agriculture and Rural Development, Ministries, agencies and localities under assigned functions are tasked as follows:
a) To focus on the implementation of practical and efficient solutions to speed up the disbursement of investment capital for projects and programs under the scope of management, particularly investment capital from the State budget, Government bonds, and national target programs, ensuring the capital are used for correct objects, efficiency and in accordance with regulations.
b) To carry out solutions on mobilization of VND 2,000 billion to supplement lending source in order to invest and strengthen canals and ditches, to develop rural roads, electric pump houses to serve agricultural production, aquaculture infrastructure and trade villages in rural areas. The Ministry of Finance is responsible for supplying concrete guidance for the Vietnam Development Bank to implement the solutions in accordance with regulations.
c) To allow spending the expenditure for 2011 which has not been used and transferred to 2012 as it followed the provisions in Resolution 11/NQ-CP.
b) To review, amend, supplement or submit the competent authorities for amendment and supplementation of regimes and policies, eliminate unreasonable investment barriers, offer favorable conditions of infrastructure, plan, human resources, and administrative procedures… to ease difficulties against production and business, and encourage investment from domestic and foreign economic sectors.
dd) To carry out suitable solutions to increasingly attract and speed up the disbursement of foreign direct investment (FDI), of which paying attention to attract new, large-size and high-tech investments.
e) To ensure necessary conditions to increasingly attract and disburse official development assistance (ODA), of which paying more attention to site clearance, ensuring responding capital for such projects in socio-economic infrastructures, particularly for electric and transport sectors.
g) To carry out solutions to easing difficulties, facilitating production in advantageous sectors and products, particularly for those in agriculture, tourism and service.
h) To increase positive and efficient activities engaging in investment, trade, tourism and service promotion; to speed up both domestic and abroad trade promotion; to early sign trade agreements with partners; to review the spending of expenditure from the State budget for trade promotion activities in 2012, with the aim to set up additional support solutions of which focusing on expansion of potential market, then submit it to the competent authority for consideration and approval.
i) To increasingly inspect market and price, ensuring quality and price of requisites, particularly price of milk, medicine, insecticide, fertilizer…
k) To continually boost the administrative procedures reform related to production, business and investment, particularly procedures relevant to tax and customs; to shorten time of customs clearance; to increase online tax declaration; to strengthen the implementation of tax payment via banking system; to push up the automation of receiving documents and administration procedure relevant to tax and customs; to strive for reduction of 10-15% expense of compliance with administrative procedures on tax and customs for individuals, organizations and enterprises.
8. The State Bank of Vietnam takes the prime responsibility in cooperating with Ministries, agencies and localities:
a) To continually apply tight and cautious monetary policy; to initiatively and flexibly use the tools of monetary polic, with the aim to ensure the reasonable credit growth and total means of payment in order to control inflation as scheduled and reduce interest rates in accordance with situation of inflation.
b) To continue reducing interest rate of lending, to offer priority to agricultural and rural sector, small and medium-sized enterprises, enterprises which specialize in production of goods for expors; and those are working in supporting industry.
c) To carry out solutions for debt re-structuring (in term of debt payment, interest rates, new lending- previous debt payment…) and other necessary solutions in accordance with each production and business type and sectors, facilitating enterprises to borrow capital for production and business, particularly for those having potential development and products which satisfy market requirement but currently are facing with financial difficulties.
b) To speed up the process and ensure the efficiency of commercial bank re-structure, while resolutely handle those banks which operate inefficiently with reasonable and legal solutions, and to stalilize system and ensure the legitimate rights of organizations and individuals that deposit and use the banks’ services.
a) Ministries of Finance, Planning and Investment, Industry and Trade, Agriculture and Rural Development, the State Bank of Vietnam, and related Ministries and agencies under their assigned functions and tasks supply concrete guidance for the implementation of the Resolution; submit related legal documents to the competent authority for issuance or amendment and supplement as to implement the Resolution in accordance with regulations.
b) Pursuant to this Resolution, Ministers, Heads of Ministerial-level agencies, Heads of Governmental agencies, Chairmen of provincial and centrally-run city People’s Committees under their assigned functions and tasks supply concrete guidance, organize and coordinate to implement the solutions as recommended in the Resolution in order to timely ease the difficulties against business and production and grant supports for market; To closely cooperate with agencies under the Communist Party of Vietnam, the State, Vietnam Fatherland Front, and mass organizations to implement the Resolution; To increase inspection of tasks performed by each agency, organization and individual; To carry out rewards and punishments for all establishments in their implementation of assigned tasks; To closely follow up the real situation, actively inspect and evaluate the situation as to put forth flexible and timely measures or recommend the competent authority to carry out timely and efficient solutions.
c) The Ministry of Planning and Investment is responsible for coordinating with related Ministries and agencies to check and inspect the implementation of the Resolution; to summarize and report to the Government the situation and results of the Resolution implementation at the monthly Government’s regular meeting.
d) Ministries, agencies, provincial and centrally-run city People’s Committees review, summarize and evaluate the implementation of the Resolution within their assigned functions and tasks, recommend the Government’s solutions for the following year, reporting to the Prime Minister and send it to the Ministry of Planning and Investment before December 10, 2012. The Ministry of Planning and Investment is responsible for summarizing and evaluating the results of the Resolution implementation by each Ministry, agency and locality, then report it to the Government at the Government’s regular meeting in December 2012./.