Supporting businesses affected by Covid-19 with reduced land rent

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A business is coming for procedures at the District Tax Department of Bien Hoa - Vinh Cuu

Ensuring implementation of laws

Dong Nai Tax Department is promoting announcement and propaganda to all businesses and individuals operating in the province about the policy of reducing land rent. Accordingly, Decision No. 22 is one of the supporting policies for businesses, organizations, households and individuals affected by the Covid-19 pandemic. The above subjects who are renting state land will receive a 15% reduction of payable land rent by 2020. The land rental debts before 2020 are not applied for reduction under this decision. This provision also applies to the cases in which land lessees operate numerous different production and business activities but only suspends one production and business activity in the land or parcel of land directly leased by the State.

According to the statistics of the taxation industry, by the end of July 2020, over 2.3 thousand subjects in the province will have been entitled to tax and land rent extension. In which, tax extension amount will have reached over 1.2 trillion dong. The tax industry is continuing to review and appraise dossiers to support taxpayers affected bythe Covid-19 pandemic to enjoy preferential policies of the Government.

At the recent meeting with the departments and branches, Chairman of the Provincial People's Committee Cao Tien Dung stated that the Covid-19 pandemic has been affecting businesses in Dong Nai. Currently, the Government has introduced credit solutions as well as preferential policies for businesses, individuals and organizations in the field of tax and land rent, etc. On that basis, the departments, branches and localities shall quickly review and apply policies in the area to promptly support enterprises to maintain and restore their production.

Sharing difficulties with businesses

According to the statistics of the Industrial Zones Authority, there are 518 businesses and enterprises affected by the Covid-19 pandemic, of which 61 enterprises are forced to suspend their production for a while, of which most are enterprises renting land for production. In addition, services, tourism and entertainment businesses that are renting land from the state are also the most affected. With difficulties directly related to production and revenue of businesses, Decision No. 22 is being expected by numerous businesses.

Mr. Nguyen Minh Thuc, Director of Dong Nai Tourist Joint Stock Company advised that, Dong Nai Tourist Joint Stock Company is obliged to make an annual payment of nearly 2 billion dong of land rental for 7 business points for hotel, restaurant and tourist services, etc. In the mist of the pandemic, its restaurant and hotel system was almost completely suspended without any revenue; as a result, the company encountered financial difficulties. As soon as Decision No. 22 was issued, Mr. Thuc started to prepare a dossier and send it to the tax office for tax reduction as prescribed. Mr. Thuc said that not only Dong Nai Tourist Joint Stock Company, but also other tourism businessescurrently renting the state land are also facing many difficulties, so the reduction of land rent is welcomed by plentiful tourism companies, for the fact that it will reduce their financial burden after a long shutdown for the pandemic prevention and control.

As the management unit of production enterprises, for the last two outbreaks, the Industrial Zones Authority has reviewed and recorded the production situation as well as impacts on enterprises caused by the pandemic, Mr. Cao Tien Sy, Head of the Industrial Zones Authority stated that as soon as the government's decision was pronounced, the Industrial Zones Authority promptly issued its regulations to each enterprise, propagated the support policy, explained enterprises' questions and instructedthem to make dossiers for preferential treatment according as prescribed.

Phan Anh