29-Jun-2021 Intellasia |
HCM Metropolis Export Processing Zone and Industrial Zones Authority (HEPZA) has made quite a lot of proposals to the municipal Individuals’s Committee to assist companies and employees in the course of the COVID-19 pandemic, together with lowering company revenue tax (CIT).
In 2020, the federal government issued a slew of reduction measures to companies and employees. HEPZA advised sustaining supporting insurance policies comparable to delaying the cost of union charges. Specifically, the federal government was additionally proposed to scale back CIT in 2021 by 30 per cent for companies with the entire income of lower than VND200 billion($8.7 million) every.
As well as, bussinesses have been proposed to obtain assist in borrowing cash to pay wages in the course of the lockdown. HEPZA proposed growing the phrases of those loans to 12 months with zero rate of interest. On the identical time, companies ought to be allowed to borrow from different credit score establishments beside the Vietnam Financial institution for Social Insurance policies. This can assist ease wage stress on bussinesses and supply some working capital to take care of manufacturing.
Moreover, the authority emphasised the significance of simplifying administrative procedures to resolve points for employees and companies. HEPZA proposed additional delay social insurance coverage cost from 6 to 12 months for companies to stabilise manufacturing and shield the rights of employees.
One other reduction measure is to extend the allowances for workers whose labour contracts have been terminated as a consequence of COVID-19. In case of non permanent suspension of labour contracts or unpaid work, the town must shorten procedures for workers to obtain the subsidy and survive the difficult time. Different measures embrace lowering electrical energy and water payments for employee hostels, dormitories, and lodging in order that these amenities can scale back costs for tenants.
On the identical time, HEPZA proposed the State Financial institution of Vietnam to direct industrial banks and credit score establishments to supply working capital loans for manufacturing and provide ensures for buy and sale contracts of uncooked supplies with zero rate of interest for companies affected by the pandemic.
Class: Enterprise, Vietnam
Article supply: https://www.intellasia.internet/hepza-proposes-30-per-cent-slash-on-cit-to-relieve-burden-on-businesses-926437