On 19 October 2021, the National Assembly approved Resolution 406/NQ-UBTVQH15 (“Resolution 406”) introducing some policies to support enterprises and citizens affected by COVID-19 pandemic.
Some notable points:
- 30% reduction of Corporate Income Tax (“CIT”) payable in fiscal year 2021 for the enterprises whose total revenue in fiscal 2021 is not more than VND 200 billion and lower than 2019 revenue. The latter requirement shall not be applied for newly established enterprises and enterprises having merger, division, separation activities in 2020 and 2021
- Exemption of Personal Income Tax (“PIT”), Valued Added Tax (“VAT”) and other taxes payable arising in Quarter III and IV of 2021 for business households and business individuals doing business in districts impacted by Covid-19 pandemic in 2021. The list of impacted districts shall be determined by Presidents of provincial People's Committees. This does not apply to businesses of providing software products and services, digital entertainment content products and services, video games, digital movies, digital music and digital advertising.
- 30% reduction of applicable VAT rate for the period from 01 November 2021 to 31 December 2021 for some business activities such as transportation, accommodation, tourism, art creation, entertainment, etc. This is applicable to all taxpayers declaring VAT per credit or direct method.
- Waive of interest on late payment arising in 2020 and 2021 from the debts of taxes, land use fee and land rental fee for enterprises and organizations (including dependent units and business locations) having losses in 2020.
This Resolution shall take effect from the signing date, and the Government shall provide further guidance for implementation.
We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.