With regards to the latest release of Resolution 43/2022/QH15, the Government has recently issued two official documents named Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy and Resolution 11/NQ-CP on the Socio-Economic Recovery and Development Program setting out a solution supporting the recovery of enterprises, cooperatives, and business households.
1. Decree 15/2022/ND-CP (“Decree 15”):
On 28 January 2022, the Government issued Decree 15/2022/ND-CP effective from 01 February 2022 stipulating the tax exemption and reduction policy according to Resolution 43/2022/QH15 ("Resolution 43") dated 11 January 2022 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Development and Recovery Program. The Decree has some notable points as follows:
- From 01 February 2022 to 31 December 2022, goods and services that are applying the Value Added Tax (“VAT”) rate of 10% will reduce 2% of the tax rate (to 8%) for business establishments declare VAT under the credit method, and reduce 20% of the percentage for the business establishments declare VAT under the direct method, except for the goods and services which are specified in the appendices in Decree 15 such as telecommunications, information technology, financial activities, banking, securities, insurance, real estate trading, metals, goods and services subject to Special Consumption Tax (“SCT”), etc.
- For the fiscal year 2022, business’s expenses in relation to the support and sponsorship of COVID-19 prevention and control activities in Vietnam shall be deductible when determining the taxable income for Corporate Income Tax (“CIT”) purpose through the receiving supporting, sponsoring units listed in this Decree.
- Documentation to determine the expenses in relation to the support and sponsorship includes: Minutes of confirmation using Form 02 in Appendix IV issued together with this Decree or other documents (either in paper or electronic forms) certified with the signatures and seals of the of both sponsor and recipient; the legitimate invoices and supporting documents for such donations.
2. Resolution 11/NQ-CP (“Resolution 11”) on the Socio-Economic Recovery and Development Program and implementation of Resolution 43:
In addition, on 30 January 2022, the Government issued Resolution 11/NQ-CP effective from the issuance date, on the Socio-Economic Recovery and Development Program and implementation of Resolution 43. To achieve the goals set, Resolution 11 sets out a solution supporting the recovery of enterprises, cooperatives, and business households with the noticeable points as follows:
- Reducing 30% of land and water surface rental fee in 2022 in the form of land rental with annual payment for those who must cease their production and business due to the impact of the COVID-19 epidemic;
- Extending the deadlines for payment of CIT, Personal income tax, VAT, SCT and land rental fee in 2022;
- Supporting the interest rate of 2%/year for 2 years of 2022 - 2023 through the commercial banks for qualified commercial loans which are capable of repayment and recovery in several sectors.
- Carrying on refinancing for the Vietnam Bank for Social Policies to further lend to employers to pay wages for employees who suffer job stoppage, or pay for employees to restore the ordinary production;
- Carrying on the restructure of the repayment term, exemption, and the reduction in loan interest and to maintain the same debt group for customers affected by the COVID-19 epidemic;
- Keeping to study and consider the reduction in electricity and water bills for enterprises and citizens.
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.
For regulation changes and tax matters, we can provide you with assistance on:
- Registration, declaration of Personal Income Tax, Corporate Tax, VAT and Foreign Contractor Tax.
- Tax refunds assistance and representation.
- Consultancy on utilizing opportunities provided by transfer pricing.
- Customs advisory: Compliance & reporting; FTA and C/O; Harmonised System code classification and valuation; Inventory control; International trade arrangement; and Others.