Vietnam's National Assembly cuts taxes and fees for businesses

Oct 22nd at 07:40

22-10-2021 07:40:55+07:00

Many fees and taxes will be waived for businesses and people affected by the pandemic in the remainder of the year.

Taxpayers with revenue in 2021 of less than VND200 billion (US$8.8 million) and lower than the figure recorded in 2019 would be subject to a 30% cut in corporate income tax.

Production at Tam Hop Company in Soc Son District, Hanoi. Photo: Viet Linh

The decision was revealed in the latest resolution signed off by the Chairman of the National Assembly (NA) Vuong Dinh Hue on measures to support businesses and people affected by the pandemic.

The NA also decided to waive personal income tax, value-added tax, and other expenses payable by business households and individuals in the third and fourth quarters at localities facing the Covid-19 outbreaks in 2021.

“The move is not applicable to revenue generated from providing software and online services, including online games, music, or advertisement,” it added.

Meanwhile, the Government is set to waive value-added tax from November 1, 2021, to December 31, 2021, for transportation services, entertainment, and cultural services, production of goods and products except for online services and products.

In line with the move, no penalties would be applied for tax and land rental fees in default during the 2020-2021 period.

“The Government is responsible for ensuring that customers benefit from lowering value-added taxes,” noted the resolution.

The NA called for the Government to continue reviewing solutions under its authorization to support enterprises by lowering operational expenses and further cutting taxes and fees.

To date, total support programs provided by the Government to individuals and businesses affected by the Covid-19 pandemic this year are estimated at around US$10.45 billion, or 2.85% of the GDP.

The Government, however, acknowledged the figure remains low compared to neighboring countries, such as 11.4% of the GDP in Thailand, or 5.3% in Malaysia, and vowed to continue providing more support to the economy.

Hanoi’s authorities have so far extended payment for taxes and land rental fees worth nearly VND19 trillion ($831 million) for businesses affected by the Covid-19 pandemic.

According to the municipal Department of Taxation, the city received nearly 30,000 requests for extension of value-added tax payment with a total amount of around VND8.3 trillion ($363 million) as of August 31, representing a surge of 30% against the previous month. Hanoi also processed 1,351 applications for delaying payment of land rental fees worth VND1.04 trillion ($45.7 million), up 17% month-on-month.

Hanoi Times