Tax exemption and reduction policies have been released to support businesses and people affected by the Covid-19 pandemic

LEGAL UPDATES

Tax exemption and reduction policies have been released to support businesses and people affected by the Covid-19 pandemic

On  October 27th, 2021, the Government issued Decree No. 92/2021/ND-CP guiding the implementation of Resolution No. 406/NQ-UBTVQH15 of the National Assembly Standing Committee promulgating several solutions to support businesses and people affected by the Covid-19 pandemic. Accordingly, Decree No. 92/2021/NĐ-CP provides guidance on 04 groups of tax exemption and reduction solutions, including: 

(i) reduction of corporate income tax payable in 2021 for businesses and organizations whose revenue is not more than VND 200 billion with a decrease in revenue in 2021 compared to 2019; 

(ii) tax exemption (personal income tax, value-added tax and other taxes) in the third and fourth quarters of 2021 for households and individuals with production and business activities in district-level locations affected by the COVID-19 pandemic in 2021; 

(iii) reduction of value-added tax rates for groups of goods and services in several industries; 

(iv) exemption of late payment interest arising in the years 2020, 2021 for businesses and organizations that incur losses in 2020. 

Governed subjects by this Decree include: 

  • The organization involved in production and business activities of goods and services subject to taxable income (hereinafter referred to as enterprises) as prescribed in Article 1 of Resolution 406/NQ-UBTVQH15, including:
    • Enterprises established in accordance with the law of Vietnam; 
    • Organizations established under the Law on Cooperative;
    • Non-business units established in accordance with Vietnamese law; 
    • Other organizations established in accordance with Vietnamese law involved production and business activities with income. 
  • Households and individuals engaged in business activities refer to resident individuals who are involved in all industries, forms of tax declaration and payment, engaged in production and business activities in the district-level, town-level, province-level, and municipality-level locations affected by the Covid-19 pandemic in 2021. 

The Decree is of full force and effect concurrently with the effective date of Resolution No. 406/NQ-UBTVQH15. Therefore, Decree No. 92/2021/ND-CP came into effect on October 19th, 2021.

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This legal update is for general information only and is not a substitute for legal advice.