Expand Tax Incentives – Vietnam Combat Covid-19

Expand Tax Incentives – In recent months, the epidemic situation in the country has been complicated, due to new strains and rapid spread; outbreaks make it harder than ever for already-vulnerable businesses. Reserve resources are dwindling while the domestic and international markets have fallen sharply and have not shown any signs of recovery or are recovering very slowly. The resilience of the business sector continues to decline.

To support businesses, especially SMEs affected by the epidemic, the government has launched many economic relief packages amounting to hundreds of trillions of dong (billions of USD). Notably, in addition to government’s economic stimulus and relief packages, in 2020, the Government has implemented many flexible tax policy solutions such as tax exemption or reduction, tax extension, fees and charges, and land rent with nearly 5 billions USD, timely support for businesses and business households to overcome difficulties caused by the COVID-19 pandemic.

On April 19, 2021, the Government issued Decree 52/2021/ND-CP, extending the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent in 2021.

The Decree clearly states, extending the tax payment deadline for the arising value-added tax payable of the tax period from March to August 2021 (for the case of monthly VAT declaration) and the tax period of the 1st and 2nd quarter of 2021 (for the case of quarterly value-added tax declaration) of enterprises and organizations.

Specifically, for corporate income tax:

Expand Tax Incentives – On August 13, the Government issued a Resolution approving a draft resolution on tax exemption and reduction to support people and businesses affected by Covid-19 to submit to the National Assembly Standing Committee for consideration.

According to the draft Resolution submitted to the National Assembly, the payable corporate income tax amount of 2021 will be reduced by 30% for the case that the corporate income tax payer under the provisions of the Law on Corporate Income Tax has total annual revenue 2021 does not exceed 200 billion.

The draft resolution also propose a 50% reduction of personal income tax, value added tax and other taxes payable arising from business activities of the months in the third and fourth quarter of 2021 for business households and individuals business people in all fields, areas, forms and methods of tax declaration and payment.

How can Double M help ?

For a more complete Summary of regimes and policies to support and overcome difficulties caused by Covid-19 as well as tax incentives for foreign-invested enterprises, please contact us at info@double-m.co