On October 19, 2021, the National Assembly Standing Committee issued Resolution No. 406/NQ-UBTVQH15 (“Hereinafter referred to as Resolution 406”) on promulgating some solutions to support businesses and people affected by the Covid-19 pandemic. Some keys on tax exemption and reduction prescribed in Resolution 46 includes:
Reduce 30% of paying corporate income tax in 2021 if the revenue in 2021 is not more than VND 200 billion and the revenue in 2021 is reduced compared to the revenue in 2019.
However, the criterion of reduced revenue does not apply to newly established, consolidated, merged, divided, separated enterprises in the tax period 2020, 2021.
Exemption from personal income tax, value-added tax and other payable taxes arising from business activities of the months in the third and fourth quarters of 2021 for households and individuals with business activities in districts affected by the COVID-19 pandemic in 2021 decided by the Chairman of the People’s Committee
However, revenue from providing software products and services; digital information content products and services on entertainment, video games, digital movies, digital photos, digital music; Digital advertising will not be exempted from tax.
Reduced value-added tax from November 1, 2021, to the end of December 31, 2021, for goods and services as follows: (i) Transportation services; Lodging; Food Service; travel services agencies, tour operators and support services related to the promotion and organization of tours; (ii) Publishing products and services; cinematographic services, television program production, sound recording and music publishing; artworks and services for composing, art, and entertainment; services of libraries, storing, museums and other cultural activities; sports and entertainment services.
The goods and services in the group (ii) above do not include publishing software and goods and services produced and traded in the online form.
The value-added tax reduction is 30% of the value-added tax rate calculated by the deduction method. For calculating value-added tax according to the percentage method on the turnover of production and trading of goods and services, a reduction of 30% of the percentage rate is allowed to calculate value-added tax.
Exemption of late payment interest arising in 2020 and 2021 of tax debts, land use levy and land rent for enterprises and organizations (including dependent units, business locations) incurring losses in 2020. This provision does not apply in cases where the enterprise has paid late payment interest.