On October 19th, 2021, the National Assembly Standing Committee issued Resolution No. 406/NQ-UBTVQH15 on some tax exemption and reduction solutions in 2021, thereby:
CIT: Taxpayers whose revenue in 2021 does not exceed 200 Billion VND and their revenue in 2021 is reduced in comparison with 2019’s will be reduced by 30% of the tax payable in 2021. If new, consolidated, or merged, divided, split taxpayers during the tax period of 2020, 2021, the criterion: the revenue in 2021 is reduced in comparison with 2019’s shall not be applied.
Exemption for PIT, VAT, and other payable taxes arising from production, and business activities in the months of the 3rd and 4th quarters of 2021 for households and individuals in the affected district-level areas by Covid-19 pandemic. Tax exemption does not apply to income from conducting software products and services, information technology content products, and services.
VAT: 30% reduction of VAT rate shall be applied for production and business enterprises from November 1st, 2021, to December 31st, 2021. This tax reduction shall be applied for the following fields: transportation services (railway, waterway, airway, road); accommodation, food and beverage services; travel agency, tour business, and related support services to promoting and organizing tours. Enterprises engage in publishing products and services; cinematic services, television programs, recording, music publishing services; creative, arts and entertainment activities; libraries, repositories, museums, and other cultural activities; sports, recreational, and entertainment.
Exemption of late payment interest arising in the year 2020-2021 for debts of tax, land use, and land rent payment for enterprises suffering from losses in 2020. In case the enterprise has already paid late payment, it is will not be refunded.
This Resolution takes effect from the signing date.
