On October 27th, 2021, The Government promulgates Decree No. 92/2021/ND-CP providing detailed regulations on implementation of Resolution No. 406/NQ-UBTVQH15, thereby:
CIT: A reduction of 30% in the payable corporate income tax amount of 2021 will be given to a taxpayer regulated by the Law on Corporate Income Tax that has a turnover of not greater than VND 200 billion in 2021 and a decrease in revenue in 2021 compared to the revenue in 2019
- The turnover in the tax period for calculating taxable income is the total proceeds from the sale of goods, remuneration for processing, and charges for provided services and for business activities under business cooperation contracts, including price subsidies, surcharges, and extra fees that an enterprise may earn, excluding decrease revenue; the turnover from financial activities and other income
- In case, enterprises have operated for less than 12 months in the tax period, the total revenue of the first fiscal year will be the total revenue divided by (:) the number of months of actual business operation multiplied by (x) 12.
VAT: 30% reduction of VAT rate shall be applied for production and business enterprises from November 1st, 2021, to December 31st, 2021, for the goods and services that specified in Appendix in Decree No 92/2021/ND-CP thereby:
- The value-added tax: The enterprise or organization will be eligible for a reduction of 30% in VAT rate If the credit method (deduction method) is used; the enterprise or organization will be eligible for a reduction of 30% in the rate for direct VAT calculation If the direct method (payable VAT amount equals given rate multiplied by revenue) is used.
- In case, the enterprise or organization has multiple goods and services will issue invoices for each good, service which is entitled to a reduction in value-added tax.
- In case, the enterprise or organization issued INV and declared tax based on tax rate or percent of the rate to calculate VAT before VAT reduction, the buyer and the seller shall make a record or a written agreement specifying the errors, then the seller shall make a corrective invoice and give to the buyer.
Exemption of late payment: Grant exemption of late payment interest incurred in 2020 and 2021 on debts of taxes, land use levies, and land rents to enterprises and organizations (including affiliated entities, places of business) that incur losses in 2020
- The directly supervisory tax authority of the taxpayer or the tax authority responsible for the management of the collection of land use levy, lend rents based on the management data, determine the late payment amount that incurs in 2020, 2021 of the payer to promulgate decisions
- Taxpayers make written requests for late payment exemption, clearly stating the loss incurred in 2020 for such application according to Form No. 01/MTCN in Appendix II hereof and send directly or by post or electronic means to the supervisory tax authority of the taxpayer or the tax authority responsible for the management of the collection of land use levy, land rents.
- In case the taxpayer paid late payment before the effective date of Resolution No. 406/NQ-UBTVQH15, no adjustment is required.
This Decree takes effect on October 19th, 2021.
