Firms with revenue of less than VND200 billion to enjoy 30% CIT cut

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Accordingly, taxpayers whose revenue is not more than VND200 billion (US$8.8 million) according to the Law on Corporate Income Tax and revenue in 2021 is lower than 2019 shall be entitled to a 30% reduction in corporate income tax payable in 2021.

The criterion that the revenue in 2021 is lower than 2019 is not applied to taxpayers who are newly established, consolidated, merged or separated in the tax period of 2020 and 2021.

In addition, the National Assembly Standing Committee decided to exempt personal income tax, value added tax and other payable taxes in the third and fourth quarters of 2021 for households and individuals in pandemic-hit areas. Tax exemption does not apply to incomes and revenues from the provision of software products and services; digital information products and services, video games, digital movies, digital photos, digital music; or digital advertising.

Furthermore, value-added tax will be reduced from November 1, 2021 to December 31, 2021 for goods and services, including: transportation services (railway transport, water transport, air transport, other land transport); accommodation services, catering services and services related to tourism; publishing products and services; cinematographic services, television production, sound recording and music production; artworks and services for composing, art, and entertainment; services of libraries, archives, museums and other cultural activities; or sports and entertainment services.

The late payment interest arising in 2020 and 2021 will be exempt for debts of tax, land use levy and land rent of enterprises and organizations (including dependent units and business locations) recording a loss in 2020. This exemption is not applied to those who paid the late payment interest.

The resolution states the Government is responsible for implementing so that consumers can benefit from the value-added tax cut.

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The National Assembly Standing Committee assigned the Government to continue reviewing and implementing solutions according to its competence to support enterprises and organizations.

This Resolution takes effect from October 19, 2021.