Ministry proposes 30 percent decrease in 2021 corporate income tax

Production at Fuhong Precision Component in Dinh Tram Industrial Zone, Bac Giang province (Photo: VNA)

The Ministry of Finance (MoF) is proposing a 30 percent reduction in the corporate income tax which enterprises must pay in 2021 in a draft resolution on budget collection solutions which is to be submitted to the National Assembly’s Standing Committee for approval.

A 50 percent reduction in tax which household businesses and inpiduals operating in all sectors must pay in the third and the fourth quarter of 2021 is proposed, together with a 30 percent reduction in the value added tax for several sectors.

Illustrative image (Source: VNA)

The ministry also proposed exemption of the fee for late payments arising in 2020 and 2021 for enterprises and organisations which incurred losses for the three consecutive years of 2018, 2019 and 2020.

The tax and fee reduction and exemption package is estimated to be worth around 20 trillion VND (897 million USD) to support citizens and enterprises affected by the COVID-19 pandemic.

The MoF is also studying proposals to reduce land use fees in 2021.

It has been estimated that the Government's support in tax and fee reductions and exemptions will total 138 trillion VND this year, of which support worth 118 trillion VND has already been issued.

The tax and fee reductions and exemptions totalled 129 trillion VND last year.

The Government has asked the MoF to complete the draft resolution and submit it to the Prime Minister before August 10./.