Tax exemption and reduction policies are necessary for businesses at this time

VCN - In an interview with Customs News, Nguyen Thi Cuc, President of the Vietnam Tax Consultants’ Association, said that to ensure the Resolution on tax exemption and reduction is applied in the practical situation, it needs to have close support from tax authorities so that people and businesses could approach support policies in any circumstances.
Nguyen Thi Cuc, President of the Vietnam Tax Consultants’ Association
Nguyen Thi Cuc, President of the Vietnam Tax Consultants’ Association

The Government has submitted Report No. 289/TTr-CP to the National Assembly Standing Committee on the draft Resolution of the National Assembly Standing Committee promulgating several solutions on tax exemption and reduction to support enterprises and people affected by the Covid-19 pandemic. What do you think about this issue?

The reality showed that enterprises in Vietnam are facing more and more difficulties due to the complex developments of Covid-19 pandemic. For example, difficulties in maintaining production and business, limited income while all wages are paid to employees, or expenses for depreciation of machinery, equipment, rent of premises, businesses still have to pay.

If any firm previously had financial resources, it could be able to hold on. However, most businesses not only did not generate profits but also suffered heavy losses. Therefore, to help businesses overcome difficulties caused by the pandemic, the Government needed to implement solution packages, besides deadline extension of tax payment solution as done before. Tax reduction for enterprises in the current context was very necessary and urgent, helping businesses overcome difficulties, maintain stability during the outbreak of Covid-19 and recover after the pandemic is over.

The policy of tax exemption and reduction in this draft Resolution was very necessary for businesses at this time. Instead of just extending deadlines for tax payment, which was only delayed and they still had to pay tax, enterprises were now exempt.

In your opinion, how will the support developed by the Ministry of Finance in the draft Resolution help businesses at this time?

The reduction of corporate income tax by 30% has been implemented from previous support packages. However, this policy only works for profitable businesses but enterprises that faced difficulties still have to pay value added tax when they have revenue.

Therefore, when a proposal to reduce value added tax was presented for businesses, business households, and individuals in almost every field, I felt quite happy. Specifically, reducing 50% of personal income tax, value added tax and other payable taxes arising from business activities in the 3rd and 4th quarters of 2021 for business households, and individuals in all fields, geographical areas, forms and methods of tax declaration and payment. At the same time, reducing the tax rate by 30%, the percentage of value added tax for business activities in fields that were heavily affected by the Covid-19 pandemic such as tourism; transportation; hospitality; sports, entertainment; composing, art; press, television; libraries, museums and other cultural activities.

It clearly showed that the reduction of value-added tax was very important for businesses. I thought that the reduction of value added tax, whether at 30% or 50%, was very useful for businesses, because even though the business had made no profit, every revenue from the operation had to pay tax. So by reducing value-added tax, the target audience would be appreciated.

Currently, businesses are looking forward to this support coming into effect. So after the draft Resolution is issued, what needs to be done so that businesses can enjoy these tax exemption and reduction policies?

As soon as the Resolution is promulgated, the authorities should issue a document to guide businesses in carrying out tax exemption and reduction procedures. Regarding procedures, it is recommended to continue to inherit the provisions of Decree 41/2020/ND-CP and Decree 52/2021/ND-CP to simplify procedures.

In particular, it only need to make a single request for tax reduction to receive a reduction in corporate income tax and value added tax. When the guidance documents are issued, they should be widely disseminated and sent to taxpayers by email, zalo, or through tax agents to advise and support businesses, so that support policies could reach taxpayers in the fastest and most effective way, meeting the objective set by the Government.

On the business side, they also needed to rearrange production, grasp tax support policies, and procedures for extending the deadline of tax payment and land rent to enjoy tax incentives.

By Thùy Linh/Thanh Thuy

Related News

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Perfecting the law on import and export tax towards exemption and reduction for the right subjects

Perfecting the law on import and export tax towards exemption and reduction for the right subjects

VCN - According to Deputy Director General of Vietnam Customs Luu Manh Tuong, there are still many issues to take full advantage of Free Trade Agreements (FTAs), including the need to perfect legal policies on import and export taxes in the direction of strict management and exemption for the right subjects.

Latest News

Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.

More News

Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Answering many questions from businesses at dialogue conference on tax and customs policies

Answering many questions from businesses at dialogue conference on tax and customs policies

VCN - Many opinions and recommendations related to tax and customs issues were raised by the business community at the dialogue on tax and customs policies and administrative procedures in 2024, organized by the Ministry of Finance.Representatives of the Ministry of Finance, the General Department of Taxation, and the General Department of Customs provided specific responses, and affirmed that they will continue to research and advise on the assessment, review, and amendment and supplementation of appropriate regulations.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Read More

Your care

Latest Most read
Fed’s foreseen rate cuts affect foreign exchange rate

Fed’s foreseen rate cuts affect foreign exchange rate

After the Fed’s move, the US dollar index (DXY) on December 19 hit nearly 108, the highest level in the past year.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses an
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
Mobile Version