There have been many policies on tax exemptions and deductions to support people and businesses

Tax exemptions for re-imported goods - As long as you have the paperwork

There have been many policies on tax exemptions and deductions to support people and businesses. Photo: Internet.

Voters of Dong Nai province suggested that there should be a policy of exempting taxes, fees and charges collected monthly. Voters of Hai Phong city also proposed to consider submitting to the competent authority for tax exemption decisions for businesses affected by the Covid-19 pandemic.

At the same time, consider waiving a number of expenses when determining corporate income tax for expenses paid to support the fight against Covid-19, testing workers, organizing isolation, maintaining products, medical equipment, and costs incurred during lockdown.

Before these recommendations, the Ministry of Finance informed voters about solutions to support taxes, fees, and land rent for people and businesses affected by the Covid-19 pandemic.

Accordingly, in 2020, in order to support businesses and people to cope with the negative impact of the Covid-19 pandemic and continuously implement the goals and tasks of the country at the same time.

The department on socio-economic development and state budget in 2020 according to the guidelines and direction of the Party, National Assembly, and the Ministry of Finance submitted to the Government and the Prime Minister for submission to the National Assembly and the National Standing Committee.

The Association decides and issues according to its authority policies on taxes, fees, and land rent with a total support value of about VND129 trillion, of which, the extended amount is about VND97.5 trillion; the amount to be exempted or reduced is about VND31.5 trillion.

Entering 2021, judging the operation of businesses, people still face many challenges, including the complicated developments of the Covid-19 pandemic. To support businesses and people in overcoming difficulties and promoting production and development, the Ministry of Finance has submitted to competent authorities for promulgation and continued to implement a number of support solutions, including extending the deadline for tax and rent payment land in 2021 for subjects facing difficulties due to the impact of the Covid-19 pandemic; reducing environmental tax on jet fuel in 2021; calculate deductible expenses when determining corporate taxable income for support and sponsorship expenses of enterprises and organizations for Covid-19 pandemic prevention and control activities; reducing the collection of more than 30 types of fees and charges (including road use fees) to support and remove difficulties for production and business, ensure social security to cope with the Covid-19 pandemic from January 1, 2021 to the end of December 31, 2021 (of which, transport business vehicles belonging to enterprises, cooperatives and unions of cooperatives shall be suspended from circulation from 30 days or more are not subject to road use fees during the suspension period). The total value of support is about VND118 trillion, of which, the extended amount is about VND115 trillion; the amount to be exempted or reduced is over VND3 trillion.

Facing the 4th Covid-19 outbreak, which seriously affected the activities of businesses and people, the Ministry of Finance urgently submitted to the Prime Minister for promulgation Decision No. 27/2021/QD-TTg dated September 25, 2021, reducing 30% of land rent payable in 2021 for subjects facing difficulties due to the impact of the Covid-19 pandemic; submit to the Government and the National Assembly Standing Committee for promulgation Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021 stipulating solutions on tax exemptions and deductions within the competence of the National Assembly.

On the four newly issued solutions with a total support value of nearly VND20 trillion, there are three solutions on tax exemption and reduction that have been applied for the first time since the Covid-19 pandemic started.

In order for these solutions to quickly come to life and immediately reach those who are in need of support, the Ministry of Finance has also urgently submitted to the Government for promulgation Decree No. 92/2021/ND-CP dated 27 October, 2021 detailing the implementation of the above Resolution No. 406/NQ-UBTVQH15 and taking effect together with the effective date of the Resolution, providing specific and detailed instructions on the contents specified in this Decree.

The National Assembly Standing Committee assigned the Government to guide the implementation immediately; uniformly and synchronously with relevant tax laws and specialized laws; simple, transparent, easy to understand, easy to implement, reduce administrative procedures and suitable to the reality of socio-economic life, creating maximum convenience for businesses and people.

In addition, the Ministry of Finance also submitted to the Government for promulgation: Decree No. 101/2021/ND CP dated November 15, 2021 (effective from December 30, 2021) to reduce the import tax rate for exporting products of many groups of products (such as domestically produced construction steel, animal feed (maize, wheat), special truck tires, Kraft paper and board, pork, etc.) and promote production, import and export activities of enterprises; Decree No. 103/2021/ND-CP dated November 26, 2021 stipulating a 50% reduction in registration fee collection for domestically manufactured and assembled cars from December 1, 2021 to the end of December 31 May 2022; and Decree No. 104/2021/ND-CP dated December 7, 2021 on extending the deadline for paying excise tax for domestically manufactured and assembled cars.

Thus, the tax, fee and land rent solutions that have been issued and implemented in 2021 will support businesses and people with an amount of about VND145 trillion. Of which, the amount to be extended is about VND120 trillion; the amount to be exempted or reduced is about VND25 trillion.

As for support solutions on taxes, fees and charges to support people and businesses affected by the Covid-19 pandemic in 2022, the Ministry of Finance said in order to remove difficulties for the aviation industry and help aviation businesses maintain operations, creating a premise for the aviation industry to recover in the future.

As a result of the implementation of the solution to reduce environmental protection tax on jet fuel from August 1, 2020, the Government has submitted to the National Assembly Standing Committee for promulgation Resolution No. 13/2021/UBTVQHQH15 dated December 31, 2021 to stipulate a 50% reduction of the environmental protection tax rate for jet fuel from January 1, 2022 to the end of December 31, 2022. It is expected that the reduction in environmental protection tax for jet fuel is about VND1,440 billion, thereby reducing state budget revenue (including value-added tax, environmental protection tax) by about VND1.6 trillion.

In order to continue to provide cost reduction for businesses and people in 2022, the Ministry of Finance has reported and proposed to the Prime Minister to continue reducing fees and charges in 2022 and issued Circular No. 120/2021/TT-BTC dated 24/12/2021 regulating the reduction of 37 fees and charges. It is expected that the reduction in state budget revenue will be about VND1,000 billion.

However, in the face of difficulties and far-reaching impacts of the Covid-19 pandemic, it is necessary to have comprehensive solutions and policies to quickly support the recovery in line with the economic recovery momentum of the region and the world.

Therefore, on January 11, 2022, the National Assembly passed Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development.

Accordingly, reducing the value-added tax rate by 2% in 2022, applicable to groups of goods and services currently applying the value-added tax rate of 10%, except for the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products minerals (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to excise tax.

Resolution No. 43/2022/QH15 also allows deductible expenses to be included when determining corporate taxable income for expenditures to support and sponsor businesses and organizations for prevention and control of the Covid-19 pandemic.

It is expected that these policies will reduce state budget revenue in 2022 by about VND51.4 trillion. Of which, the value-added tax reduction policy is about VND49.4 trillion; deductible expenses for support and sponsorship of businesses and organizations for Covid-19 prevention and control activities is about VND2 trillion.

The Ministry of Finance said that this supported tax amount will contribute to helping businesses, organizations and people overcome difficulties caused by the impact of the Covid-19 pandemic to recover and develop production, which has the effect of stimulating consumption and investment at the same time, thereby contributing to the recovery of Vietnam's economy after the pandemic and the implementation of social security.