Will some business groups be subject to a tax reduction of 30% in 2021?
Financial policies: "Special medicine" for businesses | |
Tax sector intensively reduces land rent tax in 2020 | |
Vietnam approves 30% corporate income tax reduction |
Director of Tax Policy Department Nguyen Quoc Hung (the Ministry of Finance). |
Could you tell us about the solutions on taxes and fees offered by the Ministry of Finance to support residents and enterprises in the near future?
The Covid-19 pandemic has impacted the production and business operation of enterprises, business households, and individuals in sectors like tourism, transportation, accommodation and catering services, film screenings, sports and entertainment.
Therefore, it is necessary to have more solutions on revenue collection for businesses and residents to cope with the impact of the Covid-19 pandemic.
At the first session, the XV National Assembly approved Resolution 30 dated July 28, 2021, which allows the Government to report to the Standing Committee of the National Assembly to consider and approve to shorten processes before performing.
The promulgation of a decree on some revenue collection measures to assist taxpayers suffered from the public health crisis is feasible.
The promulgation of support solutions should meet targets and requirements like ensuring timely and appropriate support policies to help businesses and residents cope with the impact of the Covid-19 pandemic and restore production and business in accordance with policies of the Party and State and the actual situation of the State budget.
The Resolution will also ensure the consistency and synchronization with the provisions of the tax law.
What are the key policies in the draft decree?
The draft decree aims to achieve four solutions. First, reducing 30% of corporate income tax in 2021 for businesses and organizations as applied to those in 2020.
Second, reducing 50% payable tax arising from production and business operations in months in the third and fourth quarters of 2021 for business households and individuals in sectors and areas.
Third, cutting 30% of VAT for businesses and organizations in some service sectors.
Fourth, exempting late payment interest arising in 2020 and for businesses and organizations that reported losses in 2018, 2019 and 2020.
How will these policies affect revenue collection?
These policies may reduce the State revenue by about VND20 trillion. The Ministry is also studying and reporting to the Prime Minister on solutions to reduce land rent in 2021.
The extended amount of taxes, fees and land rent to support businesses in 2021 is VND138 billion. Of the figure, about VND118 trillion was extended.
The amount of tax, land rent, and late payment interest will affect the state budget balance, but it shows the Government’s companionship, contributing to helping enterprises overcome difficulties and restoring the country's economy post-pandemic, and implementing social security.
Related News
Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized
09:22 | 10/11/2024 Finance
Perfecting the law on import and export tax towards exemption and reduction for the right subjects
15:00 | 05/11/2024 Customs
Bac Ninh Customs encourages customs brokerage services
15:32 | 05/11/2024 Customs
Fiscal policy needs to return to normal state in new period
09:54 | 04/11/2024 Finance
Latest News
Amending regulations for proactive, responsible tax officials
08:55 | 11/11/2024 Finance
Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference
20:07 | 10/11/2024 Finance
Revising policies to adapt to two-way impact of FTAs
09:24 | 10/11/2024 Finance
Amend regulations on “Public-Private Partnership” (PPP) and “Build Transfer” (BT) investment: Fully calculating to avoid loss of state assets
14:23 | 09/11/2024 Finance
More News
Public investment disbursement reaches 52.2% in ten months
15:17 | 08/11/2024 Finance
State budget revenue for 2024 nears target
10:06 | 08/11/2024 Finance
Public investment spending up 1.8% in first 10 months of 2024
10:03 | 08/11/2024 Finance
Propose many solutions to shorten tax refund time
09:32 | 07/11/2024 Finance
Finance sector exceeds revenue target in 4 years thanks to comprehensive reform of collection method
09:30 | 07/11/2024 Finance
3 priority pillars of Japanese ODA capital flow in Vietnam
14:19 | 06/11/2024 Finance
Removing legal hurdles in regular spending for capital assets
09:02 | 05/11/2024 Finance
M&A activities show signs of recovery
13:28 | 04/11/2024 Finance
Ensuring national public debt safety in 2024
17:33 | 03/11/2024 Finance
Your care
Amending regulations for proactive, responsible tax officials
08:55 | 11/11/2024 Finance
Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference
20:07 | 10/11/2024 Finance
Revising policies to adapt to two-way impact of FTAs
09:24 | 10/11/2024 Finance
Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized
09:22 | 10/11/2024 Finance
Amend regulations on “Public-Private Partnership” (PPP) and “Build Transfer” (BT) investment: Fully calculating to avoid loss of state assets
14:23 | 09/11/2024 Finance