The draft resolution includes four policies, including three groups of policies proposed for the first time since the Covid-19 epidemic broke out in Vietnam. Photo: Luong Bang

The Vietnamese Government on August 13 submitted to the National Assembly Standing Committee a draft resolution on tax exemption and reduction to support Covid-19 affected people and businesses and proposed that the committee consider and approve this resolution in a separate session.

The Ministry of Finance, at the same time, is working on a draft of the Government's Decree guiding the implementation of the resolution once it is approved.

The draft resolution includes four policies, including three groups of policies proposed for the first time since the Covid-19 epidemic broke out in Vietnam.

The first is to reduce 50% of personal income tax, value added tax and other taxes arising from business activities in the third and fourth quarters of 2021 for households, individuals doing business in all fields, locations, forms and using all methods of tax declaration and payment.

The second is to reduce 30% of value added tax for business activities in the fields heavily affected by the Covid-19 epidemic such as tourism, transportation, hospitality, restaurants, sports, entertainment, composing, art, press, television, libraries, archives, museums and other cultural activities.

The third is exemption of the late payment interest arising in 2020 and 2021 (the two years affected by the Covid-19 epidemic) for enterprises and organizations (including dependent units, business locations) incurring continuous losses in 2018, 2019 and 2020.

In addition, the government will keep reducing 30% of corporate income tax in 2021 for businesses, cooperatives, non-business units and other organizations as applied in 2020.

It is estimated that the implementation of these policies could cause budget revenue to reduce by about 20 trillion VND.

The Ministry of Finance has also submitted to the Prime Minister a 30% reduction in land rent in 2021 for those affected by the Covid-19 epidemic.

In general, with the policies approved by the National Assembly Standing Committee, the Government and the Ministry of Finance since the beginning of 2021 and the new policies, the total value of reduced tax, fee, and land rent for pandemic-hit businesses and people is over 138 trillion VND.

Luong Bang

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