Businesses and people affected by the Covid-19 epidemic will be supported with exemption and reduction with some taxes…

National Assembly Chairman – Vuong Dinh Hue – Photo: Quochoi.vn

On behalf of the National Assembly Standing Committee, National Assembly Chairman Vuong Dinh Hue has just signed and promulgated Resolution No. 406/NQ-UBTVQH15 dated October 19 on promulgating a number of solutions to support businesses and people affected by the Covid-19 epidemic.

According to this Resolution, businesses and people affected by the Covid-19 epidemic will be supported with exemption and reduction with some taxes.

Specifically, businesses are entitled to a 30% reduction in corporate income tax payable in 2021 for businesses with a revenue of no more than VND 200 billion in 2021 and a decrease in revenue in 2021 compared to 2019.

However, the criterion that the revenue in 2021 is reduced compared to the revenue in 2019 is not applied to the case of newly established, consolidated, merged, divided, split-up taxed enterprises in the tax period 2020, 2021.

In addition, exemption from personal income tax, value added tax and other payable taxes arising from production and business activities in the third and fourth quarter of 2021 for households and individuals engaged in production activities, doing business in district-level areas affected by the Covid-19 epidemic in 2021 shall be decided by the Chairman of the People’s Committee of the province or centrally run city.

Tax exemption does not apply to incomes and revenue from providing software products and services; digital information content products and services on entertainment, video games, digital movies, digital photos, digital music; digital advertising.

Besides, value-added tax reduction from November 1, 2021 to the end of December 31, 2021 for a number of goods and services, including transportation services; Lodging; Food Service; services of travel agents…; publishing products and services; motion picture, television program, sound recording and music publishing services; works of art and services for composing, art, and entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services. However, this group does not include publishing software and goods and services produced and traded in the form of online.

Along with that, exemption of late payment interest arising in 2020 and 2021 of tax debts, land use levies and land rents for enterprises and organizations (including dependent units, business locations). business) incurs a loss in 2020. The provisions of this clause do not apply to cases where late payment interest has been paid.

The National Assembly Standing Committee assigned the Government to implement and continue to review and implement solutions according to its competence to support enterprises and organizations to reduce input costs; Studying a plan to support corporate income tax based on labor costs, a plan to use the budget to compensate for loan interest rates for businesses and organizations severely affected by the Covid-19 epidemic to restore production, business. This Resolution will start from the date of signing.