Proposal to reduce 50% tax for all households and individuals doing business

Covid-19 epidemicRecent complicated developments, especially in July, have severely affected small and medium-sized enterprises, business households, individual businesses and activities of a number of service sectors such as tourism, transportation, accommodation and catering, cinema, sports, entertainment and recreation...

Mr. Nguyen Quoc Hung, Director of Tax Policy Department (Ministry of Finance) shared some proposed solutions on taxes and fees for these subjects.

Firstly, the Ministry of Finance wants to reduce corporate income tax by 30% this year as applied in 2020, applicable to enterprises with annual revenue of no more than VND200 billion.

Hoc Mon wholesale market (HCMC) during the days of temporary lockdown due to Covid-19 infection. Photo: Quynh Tran

Second, reduce 50% of tax arising from activitiesproduction and businessin the third and fourth quarters of this year for business households and individuals doing business in all fields, professions and locations.

The Ministry of Finance also plans to reduce 30% of value added tax for businesses and organizations operating in a number of service sectors.

Finally, the Ministry proposed to exempt late payment fees arising in 2020 and 2021 for enterprises and organizations that incurred continuous losses for three years from 2018 to 2020.

Mr. Hung said that the four proposed solutions above can reducebudget revenueabout 20,000 billion VND. In addition, the Ministry of Finance is also researching and reporting to the Prime Minister to reduce land rent for 2021.

Taking into account the solutions implemented by the National Assembly Standing Committee, the Government and the Ministry of Finance since the beginning of 2021 and the proposed additional solutions mentioned above, Mr. Hung said that the amount of support for businesses and people in 2021 is about 138,000 billion VND. Of which, the package of extension, exemption and reduction of taxes, fees, charges and land rents issued is about 118,000 billion VND.

At the first session of the 15th National Assembly, a Resolution was issued, assigning the Government to implement a number of urgent solutions to respond to the Covid-19 pandemic. In particular, the Ministry of Finance was assigned to study and propose a new Covid-19 support package related to taxes and fees. The Ministry is finalizing and will report to the National Assembly Standing Committee and the Government for decision./.