Decree 92 creates maximum convenience for taxpayers

This is an important step to bring Resolution No. 406/NQ-UBTVQH15 (Resolution 406) into life soon, contributing to encouraging production and business, in line with the trend of supporting businesses and people to overcome difficulties caused by the pandemic in the world; at the same time, ensuring clear, transparent, simple policies, reducing administrative procedures.

Many timely policies support businesses and people

In 2020, in order to support and accompany businesses and people in responding to the negative impacts of the COVID-19 pandemic in accordance with the context and conditions of the country, while continuing to implement the goals and tasks of socio-economic development and the State budget in 2020 according to the Resolution of the National Assembly, the Government has issued, within its authority, and submitted to competent authorities for promulgation of tax, fee, charge, and land rent policies to promptly remove difficulties and support the promotion of production and business, and restart the economy.

Focusing on removing difficulties for businesses is the top priority. Photo: Tran Chau

Entering 2021, recognizing that businesses and people continue to face many challenges, while the COVID-19 pandemic is still very complicated, implementing the direction of the Central Executive Committee, the Politburo, the Secretariat, the National Assembly, the Government, the Prime Minister has directed the Ministry of Finance to review, study and continue to issue tax exemption and reduction solutions to continue supporting businesses and people to overcome difficulties and promote production and business development.

Based on the proposal of the Ministry of Finance and the appraisal of the Ministry of Justice, the Government has approved the policy to submit to the National Assembly Standing Committee a number of solutions on tax exemption and reduction to support businesses and people affected by the COVID-19 pandemic (Submission No. 289/TTr-CP dated August 13, 2021); proactively coordinate closely with National Assembly agencies to complete the content of the dossier submitted to the National Assembly Standing Committee. On October 19, 2021, the National Assembly Standing Committee signed Resolution No. 406/NQ-UBTVQH15 on promulgating a number of solutions to support businesses and people affected by the COVID-19 pandemic.

Decree 92 - a timely solution to restore the economy

Given the extremely complicated developments of the epidemicCovid-19has been and continues to seriously and heavily affect the operations of businesses and people, especially small and medium-sized enterprises, business households, individual businesses and production and business activities in industries such as tourism, transportation, accommodation and catering, cinema, sports and entertainment, press, television... In order to promptly have solutions to support production and business activities in accordance with the actual situation, the Ministry of Finance has developed and submitted to the Government to submit to the National Assembly Standing Committee for approval Resolution 406 to promulgate a number of solutions to support businesses and people affected by the Covid-19 epidemic. Clause 2, Article 3 of the Resolution assigns "The Government to guide the implementation of this Resolution".

In order for Resolution 406 to soon come into effect, the Government has urgently issued Decree 92 guiding 4 groups of tax exemption and reduction solutions including: (i)Corporate income tax reductionpayable in 2021 for enterprises and organizations with revenue of no more than VND 200 billion and revenue in 2021 decreased compared to 2019; (ii) tax exemption (personal income tax, value added tax and other taxes) in the third and fourth quarters of 2021 for business households and business individuals with production and business activities in district-level areas affected by the COVID-19 pandemic in 2021; (iii) reduction of value added tax rates for groups of goods and services in industries; (iv) exemption of late payment fees arising in 2020 and 2021 for enterprises and organizations that incurred losses in 2020.

Decree 92 detailing the implementation of Resolution 406 is necessary to ensure consistency in the legal system, facilitate taxpayers, tax collection management, and is also consistent with the provisions of the Law on Promulgation of Legal Documents, contributing to encouraging production and business, in line with the trend of supporting businesses and people to overcome difficulties caused by the pandemic in the world; at the same time, ensuring clear, transparent, simple policies, reducing administrative procedures. Accordingly, the development and promulgation of Decree No. 92/2021/ND-CP has ensured the following goals and requirements:

The first,closely follow the provisions of Resolution 406, ensuring consistency and synchronization with tax laws and related specialized laws.

Monday,ensure the principles of simplicity, transparency, ease of understanding, ease of implementation and suitability with the reality of economic and social life, creating maximum convenience for businesses and people, thereby encouraging businesses and people to soon restore production and business according to the policies of the Party and State.

The issuance of Decree 92 to promptly implement solutions stipulated in Resolution 406 will contribute to supporting businesses and people to overcome difficulties caused by the impact of the COVID-19 pandemic to continue operating, contributing to the results of restoring the country's economy after the pandemic and implementing social security.

Decree 92 takes effect at the same time as the effective date of Resolution 406 (October 19, 2021).