New Government Decree on groups of tax exemption and reduction solutions to 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, business, and economic restart.

Entering 2021, assessing 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 and study to continue issuing 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 to issue a number of tax exemption and reduction solutions to support businesses and people affected by the Covid-19 pandemic (Submission No. 289/TTr-CP dated August 13, 2021); proactively coordinate closely with the 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.

In order for Resolution No. 406/NQ-UBTVQH15 to soon come into effect, the Government promptly issued Decree No. 92/2021/ND-CP dated October 27, 2021 guiding 4 groups of tax exemption and reduction solutions, including: (i) Reducing corporate income tax payable in 2021 for enterprises and organizations with revenue not exceeding VND 200 billion and revenue in 2021 decreasing compared to 2019; (ii) Exempting taxes (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) reducing 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.

The Decree comes into force at the same time as the effective date of Resolution No. 406/NQ-UBTVQH15 (October 19, 2021).

The issuance of Decree No. 92/2021/ND-CP dated October 27, 2021 to promptly implement solutions stipulated in Resolution No. 406/NQ-UBTVQH15 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./.