9 November 2021
On 27 October 2021, the Government issued Decree No.92/2021/ND-CP about detailed regulations on several solutions to support businesses and people affected by the Covid-19 epidemic. The main contents are as follow:
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CIT reduction:
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Reducing 30% of the payable CIT amount of the 2021 CIT period for enterprises with revenue in the tax period of 2021 (i) not exceeding VND 200 billion and (ii) lower than the revenue in the tax period of 2019.
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In the case of newly established enterprises, consolidation, merger, division, separation in the tax period of 2020 and 2021, the criteria (ii) above will not apply.
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Ways to determine the amount of CIT to be reduced and declare the tax reduction are specifically guided in this Decree.
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Tax exemption to business households and individuals:
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Business households and individuals are exempt from payable PIT, VAT, special consumption tax, natural resources tax, and environmental protection tax arising from business activities of the months in quarters III and IV of 2021.
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Tax exemption does not apply to income, revenue from providing software products and services; products and services with content about entertainment, video games, digital movies, digital photos, digital music; digital advertising.
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In the case of business households and individuals, which have paid taxes arising from business activities in quarters III and IV of 2021, the tax authorities will deduct the paid tax amount to the debts or amounts arising in the following periods and refund the overpayments as regulated by law.
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VAT reduction:
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From 1 November 2021 to 31 December 2021, VAT will be reduced for goods and services detailed in Appendix I attached to this Decree.
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Enterprises and organizations that calculate VAT by the credit method are entitled to a 30% reduction in the VAT rate for the goods and services mentioned above.
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Enterprises and organizations that calculate VAT according to the percentage method on revenue are entitled to a 30% reduction of the percentage rate to calculate VAT on the goods and services mentioned above.
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The order and procedures for VAT reduction are specifically guided in this Decree.
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Exemption of late payment interest
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Exemption of late payment interest arising in 2020 and 2021 of tax debts, land use fees, and land rent for taxpayers who are businesses and organizations (including dependent units, business locations) that incur losses in the tax period of 2020.
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To be exempted from late payment interest, the taxpayer must send a written request (under the form attached to the Decree) to the tax authority directly managing the tax, the tax authority managing the tax, collecting land use fees and land rent to be considered.
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The procedures and dossiers regarding late payment interest exemption are specifically guided in this Decree.
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