According to
the Ministry of Finance , in the years 2020-2023, solutions to extend, exempt, and reduce taxes, fees, charges, and land rents have helped support businesses and people by about VND507 trillion. Specifically, the impact of the COVID-19 pandemic and the impact of international economic and political issues have seriously affected the country's socio-economic development, business production activities of enterprises, and people's lives. [caption id="attachment_605235" align="alignnone" width="768"]
During the past 3 years of the COVID-19 outbreak, the Government has issued many policies to support businesses and workers to stabilize their lives and minimize the impact of the pandemic.[/caption] According to its management function, the Ministry of Finance has proactively researched, proposed, submitted to competent authorities as well as issued solutions in the financial sector, especially solutions on extending, exempting and reducing taxes, fees, charges and land rents, such as extending taxes (value added tax (VAT), corporate income tax (CIT), personal income tax (PIT), special consumption tax (SCT); exempting and reducing CIT, PIT, VAT, import tax, environmental protection tax (EPT), along with many fees, charges and land rents to support businesses, people and the economy. In 2020, the total scale of support solutions is about 129 trillion VND (of which the amount Taxes and land rents were extended by about VND 97.5 trillion; the amount of taxes, fees, charges and land rents were exempted or reduced by more than VND 31.5 trillion). In 2021, in the face of the very complicated developments of the COVID-19 pandemic, support solutions were continued to be implemented at a higher level in both content and support value with a total scale of about VND 145 trillion (of which: the amount of taxes, fees, charges and land rents were exempted or reduced by about VND 25 trillion; the amount of taxes and land rents were extended by about VND 120 trillion). In 2022, to support businesses and people to recover after the COVID-19 pandemic, the Ministry of Finance also coordinated with
the Ministry of Planning and Investment to propose and advise the Government to submit to the National Assembly for approval Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program (including regulations on reducing tax rates). VAT rate for most items currently subject to 10% tax rate down to 8%; continue to include in deductible expenses when determining taxable income for corporate income tax for support and sponsorship expenses of enterprises and organizations for COVID-19 prevention and control activities), and continue to implement solutions on extension, exemption and reduction of taxes, fees, charges and land rents. It is expected that implementing these solutions in 2022 will support businesses and people with the value of taxes, land rents, fees and charges of about 233 trillion VND (of which: the amount of taxes, fees and charges exempted and reduced is about 98 trillion VND; the amount of taxes and land rents extended is about 135 trillion VND). The Ministry of Finance said that from the end of 2022, in addition to favorable conditions inherited from achievements in economic recovery in 2022, it is forecasted that there will be many risks and challenges from unpredictable fluctuations of the situation. The world situation can affect the operations of businesses, people as well as the economy in the context of deep international integration. In order to promptly and proactively implement the socio-economic development and financial-budgetary goals of 2023, the Ministry of Finance has urgently researched and proposed to competent authorities solutions on taxes, fees, charges and land rents applicable for 2023 such as: Submitted to the Government to submit to the National Assembly Standing Committee to issue Resolution No. 30/2022/UBTVQH15 dated December 30, 2022 on environmental protection tax rates for gasoline, oil, and grease, effective from January 1, 2023 to December 31, 2023. It is expected that the implementation of this Resolution will reduce state budget revenue by about 38 trillion VND. Submitted to the Government for consideration and issuance of a Decree extending the deadline for payment of VAT, CIT, personal income tax and land rent land in 2023 for enterprises, organizations, business households and individuals doing business according to Submission No. 43/TTr-BTC dated March 30, 2023 of the Ministry of Finance. Accordingly, the expected amount of tax and land rent to be considered for extension is more than 110 trillion VND. The Ministry of Finance is also synthesizing opinions of agencies, organizations and individuals to complete the draft Decision of the Prime Minister on reducing land rent payable in 2023 to submit to the Prime Minister for consideration and promulgation as soon as possible. It is expected that by implementing this solution, the amount of land rent to be reduced in 2023 will be about 3.5 trillion VND. The Ministry of Finance is also coordinating with relevant agencies to study the extension of the deadline for paying special consumption tax on domestically manufactured and assembled automobiles. [caption id="attachment_605241" align="alignnone" width="768"]
To ensure
economic and social development after the COVID-19 pandemic, the National Assembly has just passed a resolution to reduce income tax by 2% for people and businesses.
Continue to reduce VAT rate by 2% until December 31, 2023 In order to stimulate consumption, promote production and business activities to recover and develop, the Government has submitted to
the National Assembly a proposal to reduce value added tax. Accordingly, in 2023, the VAT rate will be reduced by 2% for all goods and services subject to a tax rate of 10% (to 8%); reduce the % rate to calculate VAT by 20% for business establishments (including business households and individual businesses) when issuing invoices for all goods and services subject to a VAT rate of 10%. Implementing this plan aims to ensure the right goal of stimulating consumption, in line with the current economic context, thereby promoting production and business activities to recover and develop soon to contribute back to the State budget as well as the economy. The application period is from the date the policy is issued until December 31, 2023.
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