Home / National Assembly approves 30% reduction for CIT payables in 2021

National Assembly approves 30% reduction for CIT payables in 2021

21/10/2021

On October 19, 2021, the National Assembly Standing Committee issued Resolution Resolution 406/NQ-UBTVQH14 on solutions to support businesses and people affected by the COVID-19 epidemic.

Accordingly, 30% reduction of CIT payable in 2021 in the case of taxpayers under the provisions of the Law on CIT specifically as follows:

  • Enterprises have a revenue of no more than VND 200 billion in 2021 and a decrease in revenue in 2021 compared to 2019.
  • The criterion that the revenue in 2021 is reduced compared to the revenue in 2019 is not applied to the case of taxpayers newly established, consolidated, merged, divided, split in the tax period 2020, 2021.

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Besides, value added tax reduction from November 1, 2021 to the end of December 31, 2021 for the following goods and services:

(i) Transport services (rail transport, water transport, air transport, other road transport); Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours;

(ii) Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services for composing, art, and entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.

Goods and services in group (ii) do not include publishing software and goods and services produced and traded in the form of online.

Depending on the tax calculation method, the value-added tax reduction is applied as follows:

a) Enterprises and organizations calculate value-added tax according to the deduction method for production and trading of goods and services prescribed specified in this Clause, a reduction of 30% of the value-added tax rate;

b) Enterprises and organizations that calculate value added tax according to the percentage method on the turnover of production and trading of goods and services specified in this Clause are entitled to a reduction of 30% of the percentage rate for calculating value tax. increase.

In addition, the Resolution also stipulates exemption of late payment interest arising in 2020 and 2021 of tax, land use levy and land rent debts for enterprises and organizations (including dependent units, business location) incurred a loss in 2020.

Resolution 406/NQ-UBTVQH14  takes effect from the date of signing.