Gov't Announces Tax Relief Measures for Businesses

8:39:27 AM | 2/9/2022

A number of services and goods shall be entitled to a two percent reduction of value-added tax (VAT) from February 1 to December 31 this year, according to Government's Decree No. 15/2022/ND-CP.

The Decree was issued to implement the National Assembly's Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies for the recovery of the national economy from the complications of the ongoing COVID-19 pandemic.

Specifically, VAT shall be reduced to 8 percent from the current 10 percent for services and goods, excluding telecom services, banking and financial services, insurance and real estate services, metallurgy, chemical products, and goods and services subject to special consumption tax.

The Decree also stipulates that grants and donations of enterprises and organizations to COVID-19 fight shall be deducted from taxable corporate income tax (CIT) when calculating the CIT of the tax period of 2022.

The amount of grants and donations must be confirmed in writing.

The Government estimated that the total amount of tax cuts would reach VND 51.4 trillion (US$2.2 billion).

The tax breaks are expected to help businesses, organizations and people weather pandemic-triggered difficulties, thereby recovering and developing production and business.