On January 28th, 2022 The government released Decree No.15/2022/NĐ-CP about tax exemption and reduction policy. The Decree includes some of the following highlights:
1. VAT Reduction
VAT on goods and services currently subject to 10% VAT shall be reduced, except for the following goods and services:
– Teleco
mmunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining produc
ts (excluding coal mining), coke mining, refined oil, chemical products
– Goods and services subject to excise tax
– Information technology as prescribed in the Law on information technology
Reduction of VAT for each type of goods and services shall be applied consistently in all stages, including import, production, processing, and trading. Coal mine for sale shall be eligible for VAT reduction. VAT on coal products in Appendix I enclosed herewith in stages other than the stage of mining and sale shall not be reduced.
Business establishments that pay VAT using the credit-invoice method shall pay 8% VAT on the goods and services. Business establishments that pay VAT using the direct method (as a percentage (%) of revenue) shall be eligible for a 20% reduction in the percentage (%) used as the basis for calculating VAT when issuing invoices.
2. Deductible expenses upon determination of taxable corporate income
Enterprises and organizations that pay corporate income tax following the Law on Corporate Income Tax may include their donations or sponsors, whether in cash or in-kind, given for Covid-19 epidemic control operations in Vietnam through the recipients of donations and sponsors include: The Committees of Vietnamese Fatherland Front at all levels; health facilities; armed force units; units and organizations tasked by competent authorities to perform duties of centralized quarantine facilities; education institutions; press agencies; Ministries, ministerial-level agencies or Governmental agencies; Communist Party organizations, youth unions, trade unions, and Vietnam Women’s Union at central and local levels; agencies affiliated to local governments that have a fund-raising function; funds for prevention and control of COVID-19 pandemic at all levels; Covid-19 vaccine fund; national humanitarian portal; charitable and humanitarian funds, and organizat.
Decree No.15/2022/NĐ-CP takes effect on February 1st, 2022.
