According to Resolution No. 406/NQ-UBTVQH of the National Assembly Standing Committee issued on October 19, 2021 on a number of solutions to support businesses and people affected by the COVID-19 epidemic. The content of the Resolution provides support solutions, including a solution to reduce CIT in 2021 and reduce VAT on some goods and services from November 1, 2021 to the end of December 31, 2021.
In compliance with Resolution No. 406/NQ-UBTVQH of the National Assembly Standing Committee, on October 27, 2021, the Government issued Decree No.92/2021/ND-CP, which contains guidance on reducing CIT in year 2021 and reducing VAT from November 1, 2021 to the end of December 31, 2021, as follows:
CIT reduction in 2021:
30% reduction of paying corporate income tax of the 2021 tax period for the case that the enterprise has a turnover in the 2021 tax period not exceeding VND 200 billion and the turnover in the 2021 tax period is lower than with revenue in the 2019 tax period.
The criterion that the revenue in the 2021 tax period does not apply to the case of a newly established enterprise, merged, divided, split in the tax period of 2020 and 2021.
Water transport services are eligible for VAT reduction from November 1, 2021 to December 31, 2021
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VAT reduction for the following goods and services:
- Transportation 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;
- Publishing products and services; cinematographic services, television program production, sound recording and music publishing; artwork and creative, artistic, entertainment services; 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 online form.
Depending on the tax calculation method, the value-added tax reduction is applied as follows:
- Enterprises and organizations that calculate value-added tax by the credit method of production and trading of goods and services specified in this Clause are entitled to a reduction of 30% of the value-added tax rate.</li >
- 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 30% reduction of the percentage rate for calculating value tax. value added.
In order to help businesses and individuals fully grasp information, the Tax Department of Ho Chi Minh City has developed an informational video clip on CIT reduction in 2021 (https://www.youtube.com/watch?v=zyuhI1mVLeU), VAT reduction (https://www.youtube.com/watch?v=TWU8y_jc1Vg), shared on Youtube.
