Ministry proposes 30% decrease in 2021 corporate income tax
The Ministry of Finance (MoF) is proposing a 30% reduction in the corporate income tax which enterprises must pay in 2021 in a draft resolution on budget collection solutions which is to be submitted to the National Assembly’s Standing Committee for approval.
A 50% reduction in tax which household businesses and individuals operating in all sectors must pay in the third and the fourth quarter of 2021 is proposed, together with a 30% reduction in the value added tax for several sectors.
The ministry also proposed exemption of the fee for late payments arising in 2020 and 2021 for enterprises and organisations which incurred losses for the three consecutive years of 2018, 2019 and 2020.
The tax and fee reduction and exemption package is estimated to be worth around VND20 trillion (US$897 million) to support citizens and enterprises affected by the COVID-19 pandemic.
The MoF is also studying proposals to reduce land use fees in 2021.
It has been estimated that the Government's support in tax and fee reductions and exemptions will total VND138 trillion this year, of which support worth VND118 trillion has already been issued.
The tax and fee reductions and exemptions totalled VND129 trillion last year.
The Government has asked the MoF to complete the draft resolution and submit it to the Prime Minister before August 10.