In 2022, the COVID-19 pandemic is expected to remain complicated due to the possibility of new variants with increased transmissibility.
The Ministry of Finance (MoF) has proposed extending the Government’s ongoing support programs through tax and fee reductions from June 2021 to June 2022.
Additionally, the MoF recommended that government agencies consider further fee reductions to assist individuals and businesses affected by the pandemic.
In his conclusion on November 15, Deputy Prime Minister Nguyen Minh Khai stated that the Government agreed with the MoF proposal and is instructing other ministries to adjust fees and taxes.
Khai urged government agencies to simplify procedures for businesses and individuals when it comes to tax and fee reductions.
According to the MoF’s report, the Covid-19 pandemic is expected to remain complicated in 2022, given the risk of new variants with increased transmissibility posing a greater threat.
In 2020, the ministry launched the first of several support programs aimed at reducing fees and taxes by 20-50 percent in the securities, construction, banking, and industrial sectors. The programs were later extended through 2021, resulting in a loss of VND3 trillion (US$131.7 million) in state budget revenue between 2020 and 2021.
The National Assembly passed a resolution in late October outlining measures to assist businesses and those impacted by the pandemic, including a 30% corporate income tax cut for taxpayers with revenue in 2021 of less than VND200 billion (US$8.8 million) and less than the figure recorded in 2019.
Additionally, the NA decided to waive personal income tax, value-added tax, and other expenses incurred by business households and individuals in the third and fourth quarters of 2021 in areas likely to experience Covid-19 outbreaks.
Meanwhile, the Government is expected to waive value-added tax on transportation, entertainment, and cultural services, as well as the production of goods and products, except for online services and products, from November 1, 2021 to December 31, 2021.
According to the move, no penalties will be assessed for unpaid taxes and land rental fees during the 2020-2021 period.
To date, the government has provided approximately US$10.45 billion in assistance to individuals and businesses affected by the Covid-19 pandemic this year, or 2.85 percent of GDP.
Also, the environment protection tax on aviation fuel would be halved and the VAT on certain goods and services would be reduced from 10% to 8%.
However, certain industries, such as telecommunications, finance and banking, insurance, real estate, metal production and mining, would be exempt from the tax cut.
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