Will reduce 30% corporate income tax in 2021

Aug 16, 2021

August 2, 2021 According to A. Hong – Tuoi Tre Newspaper

TTO - The Ministry of Finance said that the content of the draft resolution on a number of budget collection solutions to support businesses and people affected by the COVID-19 epidemic, which is being developed, will reduce the tax amount by 30% corporate income payable in 2021.

In addition, it will reduce 50% of the payable tax amount arising from production and business activities of the months in the 3rd and 4th quarters of 2021 for business households and individuals doing business in all fields, industries and localities, form of tax declaration, tax payment.

At the same time, the value-added tax rate will be reduced by 30% for businesses and organizations operating in a number of service sectors. Exemption of late payment arising in 2020 and 2021 (which is the two years affected by the COVID-19 epidemic) for businesses and organizations that incur continuous losses in 2018, 2019 and 2020.

It is estimated that the implementation of solutions proposed in the draft resolution can reduce budget revenue by about 20,000 billion VND.

In addition, the Ministry of Finance is also studying and reporting to the Prime Minister solutions to reduce land rent for 2021.

In general, the solutions that have been implemented by the Standing Committee of the National Assembly, the Government and the Ministry of Finance since the beginning of 2021 and the additional proposed solutions mentioned above, the tax, fee, fee and land rent amount will be calculated. Support for businesses and people in 2021 is about 138,000 billion VND, of which the package of extension, exemption and reduction of taxes, fees, charges and land rent has been issued about 118,000 billion VND.

The amount of tax, land rent, and late payment interest may put pressure on the state budget balance, but it will have a great impact, demonstrating the Government's companionship and concern and contributing to supporting businesses. Businesses and people overcame difficulties caused by the impact of the COVID-19 epidemic to be able to continue operating, contributing to the recovery of the country's economy after the epidemic and contributing to social security.", a representative of the Ministry of Finance said.

Earlier, at the first session of the 15th National Assembly, the meeting's resolution was issued, including assigning the Government and the Prime Minister to implement a number of urgent solutions to cope with the complicated developments of the situation. COVID-19 pandemic, including tax solutions.

Under the direction of Deputy Prime Minister Le Minh Khai, the Ministry of Finance must submit additional policies to support people and businesses affected by the COVID-19 epidemic by August 10 at the latest.

According to the Ministry of Finance, production and business activities of enterprises and people are likened to the lifeblood of the economy, and when many businesses and people run into difficulties, it will certainly affect their health. economy. The COVID-19 pandemic that has taken place since 2020 has had many impacts on the production and business activities of businesses, business households, and business individuals.

In recent times, especially in July 2021, the COVID-19 epidemic has developed very complicatedly and is continuing to seriously and heavily affect the activities of businesses and people, especially businesses. Small and medium-sized enterprises, business households, business individuals and activities of a number of service sectors such as tourism, transportation, accommodation and food, cinema, sports, entertainment and entertainment. mind...

Accordingly, it is necessary to have more solutions to support budget revenue for businesses and people to cope with the impact of the COVID-19 epidemic.