Tiếng Việt
中文 (中国)
From February 1, 2022 to the end of December 31, 2022, the Ministry of Finance plans to reduce the value-added tax rate by 2%, applicable to groups of goods and services currently applying the 10% tax rate. (remaining 8%).
The Ministry of Finance has just announced the public consultation on the draft Decree detailing the implementation of tax exemption and reduction policies under Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies. Socio-economic recovery and development program (Resolution 43).
Policy guidance on value-added tax reduction
The Ministry of Finance drafts: Reducing the value-added tax rate (VAT) by 2%, applicable to groups of goods and services currently applying the 10% tax rate (to 8%) from the date of this decree. effective until the end of December 31, 2022, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products;
- Mining products (excluding coal), coke, refined petroleum, chemicals and chemical products;
- Products, goods and services subject to excise tax; Information technology under the law on information technology.
Details of goods and services that are not eligible for VAT reduction as mentioned above shall comply with Appendix 1 and Appendix 2 issued together with the Decree.
In case the goods and services mentioned above are not subject to VAT or subject to 5% VAT according to the provisions of the Law on VAT, the provisions of the Law on Value Added Tax shall be followed. Regarding the deduction of VAT, the draft decree clearly stipulates that business establishments that calculate VAT by the credit method may apply the VAT rate of 8% for the goods and services mentioned above. Business establishments that calculate VAT according to the percentage method on revenue are entitled to a reduction of 20% of the percentage rate to calculate VAT on goods and services specified above.
In addition, it is allowed to include deductible expenses when determining corporate income taxable income for expenditures to support and sponsor businesses and organizations for COVID-19 prevention and control activities in Vietnam. Vietnam for the tax period 2022.
The Decree is expected to take effect from February 1, 2022.
According to the Ministry of Finance, with the above policy, it is expected that the budget revenue in 2022 will decrease by about 51.4 trillion VND, of which the VAT reduction alone is about 49.4 trillion VND. In order to overcome and offset the short-term budget impacts as well as be proactive in budget estimates, the Ministry of Finance said that it will coordinate with ministries, sectors and localities to focus on effective implementation of the Tax Law, continue to modernize the tax system reform, simplify administrative procedures, drastically reduce revenue management, combat loss of revenue, transfer pricing to evade taxes…
Increase spending on development investment from the state budget up to VND 176,000 billion
Regarding the development investment policy in the fiscal package, Resolution 43/2022/QH15 clearly states that the increase in development investment spending from the state budget is up to 176,000 billion VND, concentrated in the two years 2022 and 2023.
Regarding health, a maximum of 14,000 billion VND is allocated to invest in building, renovating, upgrading, and modernizing the grassroots health system, preventive medicine, regional disease control centers, and improving the capacity of patients. epidemic prevention and control, domestic production of vaccines and drugs to treat Covid-19…
Regarding support for businesses, cooperatives and business households, the Resolution stated that the interest rate support (2%/year) up to VND 40,000 billion through the system of commercial banks for a number of important industries and fields important, enterprises, cooperatives and business households have the ability to repay debts and recover; loans to renovate old apartments, build social houses, houses for workers to rent and rent to buy.
Regarding investment in infrastructure development, a maximum of 113,550 billion VND is added to the investment capital from the state budget for the development of transport infrastructure, information technology, digital transformation, and climate change adaptation. disaster recovery.
ASL LAW is the top-tier Vietnam law firm for tax law consulting service. If you need any advice, please contact us for further information or collaboration.
|
***Other service of ASL LAW – full service Vietnam law firm *** |
||
|
|
||
|
Oversea investment consultancy for Vietnamese enterprises |
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
