TAX REDUCTION POLICIES AND SUPPORT FOR ENTERPRISES IN 2022 - 2023

(RESOLUTION NO. 43/2022/QH15 OF NATIONAL ASSEMBLY)

For the objectives of rapidly recover and develop production and sale activities, promote growths, prioritize key sectors, reduce costs, assist cash flow, facilitate an active stand, create optimal conditions for enterprises, economic organizations, and the general public… On January 11, 2022, the Standing Committee of the National Assembly of Vietnam issued Resolution No. 43/2022/QH15.

VIVA Business Consulting would like to update some important highlights that may benefit your business:

TAX REDUCTION, EXEMPTION POLICIES:

1. Reduce 2% of VAT in 2022 for goods and services currently subject, from 10% to 8%, except for the following goods and services: telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products,coke mining, refined oil, chemical products, goods and services subject to excise tax;
2. Allow donations and sponsors made by enterprises and organizations for COVID-19 epidemic control operation in Vietnam to be included in deductible expenses when calculating taxable corporate income for the tax period of 2022.

DEVELOPMENT INVESTMENT POLICIES:

Increase development expenditure from state budget of up to VND 176 thousand billion, focusing in 2022 and 2023.

Regarding social security, labor, and employment sectors:

1. Grant Vietnam Bank for Social Policies (VBSP) up to VND 5 thousand billion, including interest rate cover and management fees of VND 2 thousand billion in order to implement preferential credit policy within the Program; support interest rate of up to VND 3 thousand billion for debtors of policy credit programs with applicable interest rate of more than 6%/year;
2. Invest up to VND 3,15 thousand billion in new construction, renovation, upgrade, expansion, and modernization of social assistance establishments, training facilities, vocational training facilities, and employment centers;

Regarding support for enterprises, cooperatives, and household businesses:

1. Support interest rate (2%/year) of up to VND 40 thousand billion via commercial institution system for important sectors, enterprises, cooperatives, and household businesses capable of repaying debt and recovering; grant loan for renovation of old apartment buildings, construction of social houses, and houses for purchase, rent, and lease purchase;
2. Grant Tourism Development Assistance Fund up to VND 300 billion in charter capital;

 Other fiscal policies:

1. Support for rent of workers having labor relations, living in rental apartments, working in industrial parks, export-processing zones, and key economic zones;
2. Increase the limit on sovereign guarantee for domestically issued bonds for VBSP by up to VND 38,4 thousand billion to grant loan in order to settle jobs; students; non-public preschools and primary schools; individuals taking loans for purchase or lease purchase of social houses, constructing new, renovating, or repair houses in accordance with policies on social houses; implement National target program regarding socio-economic development in ethnic minority regions and mountainous regions of the period of 2021 – 2030.

This Resolution comes into force from January 11, 2022 to December 31, 2023.

Please contact with our expertise for tailored counseling on your own cases. We will keep updating any related news and regulations to your subscribed email and hope you can find useful things for your business in Vietnam.

[sc name=”footer-content-en”

Read more:

• Personal income tax for foreign employees – methods of declaration and payable amount
• Condition for personal income tax exemption and non-taxable (part 1)
• Non-taxable – condition for personal income tax exemption and non-taxable (part 2)
• Investment in Vietnam – incentives on corporate income tax (CIT)