The government considers a support package estimated at almost $940 million, related to tax exemptions and reductions for pandemic-stricken businesses.
|Vietnam weights a tax relief package worth almost $940 million |
The government proposed a 30-per-cent tax cut on corporate income tax if a company's revenue this year is less than VND200 billion ($8.8 million). It is expected that the state budget revenue will be reduced by about VND2.2 trillion ($97 million) under this plan.
Meanwhile, most commodities in Vietnam are subject to 10 per cent VAT. The government proposed to slash VAT by 30 per cent in the last three months of this year. Transportation, lodging, food and beverage, publishing, entertainment, and sports are among the sectors to benefit from this tax relief. If approved, the measure would reduce the state budget by around VND5 trillion ($220 million).
In addition, the government suggests exempting personal income tax and other taxes for individuals and household businesses in the last quarter of 2021.This is expected to result in a reduction of VND8.8 trillion ($387 million) in state budget revenue.
The National Assembly is weighing the tax relief measures to support businesses and people affected by the pandemic. Other relief measures are under consideration, including temporarily exempting fines for delays in paying taxes and land fees for loss-making businesses.