Corporate Tax

Authorities pays consideration to corporate earnings, VAT cuts

By Dat Nguyen August 16, 2021 | 11:09 GMT + 7

A motorcyclist stops at a checkpoint to show officials his travel details on his phone amid the Covid-19 pandemic in Ho Chi Minh City on August 15, 2021. Photo by VnExpress / Quynh Tran

The government is seeking approval from the National Assembly for a number of tax breaks, including a 30 percent corporate tax cut, to help stimulate business recovery.

The others include a 30 percent VAT cut for businesses in sectors heavily affected by the pandemic, such as tourism, transportation, accommodation, food and drink, and entertainment, according to the government website.

Households will receive a 50 percent cut in income and sales taxes in the third and fourth quarters of this year.

In addition, companies that have made losses for three consecutive years since 2018 will be waived fines for late payment of taxes since last year.

The Treasury has also proposed to the Prime Minister’s Office for a 30 percent reduction in land use fees for Covid-19-affected companies.

If the tax and fee cuts are approved, they are expected to cost the Treasury Department VND 138 trillion ($ 6.07 billion).

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