Decree 15/2022/ND-CP on tax exemption and reduction policy under Resolution 43/2022/QH15 on fiscal and monetary policies supporting socio-economic recovery and development program

DECREE

Providing tax exemption and reduction policies under the National Assembly’s Resolution No. 43/2022/QH15, on fiscal and monetary policies in support of the socio-economic recovery and development program ^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 3, 2008 Law on Value-Added Tax; the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax; and the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration;

Pursuant to the June 3, 2008 Law on Enterprise Income Tax; and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the National Assembly’s Resolution No. 43/2022/QH15 of January 11, 2022, on fiscal and monetary policies in support of the Program on socio-economic recovery and development;

At the proposal of the Minister of Finance;

The Government promulgates the Decree providing tax exemption and reduction policies under the National Assembly’s Resolution No. 43/2022/QH15 of January 11, 2022, on fiscal and monetary policies in support of the socio-economic recovery and development program (below referred to as Resolution No. 43/2022/QH15).

Article 1. Reduction of value-added tax (VAT)

1. To reduce VAT for goods and service groups currently subject to the VAT rate of 10%, except the following goods and service groups:

a/ Telecommunications, finance, banking, securities, insurance, real estate business, metals and precast metal products, mining products (excluding coal mining), coke, refined petroleum, and chemical products. The details are provided in Appendix I to this Decree.

b/ Goods and services liable to excise tax. The details are provided in Appendix II to this Decree.

c/ Information technology in accordance with the law on information technology. The details are provided in Appendix III to this Decree.

d/ The reduction of VAT for each goods or service item specified in Clause 1 of this Article shall be uniformly applied at all stages of import, production, processing and trading. Coal mined for sale (including also coal mined and then sorted out and classified under a closed process before sale) is eligible for VAT reduction. Coal products provided in Appendix I to this Decree at stages other than the stage of mining for sale are not eligible for VAT reduction.

In case the goods and services provided in Appendices I, II and III to this Decree are not liable to VAT or are subject to the VAT rate of 5% in accordance with the Law on Value-Added Tax, the Law on Value-Added Tax’s provisions shall apply and the goods and services are not eligible for VAT reduction.

2. Reduced VAT reduction rates

a/ Business establishments calculating VAT by the credit method are entitled to the VAT rate of 8% for the goods and services specified in Clause 1 of this Article.

b/ Business establishments (including also business households and individuals) calculating VAT based on percentage of their turnover are entitled to a 20%-reduction of the percentage used to calculate VAT when issuing invoices for goods and services eligible for VAT reduction specified in Clause 1 of this Article. 

3. Order and procedures for implementation

a/ A business establishment specified at Point a, Clause 2 of this Article shall, when issuing a value-added invoice for a goods or service eligible for VAT reduction, write “8%” in the line “VAT rate”; the VAT amount; and the total amount payable by the customer. Based on the value added invoice, the goods or service seller shall declare output VAT and the goods or service purchaser shall declare input VAT according to the reduced VAT amount stated in the value-added invoice.

b/ A business establishment specified at Point b, Clause 2 of this Article shall, when issuing a sale invoices for a goods or service eligible for VAT reduction, write the full payment amount for the goods or service before tax reduction in the column  “Amount” and the amount after reducing the percentage used to calculate VAT by 20% in the “Total amount” line, and note “An amount of…(the money amount) subtracted, correspondingly to 20% of the percentage used for VAT calculation according to Resolution No. 43/2022/QH15”.

4. Business establishments must issue separate invoices for the goods and services eligible for VAT reduction. In case they fail to do so, they will not be entitled to VAT reduction.

5. In case a business establishment has issued an invoice and declared tax at the VAT rate or the percentage used to calculate VAT not been reduced under this Decree, the seller and buyer shall make a record or written agreement specifying such error, at the same time, the seller shall issue an adjusted invoice for the buyer. Based on the adjusted invoice, the seller shall adjust output VAT and the buyer shall adjust input VAT (if any).

6. In case a business establishment eligible for VAT reduction has not yet used up the volume of pre-printed invoices which take the form of tickets with a printed face value and wishes to continue to use these invoices, it shall affix a stamp indicating the price calculated based on the VAT rate reduced by 2% or the percentage of the revenue for calculation of VAT amount reduced by 20%  next to the face value printed on the invoices so as to continue to use the invoices.

7. The business establishments specified in this Article shall make a declaration of goods and services eligible for VAT reduction according to Form No. 01 provided in Appendix IV to this Decree and enclose it with VAT declarations.

Article 2. Deductible expenses upon determination of incomes liable to enterprise income tax (EIT)

1. Enterprises and organizations that are EIT payers in accordance with the Law on Enterprise Income Tax may include in their deductible expenses upon determination of EIT-liable incomes of the 2022 tax period their contributions and donations in cash and in kind for the COVID-19 pandemic prevention and control in Vietnam that are provided via the units specified in Clause 2 of this Article.

In case a parent company receives contributions and donations from its subsidiaries and make contributions and donations on behalf of them, the parent company and its subsidiaries may include in their deductible expenses upon determination of EIT-liable incomes the contributions and donations of each of them. The parent company must have records or documents confirming the contribution or donation amount specified in Clause 4 of this Article. Each subsidiary must have a lawful invoice or document as specified by law and its parent company’s confirmation of its contribution or donation amount issued by the parent company.

2. Units receiving contributions and donations include Vietnam Fatherland Front Committees at all levels; health establishments; armed forces units; units and organizations operating as concentrated quarantine facilities under assignment of competent state agencies; education institutions; press agencies; ministries, ministerial-level agencies and government-attached agencies; organizations of the Party, Youth Union and Trade Union at the central and local levels; local agencies, units and administrations at all levels with the function of mobilizing donations; COVID-19 prevention and control funds at all levels; the National Humanitarian Portal; and charity or humanitarian funds and organizations with the function of mobilizing donations that are established and operate in accordance with law.

Units receiving contributions and donations shall properly use and allocate received contributions and donations for the COVID-19 pandemic prevention and control. Those that use received contributions and donations for improper purposes shall be handled in accordance with law.

3. Provincial-level People’s Committees shall direct relevant agencies in localities to intensify the coordination with, exchange and provision of information to, tax agencies and customs agencies so as to strictly manage and handle acts of overstatement or implausible declaration of contribution and donation amounts; coordinate in strictly managing purchase prices of goods and services and invoices for provision of goods and services and handling cases where the prices written on contracts on, or invoices for provision of goods and services do not match the actual prices in accordance with law.

4. A dossier for determination of a contribution or donation amount must comprise a record confirmation of contribution or donation, made according to Form No. 02 provided in Appendix IV to this Decree, or a document (paper or electronic) confirming the contribution or donation amount, bearing the signatures and seals of a representative of the enterprise or organization giving contributions or donations and a representative of the unit receiving the contribution or donation, and enclosed with a lawful invoice or document of the contribution or donation in cash or in kind as specified by law.

Article 3. Effect and organization of implementation

1. This Decree takes effect on February 1, 2022.

Article 1 of this Decree shall apply from February 1, 2022, through December 31, 2022.

Article 2 of this Decree shall apply to the 2022 EIT period.

2. Ministries, according to their functions and tasks, and provincial-level People’s Committees shall direct related agencies to disseminate about, guide, examine, and supervise the implementation of this Decree so as to help consumers understand and benefit from VAT reduction specified in Article 1 of this Decree, focusing on solutions for stabilizing the supply and demand of goods and services eligible for VAT reduction in order to ensure that market prices (VAT-exclusive prices) in the period from February 1, 2022, through December 31, 2022, are essentially kept stable as compared to the period prior to February 1, 2022.

3. Any problems arising in the course of implementation of this Decree should be reported to the Ministry of Finance for consideration and settlement.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related enterprises, organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The Appendices to this Decree are not translated.