Resolution 406/NQ-UBTVQH15 2021 solutions to support enterprises and people affected by the COVID-19 pandemic

RESOLUTION

On promulgation of solutions to support enterprises and people affected by the COVID-19 pandemic

^____________

THE NATIONAL ASSEMBLY STANDING COMMITTEE

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Organization of the National Assembly No. 57/2014/QH13, which is amended and supplemented by the Law No. 65/2020/QH14;

Pursuant to the Law on Enterprise Income Tax No. 14/2008/QH12, which is amended and supplemented by the Law No. 32/2013/QH13, the Law No. 71/2014/QH13, and the Law No. 61/2020/QH13;

Pursuant to the Law on Personal Income Tax No. 04/2007/QH12, which is amended and supplemented by the Law No. 26/2012/QH13 and the Law No. 71/2014/QH13;

Pursuant to the Law on Value-Added Tax No. 13/2008/QH12, which is amended and supplemented by the Law No. 31/2013/QH13, the Law No. 71/2014/QH13, and the Law No. 106/2016/QH13;

Pursuant to the Law on Tax Administration No. 38/2019/QH14;

Pursuant to the Resolution No. 30/2021/QH15 dated July 28, 2021, of the National Assembly, on the first session of the XV^th National Assembly;

Pursuant to the Official Dispatch No. 2062-CV/VPTW dated October 16, 2021, of the Officer of the Party Central Committee, on conclusion of the Political Bureau on policies on tax exemption and reduction for enterprises and people affected by the COVID-19 pandemic.

RESOLVES:

Article 1. Solutions on tax exemption and reduction

1. To reduce 30% of the enterprise income tax payable in 2021 for taxpayers whose total revenue in 2021 does not exceed VND 200 billion and decreases compared to that in 2019.

The criteria that total revenue in 2021 decreases compared to the total revenue in 2019 is not required for the case where the taxpayer has just established, consolidated, merged, separated, or split in the tax periods of 2020 and 2021.

2. Exemption of personal income tax, value-added tax, and other payable taxes arising from the production and business activities of months in the third and fourth quarters of 2021 shall be applied to households and individuals involved in production and business activities in district-level areas affected by the COVID-19 pandemic in 2021 as decided by the Chairpersons of People's Committees of provinces and centrally-run cities. The tax exemption shall not be applied to income and revenue from the provision of software services and products; digital information content services and products related to entertainment, electronic game, digital film, digital image, digital music, and advertisement.

3. Value-added tax reduction from November 01, 2021, to the end of December 31, 2021, shall be applied to the following commodities and services: (i) Transport service (rail, water, aviation transport, and road transport; accommodation service; food and beverage service; services of travel agencies, tour operators and support services related to promotion and organization of tours; (ii) Publishing products and services; services of cinematography, television program production, sound recording, and music publishing; artworks, creative, art services; services of libraries, archives, museums, and other cultural activities; sports and entertainment services. Group (ii) does not include publishing software and commodities, services produced and traded online.

Depending on tax calculation methods, value-added tax reduction shall be applied as follows:

a) Enterprises and organizations calculating value-added tax by credit method for production and trading of commodities and services specified in this Clause shall be entitled to a 30% reduction of the value-added tax rate;

b) Enterprises and organizations calculating value-added tax according to the method of percentage per revenue from the production and trading of commodities and services specified in this Clause shall be entitled to a 30% reduction of the percentage used for calculating value-added tax amount.

4. Exemption of late-payment interests arising in 2020 and 2021 of tax, land use levy, and land rental loans for enterprises and organizations (including their affiliated units and business locations) operating at a loss in 2020.

This Clause does not apply to those who have paid late-payment interests.

Article 2. Implementation organization

1. The Government shall be responsible for implementing so as the consumers can enjoy benefits from value-added tax reduction as prescribed in Clause 3, Article 1 of this Resolution.

2. The Government is assigned to continue reviewing and implementing solutions within the competence to support enterprises and organizations in reducing input costs; studying the plan to support enterprise income tax on a basis of labor costs, the plan on the use of budgets for offsetting interest rates for enterprises and organizations seriously affected by the COVID-19 pandemic to restore production and business.

Article 3. Implementation provision

1. This Resolution shall take effect from the date of its signing.

2. The Government shall guide the implementation of this Resolution.

3. The National Assembly Standing Committee, the Committee on Financial and Budgetary Affairs, the Council of Ethnic Minorities and other Committees of the National Assembly, National Assembly delegations and deputies, People's Councils at all levels, and State Audit Office of Vietnam shall, within their ambit of tasks and powers, supervise the implementation of this Resolution./.