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Sunday, July 21, 2024

Covid-hit enterprises entitled to CIT cuts

By Van Ly

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HANOI – Businesses affected by the Covid-19 pandemic will enjoy corporate income tax (CIT) reductions.
This is provided in Resolution No. 406 on relief policy for pandemic-hit enterprises and people, which was issued by the National Assembly Standing Committee on October 20.

Enterprises whose revenue in 2021 is less than VND200 billion (US$8.8 million) and lower than that of 2019 will be entitled to a 30% cut in CIT.

The tax cut is not applicable to businesses that were established, merged or separated in 2020 and 2021.

The National Assembly Standing Committee also agreed to exempt personal income tax, value added tax (VAT) and other taxes in the third and fourth quarters of 2021 for individuals and households in pandemic-hit areas. Tax exemptions do not apply to incomes and revenues from the provision of software products and services, video games, digital movies, digital music and advertising.

VAT for certain goods and services such as transport, accommodation, catering services, tourism, publishing, cinema, music, arts, entertainment, libraries, museums, sports and other cultural activities will also be reduced from November 1 to December 31 this year.

The NA Standing Committee decided to exempt fees for the late payment of tax, land use fees and land rent arising in 2020 and 2021 for enterprises and organizations which incurred losses in 2020.

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