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Ho Chi Minh City
Tuesday, October 26, 2021

Ministry to propose halving taxes for household, individual businesses

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HCMC – The Ministry of Finance will propose halving taxes in the second half of 2021 for household and individual businesses in all sectors and localities.

Nguyen Quoc Hung, head of the Tax Policy Department under the ministry, said the department was completing a draft resolution on some solutions to support enterprises and residents affected by the Covid-19 pandemic.

Accordingly, besides the tax reductions for household and individual businesses, enterprises with revenue of less than VND200 billion per year would be entitled to a 30% cut in corporate income tax this year.

Enterprises and organizations in some sectors may have their value added tax cut by 30%.

In addition, enterprises and organizations incurring losses from 2018 to 2020 may not have to pay fines for their late tax payments for 2020 and 2021.

With these policies, the State budget revenue may be reduced by some VND20 trillion.

The Ministry of Finance is also working on a proposal to reduce land rentals for this year.

These solutions were offered as the Covid-19 pandemic has been affecting many enterprises and residents, especially small and medium firms, household and individual businesses and providers of tourism, transport, lodging, catering, cinema, sports and entertainment services.

With the solutions approved by the National Assembly (NA) Standing Committee, the Government and the Ministry of Finance since early this year and the solutions given above, some VND138 trillion will be provided to enterprises and residents. Of this, a package with exemptions and reductions in fees, taxes and land rentals and payment deadline delays is worth VND118 trillion.

The NA had earlier issued a resolution assigning the Government to come up with some urgent solutions to cope with Covid-19, and the Ministry of Finance was asked to study and propose a new package to support pandemic-hit entities.

In late July, Deputy Prime Minister Le Minh Khai assigned the Ministry of Finance to coordinate with the Ministry of Justice and other relevant agencies to complete the proposal with simple procedures and submit it to the prime minister prior to August 10.

To ensure the efficiency of support policies, Khai asked ministries and agencies to carefully review the solutions conducted and work out more practical and effective ones.

By Hoang Thang

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