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Thursday, July 25, 2024

VAT goes down from Feb 1

The Saigon Times

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HCMC – Value added tax (VAT) will be cut down to 8% from the current 10% from February 1 until the end of the year, according to the Ministry of Finance.

The tax cut will only apply to services and goods subject to a 10% VAT.

The Government on January 28 issued Decree 15 on tax reduction and exemption in line with the National Assembly’s Resolution 43 on fiscal and monetary policies to support the nation’s socioeconomic recovery, the local media reported.

The tax cut is aimed at speeding up the recovery of business and production activities after the pandemic is brought under control.

The tax reduction will not apply to some industries such as telecommunications, information technology, finance and banking, securities, insurance, real estate, metal production and mining and other goods and services subject to the excise tax.

Under the decree, this year, businesses and organizations can include their spending on donations to or sponsorship of anti-Covid-19 activities in the expenses that are not subject to the corporate income tax.

The VAT cut will lower the State budget by some VND49.4 trillion in 2022, according to the Ministry of Finance.

However, the support package will help enterprises, organizations and residents overcome the financial difficulties caused by the pandemic, contributing to helping the country’s economy recover and develop.

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