Businesses to get 30% reduction in income tax worth $926 million

Lawmakers have decided to offer businesses affected by Covid-19 a 30-percent reduction in income tax and value-added tax and waive late-payment fees in 2020 and 2021.

Small businesses to benefit

They are part of a resolution adopted by the National Assembly’s Standing Committee on Oct. 19 with a number of solutions to support enterprises and individuals affected by the pandemic, according to VN Express.

The government estimates the tax exemption and reduction this time would add up to some VND21.3 trillion ($926.1 million).

Businesses whose revenues are less than VND200 billion in 2021 and lower than in 2019 will get a 30-percent cut in corporate income tax this year.

But newly established businesses and those merged or separated in 2020 and 2021 will not be eligible.

Also under the resolution, business households and individuals in pandemic-stricken areas are exempt from personal income tax, VAT, and other taxes in the third and fourth quarters of 2021.

However, it will not apply to those whose revenues come from providing software products and services, digital content services, video games, digital music, digital advertising.

Businesses that produce goods or provide services in fields such as transport, accommodation, food, tourism, publishing, recording, sports, and entertainment will be eligible for a 30-percent reduction in VAT from Nov. 1 to Dec. 31.