National Assembly approves 30% reduction in corporate income tax payable in 2021
12:07 | 21/10/2021

VGP – Corporate income tax (CIT) payable in 2011 shall be reduced by 30%, according to the National Assembly’s latest resolutions on policies to support businesses and individuals affected by the COVID-19 pandemic.

An enterprise eligible for the CIT reduction shall have to meet the following two conditions: (i) having revenue of less than VND200 billion (US$8.8 million) in 2021 and (ii) reporting this year’s revenue reduction compared to 2019.

For an enterprise established or undergoing merger or separation in 2020 or 2021, it shall only need to meet the first condition (having revenue of less than VND200 billion).

The resolution also stipulates exemption of personal income tax and value-added tax payable in Q3 and Q4 this year for household businesses affected by the COVID-19 pandemic. This policy shall not applicable to income from such services like digital entertainment, electronic games, digital movies, and digital advertisement.

A 30% reduction of value added tax shall be applied from November 1 to December 31, 2021 to the following goods and services: transportation services (railway, waterway, airline, road), accommodation and catering and services related to tourism promotion; publication products and services, cinematographic services, television program production, sound recording and music publishing, museums and other cultural activities; sports and entertainment services

According to the report on labor and employment released recently by the General Statistics Office, the COVID-19 pandemic has produced heavy impact on the Vietnamese labor market in Q3, with more than 28.2 million people aged 15 and negatively affected by the pandemic.

The labor force participation rate decreased to 65.6 percent, down 2.9 percentage points quarter on quarter and down 3.9 percentage points year on year.

As many as 90,300 businesses withdraw from the market over the last nine months of 2021, a year-on-year increase of 15.3 percent.

By Thuy Dung

 

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