On January 28, 2022, the Government issues Decree No. 15/2022/ND-CP on tax exemption and reduction policy under the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies supporting socio-economic recovery and development programs.
Accordingly, business establishments that calculate value-added tax according to the value-added tax credit method may apply the value-added tax (VAT) rate of 8% for goods and services currently subject to the tax rate of 10%, except for the following groups of goods and services: Telecommunications, finance, and banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke, refined oil, chemical products; Goods and services subject to excise tax; Information technology.
Business establishments (including business households and individuals) that calculate VAT according to the percentage of turnover shall be entitled to a reduction of 20% of the percentage used to calculate value-added tax when issuing invoices for goods and services eligible for VAT reduction.
Besides, enterprises and organizations being enterprise income taxpayers as prescribed by the Law on Enterprise Income Tax may account expenses for supporting and financing the COVID-19 prevention and control in Vietnam in kind or cash through units receiving supports and sponsorships as deductible expenses for determination of taxable income of the enterprise income tax period in 2022.
This Decree takes effect from February 01, 2022.