Decree 92/2021/ND-CP guiding resolution 406/NQ-UBTVQH15 on supporting taxation policies

Decree 92/2021/ND-CP guiding resolution 406/NQ-UBTVQH15 on supporting taxation policies

Decree 92/2021/ND-CP guiding resolution 406/NQ-UBTVQH15 on supporting taxation policies
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On 27 October 2021, Vietnamese Government issued Decree 92/2021/ND-CP (“Decree 92”) guiding the implementation of Resolution 406/NQ-UBTVQH15 (“Resolution 406”) on taxation policies to support businesses and people affected by the Covid-19 pandemic.

Some of the main contents of Decree 92 are summarized below:


Resolution 406’s supporting policies

Guidance in Decree 92



30% reduction of corporate income tax (“CIT”) payable in 2021 for taxpayers whose revenue in 2021 is not more than VND 200 billion, and lower than in 2019.

  • Do not apply the criteria of 2021 revenue lower 2019 revenue to the enterprise which was newly established, or under acquisition, merged, divided, split-up during 2020 and 2021.
  • CIT tax year is the calendar year or the fiscal year of the enterprise. If the 2021 tax year includes months of 2020 (e.g. for enterprise newly established in 2020) or months of 2022 (e.g. for enterprise terminated its operation in 2022), the determination of revenue and CIT amount reduced are for 12 months of 2021 only.
  • If the enterprise operates for less than 12 months (counting in full months), the 2021 revenue is determined by the actual revenue divided (:) by the number of actual operation months, then multiplied (x) by 12 months.
  • The revenue includes dependent unit and the business location’s revenue.
  • Additional CIT payable from amendment declaration or from upward adjustment by tax authority is also entitle to 30% reduction under Decree 92 if qualified.



Tax exemption business households and individuals

  • Applicable to business households and individuals (resident individuals) who have production and business activities in district-level areas affected by the Covid-19 epidemic in 2021 (List of affected areas will be issued by President of the provincial People's Committee).
  • Exemption of personal income tax, value added tax, special consumption tax, resource tax, and environmental protection tax in the third and fourth quarters of 2021
  •  Not applicable to incomes and revenue from providing software products and services; digital information content products and services for entertainment, video games, digital services, etc.
  • The amount of tax exempted in the third and fourth quarter of 2021 is determined based on the tax payable amount stated in the tax authority's notice of payment (if the tax authority must issue a notice of payment) or according to the tax payer’s declaration (if the tax authority does not have to issue a notice of payment).



Reduction of value-added tax from November 1, 2021 to the end of December 31, 2021 to certain goods and services

  • Apply for the goods and services specified in Appendix I of Decree 92 (which do not include publishing software and goods and services produced and traded in the online form).
  • Decree 92 provides detail guiding on the content to be written on sales invoices and VAT invoices for businesses and organizations trading in products and services that are entitled to a reduction in VAT from 01 November to 31 December 31 2021.



Exemption of late payment interest incurred in 2020 and 2021

  • Exemption of late payment interest of tax, land-use and land-rent fees for enterprises and organizations (including dependent units, business locations) that recorded losses in 2020.
  • The competent authority determines the amount of the taxpayer’s late payment arising in 2020 and 2021 of to issue the decision on exemption of late payment interest.
  • The procedures and dossiers for handling late payment interest exemption are specified in Clause 4, Article 4, Decree 92.