Tax policy to support businesses and people impacted by the Covid-19 pandemic

Accordingly, the tax exemption and reduction policies applied in 2021 are as follows:

1. A 30% reduction of corporate income tax liability in 2021 for tax payers with the 2021 revenue is not more than VND 200 billion and the 2021 revenue decreases compared to 2019 revenue.
2. Exemption of all tax liabilities in the third and fourth quarters of 2021 for households and individuals having production and business activities in district-level areas affected by the COVID-19 pandemic in 2021 according to the decision of the Chairpersons of Provincal People's Committees.
3. Value-added tax reduction from 1 November 2021 to 31 December 2021 for certain goods and services specified in this Resolution (e.g. transportation service, accommodation services, food and beverage provision, etc.). The taxpayer who calculate VAT using credit method is allowed for a 30% reduction in the applicable VAT rate; the taxpayer who calculate VAT using percentage of revenue method is allowed for a 30% reduction in the applicable rate to calculate VAT.
4. Exemption of late payment interest arising in 2020 and 2021 of debts of tax, land use right, and land rent for enterprises and organizations that made a loss in 2020.