The Vietnamese Ministry of Finance has announced a range of fiscal measures to support the economy as the coronavirus pandemic continues. This includes a 30% reduction in the 10% standard rate to 7% for income from certain sectors most affected, including:
- tourism;
- public transport;
- hotel and similar accommodation;
- Restaurant and café (non-alcohol)
- Sports,
- Amusement and entertainment; and
- Music or video composing, art; press, television; libraries, archives, museums and other cultural activities.
Vietnam had earlier this year given a five-month postponement on VAT payments for April to June VAT returns. It has also delayed the introduction of e-invoices until July 2022.
Other measures announced on August 13 included:
- The deadline for VAT and personal income tax payments for individuals and business households such as SMEs is extended to December 31 2021.
- Extension in the 30% cut in corporate income tax rates
- A 50% cut in the personal income taxes
- No late payment interest on tax debts for 2020/21 for businesses that can demonstrate ongoing pandemic losses
- 30% cut in rental payments for businesses affected by the ongoing health and economic emergency
VAT Calc’s in real-time global Calculator and Auditor services produce instant and accurate tax calculations into your ERP, billing, e-commerce or e-invoicing systems.
