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blue-check The Ministry of Finance’s opinions about proposals to add tax incentives to the education sector

Official letter No. 1761/BTC-CST dated February 23rd, 2022 of the Ministry of Finance regarding tax policies applicable to educational institutions, enterprises and educational services
Posted: 24/2/2022 10:56:06 AM | Latest updated: 8/3/2022 10:38:02 AM (GMT+7) | LuatVietnam: 5401 | Vietlaw: 551
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The document presents report of the Ministry of Finance to the Prime Minister regarding consideration of proposals, recommendations to supplement to tax policies to support the recovery of the education sector after Covid-19.

Accordingly, with regard to the policies on exemption from, reduction in value added tax (VAT), enterprise income tax (EIT), land rent, the Ministry of Finance assumes that now there are many solutions to taxes, charges, fees and land rent with regard to the education sector, applied in the period before and after Covid-19, so it has yet to consider supplementing to these polices.

With regard to the proposal to exempt land rent for the education sector in the next 2 years (2022, 2023), the Ministry of Finance will synthesize to report to the Prime Minister to consider making decision.

In addition, regarding the proposal to exempt EIT on tuition fees of education institutions that cannot self-ensure their regular expenditures, the Ministry of Finance also studies, reports to the authorities upon implementing amendments, supplements to the Law on EIT.

Now, “education” belongs to the socialized sectors and belongs to business lines entitled to investment incentives, it is always granted priority to apply tax incentive policies at the highest incentive level, such as:

- Entitlement to the EIT rate of 10% during the operation period (if the conditions on establishments performing socialization activities in the education sector are met);

- Entitlement to the tax exemption for 4 years and 50% reduction in payable tax for no more than the next 9 years (with regard to education projects in difficult geographical areas); tax exemption for 4 years, 50% reduction in payable tax for no more than the next 5 years (with regard to education projects in other areas);

- Entitlement to exemption from VAT on all goods, services in the education sector;

- Entitlement to exemption from duty on goods imported to form fixed assets; exemption from duty on goods imported for special use in education.

- Entitlement to land rent exemption for the whole duration of socialization project in the education sector.

In addition, the education sector is also entitled to many policies on exemption from, reduction in, deferral of taxes, charges and fees in terms of facing difficulties due to impact of Covid-19 in 2020 and 2021.

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 551
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