Decree No. 92/2021/ND-CP dated October 27th, 2021 of the Government on elaboration of Resolution No. 406/NQ-UBTVQH15 of Standing committee of the National Assembly on provision of assistance for enterprises and people affected by Covid-19

This Decree regulates in details entities, conditions, reduction rate and procedures for declaration of tax exemption, reduction due to effects of the Covid-19 pandemic under Resolution No. 406/NQ-UBTVQH15 , including:

1. 30% reduction in corporate income tax (CIT) payable in 2021

2. 30% reduction in value added tax (VAT) of November and December of 2021.

3. Exemption of late payment interest incurred in 2020 and 2021

4. Exemption of tax payable in the third quarter and fourth quarter of 2021 for household businesses and individual businesses

Accordingly, the policy on 30 % reduction in CIT is applied to the whole year of 2021 and applied to all production and business sectors. Conditions for entitlement to the reduction is that an enterprise’s revenue in the tax period of 2021 does not exceed 200 billion VND and is smaller than the revenue earned in the tax period of 2019. Enterprises may estimate revenue earned in the tax period of 2021 to declare the 30 % reduction in CIT when paying provisional CIT quarterly.

With regard to the policy on 30% reduction in VAT, it is only applied to VAT arisen in November and December of 2021 in certain sectors: transport; lodging services; food and beverage services; services of travel agencies, publishing, etc.)

With regard to household businesses and individual businesses, if they operate in areas affected by Covid-19, they shall be exempt from all taxes (VAT, personal income tax, excise tax, etc). arisen in the months of the third quarter and fourth quarter of 2021 (except incomes, revenues from supply of software products and services; digital entertainment products and services, videogames, digital films, digital photos, digital music; digital advertising).

This Decree takes effect from the date on which Resolution No. 406/NQ-UBTVQH15 takes effect (October 19th, 2021).