29 Oct Tax relief and measures regarding Company income tax (CIT) and Value added tax (VAT) for the fiscal year 2021
Following the decree Nghị quyết số 406/NQ-UBTVQH15 dated 19/10/2021, below are the tax reliefs for 2021 for companies and corporations registered in Vietnam.
- If 2021 turnover is higher than 2019 turnover, your company is not subject to any tax relief.
- If 2021 turnover is lower than 2019 turnover, 30% off the regular CIT (20%) i.e. 20%*0.7= 14%
- For certain industries*, 30% off VAT during November and December 2021 i.e. 10%*0.7= 7%
- Please note that if you are concerned by this measure, your business must adapt its price i.e. its VAT to 7%
Eligibility regarding penalties for late payment
- All penalties are canceled the late payment of taxes for the year 2020 and 2021 if the company was in loss during 2020
- The proper compliance is required in order activate this eligibility
- Late interest will be calculated starting 1/1/2022
- Please be reminded that according the Vietnam Accounting Standards (VAS) 75% of the annual company income tax must be paid before the end of the fiscal year i.e. CIT for 2021 is 100.000USD, 75.000USD or more must be paid before 31/12/2021.
*hotel, transportation, F&B, tourism