04 new tax policies apply from January 1, 2024

Tax policy changes continuously, to promptly update the latest information on tax policy, Smart Solutions For Business Company Limited (S4B Vietnam) has listed the 4 most prominent new tax policies in 2024. We invite readers to read the following right away. The following are 04 new tax policies applicable from January 1, 2024:

1. Reduce VAT to 8% from January 1, 2024 to June 30, 2024

On December 28, 2023, the Government issued Decree 94/2023/ND-CP stipulating the VAT reduction policy according to Resolution 110/2023/QH15 dated November 29, 2023 of the National Assembly.

Accordingly, reduce VAT to 8% from January 1, 2024 to June 30, 2024 for groups of goods and services that are currently subject to a tax rate of 10%, except for the following groups of goods and services:

  • Telecommunications, information technology,
  • Financial activities, banking, securities, insurance, real estate business
  • Metals, fabricated metal products, mining products (excluding coal mining), coke, refined petroleum
  • Chemical products, goods and services are subject to special consumption tax.

Details are in Appendix I issued with Decree 94/2023/ND-CP. Corporations and economic groups that carry out a closed process to sell are also subject to value added tax reduction on sold coal products.

In case the goods and services listed in Appendixes I, II and III issued with Decree 94/2023/ND-CP are not subject to value added tax or are subject to value added tax 5 % according to the provisions of the Law on Value Added Tax 2008 shall comply with the provisions of the Law on Value Added Tax 2008 and will not be reduced in value added tax.

SUMMARY: Outstanding new policy effective from January 1, 2024

2. Continue to reduce environmental protection tax on gasoline and oil from January 1, 2024 to December 31, 2024

On December 18, 2023, the National Assembly Standing Committee passed Resolution 42/2023/UBTVQH15 on environmental protection tax rates on gasoline, oil, and lubricants. Accordingly, continue to reduce environmental protection tax on gasoline and oil from January 1, 2024 to December 31, 2024.
Environmental protection tax rates on gasoline, oil, and lubricants from January 1, 2025 continue to be implemented according to regulations in Resolution 579/2018/UBTVQH14.

3. Resolution on application of global minimum tax effective from January 1, 2024

On November 29, 2023, the National Assembly passed Resolution 107/2023/QH15 on the application of additional corporate income tax according to regulations to prevent global tax base erosion (also known as global minimum tax). bridge).

Accordingly, a global minimum taxpayer is a constituent unit of a multinational corporation with revenue in the consolidated financial statements of the ultimate parent company for at least 02 of the 04 years immediately preceding the fiscal year. equivalent to 750 million euros (EUR) or more, except in the following cases:

  • Government organizations;
  • International organizations;
  • Non-profit organization;
  • Retirement;
  • The investment fund is the supreme parent company;
  • The real estate investment organization is the supreme parent company;
  • Organizations with at least 85% of asset value owned directly or indirectly through the above organizations.

Resolution 107/2023/QH15 takes effect from January 1, 2024, applicable from fiscal year 2024.

Officially apply global minimum tax from 2024

>>>Read more: The Ministry of Finance has a new solution to reduce the tax burden in Vietnam

4. Registration fee reduction for domestically produced and assembled cars expires from January 1, 2024

On June 28, 2023, the Government issued Decree 41/2023/ND-CP regulating registration fee rates for cars, trailers or semi-trailers pulled by cars and similar vehicles. Automobiles are produced and assembled domestically.

– From July 1, 2023 to December 31, 2023: Registration fee rate is equal to 50% of the rate specified in Decree 10/2022/ND-CP; Current Resolutions of the People’s Council or Current Decisions of the People’s Committee of provinces and centrally run cities on local registration fee collection rates and documents amending, supplementing and replacing (if any).

– From January 1, 2024 onwards: Registration fee collection rates continue to comply with regulations in Decree 10/2022/ND-CP; Current Resolutions of the People’s Council or Current Decisions of the People’s Committee of provinces and centrally run cities on local registration fee collection rates and documents amending, supplementing and replacing (if any).

Four new tax policies in 2024 have been shared by Smart Solutions For Business Company Limited (S4B Vietnam) to readers. As a “bridge” between businesses and taxpayers, S4B always promptly updates the latest information to readers.

If you have any questions related to Accounting – Taxation – Business Legal, please contact us immediately for support. Smart Solutions For Business Company Limited (S4B Vietnam) – with 17 years of experience in the field – is committed to giving customers the best experience when using our services.

Smart Solutions For Business Company Limited (S4B Vietnam)

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