Considering proposal of a 30% reduction in Corporate Income Tax (“CIT”) in 2021

The Ministry of Finance (MoF) is proposing a 30 percent reduction in the CIT liability which enterprises must pay in 2021 in a draft resolution on budget collection solutions. The resolution is expected to be submitted to the National Assembly’s Standing Committee for approval in this August 2021.

The draft resolution includes 4 proposals for tax and fee exemption and reduction:

  • A 30 % reduction in CIT payables in 2021 for businesses and organizations as applied for year 2020;
  • A 50 % reduction in tax liabilities generated in the third and fourth quarters of 2021 for business households and individuals in all business sectors, locations and methods of tax declaration and payment;
  • A 30 % reduction in VAT payables for businesses and organizations in some specified service sectors;
  • Exemption of late payment fee arising in 2020 and 2021 (02 years affected by the Covid-19 epidemic) for enterprises and organizations that incur continuous losses in the years 2018, 2019, 2020.