Cases where the tax rate of 10% for enterprises in Vietnam

by BichNgoc

Today, LSX Lawfirm will give you an article about: “Cases where the tax rate of 10% for enterprises in Vietnam”, as follows:

Law on Corporate Income Tax 2008 (amended and supplemented in 2013, 2014, 2020)

Cases where the tax rate of 10% for enterprises in Vietnam

Firstly

Incomes of enterprises from performing socialization activities in the fields of education – training; vocational training, health care, culture, sports and environment

Secondly

Incomes of enterprises from implementing investment projects – social housing business for sale, lease, lease-purchase for the subjects specified in Article 53 of the Law on Housing

Thirdly

Incomes of press agencies from printing press activities, including advertisements in printed newspapers; the publishing agency’s income from publishing activities

Then

Income of enterprises from: planting, tending and protecting forests; farming and processing agricultural and aquatic products in areas with difficult socio-economic conditions; to cultivate forest products in areas with difficult socio-economic conditions; production, multiplication and crossbreeding of plant and animal varieties; salt production, extraction and refining; investment in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products and food.

Finally

Incomes of cooperatives operating in the fields of agriculture, forestry, fishery and salt production that are not located in areas with difficult socio-economic conditions or areas with socio-economic conditions particularly difficult.

Overview of the latest policy of reducing VAT from 10% to 8% in 2022

The policy of reducing VAT from 10% to 8%, or reducing VAT to 2%, is issued by the National Assembly; effective from January 11, 2022 through the resolution of fiscal and monetary policies to support the Program. socio-economic recovery and development with the approval rate of 424/426 participants.

The Government assesses that economic growth in both years 2020-2021 is very low in recent years; production and business activities face many difficulties, especially in 2021 when many fields are severely affected. masonry.

“The epidemic not only affects in the short term, but also in the medium and long term; the 5-year and 10-year growth targets. If there are no solutions to support the economy, the average growth rate forecast for the period 2021 – 2025 will only reach 5.4%/year, lower than the set target.

You can also refer to the article related to company division in Vietnam, or Registration company in Vietnam after a full or partial divisionCease existence of divided company in Vietnam or Names of Vietnam’s branches and representative offices.

Effective period of VAT reduction policy from 10% to 8% in 2022

Resolution on fiscal and monetary policies to support the Socio-economic Recovery and Development Program effective from January 11, 2022 to December 31, 2023; specifically for the fiscal policy specified at Points 1.2 and 1.3, Clause 2, Article 3 of this Resolution; applies to the 2022 and 2023 budget years.

The goal of the policy is to reduce VAT to 8%

The objectives of the Government’s policy to reduce VAT from 10% to 8% include:

Firstly, quickly recover and develop production business activities; the growth engine of a number of important industries and fields with an average growth target of 6.5%-7%/year in the period 5. From 2021 to 2025, the unemployment rate in urban areas will be below 4%.

Secondly, the policy of reducing VAT to 8% contributes to stabilizing the macro-economy; the medium and long-term economic balances, reducing costs, supporting cash flow, creating development opportunities for businesses and organizations. economy, people;

Thirdly, the policy of reducing VAT from 10% to 8% helps ensure people’s lives; social security, especially for organizations and individuals heavily affected by the epidemic.

Related questions

Contents of VAT exemption and reduction policy from 10% to 8% in 2022

Subjects applying the policy of reducing VAT from 10% to 8% in 2022
Applied to groups of goods and services currently applying the value-added tax rate of 10% (remaining 8%).
Except for the following cases:
Telecommunication, Information technology,Financial activities,Bank,Stock, Insurrance, Real estate business, Metal production and manufacture of prefabricated metal products, Mining industry (excluding coal mining), Coke production, Refined petroleum, Manufacture of chemicals and chemical products, Goods and services subject to excise tax.

How to apply tax when VAT is reduced from 10% to 8%

Allowed to be included in deductible expenses when determining corporate income taxable income for support and sponsorship expenses of enterprises and organizations for COVID-19 prevention and control activities in Vietnam for the period. tax year 2022.
Thus, the above article has given detailed information about the VAT reduction policy from 10% to 8% in 2022. The policy introduced at this time has great significance for individuals and organizations that bear the burden. severe consequences during the epidemic period.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Cases where the tax rate of 10% for enterprises in Vietnam”, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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