To help firms and people cope with the pandemic, the Ministry of Finance is studying and reporting to authorities on issuing many policies on taxes, charges, fees and land rent to support them, remove difficulties and promote production and business to restart the economy.

Many tax policies have been issued to remove difficulties for people and businesses.
Photo: Thuy Linh.

To help businesses respond to the Covid-19 pandemic, the Tax Policy Department of the Ministry of Finance has requested its units to closely monitor the pandemic development, the enterprises’ operation as well as the market and orientations and policies of the Party and State to consider, study and report to authorities to have appropriate solutions on taxes, fees and charges.

To expand support to businesses and people to overcome difficulties and promote production and business development, the Ministry of Finance is continuing to monitor the situation to issue and carry out support solutions.

The Ministry of Finance will continue to reduce the environmental protection tax on jet fuel in 2021 under Resolution No. 1148/2020/UBTVQH14 dated December 21, 2020 of the National Assembly Standing Committee aid the aviation sector. It is estimated the reduced tax amount is about VND900 billion.

At the same time, continue to review and cut some fees and charges to support and remove difficulties for production and business, ensuring social security to cope with the Covid-19 pandemic from January 1, 2021 to June 30, 2021 according to Circular No. 112/2020/TT-BTC dated December 29, 2020 of the Ministry of Finance (based on inheriting the rates of fees and charges specified in the circulars on reduction of fees and charges for Covid-19 support issued in 2020) with the reduced amount of fees and charges estimated at some VND 1,000 billion.

In addition to developing and implementing these policy solutions, the Ministry of Finance will improve institutions, improve the effectiveness and efficiency of the apparatus, carry out administrative procedure reform and promote comprehensive modernisation in all areas of the finance sector, especially taxation and customs, which are fields that are closely and directly related to enterprises to contribute to building a healthy business investment environment, creating conditions for firms to operate stably and develop.

Recently, the Ministry of Finance has also offered practical support policies for businesses and people to overcome the pandemic. The policies proposed by the Ministry of Finance and approved by the Government and the National Assembly include extending the payment deadline for tax and land rent for those hurt by the Covid-19 pandemic, reducing corporate income tax payable in 2020 for firms, cooperatives, public delivery units and other organisations; continuing to exempt agricultural land use tax until the end of 2025; increasing family circumstance deduction rate of personal income tax, thereby reducing individual’s tax liability; reducing land rent payable in 2020 for those hurt by the Covid-19 pandemic; reducing the environmental protection tax rate for jet fuel until the end of December 31, 2020; reducing the registration fee for domestically manufactured and assembled cars until the end of December 31, 2020; exempting import tax for items for pandemic prevention such as medical masks, raw materials for the production of masks, hand sanitiser; reducing import tax on some commodity groups to remove difficulties for firms and promote the development of agriculture, mechanical engineering, supporting industries and the automobile industry.

The Ministry of Finance has also worked with other ministries to review, develop and issue 21 circulars on the adjustment of rates of fees and charges as prescribed in current 31 Circulars on collection of fees and charges, significantly reducing the rates of many fees and charges.

According to the Ministry of Finance, the total amount of tax and budget revenue that has been extended, exempted or reduced according to the issued policies for the whole year is estimated at some VND123.6 trillion (the amount of taxes, fees, charges and land rents that are extended is about VND87.2 trillion; and the amount exempted or reduced is VND36.4 trillion).

The Ministry of Finance also proposed the Government issue Decree No. 44/2021/ND-CP dated March 31, 2021 guiding guidance on deductible expenses for determining taxable income of enterprises’ and organisations’ expenditures for supporting and financing Covid-19 pandemic prevention and control in 2020 and 2021. The reduced amount of corporate income tax reduction is estimated at about VND170 billion per year.

Also, submit to the Government for promulgation Decree No. 52/2021/ND-CP dated April 19, 2021 on expanding the payment deadline for tax and land rent in 2021 for those affected by the Covid-19 pandemic with an value of VND 115,000 billion.