Recommendations on considering reduction of personal income tax for all subjects (for at least 6 months)
Responded by units: The Ministry of Finance General Department of Taxation
Official letter: No 9750/BTC - CST, dated, dated: 2020-08-13
- In the first months of 2020, the Covid-19 epidemic on a global scale has been and has been negatively impacting many aspects of the socio-economic life in the world and in the country. In fact, many production branches and fields have encountered difficulties in the past time; production and business activities of many enterprises and people were stagnated, narrowed or suspended, which had significant impacts on the economy.
- To support businesses, people respond to the Covid-19 pandemic in accordance with the country's circumstances and conditions, while continuing to fulfill the goals and tasks of socio-economic development and the budget. By 2020, according to the guidelines and directions of the Party, the National Assembly, the Government and the Government’s Prime Minister, the Ministry of Finance has actively developed and synchronously implemented many solutions to support, remove difficulties and create convenient for production and business activities, market support.
The Ministry of Finance has studied and reported to the level with the authority to decide policies on taxes, fees, charges, land rent to support, remove difficulties and promote production and business, and restart the economy. in which the solution package to extend tax payment time limit, land rent is expected to be around VND 60,000 billion; Solutions and proposals for tax, fee and fee exemption and reduction are worth more than VND 50,000 billion, specifically:
• The Ministry of Finance has closely followed the actual situation, consulting international experiences (in countries affected by the Covid-19 epidemic) as well as recommendations of international organizations (WB, IMF. , ...) the ability of the budget to submit to the Government for promulgation Decree No. 41/2020 / ND-cp dated April 8, 2020 on extension of tax payment deadline (value added tax, fish income tax for business households, corporate income tax) and land rent for most of those facing difficulties due to the impact of the Covid-19 epidemic.
• Submitted to the Government to promulgate Decree No. 57/2020 / ND-CP dated May 25, 2020 amending Decree No. 125/2017 / ND-CP of the Government on the export tariff, preferential import tariff In which, 24 commodity groups have been reduced to remove difficulties for businesses and promote the development of agriculture, mechanics, supporting industries, and automobile industry (the expected tax reduction is expected to reduce budget revenues 6,000 VND billion).
• Submitted to the Government to promulgate Decree No. 70/2020 / ND-CP dated June 28, 2020 regulating the reduction of registration fee rate for cars manufactured and assembled in water weight until December 31, 2020 (the number of registration fees is expected to reduce budget revenue by about 3,700 VND billion).
• Submitted to the Government to report to the National Assembly for approval of Resolution No. 116/2020 / QH14 dated June 19, 2020 on reduction of corporate income tax payable by 2020 for businesses, cooperatives, and business units. enterprises and other organizations (the expected tax reduction will be about 23,000 VND billion).
• Submitted to the Government to report to the National Assembly for approval of Resolution No. 107/2020 / QH14 dated 10/6/2020 on continuing to exempt agricultural land use tax until the end of 2025 (expected amount of tax on agricultural land exempted from direct supportive effects for organizations and individuals engaged in agricultural production about 7,500 billion VND per year).
• Submitted to the Government to report to the Standing Committee of the National Assembly to pass Resolution No. 954/2020 / UBTVQH14 dated June 2, 2020 on adjusting the increase of family allowances of taxpayers and dependents to reduce personal tax (the expected tax reduction is about 10,800 VND billion dong per year).
- Submitted to the Government to report to the Standing Committee of the National Assembly approving Resolution No. 979/2020 / UBTVQH14 dated July 27, 2020 on reducing the environmental protection tax on flying fuel from August 1, 2020. by the end of December 31, 2020 (the expected tax reduction is about 400 billion dong).
- The Ministry of Finance has actively coordinated with other ministries and ministerial-level agencies to review and issue according to its competence (or submit to the Government or the Government’s Prime Minister) and issued documents on rental exemption or reduction , fees and charges (fees and charges are expected to reduce budget revenue by about 1,000 billion VND per year), specifically:
+ Exemption of license fees for many subjects such as households, individuals, groups of individuals newly established in the first year; individuals, groups of individuals and households engaged in production and business with annual turnover of VND 100 million or less; ...
+ Exemption from import tax on time for production materials and a number of goods for disease prevention.
+ Land to coordinate with the Ministries to review, formulate and issue 21 Circulars regulating the rates of fees and charges that are currently prescribed in 31 current Circulars on the collection of charges and fees, thereby reducing many fees and charges. fees with high reductions such as: 70% reduction in the fee for business registration; 67% reduction in corporate information disclosure fee; a reduction of 50-70% of the evaluation fee for the grant of amendments and supplements to the postal operation license; 50% reduction of the fee for granting the operation license of the credit institution; 50% reduction of the fee for the evaluation of construction investment projects, of the design evaluation fee of construction investment projects; 50% reduction of 20/22 fees and charges in the securities sector; 30% discount on hydro-meteorological data ...
- In the process of building the above solutions, from practical experience and consultation widely with agencies, organizations, business communities and people in society to bring quick solutions to. objects needed assistance. Legal documents issued by the Ministry of Finance or submitted to competent authorities for promulgation all specify the immediate application of support solutions without having to wait for reports on the impact of the business. At the same time, on the basis of the provisions of the Law on Tax Administration and guiding documents, beneficiaries will determine and declare the payable tax amount based on the tax law and their actual conditions. its implementation, ensuring its publicity, transparency and convenience.
. 2. Tax, fee, fee and land rent policy solutions in the coming time
In the coming time, in order to continue to support businesses and people to restore and stabilize production and business activities, and at the same time grasp development opportunities, the Ministry of Finance will focus on implementing the following solutions. :
• Submit to the Government for promulgation a Decree amending Decree No. 134/2016 / ND-CP dated September 1, 2016 to remove problems arising in the past time to promote production and export of flooring products. have high added value; remove difficulties for businesses operating in the fields of leather, footwear, textiles, agricultural, forestry, and fishery processing, ...
• Submit to the Government’s Prime Minister for promulgation a Decision on land rent reduction by 2020 for those affected by Covid- 19
• Closely coordinate with ministries, branches and localities to continue reviewing and cutting fees and charges to reduce costs for businesses and people.
The Ministry of Finance will also review the implementation of the issued solutions; continue to closely monitor the actual situation; synthesize recommendations of agencies, organizations and enterprises to study, review overall assessment, propose suitable solutions, report to competent agencies to consider and decide to remove difficulties for production and business activities and market support.
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