Government eyes corporate income, value-added tax cuts

By Dat Nguyen August 15, 2021 | 08:09 pm PT

A motorbike driver stops at a checkpoint to show his travel details on his phone to officials amid the Covid-19 pandemic in Ho Chi Minh City on August 15, 2021. Photo by VnExpress/Quynh Tran

The government is seeking approval from the National Assembly for a number of tax breaks, including a 30-percent cut in corporate income tax, to boost businesses’ recovery.

The others include a 30-percent value-added tax cut for companies in sectors severely affected by the pandemic such as tourism, transport, accommodation, food and beverage, and entertainment, according to the government website.

Households businesses will get 50 percent cuts in income and value-added taxes for the third and fourth quarters of this year.

Besides, companies that have made losses for three consecutive years from 2018 will have fines waived for delayed payment of taxes since last year.

The Ministry of Finance has also proposed to the Prime Minister’s Office for a 30-percent reduction in land-use fees for Covid-19-hit businesses.

If approved, the tax and fees cuts are expected to cost the treasury VND138 trillion ($6.07 billion).