Headlines 20/01/2022 13:49 CH

2% reduction in the Value Added Tax (VAT) in 2022

Ngọc Duy

This is a notable content of Resolution No. 43/2022/QH15 on financial and monetary policies supporting the Program for Socio-economic Recovery and Development.

According to the Resolution, policies for tax exemption or reductions are as follows:

- In 2022, VAT on goods and services subject to 10% VAT will be reduced by 2% to 8%, excluding the following groups of goods and services:

Telecommunications, information technology; finance, banking, securities, insurance; trading of real estate, metal, precast metal products, mining products (excluding coal mining), cokes, refined petroleum, chemical products, goods, and services subject to excise tax.

- Allow donations and sponsors made by enterprises and organizations for COVID-19 epidemic control operation in Vietnam to be included in deductible expenses when calculating taxable corporate income for the tax period of 2022.

The Government shall provide guidelines and organize the implementation of Resolution No. 43/2022/QH15; submit reports to the National Assembly in the meeting period at the end of 2022 and 2023; submit the final report at the mid-2024 meeting period.

Resolution No. 43/2022/QH15 comes into force as of January 11, 2022.

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