VAT to be cut to 8% from February 1st, 2022

01/02/2022 08:33

(BNP) – The General Department of Taxation issued Official Dispatch No. 01/CD-TCT on the implementation of the Government’s Decree No. 15 on tax reduction in accordance with the National Assembly’s Resolution 43/2022 on financial and monetary policies supporting the Program for Socio-economic Recovery and Development.

Illustrative photo.

Accordingly, reduction of the value-added tax rate (VAT) by 2%, applicable to groups of goods and services currently applying the 10% tax rate (to 8%), except for the following groups of goods and services: telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products; mining products (excluding coal), coke, refined petroleum, chemicals and chemical products; products, goods and services subject to excise tax. The Decree is expected to take effect from February 1, 2022 until the end of December 31, 2022,

In addition, it is allowed to include deductible expenses when determining corporate income taxable income for expenditures to support and sponsor businesses and organizations for COVID-19 prevention and control activities in Vietnam for the tax period 2022.

By P.H