The Prime Minister issued Directive No. 11/CT-TTg on 04 March 2020 to assign the relevant ministries to implement action plans to support businesses experiencing difficulties due to the impact of COVID-19. Among those, the Ministry of Finance is required to present action plans on the following:
- granting deferral of tax and land rent payment;
- granting tax and fee exemption, reduction;
- proposing a support package of 30,000 billion VND (approx. 1.3 billion USD);
- suspending periodical tax and customs inspection during 2020 on enterprises which have no sign of non-compliance;
- increasing deductions for personal income tax purposes;
- developing certain corporate income tax policies for small and medium enterprises;
- simplifying tax and customs administrative procedures.
Actions plans (a), (c), (e) and (g) are scheduled to be presented to the Government during March 2020.
On a related note, in February 2020 the Ministry of Finance proposed an increase in deductions for personal income tax purposes. Particularly, the deduction for the taxpayer is proposed to increase to VND 11 million/month from the current VND 9 million/month and deduction for dependants is proposed to increase from VND 3.6 million to VND 4.4 million/dependent/month.
It is expected that the Government will issue specific rules to implement the above-mentioned relief measures in the coming months.
If you have any questions on the matters covered or need further clarification on any particular issue, please do not hesitate to contact us.