Decree No. 15/2022/NĐ-CP on tax exemption and reduction policies pursuant to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic and Social Recovery Program

DECREE
Providing tax exemption and reduction policies pursuant to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies supporting the Program for economic recovery and social development

The Program for economic recovery and social development

phục hồi và phát triển kinh tế - xã hội

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Value Added Tax dated June 3, 2008; the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax dated June 19, 2013; the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax, the Special Consumption Tax Law, and the Law on Tax Administration dated April 6, 2016;

Pursuant to the Corporate Income Tax Law dated June 3, 2008; the Law Amending and Supplementing Certain Provisions of the Corporate Income Tax Law dated June 19, 2013;

Pursuant to the Law amending and supplementing certain Articles of Laws on Taxation dated November 26, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Program to Restore and Develop the Economy and Society;

At the proposal of the Minister of Finance;

The Government issues this Decree providing tax exemption and reduction policies pursuant to Resolution No. 43/2022/QH15 of the National Assembly dated January 11, 2022 on fiscal and monetary policies supporting the Program for economic recovery and social development (hereinafter referred to as Resolution No. 43/2022/QH15).

Article 1. Reduction of Value Added Tax

1. Reduce Value Added Tax on goods and services currently subject to a 10% tax rate, except for the following groups:

a) Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and products made from cast metals, mineral products (excluding coal mining), coke, refined petroleum products, chemical products. Details are set out in Appendix I attached hereto.

b) Goods and services subject to special consumption tax. Details are set out in Appendix II attached hereto.

c) Information technology according to the laws on information technology. Details are set out in Appendix III attached hereto.

d) The reduction of Value Added Tax for each type of goods and services specified in Clause 1 of this Article shall be uniformly applied at all stages including importation, production, processing, and commercial trade. For coal sold after mining (including cases where coal is mined and then screened and sorted through a closed-loop process before being sold), it is subject to the reduction of Value Added Tax. Coal items listed in Appendix I attached hereto, at other stages outside the stage of selling after mining, are not eligible for the reduction of Value Added Tax.

In cases where goods and services listed in Appendices I, II, and III attached hereto are exempt from Value Added Tax or subject to a 5% Value Added Tax rate under the Law on Value Added Tax, they shall be implemented in accordance with the provisions of the Law on Value Added Tax and shall not be eligible for a reduction in Value Added Tax.

2. Level of Value Added Tax Reduction

a) Businesses that calculate Value Added Tax using the deduction method shall apply a 8% tax rate for goods and services specified in Clause 1 of this Article.

b) Businesses (including individual businesses and sole proprietorships) that calculate Value Added Tax using the percentage method based on turnover shall have their tax rate reduced by 20% when issuing invoices for goods and services subject to Value Added Tax reduction as specified in Clause 1 of this Article.

3. Procedures for Implementation

a) For businesses specified in point a of Clause 2 of this Article, when issuing Value Added Tax invoices for goods and services eligible for Value Added Tax reduction, they must record "8%" in the tax rate field, the amount of Value Added Tax, and the total amount payable by the buyer. Based on the Value Added Tax invoice, the seller business declares the output Value Added Tax, while the buyer business declares the deductible input Value Added Tax according to the reduced tax amount recorded on the invoice.

b) For businesses specified in point b of Clause 2 of this Article, when issuing sales invoices for goods and services eligible for Value Added Tax reduction, they must fully record the pre-reduction price in the "Total Amount" column, and record the reduced 20% tax rate on turnover in the "Total Goods and Services Price" line, while noting: "reduced... (amount) corresponding to 20% of the tax rate to calculate Value Added Tax according to Resolution No. 43/2022/QH15."

5. In cases where a business has issued invoices and declared taxes at the applicable tax rate or percentage without the reduction provided for in this Decree, both the seller and buyer must prepare a written statement or agreement detailing the error, and the seller must issue a corrected invoice and provide it to the buyer. Based on the corrected invoice, the seller adjusts the output tax declaration, and the buyer adjusts the input tax declaration (if applicable).

6. In cases where businesses selling goods and services eligible for Value Added Tax reduction have already issued printed invoices in the form of tickets with pre-printed face values that have not been fully used (if any) and wish to continue using them, the business must stamp the reduced 2% tax rate or the reduced 20% percentage next to the pre-printed price to continue using them.

7. Businesses specified in this Article must declare goods and services eligible for Value Added Tax reduction according to Form No. 01 in Appendix IV attached hereto together with the Value Added Tax Declaration Form.

Article 2. Expenses deductible for determining corporate income tax revenue

Clause 1. Enterprises and organizations subject to corporate income tax under the Corporate Income Tax Law shall be allowed to include expenses for donations and sponsorships in monetary and in-kind forms provided to activities against the COVID-19 pandemic in Vietnam through units receiving donations and sponsorships as stipulated in Clause 2 of this Article in their deductible expenses when determining their corporate income tax revenue for the 2022 corporate income tax period.

In cases where the parent company receives donations and sponsorships from subsidiary units to centralize and implement donation and sponsorship activities, both the parent company and the subsidiary units shall be allowed to include such expenses in their deductible expenses corresponding to the donations and sponsorships made by the parent company and each subsidiary unit. The parent company must have a Minutes or document confirming the donation and sponsorship expenses as stipulated in Clause 4 of this Article. Each subsidiary unit must have legitimate invoices and documents in accordance with the law and a confirmation letter from the parent company regarding the donations and sponsorships of each subsidiary unit.

Clause 2. Units receiving donations and sponsorships include: People's Committees at all levels of the Vietnam Fatherland Front; healthcare facilities; military units; units and organizations assigned by competent state agencies to operate quarantine centers; educational institutions; press agencies; ministries, ministerial-level agencies, and government agencies; party organizations, youth unions, trade unions, and women's associations at central and local levels; local administrative units with functions to mobilize funding; COVID-19 Prevention and Control Funds at all levels; the COVID-19 Vaccine Fund; the National Humanitarian Information Portal; charitable and humanitarian funds and organizations with functions to mobilize funding established and operating in accordance with the law.

Units receiving donations and sponsorships are responsible for using and distributing the received donations and sponsorships for the intended purposes of activities against the COVID-19 pandemic. If a unit misuses the donated or sponsored funds, it will be dealt with according to the law.

Clause 3. Provincial People's Committees direct relevant agencies in their locality to strengthen coordination, exchange, and provide information to tax authorities and customs authorities to strictly manage and severely handle acts of inflating values or unreasonable declarations in donation and sponsorship activities; to strictly manage purchase and sale prices of goods and services, supply invoices, and handle cases where contract prices and supply invoice prices do not match actual conditions as prescribed by law.

Clause 4. Documentation for determining donation and sponsorship expenses includes: A confirmation Minutes on donations and sponsorships in Form No. 02 attached as Appendix IV to this Decree or a document (in paper or electronic form) confirming the donation and sponsorship expenses signed and stamped by the representative of the enterprise or organization making the donation or sponsorship and the representative of the receiving unit; accompanied by legitimate invoices and documents in accordance with the law for monetary or in-kind donations and sponsorships.

Article 3. Effectiveness and Implementation

Article 1. This Decree takes effect from February 1, 2022.

Article 1. This Decree shall take effect from February 1, 2022 to December 31, 2022.

Article 2. This Decree applies to the 2022 corporate income tax period.

2. Ministries, according to their functions and tasks, and People's Committees of provinces and centrally governed cities shall direct relevant agencies to implement publicity, guidance, inspection, and supervision to ensure consumers understand and benefit from the reduction in value-added tax as stipulated in Article 1 of this Decree, with a focus on measures to stabilize supply and demand for goods and services subject to reduced value-added tax, thereby maintaining basic stability in market prices (excluding value-added tax) from February 1, 2022 to December 31, 2022 compared to the period before February 1, 2022.

3. In the course of implementation, if any difficulties arise, they shall be referred to the Ministry of Finance for guidance and resolution.

4. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally governed city People's Committees, and related enterprises, organizations, and individuals are responsible for enforcing this Decree.