Tax exemption policy for business households and individuals according to Decree 92/2021

The Government has issued Decree 92/2021/ND-CP detailing Resolution 406/NQ-UBTVQH15 on solutions to support businesses and people affected by the Covid-19 pandemic as follows:

Applicable objects:

• Business households and residential business individuals operate in all industries, having tax returns and payment taxes, having production and business activities in the areas of districts, towns, provincial cities, cities under the central government (hereinafter referred to as district-level areas) affected by the Covid-19 pandemic.

Chairpersons of People's Committees of provinces and cities under the central government shall base on the announcements related to the Covid-19 pandemic in 2021 of local competent agencies, in which there were the contents that stop or suspend the production and business activities of one or more business households and individuals in the area (including the blockade and social quarantine of one or more areas in the locality) to issue the list of district-level areas affected by the Covid-19 pandemic specified in this Clause 

The basis for determining the exempted tax amount 

In the cases the tax authority issues a notice of payment:

-The tax authority shall base on the payable tax amount of the months in the third and fourth quarter of 2021 on the notice of payment to determine the exempted tax amount of business households and individuals

In case the tax authority does not issue a notice of payment:

Taxpayers (including organizations, withholding individuals, declaring and paying on behalf of for business households and individuals; business households use single/volume invoices) shall base on the tax payable as per tax returns to determine the exempted tax amount of the months in the third quarter, the fourth quarter of 2021.

- In case of tax returns according to the payment period or annual tax returns (property leasing, private house construction, other exploitation each time it is incurred), the exempted tax amount is the payable tax amount corresponding to the actual revenue generated in the months in the third and fourth quarters of 2021.

 - In case the contracts for providing goods and services cannot determine the actual revenue generated in the months in the third and fourth quarters of 2021, the average monthly revenue shall be determined based on the contract value.

- In case the contract for providing goods and services is signed within a month, the duration of the contract shall be counted as a full month.
 Decree 92/2021/ND-CP takes effect from 19 October 2021.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.